HP Reports Record Q3 Earnings Amid AI PC Growth
HP Inc. reported record fiscal third-quarter revenue of $15.7 billion in August 2026, a 13% increase year over year, driven by strong performance from its Personal Systems division. Non-GAAP earnings per share rose to $0.83, up 11%, partly due to tariff refunds. The company raised its full-year EPS outlook and free-cash-flow forecast for fiscal 2026. Personal Systems revenue reached a record high of $11.8 billion in Q3, growing by 18% year over year as AI PCs accounted for nearly half of shipments. HP expects this mix to reach 50% by the end of fiscal 2026 and potentially exceed 70% by 2028. However, Print revenue declined slightly due to market pressures. Despite rising costs in memory, storage, and commodities affecting fourth-quarter margins, HP anticipates improvement through pricing strategies, product redesigns, and a shift toward higher-margin products starting in fiscal 2027.
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Topics: ai_pcs cost_pressures free_cash_flow_forecast revenue_growth