HP Reports 18% Revenue Growth in Personal Systems Despite 16% Drop in Unit Shipments
In its fiscal third quarter of 2026, HP Inc. (NYSE:HPQ) reported an 18% year-over-year increase in Personal Systems revenue to $11.8 billion despite a 16% decline in unit shipments. This growth was attributed to higher pricing and a shift toward premium products, commercial systems, and AI-enabled devices. The company also benefited from increased sales of peripherals and services such as its Workforce Experience Platform. HP's cash generation improved significantly with $1.7 billion in operating cash flow and an adjusted free-cash-flow outlook raised to between $3.0 billion and $3.2 billion for the fiscal year. However, underlying demand remains weak, particularly among consumer PC units which fell 19%. Management noted that some customers delayed purchases due to price increases. The Personal Systems segment's operating margin dropped below HP’s long-term target range to 4.6%, with further declines expected in Q4 as higher memory and storage costs affect inventory.
Tickers: $HPQ
Topics: AI PCs free cash flow pricing strategy revenue growth unit shipments