HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and related technologies in the United States and internationally. It operates through three segments: Personal Systems, Printing, and Corporate Investments. The company serves small and medium-sized businesses, the public sector, and enterprises. Formerly known as Hewlett-Packard Company, it changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.
HP's AI PC Push and Raised Outlook Offset by Memory Cost Surge
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HP raises annual outlook on record Personal Systems revenue HP lifted its full-year guidance after record Personal Systems revenue, premium mix, pricing actions and tariff refunds boosted Q3. Demand is shifting to premium AI PCs and workstations, with about 70% of business commercial. This directly supports earnings and the stock.
This is the core positive fundamental driver for HPQ this period.
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New AI PC and workstation launches expand portfolio HP unveiled new OmniBook laptops with NVIDIA RTX Spark and a ZBook Ultra G3a mobile workstation with AMD and Perplexity, targeting creators and professionals. These products strengthen HP's AI PC lineup and could drive future sales and margins.
New product launches are a key growth catalyst for HPQ.
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Analyst initiation and sector surge on AI demand RBC initiated HP with a Sector Perform rating and $33 target, citing AI PC adoption and a 60-70% AI PC shipment goal by FY27. HP shares jumped 8% with Dell and HPE on enterprise AI demand and a PC refresh cycle, lifting investor sentiment.
Analyst coverage and sector momentum directly influence HPQ's stock price.
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Memory chip price surge pressures costs and margins Apple's CEO warned of a '100-year flood' in memory chip prices, and HP expects memory and storage costs to rise further as a percentage of bill of materials. Barclays says Fed rate hikes won't curb this AI-driven inflation, threatening HP's margins into 2027.
Rising component costs are a major risk to HPQ's profitability.
Q3 2026
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AI PC Push Lifts HP Revenue, But Memory Costs and Weak Demand Loom
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AI PC Momentum and OpenAI Partnership HP's AI PC push reached 46% of shipments, and its OpenAI partnership helped drive revenue up 12.5% to $15.7 billion, prompting raised guidance and record Personal Systems revenue.
This is the main positive force behind HP's price during the quarter.
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New Product Launches and Analyst Initiation New OmniBook and ZBook launches, a Huawei WiFi patent deal, and an RBC initiation with a $33 target further boosted investor sentiment.
These events contributed to positive sentiment and potential demand.
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Memory Chip Shortage and Cost Pressures A memory chip shortage quadrupled prices, and rising memory, storage, and CPU costs threaten margins into 2027.
This is a major negative force that could pressure HP's profitability.
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Weak PC Demand and Unit Decline PC unit shipments fell 16%, and weak CIO printer/PC spending persists, raising questions about whether AI hype masks weak underlying demand.
This indicates underlying demand weakness that could limit future growth.
News & notes movingHPQ
United States
Cloud & Digital Infrastructure▲
Spectrum Activates Edge AI Compute Across 1,000 Data Centers
Spectrum has begun activating computing power across its network, placing distributed compute capacity within 10 milliseconds of 500 million connected devices in homes and businesses across the U.S. through more than 1,000 smaller owned and operated edge data centers already built into its infrastructure. The company said it is enabling new AI applications with Cast AI, HP and Hydra Host, marking a commercial adoption milestone for its Edge Compute Infrastructure platform powered by NVIDIA. Cast AI, HP and World Wide Technology will join Spectrum at SCTE TechExpo 26 to demonstrate low-latency AI workloads, including a robotics demonstration from WWT featuring a Unitree G1 humanoid robot in Spectrum's booth B335. Cast AI will highlight its OMNI technology integrating NVIDIA Blackwell Ultra-based accelerated computing platforms into hyperscale cloud environments, while HP will showcase HP Z Boost and its ZGX Nano and ZGX Fury AI Stations for enterprise edge AI development. Spectrum also has an agreement with Hydra Host allowing Hydra's AI Factory platform to use capacity owned, hosted and operated by Spectrum on its ECI platform.
Cloud & Digital Infrastructure › Edge & Content Delivery ▲Technology
Artificial Intelligence › AI Compute Cloud & Neoclouds ▲Demand
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Demand
Artificial Intelligence › Edge & On-device AI Silicon ▲Demand
Robotics & Physical AI › Robotics AI & Embodiment Software Technology
Robotics & Physical AI › Humanoid Robots Technology
Robotics & Physical AI › Industrial Automation & Cobots Technology
CHTR · Demand · Positive Spectrum activated edge AI compute across 1,000 data centers, enabling new AI applications with partners — a commercial adoption milestone for its Edge Compute Infrastructure platform.
HPQ · Demand · Positive HP is named as a partner enabling new AI applications and will showcase its Z Boost and ZGX AI Stations for enterprise edge AI development on Spectrum's platform.
NVDA · Demand · Positive Spectrum's Edge Compute Infrastructure platform is powered by NVIDIA, and Cast AI will integrate NVIDIA Blackwell Ultra-based accelerated computing platforms into hyperscale cloud environments.
Cast AI · Demand · Positive Cast AI is named as a partner enabling new AI applications and will highlight its OMNI technology integrating NVIDIA Blackwell Ultra platforms at the demonstration.
Hydra Host · Demand · Positive Spectrum has an agreement allowing Hydra Host's AI Factory platform to use capacity owned, hosted and operated by Spectrum on its ECI platform.
Google Opens Pre-Orders for Googlebook Premium Laptop Starting at $899
Alphabet's Google has opened pre-orders for Googlebook, a new premium laptop category for Android users built around its Gemini AI tools. Starting at $899, the first models come from Acer, Asus, Dell, HP and Lenovo, running on Intel or Qualcomm chips with up to 14 hours of battery life. The launch marks Google's first flagship ChromeOS attempt since the Pixelbook in 2017 and Pixelbook Go in 2019, pushing the Chromebook formula from low-end student hardware into premium territory with tighter Android integration and Gemini features that draft and organize text, answer questions about on-screen content, and resume tasks handed off from an Android phone. The move comes as Apple pushes down-market in pricing with its $699 MacBook Neo. Alphabet shares were up 1.48% intraday.
HP Unveils Googlebook 14 Laptop Starting at $1,199.99
HP Inc. announced the HP Googlebook 14, a premium 14-inch laptop built on Google's new Googlebook platform and powered by the Snapdragon X Elite processor. The device is expected to be available at HP.com and Best Buy in October for a starting price of $1,199.99, and buyers will receive a 12-month Google AI Pro membership at no additional cost, plus a curated bundle of apps and services valued at up to $350. HP said the laptop is designed to work seamlessly with supported Android devices, letting users move tasks, files and apps between phone and laptop, with Gemini built in for contextual suggestions and productivity features. The Googlebook 14 measures just 10.91mm thin and offers up to 19 hours of battery life, a 3K OLED touch display with up to 120Hz variable refresh rate, a 5MP IR camera with facial recognition, quad speakers with HP Audio Boost 2.0, and a Glowbar that shows battery and charging status when the lid is closed. HP said the laptop uses recycled metal, post-consumer recycled keyboard components, ocean-bound plastic and sustainably sourced packaging, and carries EPEAT Gold with Climate+ certification.
HPQ · Technology · Positive HP unveiled its new Googlebook 14 laptop with Snapdragon X Elite, 3K OLED display and 19-hour battery.
GOOG · Technology · Positive HP's Googlebook 14 is built on Google's new Googlebook platform with Gemini built in, expanding Alphabet's platform and AI ecosystem.
BBY · Demand · Positive Googlebook 14 will be sold at Best Buy in October, giving the retailer a new premium laptop to sell.
HP forecasts mid-single-digit PC volume decline in 2027
HP Inc. told investors in a fresh SEC filing that it expects global PC unit volumes to shrink by mid-single digits in calendar 2027 compared to 2026, sending its shares down 2% in Monday morning trading. The Palo Alto company said the projection aligns with current third-party industry forecasts and that it remains in its planning period for fiscal 2027, so it is not providing financial guidance for that fiscal year at this time. HP had already said on August 26, 2026, during its third quarter fiscal 2026 earnings conference call, that it was premature to give specifics on its fiscal year outlook, including PC unit volumes. The company cautioned that its planning assumption depends on market performance in the second half of calendar 2026, which remains fluid and subject to change. The disclosure points to continued headwinds for the PC industry in the coming year.
HPQ · Demand · Negative HP forecasts global PC unit volumes to shrink mid-single digits in calendar 2027, signaling weaker end-customer demand for its PCs.
Barclays strategist Venu Krishna warned Thursday that the Federal Reserve's first rate hike since 2023 will not tame the explosive memory chip price inflation driven by the AI boom, calling it a key earnings risk to watch in 2027. Krishna said rapidly expanding compute requirements for training and inference are straining an already limited supply of memory chips. He pointed to recent commentary from major memory buyers, noting that Apple attributed all of its recent gross margin compression to higher memory costs expected to persist near term, while HP Inc. expects memory and storage costs to rise further as a percentage of bill of materials. Samsung, both a memory manufacturer and customer, said pre-booked demand implies a wider memory supply-demand gap in 2027 than in 2026, reinforcing expectations for sustained pricing strength. The market has tightened as demand for high-bandwidth memory and advanced dynamic random-access memory used in AI servers outpaces supply, with SK Hynix, Samsung Electronics, and Micron largely sold out of premium AI memory capacity through much of 2026 as customers including Nvidia, Microsoft, Amazon, and Meta race to build AI infrastructure. Experts expect supply to remain constrained into 2027, a favorable backdrop for producers such as Micron and Sandisk but likely higher-than-expected costs for companies that run their businesses on these chips.
MU · Supply · Positive Micron is largely sold out of premium AI memory capacity through much of 2026 amid constrained supply, a favorable backdrop for producers.
000660.KO · Supply · Positive SK Hynix is largely sold out of premium AI memory capacity through much of 2026 as demand outpaces supply.
005930.KO · Demand · Positive Samsung said pre-booked demand implies a wider memory supply-demand gap in 2027, and it is largely sold out of premium AI memory capacity, supporting pricing strength.
AAPL · Supply · Negative Apple attributed all of its recent gross margin compression to higher memory costs expected to persist near term.
SNDK · Supply · Positive Sandisk is cited as a producer benefiting from the constrained memory supply and sustained pricing strength.
HPQ · Supply · Negative HP Inc. expects memory and storage costs to rise further as a percentage of bill of materials.
HP Unveils ZBook Ultra G3a Mobile Workstation With AMD and Perplexity
HP Inc. announced the HP ZBook Ultra G3a, a 16-inch thin-and-light mobile workstation it describes as a personal AI factory for professionals, powered by AMD and enhanced by Perplexity. The system supports up to 300B-parameter large language models running locally, with up to 192GB of unified memory and 160GB dedicated to VRAM, and is built on up to an AMD Ryzen AI Max+ PRO 495 chip with a 55 TOPS NPU. Perplexity Computer comes preloaded, including supported integration for Autodesk Revit, and HP and Perplexity have co-developed task-based Skills available exclusively to HP customers. The workstation starts at 4.2 lbs. and 17.9 mm thin, and a new thermal design delivers up to 81.8% higher TDP, enabling up to 100W of performance. The HP ZBook Ultra G3a 16-inch is expected to be available in October 2026, with pricing to be provided closer to availability.
HPQ · Technology · Positive HP unveiled the ZBook Ultra G3a mobile workstation, its own new AI-focused product with AMD silicon and Perplexity software.
Perplexity AI, Inc. · Demand · Positive Perplexity Computer comes preloaded on the HP ZBook Ultra G3a and HP and Perplexity co-developed exclusive task-based Skills for HP customers.
AMD · Technology · Positive HP's ZBook Ultra G3a is built on AMD's Ryzen AI Max+ PRO 495 chip with a 55 TOPS NPU, a design win for AMD's AI PC silicon.
ADSK · Demand · Positive HP and Perplexity's preloaded Perplexity Computer includes supported integration for Autodesk Revit, expanding Revit's reach on new HP workstations.
HP Raises Annual Outlook on Record Personal Systems Revenue and Tariff Refunds
HP Inc. raised its annual guidance after record Personal Systems revenue, a premium product mix, pricing actions and IEEPA tariff refunds lifted its third-quarter results, Chief Financial Officer Karen Parkhill said at the Goldman Sachs Communacopia + Technology Conference. The company raised its outlook even excluding the benefit of tariff refunds, and it expects roughly $0.08 of additional refund benefit in the fourth quarter, after refunds contributed about $0.11 to third-quarter earnings and approximately 80 basis points to both gross and operating margin. HP expects Personal Systems margins to be lower in the fiscal fourth quarter than in the third quarter before improving sequentially and returning to its long-term 5% to 7% range at some point in fiscal 2027, while Print operating margins are expected at the low end of the 16% to 19% target range on unit placements and higher input costs. Demand is shifting toward premium AI PCs, workstations and hybrid AI solutions that run workloads locally and in the cloud, and about 70% of HP's business was commercial in the latest quarter. In Print, roughly 17 million printers were sold worldwide in the quarter, with Big Tank models accounting for about one-third of that volume, and the company gained four points of Big Tank market share. Parkhill also said HP's CEO search is progressing within a typical six- to 12-month timeline, and the company plans to provide its fiscal 2027 outlook during its fourth-quarter earnings call regardless of whether a permanent CEO has been appointed by then.
Artificial Intelligence › Edge & On-device AI Silicon ▲Demand
HPQ · Capital · Positive HP raised its annual guidance after record Personal Systems revenue, premium mix, pricing actions and IEEPA tariff refunds lifted Q3 results.
HPQ · Demand · Positive Demand is shifting toward premium AI PCs, workstations and hybrid AI solutions, with about 70% of business commercial.
Dell, HPE and HP Surge on AI Demand and PC Refresh
Shares of Dell, Hewlett Packard Enterprise and HP each jumped 8% or more in Friday morning trading, lifted by sustained enterprise AI demand and a PC refresh cycle. HPE also got a boost from strong earnings at Oracle, which earlier this month announced a partnership to deploy HPE's routing and switching platforms across all of its data centers as it scales AI infrastructure; Oracle's remaining performance obligations grew $209B in the first quarter to $664B, including more than $30B in additional AI cloud contracts. Dell received an Outperform rating and a $640 price target as RBC Capital Markets initiated coverage, with analyst David Paige noting Dell exited 2Q27 with $95bn in AI server backlog and converted roughly $132bn into orders over the last twelve months. RBC also initiated coverage on HP with a Sector Perform rating and a $33 target, citing AI PC adoption, edge computing and data privacy needs, and noting HP is targeting AI PC shipments of 60-70% by FY27, up from about 45% in 3Q26.
DELL · Capital · Positive RBC initiated coverage with an Outperform rating and $640 price target, citing Dell's $95bn AI server backlog and $132bn in orders.
HPE · Demand · Positive HPE's routing and switching platforms are being deployed across all of Oracle's data centers as it scales AI infrastructure.
HPQ · Capital · Positive RBC initiated coverage on HP with a Sector Perform rating and $33 target, citing AI PC adoption and its 60-70% AI PC shipment goal by FY27.
ORCL · Demand · Positive Oracle's strong earnings and $209B rise in performance obligations, including $30B+ in AI cloud contracts, lifted HPE and peers.
US PC Shipments Grew 1.0% in 2Q26, Full-Year Forecast to Decline 10.7%
New Omdia research shows that US PC shipments, excluding tablets, grew 1.0% year-over-year in 2Q26 to 18.8 million units, returning to growth after a 7.0% decline in 1Q26, but the firm forecasts a 10.7% decline for the full year and an 18.4% drop in the second half of 2026. Growth was driven by retailers and channel partners securing inventory ahead of price increases from memory and storage supply constraints, pushing average PC sell-in prices above $1,000 for the first time, up 12.0% year-over-year. Shipments of PCs priced below $699 fell 6.5%, while those above $1,500 jumped 36.8%, and AI PCs accounted for 48.3% of shipments, forecast to exceed 50% in 3Q26. Apple moved into third place ahead of Lenovo with shipments up 32.1%, while Dell fell 8.8% and HP declined 3.7%, though both recorded revenue growth. Omdia projects US PC shipments to decline a further 4.9% in 2027, with revenue down 6.0% as higher prices fail to offset lower volumes.
Dell Expands Consumer PC Lineup with Dell 14S to Challenge HP and Apple
Dell Technologies has introduced the Dell 14S, an affordable lightweight laptop aimed at students and young adults, as part of its strategy to broaden its consumer portfolio and compete more effectively against HP and Apple. The device features a 13.5mm aluminum chassis, weighs 1.15 kg, offers up to 21 hours of battery life, and comes with 2K 60Hz or 2.8K 120Hz display options, powered by Intel Core 5 and Core 7 Series 3 processors. Expected to be available in North America this fall, the Dell 14S complements the premium XPS 13, helping Dell address a wider range of price points. In the second quarter of fiscal 2027, Dell's consumer revenues rose 7% year over year to $1.8 billion, marking the fourth consecutive quarter of growth, while total Client Solutions Group revenues increased 20% to $15 billion, with operating income of $1.1 billion. Dell expects CSG revenues to grow roughly 15% in the fiscal third quarter and in the mid-teens for fiscal 2027. However, Dell faces stiff competition: HP's Personal Systems revenues climbed 18% to a record $11.8 billion in the third quarter of fiscal 2026, with AI PCs representing 46% of its mix, and Apple's Mac revenues surged 29% to $10.4 billion, driven by strong education demand for MacBook Neo. Dell's stock has appreciated 316.3% year to date, and the Zacks Consensus Estimate for its earnings is $6.64 per share, up by $2.32 over the past 30 days, suggesting 156.37% growth.
HP Unveils New OmniBook PCs Powered by NVIDIA RTX Spark
HP Inc. announced its new HP OmniBook Ultra 16 and HP OmniBook X 14 laptops, along with new details on the upcoming HP OmniDesk, all powered by NVIDIA RTX Spark and Windows, expanding its portfolio of next-generation AI PCs for creators, developers, gamers, and advanced AI users. The OmniBook Ultra 16, the world's thinnest RTX Spark laptop, offers up to 128 GB of unified memory and up to 1 petaflop FP4 AI performance, a 16-inch 3K OLED display, and up to 17 hours of battery life. The OmniBook X 14 brings RTX Spark experiences to a thin-and-light design with up to 15 hours of battery life and fast charging via a 140W USB-C GaN adapter. The HP OmniDesk, a compact desktop, is designed for always-on AI performance, with more details to come. Both laptops are expected to be available this fall at HP.com and other retailers, with pricing announced closer to availability.
Tim Cook Steps Down as Apple CEO, Warns of 'Hundred-Year Flood' in Memory Chip Prices
After 15 years at the helm of one of the world's most valuable companies, Cook stepped down as chief executive on Sept. 1, handing the reins to longtime hardware chief John Ternus. Cook remains as executive chairman, but in his final earnings call he warned that Apple faced a "100-year flood" in memory-chip pricing, driven by AI data center demand. He told The Wall Street Journal, "This is a hundred-year flood. I've never seen anything like it in any area in over 40 years." Tesla and SpaceX CEO Elon Musk publicly agreed, calling it the "biggest price jump in anything I've ever seen." Apple has raised prices on Mac and iPad models, and other makers like Microsoft, Hewlett-Packard, Dell, and Nintendo have followed. Cook's warning underscores that inflation, though eased from its 2022 peak, still threatens purchasing power, with $100 in 2026 equaling just $11.61 in 1970.
Dell is set to report earnings this Tuesday after market hours, with analysts expecting revenue to grow 51.5% year on year, up from a 19% increase in the same quarter last year. The company beat revenue expectations last quarter with $43.84 billion, up 87.5% year on year, and also exceeded EPS estimates. Analysts have generally reconfirmed their estimates over the past 30 days, though Dell has missed revenue estimates multiple times in the last two years. In the hardware and infrastructure segment, peers HP and Everpure have already reported strong results, with HP revenue up 12.5% and Everpure up 37.7%, though their stocks declined. Dell shares are up 6.3% over the past month, with an average analyst price target of $510.26 versus the current price of $456.25.
All 18 S&P 500 companies that reported earnings last week beat Wall Street's EPS estimates and posted year-over-year earnings growth, with 17 of 18 also beating revenue estimates. Notable results included CrowdStrike, which surged after Q2 revenue rose 25.8% to $1.47B, and Nvidia, whose Q2 revenue more than doubled to $96.22B. HP lifted its FY2026 adjusted EPS outlook to $3.19-$3.29, while Best Buy raised its FY2027 revenue outlook to $42.3B-$42.8B. Marvell Technology delivered Q2 revenue of $2.74B, up 37% year-over-year, and Autodesk raised its FY2027 billings outlook to $8.575B-$8.65B. Intuit beat Q4 estimates but fell on softer FY2027 guidance. Upcoming reports include Palo Alto Networks, Broadcom, Medtronic, and lululemon athletica.
HP Personal Systems Revenue Rises 18% Despite Falling Unit Shipments
HP Inc. reported fiscal third-quarter Personal Systems revenue of $11.8 billion, up 18% year over year, even as unit shipments fell 16%, implying a roughly 40% increase in revenue per unit. The growth was driven by a shift toward commercial, premium, and AI-enabled PCs, with AI PCs making up 46% of shipment mix and commercial products generating over 70% of segment revenue. However, consumer units declined 19% and commercial units fell 14%, and management expects the broader PC unit market to decline by a high-teens percentage in the second half of calendar 2026. Personal Systems operating margin fell to 4.6%, below its long-term range, and is expected to decline further in the fourth quarter due to higher memory and storage costs. Printing revenue fell 2% to $3.9 billion, with supplies down 3% and hardware units down 7%, though print operating margin rose to 18.1%. The company raised its fiscal-year free-cash-flow outlook to $3.0 billion to $3.2 billion and reported non-GAAP diluted EPS of $0.83, including an $0.11 benefit from tariff refunds.
HP Shares Fall 5.8% on Margin Pressure Despite Earnings Beat
HP shares fell 5.8% in afternoon trading after the company reported second-quarter results that showed compressed profit margins in its personal computer division, overshadowing better-than-expected revenue and earnings. The company generated revenue of $15.68 billion, up 12.5% year-over-year, with Personal Systems revenue rising 18% to $11.8 billion, while Printing segment revenue fell 2% to $3.9 billion. Operating margins in Personal Systems dropped to 4.6% due to higher component costs, but adjusted EPS of $0.83 beat consensus estimates of $0.69. Management lifted its full-year adjusted EPS outlook to between $3.19 and $3.29, supported by tariff refunds, though Bank of America analysts reiterated an Underperform rating, citing margin pressure from rising memory costs, slower PC unit growth, and leadership transition uncertainty. After the initial drop, shares recovered slightly to $29.35, down 4.6% from the previous close.
HP shares fell about 11% in premarket trading Thursday after the PC and printer maker reported strong revenue growth but warned of rising component costs and sharply lower PC shipments pressuring margins. Fiscal third-quarter revenue rose 12.5% year over year to $15.7 billion, with non-GAAP EPS up 10.7% to $0.83, but total PC units fell 16%, including a 19% decline in consumer units and a 14% decline in commercial systems. CFO Karen Parkhill said input costs are expected to rise, particularly in Personal Systems, and the company expects the broader PC unit market to decline by a high-teens percentage in the second half of calendar 2026. Morgan Stanley analyst Erik Woodring raised his price target to $19 from $17 but maintained an Underweight rating, citing potential for more than 10% PC unit declines in fiscal 2027 and continued Print pressure. HP raised its fiscal 2026 non-GAAP EPS outlook to $3.19 to $3.29 and free-cash-flow guidance to $3.0 billion to $3.2 billion, while fourth-quarter non-GAAP EPS is expected at $0.69 to $0.79.
Nvidia surged 9% after second-quarter revenue and earnings beat expectations, with adjusted earnings of $2.22 per share on $96.22 billion in revenue, surpassing analyst estimates of $2.10 per share and $92.17 billion, and the company forecast third-quarter revenue of $108 billion. Salesforce soared 21% after adjusted earnings of $5.90 per share beat an LSEG estimate of $3.27, while Okta jumped over 27% on better-than-expected results and raised guidance. Veeva Systems climbed 16% on strong quarterly results and upbeat guidance, but HP fell 4% despite beating revenue estimates due to concerns over memory costs and margins. Moderna dropped 4% after proposing a $2 billion convertible notes sale, Celsius fell nearly 6% on a Deutsche Bank downgrade, and Wendy's tumbled 13% after reports that Trian Fund Management won't pursue a buyout. Dollar General rose 5% after raising full-year guidance, while Dollar Tree, Burlington Stores, Best Buy, and Hormel Foods declined on various earnings-related concerns.
Nvidia, Salesforce, Dollar General Lead Premarket Movers
In premarket trading, Nvidia shares surged over 7% after the AI infrastructure company beat expectations on both lines in the second quarter, reporting adjusted earnings of $2.22 per share and revenue of $96.22 billion, against analyst consensus of $2.10 per share and $92.17 billion, with third-quarter revenue guidance of $108 billion also exceeding forecasts. Dollar General jumped 12% after raising its full-year earnings guidance to between $7.80 and $8.00 per share, up from a prior range of $7.20 to $7.45, and announced plans to repurchase shares in the second half of its fiscal year ending January 29, 2027. HP dropped nearly 11% despite beating fiscal third-quarter estimates and providing above-consensus full-year guidance. Salesforce rose nearly 12% after reporting adjusted earnings of $5.90 per share, well above the LSEG estimate of $3.27. Okta climbed over 19% on second-quarter results that beat expectations, with adjusted earnings of $1.05 per share on revenue of $805 million, and raised its full-year guidance. CrowdStrike gained nearly 10% after its second-quarter results beat on revenue and earnings, with full-year guidance also topping estimates. Everpure rose nearly 3% after Bank of America upgraded it to buy from neutral, citing positive estimate revisions and revenue growth from internal hyperscaler use. Abercrombie & Fitch fell 1.4% after Citi downgraded it to neutral from buy, citing limited upside after a strong run.
Nvidia, Salesforce, CrowdStrike Rally on Strong Earnings
U.S. stock futures were broadly higher on Thursday after Nvidia's upbeat quarterly results reignited investor enthusiasm for artificial intelligence, while traders looked ahead to a key speech from Federal Reserve Chair Kevin Warsh for further clues on the path for interest rates. Nvidia stock surged 7.4% in pre-open trading after the chip giant delivered another record-breaking quarter that beat Wall Street expectations across the board and issued a forecast that significantly exceeded estimates. Revenue for the quarter ended July 26 reached $96.2 billion, up 106% from a year earlier and ahead of consensus of roughly $92 billion, while adjusted earnings per share came in at $2.22, beating estimates of $2.08-$2.09 by about 6.7%. CrowdStrike shares jumped 8.9% in pre-open trading after the cybersecurity company delivered fiscal second-quarter 2027 results that beat expectations across the board and raised its full-year outlook, with net new annual recurring revenue reaching a record $333 million. Salesforce shares jumped 11% in premarket trading after the enterprise software company reported adjusted earnings per share of $5.90, well above the analyst estimate of $3.27, and revenue rose 11% year-over-year to $11.35 billion. In contrast, HP shares slid nearly 10% after its fiscal third-quarter results and outlook raised concerns about margins and underlying demand, despite revenue of $15.7 billion topping estimates, as PC unit volumes fell 16% year-over-year.
HP's Q4 Profit Outlook Beats Estimates on AI PC Demand
HP Inc. on Tuesday issued a fourth-quarter (August-October) profit outlook that beat market expectations. The company said it can absorb memory semiconductor costs thanks to tariff refunds, higher-priced products, and price increases on AI-enabled PCs. HP forecast adjusted earnings per share of $0.69 to $0.79 for the fourth quarter, above the average analyst estimate of $0.67 compiled by LSEG. The outlook includes a $0.08 per share boost from tariff refunds. For the third quarter (May-July), revenue rose 12.5% year over year to $15.7 billion, beating the market estimate of $14.38 billion, driven by strong demand for AI-optimized PCs. Adjusted EPS was $0.83, including a $0.11 boost from tariff refunds, above the consensus estimate of $0.69. For the full year, the company raised its adjusted EPS outlook to $3.19-$3.29 from $2.90-$3.10, with a $0.19 positive impact from tariff refunds expected.
CrowdStrike, Okta, and HP Inc. reported earnings after the bell, with shares moving sharply in opposite directions. CrowdStrike jumped after a strong second quarter, with revenue and adjusted earnings topping expectations and annual recurring revenue reaching almost $6 billion, also above estimates. The company raised its full-year revenue outlook, citing strong demand as AI-driven cyber threats grow. Okta also surged after raising its full-year outlook for a second time, now expecting revenue growth of 10 to 11% with a record subscription backlog, and noting that new products make up 30% of bookings. In contrast, HP Inc. plunged despite beating estimates on the top and bottom lines and issuing upbeat guidance, as investors worried about worsening PC and printer sales and rising memory chip costs leading to higher consumer prices.
HP Inc reported third-quarter results that beat analyst expectations, but shares fell over 9% in after-hours trading Wednesday as investors took profits following an 18.5% gain in the past month. The company posted adjusted earnings per share of $0.83, beating the consensus of $0.66, and revenue of $15.7 billion, up 12.5% year-over-year and above the $14.34 billion estimate, with results including a favorable $0.11 impact from tariff refunds. HP raised its full fiscal year 2026 adjusted EPS guidance to a range of $3.19 to $3.29, with a midpoint of $3.24 that exceeds the consensus of $3.04, and for the fiscal fourth quarter it expects adjusted EPS of $0.69 to $0.79, including an $0.08 favorable impact from estimated tariff refunds. The company also raised its free cash flow outlook for fiscal 2026 to $3.0 billion to $3.2 billion. In the Personal Systems segment, revenue rose 18% to $11.8 billion, though total units declined 16%, while the Printing segment saw revenue of $3.9 billion, down 2% year-over-year. HP generated $1.6 billion in free cash flow during the quarter and returned $574 million to shareholders through $300 million in share repurchases and $274 million in dividends, ending the quarter with $4.2 billion in gross cash.
HP signs multi-year WiFi patent licensing deal with Huawei
HP has signed a multi-year global agreement to license certain WiFi patents from Chinese telecoms giant Huawei, the companies announced Wednesday. The deal follows a patent dispute that resulted in an agreement allowing HP access to a pool of 2,000 patents related to wireless network connectivity, of which Huawei is a founding member. The latest cross-licensing agreement includes reciprocal patent rights from HP, according to Steven Geiszler, who represented Huawei in negotiations. This marks adoption of Huawei's technology outside China despite U.S. blacklisting in 2019. HP is scheduled to release earnings Thursday morning Beijing time.
HP Launches HyperX Gear and HP Care Complete Plans
HP announced a major HyperX product lineup launch, including the Cloud Alpha Air headset and Pulsefire Haste 3 Pro mouse, aimed at gamers and creators. The company also introduced HP Care Complete, a subscription-based device protection and support plan created in collaboration with Asurion, designed to cover ongoing device protection, repair and support needs across the device lifecycle. The twin announcements highlight HP's focus on gaming peripherals and recurring service offerings tied to its hardware base. HP operates across personal computing, printing and gaming, with a market cap of about $27.0 billion.
HPQ · Demand · Positive New HyperX product launches and HP Care Complete subscription target gamers and creators, boosting demand for HP's gaming peripherals and services.
US warns Apple against buying memory chips from China
The U.S. government is not in favor of Apple buying memory chips from Chinese companies, Commerce Secretary Howard Lutnick said in an interview, according to The Wall Street Journal. Amid an AI-driven supply crunch in computer memory, Apple and other device makers such as HP are increasingly looking at China for supplies as demand keeps rising, sending prices for the critical component sharply higher. This week, the Journal reported that Apple has been testing memory chips from Chinese semiconductor maker CXMT with plans to use them in its product lines, including iPhones and MacBooks. While federal rules require U.S. firms to obtain a license before transferring product information to Chinese chipmakers CXMT and Yangtze Memory Technologies, Apple is not barred from buying their off-the-shelf components and engaging in pricing talks with them. Lutnick said the Trump administration is not in favor of that, and there should be other solutions to the memory issue, but it's not great American companies using Chinese memory. He added that the White House continues to urge Apple to boost its U.S. manufacturing footprint, saying the company has built its supply chains on low-cost labor and now needs to build a supply chain on advanced manufacturing.
HP said it expects fiscal third-quarter earnings per share slightly above analyst forecasts, even as management warned that higher memory, storage, and CPU costs could pressure profitability and test the resilience of AI PC-driven demand. The company's guidance comes amid flat longer-term demand expectations and less profitable incremental sales, sharpening focus on whether HP can better align its product mix and services with customer needs this cycle. HP's recent OpenAI Frontier partnership is seen as especially relevant, positioning the company to embed more AI capabilities directly into its devices and workflows, which could help defend pricing and support the AI PC narrative now being tested by rising input costs. HP's narrative projects $58.3 billion revenue and $2.7 billion earnings by 2029, with a fair value estimate of $22.91, a 27% downside to its current price.
Artificial Intelligence › Edge & On-device AI Silicon Competition
HPQ · Supply · Neutral Rising component costs could pressure profitability, but guidance slightly above forecasts and AI PC demand provide mixed signals.
Super Micro, Dell, and HP Jump After Strong Lenovo Earnings
Shares of AI server and PC hardware makers rallied after Lenovo reported a blowout quarter. Super Micro Computer surged 10% to $41, Dell Technologies rose 3% toward $500, Hewlett Packard Enterprise gained 5%, and HP Inc. added 3%. Lenovo's April-to-June revenue of $26.94 billion beat Wall Street's $22.44 billion estimate, and its AI server pipeline jumped 157% sequentially to $54 billion. Super Micro also guided fiscal 2027 revenue to $65 billion to $72 billion, far above the $53.3 billion consensus, though negative operating cash flow remains a concern.
Apple tests CXMT Chinese memory chips for iPhones and MacBooks
Apple is evaluating memory chips from Chinese manufacturer CXMT for use in iPhones and MacBooks, with early talks focused on devices sold in China. The company is also seeking White House approval to use the chips in China-market products, according to Semafor, as a global memory shortage driven by AI infrastructure demand squeezes component supply. A bipartisan group of U.S. senators urged Apple in July not to pursue Chinese chips, while an analyst cited by CNBC said CXMT's technology lags industry leaders SK Hynix, Samsung, and Micron by two to three generations. HP and Acer are already sourcing CXMT chips for products sold outside the United States to offset tightening supply, Reuters reported. Apple CEO Tim Cook announced price increases roughly two months ago, calling surging memory costs a "hundred-year flood" and saying the company was willing to use its balance sheet to help bring additional memory capacity to market.
688825.CG · Demand · Positive Apple evaluating CXMT chips for iPhones and MacBooks represents potential major customer demand for CXMT's memory products.
AAPL · Supply · Neutral Apple evaluating CXMT chips for China-market devices amid memory shortage, but tech lags and political pressure create uncertainty.
000660.KO · Competition · Negative Apple's interest in CXMT chips could erode SK Hynix's dominance in memory supply.
005930.KO · Competition · Negative Samsung faces potential competition from CXMT if Apple adopts Chinese chips, though tech lag.
MU · Competition · Negative CXMT's potential adoption by Apple could threaten Micron's market share, though tech gap noted.
HPQ · Supply · Positive HP already sourcing CXMT chips to offset tightening supply, benefiting from alternative source.
Microsoft Q4 Fiscal 2026 Revenue Seen at $87.4 Billion, Azure Growth Steady at 39-40%
Microsoft is set to report fourth-quarter fiscal 2026 results on July 29, with total company revenues expected between $86.7 billion and $87.8 billion, representing growth of 13% to 15%. The Zacks Consensus Estimate for revenues is $87.42 billion, indicating 14.36% year-over-year growth, while the consensus earnings estimate has edged down 0.2% over the past 30 days to $4.21 per share, suggesting 15.34% growth. Azure constant-currency growth is guided at 39% to 40%, similar to the prior quarter, though management reiterated that capacity constraints will persist through 2026. Capital expenditures are expected to exceed $40 billion for the quarter, part of a roughly $190 billion calendar-2026 total, which is expected to compress operating margin to roughly 44% from 46.3% in the prior quarter. The More Personal Computing segment faces headwinds, with the consensus estimate pointing to a 10.5% year-over-year revenue decline to $12.03 billion, as worldwide PC shipments fell 4.9% in the second quarter of 2026, the first decline after nine consecutive quarters of growth.
Bernstein survey shows IBM spending intentions remain deeply negative
A Bernstein survey of 100 U.S. and European CIOs found net spending intentions for IBM remain deeply negative and continue to deteriorate, even as overall CIO expectations for IT spending stayed broadly constructive. Analyst Mark Newman said Bernstein forecasts 2026 IT spending growth in line with Gartner's estimated 12%, noting sentiment has diverged regionally, with European CIOs becoming more pessimistic than their American counterparts. Cybersecurity software remained the top spending priority, followed by GenAI and storage, while spending intentions were weakest for traditional infrastructure categories including x86 servers, mainframes and printers. Across vendors, IBM alongside HP Inc. and HPE showed deeply negative net spending intentions, though HP and HPE were both improving, while Dell continued to fare better than its infrastructure peers and also improved versus prior surveys. In cloud and software, Microsoft, Amazon and ServiceNow ranked highest, with Microsoft and OpenAI viewed as the leading long-term AI platforms.
Cloud & Digital Infrastructure › Mega-cap Hyperscalers ▼Demand
Artificial Intelligence › AI Server OEM & System Integration ▼Demand
IBM · Demand · Negative IBM's net spending intentions remain deeply negative and continue to deteriorate.
HPE · Demand · Negative HPE showed deeply negative net spending intentions, though improving.
HPQ · Demand · Negative HP Inc. showed deeply negative net spending intentions, though improving.
DELL · Demand · Positive Dell fared better than infrastructure peers and improved versus prior surveys, indicating stronger spending intentions.
MSFT · Demand · Positive Microsoft and OpenAI are viewed as the leading long-term AI platforms, and Microsoft ranked highest in cloud and software spending intentions.
NOW · Demand · Positive ServiceNow ranked highest in cloud and software spending intentions among CIOs.
Lenovo's PC shipments fell 2.1% in Q2 2026 amid a 3.6% global market decline
Lenovo Group, the world's largest PC vendor, saw its worldwide desktop and notebook shipments drop 2.1% year-over-year in the second quarter of 2026, according to Omdia. Global shipments of desktops, notebooks and workstations fell 3.6% to 65.7 million units, as higher memory and storage costs pushed up PC prices and weakened demand. Lenovo's market share rose to 25.3% from 24.9% a year ago, while HP's shipments declined 9% and Dell's fell 4.9%. Despite near-term headwinds, Lenovo's diversification into AI infrastructure, hybrid cloud and services is expected to support long-term growth, and the stock carries a Zacks Rank of 1, or Strong Buy.
HP Looks Fully Valued On OpenAI Deal And Earnings Beat
HP shares have jumped on a new OpenAI Frontier partnership and fiscal results that beat analyst expectations, but the stock now appears fully valued. The most followed narrative places fair value at $22.91, slightly below the last close of $24.22, framing the AI deal against modest growth expectations and tight margin assumptions. Persistent cost reduction initiatives, including manufacturing diversification outside China and a $2 billion annualized savings target, are expected to support net margins. However, structural pressure in traditional print and PC hardware or higher input costs could challenge that outlook. While a discounted cash flow model suggests an intrinsic value of $41.93, the market values HP at a price-to-earnings ratio of 8.7 times, well below the global tech industry average of 24.2 times and a peer group multiple of 50.4 times.
Artificial Intelligence › AI Applications & Copilots Competition
HPQ · Capital · Neutral Earnings beat and OpenAI deal are positive, but stock appears fully valued with fair value below current price, creating mixed outlook.
PC shipments fall 5% as AI-driven memory shortage forces laptop price hikes
Global PC shipments declined about 5% in the second quarter, reversing nine consecutive quarters of growth, as an AI-fueled memory shortage drives up laptop prices. Major manufacturers including HP, Dell, Microsoft, and Apple have raised prices on their devices due to soaring costs for DRAM memory, which is heavily consumed by both AI data centers and traditional computing. Deep-pocketed data center operators are buying up available DRAM supply, squeezing the PC market and pushing revenue higher even as unit shipments fall. The shortage could persist for years, with some forecasts extending into the next decade, prolonging pressure on the PC industry.
Four Overlooked Dividend Stocks Yielding Over 4% to Buy in July
Four dividend stocks yielding over 4% are being overlooked by the market, according to 24/7 Wall St. HP Inc. pays a 5.2% yield at just 7 times forward earnings, with free cash flow swinging to 800 million dollars in its latest quarter. Copa Holdings covers its 6.84 dollar annual dividend nearly 2.5 times from trailing earnings per share of 16.93 dollars. Best Buy yields 4.8% with fiscal 2027 earnings guidance nearly twice its 3.84 dollar annual payout, while management plans 300 million dollars in buybacks. Skyworks Solutions fell 22% over the past month, pushing its yield to 4.6%, and a new 1 billion dollar Android design win is expected to reduce Apple concentration.
Q2 PC shipments drop 4% Y/Y, hit by higher component costs
Global PC shipments fell 3.6% year-over-year to 65.7 million units in the second quarter of 2026, according to Omdia, as rising memory and storage costs pushed up prices and dampened demand. Desktop workstation shipments declined 1.3% to 13.9 million units, while notebook shipments including mobile workstations fell 4.2% to 51.7 million units. A June survey found about 60% of channel partners said customers were delaying or canceling PC refreshes due to supply constraints and higher prices, with comparable product line prices up 20% to 40% from a year earlier. Lenovo led the market with a 25.3% share, followed by HP at 19.8% and Dell at 14.1%, while Apple increased its share to 11.1% from 9.2% a year earlier on strong MacBook demand.
AAPL · Demand · Positive Apple increased its PC market share to 11.1% from 9.2% on strong MacBook demand, bucking the overall decline.
0992.HK · Demand · Negative Lenovo's PC shipments declined as overall market fell 3.6% Y/Y, with customers delaying refreshes due to higher prices.
DELL · Demand · Negative Dell's PC shipments declined as overall market fell 3.6% Y/Y, with customers delaying refreshes due to higher prices.
HPQ · Demand · Negative HP's PC shipments declined as overall market fell 3.6% Y/Y, with customers delaying refreshes due to higher prices.
2357.TW · Demand · Negative Asustek's PC shipments likely declined as overall market fell 3.6% Y/Y, with customers delaying refreshes due to higher prices.
Dell Outpaces HP as AI Server Boom Drives Faster Growth
Dell Technologies is the better buy for growth investors seeking AI infrastructure exposure, while HP offers a value alternative with lower risk. Dell's AI server revenue surged 757% year-over-year in its fiscal 2027 first quarter, contributing to 88% overall revenue growth, and the company expects $60 billion in AI server revenue for the full fiscal year. HP's revenue grew just 9% in its fiscal 2026 second quarter, and its third-quarter earnings guidance implies a year-over-year decline, with no revenue outlook provided. Dell trades at a price-to-earnings ratio of 31.8, reflecting its faster growth and market share gains, while HP's P/E of 8.5 and recent 20% correction may appeal to value investors.
Intel, HP, Xerox chase the same comeback; only Intel clears the IBM survivor bar
Intel, HP, and Xerox are all pursuing turnarounds, but only Intel meets the criteria of the IBM reinvention template, according to an analysis by 24/7 Wall St. Intel has surged 470.3% over the past year, driven by a 22% jump in Data Center and AI revenue, a $5 billion NVIDIA equity investment, and $17.247 billion in cash. HP posted an 8.99% revenue gain and swung to positive free cash flow, yet its negative equity and flat printing sales suggest managed decline rather than reinvention. Xerox is pivoting to IT services through acquisitions, but its $9.37 billion in liabilities against just $305 million in equity and negative free cash flow echo Kodak's final chapter. The analysis ranks Intel first, HP second, and Xerox last as the only one with a genuine AI catalyst and balance-sheet runway.
HP and OpenAI Launch Frontier Partnership to Drive AI-Powered Transformation
HP Inc. announced a strategic partnership with OpenAI to deploy AI-driven solutions through the Frontier platform, aiming to accelerate transformation and growth across its global business. The collaboration will integrate advanced agentic capabilities, enterprise-grade security, and seamless platform components to enhance customer experiences and streamline internal operations. HP will also leverage Frontier to support the development of an advanced telemetry platform with WXP, enabling a connected device layer built for the AI era. The partnership follows an exploratory period that began in February 2026, during which HP evaluated Frontier's technical capabilities and strategic alignment through pilot programs.
Artificial Intelligence › AI Applications & Copilots Competition
Artificial Intelligence › Agentic AI & Autonomous Workflows Technology
HPQ · Technology · Positive HP announces strategic partnership with OpenAI to deploy AI-driven solutions, enhancing its product offerings and competitive position.
OpenAI · Demand · Positive OpenAI gains a major enterprise customer (HP) for its Frontier platform, expanding its commercial reach and validating its technology.
Apple raises MacBook prices by up to $300 as memory chip crisis hits PC makers
Apple raised prices on several MacBook models this week, with the MacBook Pro jumping from $1,699 to $1,999 and the MacBook Neo from $599 to $699, as a severe shortage of memory chips forces PC and gadget makers to pass on rising costs. The crunch, dubbed 'RAM-ageddon,' stems from AI data center operators consuming massive volumes of memory, particularly high bandwidth memory, which reduces supply for consumer devices. Microsoft also increased Xbox prices by $100 to $150 and dropped its 2-terabyte configuration, while Dell, HP, Lenovo, and Asus have similarly raised prices or cut memory. Analysts at Deutsche Bank and Jefferies expect memory prices to keep climbing, with forecasts of 30% to 45% increases through 2027, and IDC's Nabila Popal predicts Apple may soon be forced to raise iPhone prices as well.
AAPL · Pricing · Negative Apple raised MacBook prices due to memory chip shortage, which may hurt demand and margins.
MSFT · Pricing · Negative Microsoft raised Xbox prices by $100-$150 due to memory chip shortage.
0992.HK · Supply · Negative Lenovo is mentioned as having raised prices or cut memory due to the same shortage.
2357.TW · Pricing · Negative Asus is mentioned as one of the PC makers that have raised prices or cut memory due to the memory chip shortage, which may hurt demand or margins.
DELL · Supply · Negative Dell is mentioned as having raised prices or cut memory due to the same shortage.
HPQ · Supply · Negative HP is mentioned as having raised prices or cut memory due to the same shortage.
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