HP Beats Q2 Estimates with 9% Revenue Growth and Narrowed EPS Outlook
HP Inc. reported Q2 earnings that beat analyst expectations with adjusted EPS of 86 cents and 9% revenue growth to $14.41 billion. Despite the strong earnings beat, the stock fell in premarket trading as the company narrowed its full-year adjusted profit outlook to $2.90-$3.10 per share due to rising memory and storage costs.
HP Inc. reported a solid second quarter, delivering earnings per share (EPS) of 86 cents that beat analyst expectations by 21.13% . The company's revenue also rose 9% year-over-year to $14.41 billion, surpassing the Street estimate of $14.04 billion .
The strong earnings beat was driven by robust sales of personal systems and strong demand for AI-optimized PCs, which helped drive revenue growth. However, the company also warned of increasing memory costs, which are expected to pressure its profit margins throughout the year .
The narrowing of HP's full-year adjusted profit outlook to $2.90-$3.10 per share due to rising memory and storage costs, inflationary pressures, and higher energy-related input costs has raised concerns among investors. Despite the strong earnings beat and revenue growth, the stock fell in premarket trading.
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