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HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds

HP raised its annual adjusted earnings per share forecast to $3.19 to $3.29 on Thursday, citing strong demand for AI-optimized PCs and anticipated tariff refunds totaling 19 cents per share.
Following a Supreme Court ruling that struck down tariff duties, President Donald Trump's administration refunded about $100 billion, providing HP and other companies a significant financial boost earlier this month.
Driven by strong demand for AI-optimized PCs, HP reported third-quarter revenue of $15.7 billion, exceeding estimates, though unit shipments dropped 16 per cent as the company prioritized higher-margin premium products.
"In the third quarter, we increased both total sales and share in premium products," interim CEO Bruce Broussard said, highlighting strategies to address memory supply constraints and improve fulfillment rates.
Rising commodity and memory costs are expected to pressure fourth-quarter margins for HP, a challenge also confronting industry peers Lenovo Group and Dell Technologies amid global memory chip constraints.

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