HP Sales Top Estimates, But Its Outlook Disappoints | Global News Avenue

HP(HPQ) reported that despite its soft appearance, sales in the first quarter exceeded analysts’ estimates.

The company’s revenue rose 2.4% year-on-year to $13.5 billion, slightly higher than the visible Alpha’s analyst consensus. Adjusted earnings per share fell to 74 cents from 81 cents a year ago, according to expectations.

Looking ahead, HP forecasts adjusted earnings per share of 75 cents to 85 cents in the second quarter. Analysts have been looking for 84 cents, at the high end of the range.

HP said the outlook reflects its expectations for higher costs associated with U.S. tariff-related gains and “related mitigation.” The company highlighted its efforts to diversify its supply chain and said it expects more than 90% of the products sold in the U.S. to be produced outside China by the end of 2025.

The same goes for HP after it recently concluded a $116 million deal to acquire AI technology and personnel from Humane, a developer of AI Pinable devices. The company said a team of humanitarian engineers will become part of a new AI innovation lab, namely HP IQ.

HP shares fell nearly 4% on Thursday after the issuance. Over the past year, they have gained about 17% at the end of Thursday.