For computer giant HP Inc. (HPQ), several catalysts are coming into play: AI PCs and Windows refresh cycles.
HP reported Wednesday afternoon that its second-quarter results were somewhat stable after a weak performance in the previous quarter.
The company's Personal Systems division saw sales rise as business customers upgraded their computers ahead of Microsoft ending support for Windows 10 in October 2025.
HP CEO Enrique Lores told Yahoo Finance that the upgrade cycle has driven stronger-than-expected demand for PCs from businesses.
Companies are also upgrading units that are still in use due to the pandemic.
“The installed base is aging and small and large businesses alike are now realizing that they need to change,” Lores explained.
HP's PC sales and units fell during the quarter.
Printer sales remain tough due to pricing pressure from Japanese rivals such as Canon.
Consumer printer sales fell 16 percent, while commercial printer sales fell 12 percent.
The upcoming AI PCs could light up the bottom lines of companies like HP and rival Dell (DELL).
Earlier this month, HP unveiled its AI PCs, the HP OmniBook X AI and the HP EliteBook Ultra AI, both of which feature much faster processors to better handle AI-related applications like Microsoft's (MSFT) Copilot feature and OpenAI Prompt.
Around the same time, Dell unveiled five new AI-centric computers.
Lores said about 10% of PCs sold in 2024 will be AI-enabled, rising to 60% three years later.
Revenue Breakdown
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Net Sales: $12.8 billion (-0.8% YoY) vs. expected $12.6 billion
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Personal Systems Sales: $8.4 billion (3% YoY) vs. $8.28 billion forecast
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Printer Sales: $4.4 billion (down 8% year-over-year) vs. $4.38 billion expected
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Diluted EPS: $0.82 (+4% YoY), expected to be $0.81 (guidance: $0.76-$0.86)
Other notable features
HP isn't the only tech giant embracing the new age of AI. Listen below to Amazon Web Services CEO Adam Selipsky discuss the company's AI plans in the latest “Opening Bid” podcast:
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