By Kelly Cloonan

HP dialed down expectations for its fiscal year as it continues to face higher costs for the memory chips used in its computers.

The computer and printer maker said Tuesday it expected its fiscal-year results would be closer to the low end of its prior guidance range, citing in part rising costs for memory chips and what the company described as an increasingly fluid operating environment.

The stock fell 6.2%, to $17.08, in after-hours trading. Through market close, shares have slid 48% in the past year.

The revised view came as the company reported fiscal first-quarter results that topped expectations, as profit fell despite higher sales.

HP and other computer makers have been contending with higher costs as a surge in artificial-intelligence demand from data centers drives up the price of memory chips.

The Palo Alto, Calif., company said it expected those challenges to continue throughout this fiscal year and likely into the next fiscal year. For the current fiscal quarter, the company is factoring in memory prices that are roughly double the prior quarter.

HP has previously said it plans to raise the prices of its computers, work with lower-cost suppliers and reduce memory configurations to partially offset those costs

Chief Financial Officer Karen Parkhill said the company remains focused on executing its mitigation plans. "We are well practiced at managing through headwinds," Parkhill said.

HP previously forecast adjusted earnings per share of $2.90 to $3.20 for the fiscal year. Analysts polled by FactSet were looking for $2.99 a share.

For the current quarter, the company expects adjusted earnings per share of 70 cents to 76 cents. Analysts polled by FactSet are projecting 74 cents.

In its recently completed fiscal first quarter, HP posted a profit of $545 million, or 58 cents a share, compared with $565 million, or 59 cents a share, a year earlier.

Adjusted earnings per share were 81 cents, compared with analyst estimates of 77 cents a share.

Revenue rose 6.9%, to $14.44 billion, compared with analyst estimates of $13.94 billion.

Personal-systems revenue rose 11%, to $10.25 billion, offsetting a decline in printing sales which were down 2%, to $4.19 billion.

The results were driven by growth in its personal-systems business, including continued momentum with its AI-enabled personal computers, Interim Chief Executive Officer Bruce Broussard said.

Broussard was named to his position this month after Enrique Lores stepped down to become CEO at payments company PayPal. HP is looking for a permanent successor as CEO, and the process is well under way, Broussard said.

In November, HP said it would slash up to 10% of its workforce as it pushes to adopt AI across the company to accelerate product and software development as well as automate customer support and some internal processes.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

February 24, 2026 19:35 ET (00:35 GMT)

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