HP expects chip crunch to continue, warns of slump in PC sales; shares fall

HP

25/02/2026 09:31

** Shares of PC and printer maker HP Inc HPQ.N down nearly 5% at $17.23 premarket

** Co said on Tuesday it expects volatility in memory chips to persist into next year and forecast a slump in PC shipments

** However, HPQ's first-quarter revenue rose 6.9% YoY to $14.44 billion, beating estimates of $13.94 billion, according to data compiled by LSEG

** J.P. Morgan trims PT on stock to $19 from $21; maintains rating at "neutral"

** Brokerage says that even with better print execution, ongoing revenue declines and unclear personal systems margin recovery limit confidence in FY27 profit improvement

** 19 analysts rate the stock "hold" on average; median PT is $20 - data compiled by LSEG

** HPQ down 18.3% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))