HP Reports $13.2 bn in Q1 Revenue, Down 4.4% Amidst Decreased Customer Spending

HP, the technology company, announced its financial results for the first quarter of fiscal 2024, reporting revenue of $13.2 billion, a decrease of 4.4 percent compared to the prior-year period. This decline in HP revenue was attributed to customers reducing their expenditure on devices.

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Enrique Lores, President and CEO of HP, commented on the performance, stating, “We are bringing terrific innovation to our customers while driving disciplined execution across every facet of the business. As a result, we delivered solid earnings growth this quarter and we are well positioned to accelerate as the market recovers.”

Fiscal 2024 First Quarter Segment Results:

HP’s Personal Systems revenue amounted to $8.8 billion, reflecting a 4 percent decrease with a 6.1 percent operating margin. HP’s Consumer Personal Systems revenue decreased by 1 percent. HP’s Commercial Personal Systems revenue declined by 5 percent. Despite the revenue decrease, total units were up by 5 percent, driven by a 10 percent increase in Consumer Personal Systems units and a 2 percent increase in Commercial Personal Systems units.

HP’s Printing revenue totaled $4.4 billion, down 5 percent with a 19.9 percent operating margin. HP’s Consumer Printing revenue experienced decline of 22 percent. HP’s Commercial Printing revenue fell by 12 percent. Total hardware units saw a decline of 17 percent, attributed to a 15 percent decrease in Consumer Printing units and an 18 percent decrease in Commercial Printing units.

Enrique Lores acknowledged that enterprise customers are exercising caution with their budgets, impacting demand for personal computing devices. He noted that China remains a weak market for both consumer and commercial segments, while the overall market exhibits volatility and inconsistency across regions.

Meanwhile, Lenovo Group reported stronger-than-expected earnings in the third quarter, marking a return to revenue growth after five consecutive quarters of decline. Dell is expected to release its fourth-quarter results on Thursday.

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