HP revenue surges 27% to $15.9 bn in fiscal 2021 second quarter

HP reported revenue of $15.9 billion (+27.3 percent) in its fiscal 2021 second quarter as it performed well in both PC and printing business.
HP retail store London
HP said its sales in Americas increased 32 percent, EMEA increased 19 percent, and Asia Pacific Japan increased 23 percent. The year-on-year growth rate benefited from the prior-year impact of COVID and supply chain disruptions, HP said.

“We delivered another strong quarter, with double-digit top and bottom line growth. HP technology is increasingly at the heart of hybrid work and we are benefitting from exceptional demand for our products and services,” said Enrique Lores, HP President and CEO.

HP’s Personal Systems

HP’s Personal Systems net revenue was $10.6 billion, up 27 percent year over year, with a 6.7 percent operating margin. Consumer PC revenue increased 72 percent. Commercial PC revenue increased 10 percent. Total PC units were up 44 percent with Notebooks units up 63 percent and Desktops units down 5 percent.

In Q2, Personal Systems benefited from strong demand related to working and learning from home. Revenue was $10.6 billion, up 27 percent year-over-year.

HP’s Personal Systems consumer and commercial revenue rose 72 percent and 10 percent respectively. HP revenue rose 47 percent for notebooks, fell 8 percent for desktops, and dropped 7 percent for workstations.

“Strong demand for notebooks drove total unit growth of 44 percent with Chromebooks representing 20 percent of our total Personal Systems units as the need for technology and education continued to grow,” HP said.

In Printers, HP is leveraging leadership across consumer and commercial market to provide innovative solutions needed in today’s hybrid world. This includes accelerating the evolution of our business model and subscription services.

HP recently announced the expansion of HP+ an Instant Ink, which are now in 35 countries across North America and Europe. “HP+ will help us to optimize system profitability and provide a better customer experience,” HP said.

HP’s Printing

HP’s Printing revenue was $5.3 billion, up 28 percent year over year, with a 17.9 percent operating margin. Total hardware units were up 42 percent with Consumer units up 45 percent and Commercial units up 22 percent. Consumer printing revenue rose 77 percent. Commercial printing revenue grew 34 percent. Supplies net revenue was up 17 percent.

“In Commercial, the recovery momentum continued with revenue up 13 percent sequentially, but we continue to expect the recovery to be gradual and uneven at times across segments and geographies,” HP said.

Supplies revenue was $3.3 billion, up 17 percent primarily driven by favorable pricing, as well as ongoing consumer demand and improving commercial demand. HP said its contractual business is a key element of its print strategy in both Consumer and Commercial printing.

In the education market where HP is the number one vendor, PC sales have more than doubled due to remote learning.

In Q2, revenue growth in gaming outpaced consumer PC growth. HP will be expanding into attractive adjacencies, including peripherals. “We are on track to close a hyper acquisition in Q3. We do expect to be accretive in year one,” HP said.

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