HP Sales Top Estimates, But Its Outlook Disappoints

Group 1 - HP reported fiscal first-quarter sales of $13.5 billion, a 2.4% year-over-year increase, exceeding analyst estimates [1] - Adjusted earnings per share (EPS) decreased to 74 cents from 81 cents a year ago, aligning with expectations [1] - For the second quarter, HP projected adjusted EPS between 75 cents and 85 cents, with analysts anticipating 84 cents at the higher end of the range [1] Group 2 - The company's outlook reflects expectations of higher costs due to U.S. tariff increases on China and associated mitigations [2] - HP aims to diversify its supply chain, expecting over 90% of products sold in the U.S. to be manufactured outside of China by the end of 2025 [2] Group 3 - HP recently reached a$ 116 million deal to acquire AI technology and personnel from Humane, which will contribute to a new AI innovation lab called HP IQ [3] - Following the earnings report, HP shares fell nearly 4% in extended trading, although they have increased approximately 17% over the past year [3]