HP Reports Mixed Q1 2026 Results: Personal Systems Growth Offset by Printing Decline
Event summary
- HP Inc. reported fiscal Q1 2026 revenue of $14.4 billion, up 6.9% year-over-year.
- Non-GAAP diluted net EPS increased 9.5% to $0.81, while GAAP EPS declined 1.7% to $0.58.
- Personal Systems revenue grew 11% driven by AI PCs, while Printing revenue fell 2%.
- Free cash flow was $175 million, up 150% from the prior year period.
- HP maintained annual guidance but expects results closer to the low end due to industry headwinds.
The big picture
HP's Q1 2026 results highlight the company's strategic tension between growth in Personal Systems, particularly AI-driven products, and challenges in the Printing segment. The results come amid broader industry headwinds including increasing memory costs and trade-related regulations. HP's ability to execute its Future of Work strategy and manage these pressures will be critical in sustaining long-term value for shareholders.
What we're watching
- AI PC Momentum
- The pace at which AI PC adoption will drive future growth in the Personal Systems segment.
- Printing Segment Challenges
- Whether HP can stabilize its declining Printing revenue amid industry-wide headwinds.
- Cost Management
- How effective HP's mitigation plans will be in navigating increasing memory costs and other operational challenges.
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