HP Revenues Fell 4.8 Percent in First Quarter

HP announced that it earned a net income of $622 million on revenues of $12.4 billion in the quarter ending January 31, 2024, its first fiscal quarter of 2024. Revenues were down 4.8 percent year-over-year (YOY), and this was the seventh straight quarter of revenue decline for the world’s second-biggest maker of PCs.

“We continue to see a more stable but still volatile environment,” HP CEO Enrique Lores told MarketWatch. “When we look at the full year for 2024, we continue to believe that the PC market will go back to growth. It is going to be more driven by the second half than the first half, but we maintain our confidence in this happening.”

HP’s Personal Systems business, which makes PCs, saw a revenue decline of 4.1 percent to $8.8 billion. The company cited a “soft demand” for PCs in the quarter and an “unfavorable mix shift” in the products it was selling. 69 percent of HP’s PC sales by revenue were to businesses, while consumers accounted for the remaining 31 percent. From a units sold perspective, HP’s consumer PC sales increased 10 percent YOY, while its business PC unit sales were up 2 percent.

The firm’s Printing business likewise suffered a revenue shortfall in the quarter, declining 5.1 percent to $4.4 billion. 65 percent of Printing revenues came from business sales, while 28 percent came from consumers and 7 percent came from supplies. Total hardware unit sales were down 17 percent YOY, while consumer and business revenues fell 22 and 12 percent, respectively.

HP says that it will continue investing in a down market, and it is seeing some progress in markets like gaming, workforce solutions, consumer subscriptions, and 3D and personalization.