HP Revenues Up 6.9 Percent But Company Warns on RAM Prices

HP reported that it earned a net income of $500 million on revenues of $14.4 billion in the quarter ending January 31, 2026. Those figures represent a decline of 4 percent and a gain of 6.9 percent, respectively, year-over-year (YOY). But the firm also warned that RAM prices have escalated dramatically and HP now expects that problem to continue into 2027.

“We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs,” interim HP CEO Bruce Broussard said. “Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds.”

HP’s Personal Systems business is responsible for its PCs, and the world’s second biggest PC maker reported that this business earned revenues of $10.3 billion in the quarter, a gain of 11 percent YOY. The consumer side of that business saw revenues jump 16 percent while commercial PC revenues were up 9 percent. Unit sales were up 12 percent overall, with consumer PCs up 14 percent and commercial PCs up 11 percent. Operating margins were 5 percent.

HP cited the continued Windows 11 refresh cycle and ongoing growth in AI PCs for the results. This was the eighth consecutive quarter in YOY revenue growth, HP reported.

HP’s Printing business delivered revenues of $4.2 billion, down 2 percent YOY and with an 18.3 percent operating margin. Consumer printing revenues were down 8 percent and commercial printing revenues declined 3 percent. Revenues from supplies were down 1 percent, total hardware sales were down 6 percent, and consumer and commercial unit sales were both down about 6 percent.

The problem for HP, of course, is the future. In its post-earnings conference call, Mr. Broussard noted that RAM prices now account for 35 percent of the total bill of materials (BOM) for each PC it sells, up from 15 to 18 percent in the previous quarter, thanks to escalating RAM prices. And HP now expects this memory problem to continue into 2027, beyond the guidance Lenovo and others have given.

The U.S. government’s illogical tariff policies will wreak havoc with HP and other companies this year as well, with those costs being born by U.S. companies and consumers, not international audiences. Thanks to a recent U.S. Supreme Court decision, it’s like that U.S. companies like HP and its customers will seek refunds for the artificially inflated prices they paid in the 2025.