HP shares fell 5.8% in afternoon trading after the company reported second-quarter results that showed compressed profit margins in its personal computer division, overshadowing better-than-expected revenue and earnings. The company generated revenue of $15.68 billion, up 12.5% year-over-year, with Personal Systems revenue rising 18% to $11.8 billion, while Printing segment revenue fell 2% to $3.9 billion. Operating margins in Personal Systems dropped to 4.6% due to higher component costs, but adjusted EPS of $0.83 beat consensus estimates of $0.69. Management lifted its full-year adjusted EPS outlook to between $3.19 and $3.29, supported by tariff refunds, though Bank of America analysts reiterated an Underperform rating, citing margin pressure from rising memory costs, slower PC unit growth, and leadership transition uncertainty. After the initial drop, shares recovered slightly to $29.35, down 4.6% from the previous close.
HP IncHP's Q2 results showed compressed margins in Personal Systems, overshadowing earnings beat and leading to a 5.8% share drop.
Bank of America Corp