HP’s quarterly revenue gains on thriving business demand

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HP Inc reported sales and profit that topped analysts’ estimates on steady demand by companies upgrading computer systems.

Still, the results pointed to some potential issues ahead for the hardware company as consumer spending fell for personal computers and printers.

HP said Personal Systems division revenue increased 9.2% to $11.5 billion, led by commercial sales. But consumer sales declined 6% and notebook units declined 23% in the period, which ended April 30. Printing revenue declined 7% to $5 billion, with total hardware units down 23%. PC shipments industrywide declined 6.8% in the first three months of the year, spurred by reduced demand particularly for Chromebooks used by schools.

“Despite the softer consumer, we’re certainly seeing strength on commercial,” said HP chief financial officer Marie Myers in an interview. “The commercial side is approximately 65% of our portfolio now and I think that’s a trend that’s going to continue.”

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