HP Inc. forecast its first-quarter profit below Wall Street expectations, indicating persistent demand issues in the personal computers market. PC demand has retreated from pandemic highs and remains subdued, despite increased demand in corporate and educational sectors for AI-powered PCs. Research shows that AI PCs are expected to represent 43% of all PC shipments by 2025 but currently make up only 17%, according to Gartner.
HP expects its adjusted profit per share for the first quarter to be between 70 cents and 76 cents, below analysts' estimates of 85 cents. The company reported a 1.7% increase in revenue to $14.1 billion for the fourth quarter ended Oct. 31
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