HP CEO on AI PCs and Microsoft Windows refresh cycle

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Computer giant HP Inc. (HPQ): Few catalysts are working for AI PC and Windows refresh cycle.

HP's fiscal second quarter stabilized slightly from weakness in the previous quarter, the company reported Wednesday afternoon.

The company's sales of its personal systems segment grew as business clients upgraded their computers before Microsoft ended support for Windows 10 in October 2025.

HP CEO Enrique Lores told Yahoo Finance that the upgrade cycle fueled higher-than-expected demand for PCs from businesses.

Companies are also upgrading units that are still in use due to the pandemic.

“The installed base has become outdated, and now people, both small companies and large companies, understand that they need to change it,” Lorz explained.

HP's personal computer sales and units fell in the quarter.

Printer sales remained a tough business amid pricing pressure from Japanese rivals such as Canon.

Consumer printer sales fell 16 percent, commercial sales fell 12 percent.

The upcoming AI PC could potentially light up the earnings of companies like HP and rival Dell ( DELL ).

In early May, HP unveiled its AI PCs, the HP OmniBook X AI and the HP EliteBook Ultra AI. Both computers have much faster processors to better handle AI-related applications such as Microsoft's (MSFT) Copilot features and OpenAI prompts.

Around the same time, Dell wrapped up five new AI-focused computers.

About 10 percent of PCs sold in 2024 will be of the AI ​​variety, rising to 60 percent in three years, Lores says.

“We continue to think that HPQ is well positioned to benefit from the PC upcycle, which should only accelerate in the second half and FY25. Expected to be flat quarter-over-quarter, this should be somewhat offset by cost-saving initiatives, sequential hardware growth in Q4, and upside from personal systems,” EvercoreISI analyst Amit. Dariani said in a client note.

HP shares rose 3 percent in premarket trading on Thursday.

  • Net Sales: $12.8 billion (-0.8% year-over-year) vs. $12.6 billion estimate

  • Personal System Sales: $8.4 billion (3% year-over-year) vs. $8.28 billion estimate

  • Selling Printers: $4.4 billion (-8% year-over-year) vs. $4.38 billion estimate

  • Thin EPS: $0.82 (+4% year-over-year) vs $0.81 estimate (guidance: $0.76-$0.86)

HP isn't the only tech company entering the new era of AI. Hear below what Amazon Web Services CEO Adam Selpsky had to say about the company's plans for AI on the latest “Opening Bid” podcast.

Brian Suzy is the executive editor of Yahoo Finance. He's also the host.”Opening bid” podcast. Follow Suzy on Twitter/x @BrianSozzi And on LinkedIn. Suggestions on deals, mergers, worker conditions, or anything else? Email brian.sozzi@yahoofinance.com Are you a CEO and want to come to Yahoo Finance Live? Email Brian Suzy.

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