HP CEO on AI PCs and the Microsoft Windows update cycle

A couple of catalysts are coming into play for computer giant HP Inc. (HPQ): the AI ​​PC and the Windows update cycle.

HP’s fiscal second quarter stabilized somewhat from the previous quarter’s weak performance, the company reported Wednesday afternoon.

The company’s sales increased in its personal systems segment, due to commercial customers upgrading its computers before Microsoft ended support for Windows 10 in October 2025.

HP CEO Enrique Lores told Yahoo Finance that the upgrade cycle has fueled stronger PC demand than companies expected.

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

“The installed base has aged and now people, both small and large companies, realize that they need to change that,” explained Lores.

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

Printer sales continued to be a difficult business, amid pricing pressure from Japanese competitors such as Canon.

Consumer printer sales fell 16%, with commercial sales falling 12%.

The next AI PC could potentially boost profits for companies like HP and rival Dell (DELL).

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

At the same time, Dell removed the curtains five new AI-centric computers.

Lores says that about 10% of PCs sold in 2024 will be AI, rising to 60% in three years.

The Earnings Summary

• Liquid sales: US$12.8 billion (-0.8% year over year) vs. estimated US$12.6 billion

• Personal systems sales: US$8.4 billion (3% year over year) vs. estimated US$8.28 billion

• Printer sales: US$4.4 billion (-8% year over year) vs. estimated US$4.38 billion

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

What caught our attention the most

HP isn’t the only tech giant entering a new era of AI. Hear below what Amazon AWS CEO Adam Selipsky had to say in the latest ‘Opening bid‘podcast about the company’s plans for AI.

Brian Sozzi is the executive editor of Yahoo Finance. He is also the host of “Opening bid“podcast. Follow Sozzi on Twitter/X @BrianSozzi and so on LinkedIn. Tips on business, mergers, activist situations or anything else? Email brian.sozzi@yahoofinance.com. Are you a CEO and want to participate in Yahoo Finance Live? Email Brian Sozzi.

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