February 28, 2025 – HP Inc. released its second-quarter profit forecast yesterday, revealing figures that fell short of market expectations. The company attributed the lower-than-expected profits to “increased component costs and tariffs imposed by the US authorities.”
According to HP, earnings per share for the second fiscal quarter ending in April are expected to range between 75 and 85 cents. By comparison, analysts had previously estimated earnings per share of 85 cents.
In an interview, HP CEO Enrique Lores explained that rising component costs and US tariffs are dragging down the company’s profits. However, he noted that “a diversified supply chain is helping HP mitigate most of the impact.”
Lores also mentioned that HP will make “specific adjustments” to its product pricing in response to the tariffs. Additionally, the company plans to lay off between 1,000 and 2,000 employees by the end of the fiscal year in October, which is expected to save approximately $300 million annually.
Despite the profit challenges, HP reported a 2.4% increase in revenue to 13.5billionforthefirstfiscalquarterendingJanuary31st.CommercialPCsalesgrewby1013.4 billion.
Meanwhile, the long-sluggish PC market appears to be showing signs of recovery. According to industry research firm IDC, PC shipments grew by 1.8% in the fourth quarter of 2024. Furthermore, HP recently announced the acquisition of wearable device manufacturer Humane’s assets for $116 million, indicating its intent to “provide users with more generative AI capabilities.”
