HP Inc. Suspends Guidance Amid Global PC Sales Slump

HP Inc. suspended its forward guidance for the next fiscal year after warning that a global decline in personal computer sales will persist through the end of 2027. The company expects industry-wide sales to drop by a mid-single-digit percentage during that calendar year.

Management attributed the downturn to soaring input costs and a global memory-chip shortage. These factors have forced the company to sell fewer units at higher prices, which has placed significant pressure on its operating margins. Following the announcement, HP Inc. stock fell 3%.

The company intends to provide a detailed update on its cost-cutting initiatives during its fiscal fourth-quarter earnings report, which is scheduled for release on November 24.