HP Inc. Forecasts PC Shipment Decline Amid Chip Shortages

HP Inc. forecast a double-digit decline in PC unit shipments as memory chip volatility persists through next year. The shortage stems from high capacity demand for AI data center buildouts, forcing the company to adjust its supply chain and raise prices to mitigate increased costs.

These challenges coincide with sweeping import tariffs implemented by the administration of Donald Trump. The U.S. government has begun collecting a temporary 10% global import tariff, with plans to increase the rate to 15%. In response, the company is evaluating these new tariff announcements to manage the financial impact.

Despite these headwinds, HP beat first-quarter estimates with revenue rising 6.9% to $14.44 billion. Growth was driven by a Windows 11 upgrade cycle in Europe and Asia and AI-powered PCs, which now account for over 35% of total shipments. However, HP expects its adjusted profit for fiscal 2026 to land at the low end of its $2.90 to $3.20 per share forecast.