HP Inc. made more money than expected in the first three months of 2025, thanks to strong PC sales and growing demand for computers with artificial intelligence (AI) features.
According to Reuters, HP’s revenue for the quarter was $13.5 billion, slightly higher than the $13.36 billion analysts predicted.
One big reason for this growth, as Reuters explains, is that many people will soon need to replace their old computers.
Microsoft will stop supporting Windows 10 in October, meaning millions of users will have to buy new PCs. Plus, companies are rolling out AI-powered computers with advanced processors, which are becoming more popular.
HP’s Personal Systems segment, which includes desktop and laptop sales, brought in $9.2 billion—5% more than before. Reuters notes that business customers contributed to this growth, with commercial PC sales jumping 10%.
At the same time, Reuters highlights how HP is reducing its reliance on China. The company’s CEO, Enrique Lores, told Reuters that by October, more than 90% of HP products sold in North America will be made outside of China.
This change comes as the U.S. increases tariffs on Chinese goods, with an extra 10% duty set to take effect on March 4.
Despite the good news, HP warned that its profit for the next quarter may be slightly lower than expected.
According to Reuters, the company predicts earnings per share between 75 and 85 cents, while analysts had expected 86 cents.
However, HP is sticking with its full-year profit estimate of $3.45 to $3.75 per share.
Credit : Reuters