HP's shares tumbled 6.1% in after-hours trading Tuesday after the company maintained its fiscal 2026 profit forecast but warned results would likely hit the low end of its guidance range. The printer and PC maker reported first-quarter adjusted earnings of 81 cents per share on revenue of $14.44 billion, beating analyst expectations of 76 cents per share on $13.87 billion.

HP's personal systems division delivered strong performance with 11% year-over-year revenue growth to $10.25 billion and 12% unit growth, benefiting from an improving PC market where global shipments rose 9.3% in Q4 2025 according to Gartner data. However, the company's printing segment declined 2% to $4.19 billion as HP faces mounting pressure from surging memory chip costs, with NAND and DRAM prices more than doubling in six months.

The results mark interim CEO Bruce Broussard's first full quarter after replacing Enrique Lores, who departed to lead PayPal. HP also announced a company-wide AI adoption initiative that will reduce headcount by 4,000 to 6,000 employees. CFO Karen Parkhill emphasized the company's experience managing headwinds while reaffirming the $2.90 to $3.00 adjusted earnings per share guidance for fiscal 2026, though she noted current expectations lean toward the lower end of that range.