AI PC Drive 11% Surge in HP Computing Segment Printing Business Continues to Slip.

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AI PCs Drive 11% Surge in HP Computing Segment Printing Business Continues to Slip.
HP Reports Q1 2026 Results: AI PC Surge Drives Revenue Growth Amidst CEO Transition

HP Inc. has announced its financial results for the first quarter of fiscal year 2026, ending January 31. The company reported total revenue of $14.44 billion, marking a solid 6.9% increase compared to the same period last year. Net income, calculated under GAAP standards, stood at $545 million.

The AI PC Revolution Fuels Growth

Interim CEO Bruce Broussard highlighted the strong performance in the PC segment, attributed primarily to the accelerating demand for AI PCs. "Our results this quarter reflect robust growth in our Personal Systems portfolio, driven by the rollout of next-generation AI-enabled devices," Broussard stated. He also noted that the search for a permanent CEO remains on track as planned.

Segment Performance: PCs Lead, Printing Lags

The divergence between HP’s two primary business units became clearer this quarter:

  • Personal Systems (PCs): Revenue jumped 11% to $10.25 billion, showcasing a strong recovery in the computing market as enterprises and consumers upgrade to AI-capable hardware.

  • Printing: Revenue declined 2% to $4.19 billion. This contraction was felt across both consumer and commercial sectors, reflecting a broader industry trend toward digital transformation and reduced reliance on physical printing.

The 11% growth in the Personal Systems sector aligns with what analysts call the "AI Supercycle" in 2026, as businesses transition from older PCs to more powerful NPUs (Neural Processing Units) to run AI programs locally without relying solely on the cloud.

The declining printing revenue reflects the challenges facing the traditional ink and toner business model. HP is adapting by pushing subscription services like HP All-In (a printer and ink rental system) to generate recurring revenue to replace individual printer sales.

Bruce Broussard remaining as interim CEO means investors are watching HP's next move – who will lead in this AI-centric era? The decision on a new leader could impact the stock price in mid-2026.

Further information indicates that HP is focusing on the Circular Economy by using more recycled materials in its new AI PCs to attract enterprise customers who prioritize ESG (Environmental, Social, and Governance) goals.

 

Apple Brings Mac Mini Home New Houston Facility to Start Production in 2026.

 

Source: HP

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