Overview
- HP said the reductions will target roles in product development, internal operations and customer support as it redesigns processes around artificial intelligence.
- The company targets about $1 billion in gross run‑rate savings by fiscal 2028 and expects roughly $650 million in restructuring charges, including about $250 million in fiscal 2026.
- Fourth‑quarter revenue came in at $14.64 billion, topping estimates, and AI‑enabled PCs accounted for more than 30% of shipments.
- HP forecast fiscal 2026 adjusted EPS of $2.90–$3.20 versus the $3.33 analysts expected and projected Q1 EPS of $0.73–$0.81, sending shares down about 5.5% in extended trading.
- Rising DRAM and NAND prices are expected to pressure margins in the second half of fiscal 2026, with HP planning supplier diversification, lower memory configurations and selective price increases to offset the impact.