HP warns trade rules and rising chip costs will impact annual profit forecasts
HP projects annual results at the low end of targets as trade rules and high chip costs weigh on growth. Strong AI PC sales helped beat first quarter estimates.
Insights:
HP Inc. reported first-quarter results that beat estimates on February 24, 2026, but the company announced it now expects fiscal 2026 results to land at the low end of its forecasts. The company cited U.S. trade regulations in the United States 
US and rising memory chip costs as the specific reasons for the narrowed guidance. These factors are directly weighing on the profit outlook for the firm and are affecting the supply and cost environment for the broader PCs and consumer electronics sectors.
US and rising memory chip costs as the specific reasons for the narrowed guidance. These factors are directly weighing on the profit outlook for the firm and are affecting the supply and cost environment for the broader PCs and consumer electronics sectors.The revised expectations are impacting both the HP personal systems unit and the HP printing segment. Chief Financial Officer Karen Parkhill highlighted the challenges during the announcement, noting that the company is navigating a dynamic environment marked by tariff uncertainty under the administration of Donald Trump. The rising cost of memory chips has added further pressure, creating a squeeze on margins that the company expects to persist through the fiscal year.
