HP outlines $1B AI-driven savings target and projects $2.8B-$3B FY26 free cash flow as memory costs rise

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• Memory costs are currently 15% to 18% of the cost of a typical PC, and while an increase was expected, its rate has accelerated in the last few weeks

  80% confidence

• HP delivered operating margins within expected ranges for both businesses and non-GAAP EPS slightly above the midpoint of guidance range

  80% confidence

• Pricing increases will happen across the board but more selectively, higher or lower depending on specific situations

  80% confidence

• Free cash flow expected to be relatively flat with slightly lower earnings offset by improvements in working capital due to favorable cash conversion cycle from growing PS business

  80% confidence

• Free cash flow expected to be relatively flat with slightly lower earnings offset by improvements in working capital primarily due to favorable cash conversion cycle with growing PS business

  80% confidence

• HP delivered its sixth consecutive quarter of revenue growth, up 4% year-over-year largely driven by Personal Systems gains in commercial and consumer

  80% confidence

• Non-GAAP EPS came above the midpoint of guidance

  80% confidence

• Consumer Subscriptions saw double-digit growth and is now nearing $1 billion in annual revenue

  80% confidence

• HP delivered another quarter of solid performance to close out the fiscal year with operating margins within expected ranges for both businesses and non-GAAP EPS slightly above the midpoint of guidance

  80% confidence

• Consumer Subscriptions now nearing $1 billion in annual revenue with double-digit growth

  80% confidence

• New cost savings initiative is driven by opportunity AI will bring to accelerate product development, improve customer satisfaction and boost productivity

  80% confidence

• HP surpassed its original $1.4 billion savings target, ultimately delivering $2.2 billion in cumulative gross annualized savings

  80% confidence

• Print operating margins expected in upper half of 16% to 19% range

  80% confidence

• The new cost savings initiative is driven by the opportunity that AI will bring to accelerate product development, improve customer satisfaction and boost productivity

  80% confidence

• Consumer Subscriptions business is nearing $1 billion in annual revenue with double-digit growth

  80% confidence

• HP delivered operating margins within expected ranges for both businesses and non-GAAP EPS slightly above the midpoint of guidance range

  80% confidence

• HP is setting guidance at a level they have high confidence in meeting and hopefully exceeding

  80% confidence

• Free cash flow is expected to be relatively flat with slightly lower earnings offset by improvements in working capital due to favorable cash conversion cycle from growing PS business

  80% confidence

• Print revenue projected to decline low single digits in 2026

  80% confidence

• Pricing actions will happen across the board but more selectively or higher or lower depending on specific situations

  80% confidence

• HP delivered its sixth consecutive quarter of revenue growth, up 4% year-over-year largely driven by Personal Systems gains in commercial and consumer

  80% confidence

• Non-GAAP EPS came above the midpoint of guidance

  80% confidence

• HP maintained #1 market share in Print despite 4% revenue decline

  80% confidence

• HP will mitigate memory costs through qualifying lower-cost suppliers, redesigning products, accelerating AI-enabled cost savings, and raising prices

  80% confidence

• HP surpassed original $1.4 billion savings target, ultimately delivering $2.2 billion in cumulative gross annualized savings

  80% confidence

• HP maintained #1 market share in print and saw double-digit growth in Consumer Subscriptions

  80% confidence

• HP will implement pricing increases across the board but more selectively depending on specific situations

  80% confidence

• New cost savings initiative is driven by the opportunity that AI will bring to accelerate product development, improve customer satisfaction and boost productivity

  80% confidence

• HP is setting guidance at a level it has high confidence in meeting and hopefully exceeding

  80% confidence

• Over 30% of PC shipments are now AI PCs

  80% confidence

Data points we hold from this source