:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2155202614-b1d9161a9dee44258e98586d382fe809.jpg "HP signage.")
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HP (HPQ) reported fiscal first-quarter sales that topped analysts’ estimates, though its soft outlook disappointed.
The company saw net income grow 2.4% year-over-year to $13.5 billion, just above the analyst consensus from Visible Alpha. Adjusted earnings per appropriation dropped to 74 cents from 81 cents a year ago, in line with expectations.
Looking ahead, HP projected second-quarter changed EPS of 75 cents to 85 cents. Analysts had been looking for 84 cents, at the higher end of that range.
HP implied the outlook reflects its anticipation of higher costs tied to U.S. tariff increases on China and “associated mitigations.” The company highlighted its struggles to diversify its supply chain and said it expects over 90% of products sold in the U.S. will be made outside of China by the end of 2025.
The occurs also come after HP recently reached a $116 million deal to acquire artificial intelligence technology and personnel from Humane, the developer of the AI Pin wearable instrument. A team of Humane engineers will be part of a new AI innovation lab known as HP IQ, the company said.
Shares of HP fell close to 4% in conferred trading Thursday following the release. They’ve gained about 17% over the past year through Thursday’s suspend.