HP Forecasts Continued Memory Chip Volatility and Decline in PC Shipments for 2026

HP Inc. expects ongoing volatility in memory chip supply through next year, forecasting a double-digit decline in PC shipments aligned with industry trends. The company anticipates adjusted fiscal 2026 profits near the low end of its prior forecast. Rising memory costs, driven by AI data center demand and U.S. tariffs, have increased expenses, prompting supply chain adjustments and price hikes. Despite challenges, HP noted strong demand in Europe and Asia, growth in its consumer segment, and increased adoption of AI-powered PCs, which helped surpass first-quarter revenue and profit estimates.