All eyes are on demand for AI PCs and the HP Inc. CEO’s tariffs. (HPQ) Enrique Lloris entering 2025.
“Some of this (potential tariff cost) should go to consumers given our gross margin in the categories. But again, we need to wait and see what the final tariffs are for us to determine what the exact tariffs are,” Loris told Yahoo Finance on Tuesday (video Above): “The plan will be so.”
The comments on prices for consumers mirror some of those made by Best Buy CEO Cori Barry today in her call with reporters.
Loris said he looks forward to working with the incoming Trump administration and favors smooth trade relations between the countries.
“We are a global company that does business in many parts of the world, does development in many parts of the world, and has manufacturing in many parts of the world. So for us, the easy way to trade across countries is the preferred option,” Loris added.
Read more: How do tariffs work, and who really pays them?
With markets affected by tariffs, HP released mixed fiscal fourth-quarter sales results after the market closed.
Consumer PC sales declined 4% during the quarter, while commercial sales improved 5%. Operating margins in the PC division declined sharply year over year.
Similar to the previous quarter, business customers are upgrading their PCs ahead of Microsoft’s (MSFT) end of support for Windows 10 in October 2025.
Consumer PCs are under a bit of pressure as people wait for new versions of AI computers and spend more money on experiments.
Global shipments of traditional PCs in the third quarter of the calendar year were 68.8 million, down 2.4% year over year, According to IDC data. IDC explained that sales were affected by higher costs and inventory replenishment in the previous quarter.
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Net sales: $14.1 billion (+1.7% YoY) vs. $13.9 billion estimate
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Personal systems sales: $9.6 billion (+2% YoY) vs. $9.7 billion estimate
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Print sales: $4.5 billion (+1% YoY) vs. $4.2 billion estimate
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Diluted earnings per share (EPS): $0.93 (+3% YoY) vs. $0.93 estimate (Guidance: $0.89 – $0.99)
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Weak margins: Quarterly operating margins fell to 8.5% from 9% a year ago
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EPS guidance for the fiscal first quarter: $0.70 to $0.76 vs. estimate of $0.86
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Full-year EPS guidance: $3.45 to $3.75 vs. $3.60 estimate
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