HP Inc. (NYSE:HPQ) reported first-quarter fiscal 2026 revenue of $14.4 billion, up 7% year over year, with non-GAAP EPS of $0.81, an increase of 9%, and at the high end of guidance. Personal Systems revenue increased 11% on 12% unit growth, supported by Windows 11 refresh activity and rising AI PC adoption.
AI PCs represented over 35% of total PC shipments in the quarter, compared with 30% in the prior quarter and 25% two quarters ago. Print revenue declined 2% year-over-year, while operating margin reached 18.3%, near the top end of HP’s long-term range.
The company detailed its future of work strategy with a focus on AI, integrated device and software experiences, and enterprise IT management tools.
Interim CEO Bruce Broussard said HP is “enabling customers with compute power to run powerful large language models locally, complementing AI in the cloud with secure, high performance, and cost-effective AI at the edge.” During the quarter, HP introduced new AI-powered PCs and print features and formed an exploratory partnership with OpenAI to pilot enterprise AI agent deployment.
Why It Matters: HP’s approach centers on embedding AI into PCs, printers, and fleet management software while building governance and observability into enterprise workflows. This ties processes to closer device oversight and improved cost control as organizations evaluate long-term deployment models into endpoints and management platforms.
- Workforce Experience Platform Analyzes Data Across 50 Million Endpoints: HP expanded its Workforce Experience Platform, which it describes as “the most comprehensive multi-vendor fleet management solution across PCs, print, and collaboration.” The platform ingests data from 50 million endpoints and processes more than 1 terabyte of data each day to help IT teams identify device issues earlier and manage distributed environments with greater visibility.
- OpenAI Frontier Partnership Introduces Enterprise AI Agent Governance: The company established an exploratory partnership with OpenAI to pilot OpenAI Frontier, an enterprise platform for building and managing AI agents. Broussard said the effort “puts HP at the forefront of enterprise AI deployments with built-in governance, security, and observability as we move from pilots to scaled adoption across workflows.” This partnership integrates AI agent management into enterprise environments with attention to oversight and policy controls, connecting experimentation to operational deployment.
- AI Automation Programs Target $1 Billion in Run-Rate Savings by FY2028: AI is being embedded into internal processes to improve productivity and reduce costs. CFO Karen Parkhill cited a digital teammate for channel partners that answers questions and guides next steps. The company is also deploying AI agents in supply chain operations to automate order entry, sales returns, and product data management. HP expects to generate about $1 billion in gross annualized run-rate savings by the end of fiscal 2028, including $300 million by the end of fiscal 2026.
- AI Integration Expands In Print and Ecosystem Tools: AI-powered scanning and redaction capabilities were introduced for print customers to simplify document workflows. To accomplish this, the company expanded its partnership with Microsoft by embedding Microsoft 365 Copilot directly into HP printers to assist with document management at the device level. They also launched HP Digital Passport to extend AI integration into enterprise print and support environments through a centralized hub. This connection allows devices and services across the HP ecosystem to improve customer engagement and support.
- AI PCs Represent 35% of Shipments as On-Device AI Expands: AI PCs accounted for more than 35% of HP’s PC shipments in Q1, continuing a steady quarterly increase. The company launched the HP EliteBook G1a, described as the first AI PC with intelligence built into the keyboard for hybrid work. HP is working with more than 100 ISVs to support applications that use local AI processing, helping enterprises run large language models on devices to address security and cost considerations.
Go Deeper -> HP’s Earnings Report – MarketBeat
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