HP Q1 revenue lower than previous year

Abhijeet Pratap

March 06, 2024

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HP Inc. (NYSE: HPQ) is a global technology leader and maker of PC and printing solutions for multiple customer segments. HP is operating across more than 170 countries. It makes and sells a wide range of devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more.

HP’s 2024 Q1 revenue remained 4% lower than the same quarter of the prior year. The company experienced revenue decline in both its PC and printing segments. HP’s GAAP net revenue for Q1 2023 was $13.2 billion compared to $13.8 billion in the same quarter of 2023. In the last quarter of 2023 also, HP’s net revenue was $13.8 billion.

HP’s first quarter GAAP diluted net earnings per share (“EPS”) of $0.62, was in line with estimates within $0.60 to $0.70 per share.
Its first quarter non-GAAP diluted net EPS of $0.81, was also in line with the previously provided outlook of $0.76 to $0.86 per share.
HP estimates GAAP diluted net EPS to remain between $0.58 and $0.68 and non-GAAP diluted net EPS to be in the $0.76 to $0.86 range in the second quarter of 2024.

HP PC segment performance q1 2024

HP generated $8.8 billion from its PC segment, which was 4% lower compared to the same quarter of the prior year. The PC and printing brand generated $6 billion from commercial personal systems and $2.8 billion from consumer personal systems in 2024, Q1. However, in the same quarter of 2023, it had generated $6.4 billion from the commercial personal systems segment and $2.8 billion from the consumer personal systems segment. In the last quarter of 2023, HP had generated total $9.4 billion from the PC segment.

In the first quarter of 2024, HP’s consumer personal systems revenue declined by 1% , while its commercial personal systems net revenue declined by 5% (yoy). However, the total unit sales according to its report were up 5% yoy in the first quarter of 2024. The consumer PC segment experienced 10% growth in unit sales while the commercial PC segment of HP experienced 2% growth in Q1 2024 compared to the same quarter of 2023.

HP printing segment performance q1 2024

In the printing segment, the company experienced flat revenue from the sale of supplies but both across consumer printing and commercial printing, its revenue declined compared to the first and last quarters of the prior year.

Its total revenue from the Printing segment in the first quarter of 2024 was $4.4 billion compared to $4.6 billion in the same quarter of 2023. Revenue from supplies in the first quarter of 2023 was $2.86 billion or the same as the first quarter of 2023.

Commercial printing revenue of HP declined 12%, while its consumer printing revenue decline by 22% in Q1 2024 compared to Q1 2023.

Overall, the company generated $4.4 billion from its printing segment in the first quarter of 2024 compared to $4.6 billion in the same quarter of the prior year.

Printing hardware unit sales were down 17% yoy in the first quarter with Consumer Printing units down 15% and Commercial Printing units down 18%.

All sums in millions except percentages*

Meanwhile, IDC has forecasted that PC sales will grow in 2024 after an unprecedented slump in PC demand. According to IDC, with 68.5 million unit shipments globally, the Pc sector had outperformed expectations in the third quarter of 2023. However, it was still 7.2% lower compared to the same quarter of 2022. The PC sector has experienced double digit decline over two consecutive years which is something unprecedented. However, IDC expects the market to rebound in 2024 driven by factors including PC refresh cycle, AI integration and continued evolution and recovery of the consumer installed base. By 2027, IDC expects PC shipment to grow to 285 million units and 2024 will remain a pivotal year for the PC sector.