HP sinks 15% as company misses on earnings, guidance due to ‘added cost’ from tariffs

HP sinks 15% as company misses on earnings, guidance due to ‘added cost’ from tariffs


Sopa Images | Lightrocket | Getty Images

HP reported second-quarter results that beat analysts’ estimates for revenue but missed on earnings and guidance, in part due to President Donald Trump’s sweeping tariffs. Shares sank 15% after the report.

Here’s how the company did versus analysts’ estimates compiled by LSEG:

  • Earnings per share: 71 cents adjusted vs. 80 cents expected
  • Revenue: $13.22 billion vs. $13.14 billion expected

Revenue for the quarter increased 3.3% from $12.8 billion in the same period last year. HP reported net income of $406 million, or 42 cents per share, down from $607 million, or 61 cents per share, a year ago.

For its third quarter, HP said it expects to report adjusted earnings of 68 cents to 80 cents per share, missing the average analyst estimate of 90 cents, according to LSEG. Full-year adjusted earnings will be within the range of $3 to $3.30 per share, while analysts were expecting $3.49 per share.

HP said its outlook “reflects the added cost driven by the current U.S. tariffs,” as well as the associated mitigations.

“While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure,” HP CEO Enrique Lores said in a statement.

Lores told CNBC’s Steve Kovach that HP has increased production in Vietnam, Thailand, India, Mexico and the U.S. By the end of June, Lores said the company expects nearly all of its products sold in North America will be built outside of China.

“Through our actions, we expect to fully mitigate the increased trade-related costs by Q4,” Lores said in the interview.

HP will hold its quarterly call with investors at 5 p.m. ET.

Don’t miss these insights from CNBC PRO



Source

Apple looking to make ‘premium’ priced folding iPhones starting next year, analyst says
Technology

Apple looking to make ‘premium’ priced folding iPhones starting next year, analyst says

People look at iPhones at the Apple Fifth Avenue store in New York City, U.S., May 23, 2025. Adam Gray | Reuters Apple has plans to make a folding iPhone starting next year, reliable analyst Ming-Chi Kuo said on Wednesday. Kuo said that Apple’s folding phone could have a display made by Samsung Display, which […]

Read More
Scale AI not ‘winding down’ following Meta deal, interim CEO tells employees and customers
Technology

Scale AI not ‘winding down’ following Meta deal, interim CEO tells employees and customers

FILE PHOTO: Jason Droege speaks at the WSJTECH live conference in Laguna Beach, California, U.S. October 22, 2019. Mike Blake | Reuters Scale AI’s Interim CEO Jason Droege said in a memo on Wednesday that the artificial intelligence startup is not changing course following Meta’s multibillion-dollar investment in the company last week. “Unlike some other […]

Read More
Shares of Coinbase, Circle surge after stablecoin bill passes Senate
Technology

Shares of Coinbase, Circle surge after stablecoin bill passes Senate

Jeremy Allaire, CEO of Circle Internet Group, the issuer of one of the world’s biggest stablecoins, and Circle co-founder Sean Neville pose outside the New York Stock Exchange (NYSE), on the day of the company’s IPO in New York City, U.S., June 5, 2025. NYSE Shares of Circle and Coinbase rallied on Wednesday, as Wall […]

Read More