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

Anthropic in talks to raise fresh capital at 0 billion valuation
Technology

Anthropic in talks to raise fresh capital at $170 billion valuation

Anthropic is in talks to raise between $3 billion and $5 billion in a funding round led by Iconiq Capital that would value the artificial intelligence startup at $170 billion, CNBC has confirmed. The OpenAI competitor has been reeling in billions of dollars at a rapidly increasing valuation reflecting investors’ thirst for a piece in […]

Read More
CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over  billion
Technology

CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over $20 billion

Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025. Jeenah Moon | Reuters CyberArk shares soared as much as 18% on Tuesday after The Wall Street Journal reported that cybersecurity provider Palo Alto Networks has held discussions to buy […]

Read More
Cash App opens up to Apple Pay and Google Pay for the first time
Technology

Cash App opens up to Apple Pay and Google Pay for the first time

Cash App’s new Pools feature lets users set a group funding goal, name the pool, and invite contributors. Courtesy: Cash App Cash App is going on the offensive in peer-to-peer payments. The Block-owned payments platform on Tuesday unveiled Pools, a new peer-to-peer feature designed to make group payments simple. It’s the company’s first major P2P […]

Read More