Financial Performance

Desktop PC Sales Surge in HP’s Strong Quarter

"I think consistently now we've demonstrated that we've turned around our desktop business," CEO Dion Weisler says.
Matthew HellerAugust 24, 2018

HP reported another quarter of double-digit revenue growth in both its personal systems and print businesses, driven in part by strong sales of desktop PCs.

For the third quarter, HP’s personal systems revenue rose 12% to $9.39 billion, while print climbed 11% to $5.19 billion in revenue. Within personal systems, desktop PC unit sales grew 7%, outpacing notebooks, which grew 6%.

It was the seventh straight quarter of double-digit growth in the personal systems and print businesses. “I think consistently now we’ve demonstrated that we’ve turned around our desktop business,” HP CEO Dion Weisler said during an earnings call on Thursday.

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He attributed the growth in desktop PC sales to “segmenting the market, listening to our customers, driving off of insights and developing a portfolio that’s really resonating with our customer base.”

Overall, HP’s revenue rose 12% to $14.59 billion, beating analysts’ estimates of $14.27 billion. Earnings came in at 52 cents per share, versus estimates of 51 cents.

“As a seller of devices running Microsoft’s Windows 10 operating system, HP is one of many companies that have stood to gain as people upgrade from older versions of Windows,” CNBC reported.

But Weisler said that while the transition from Windows 7 to Windows 10 is providing “some stimulation” to PC sales at HP, continued innovation is the main force behind HP’s outperformance of the overall market.

“For us it’s an outcome of incredible innovation, and cost management and execution from all areas of the business,” he said.

Notebook PC revenue increased 13% to $5.63 billion in the third quarter, while desktop PC revenue grew 12% to $2.86 billion.

“We continue to see strong demand for HP products across the board. They’re continuing to differentiate themselves in the market, and that’s paying off,” Skip Tappen, CEO at NWN, an HP partner, told CRN. “Specifically around desktops and workstations, we’re seeing strong demand there also.”

HP also said Thursday it expects to post 52 cents to 55 cents in earnings per share in the fiscal fourth quarter and $2.00 to $2.03 for the full year, excluding certain items.