HP Q1 results: HP Inc. missed Wall Street estimates for first-quarter revenue on Wednesday, extending its decline for the seventh consecutive quarter. The decrease was attributed to sluggish demand in the personal computers (PC) market as customers delayed system upgrades.

Following the announcement, shares of HP dropped more than 3 per cent in extended trading. The company ranked as the world's second-largest PC vendor after China's Lenovo Group, faced challenges as enterprise customers tightened their budgets amid economic uncertainty, impacting demand for personal computing devices.

The decline in revenue growth began in 2022 as the surge in demand for PCs and electronics during the work-from-home period faded. According to CEO Enrique Lores, China remained a weak market for both consumer and commercial sectors, while overall market conditions remained volatile and inconsistent across regions.

HP reported that revenue for the November-to-January period fell approximately 4.4 per cent to $13.19 billion, below analysts' average estimates of $13.56 billion. However, its adjusted earnings per share met the target estimate at 81 cents.

Looking ahead, HP forecast second-quarter adjusted profit per share in the range of 76 cents to 86 cents, with the midpoint aligning with estimates of 81 cents. Sales in HP's Personal Systems segment, which includes desktop and notebook PCs, declined by 4 per cent compared to the previous year, while its Printing segment experienced a 5 per cent decrease.

In contrast, HP's peer Lenovo Group reported stronger-than-expected earnings in the third quarter, with revenue returning to growth after five quarters of decline. Dell is expected to report its fourth-quarter results on Thursday.

(With Reuters inputs)