HP Inc shares fall on layoffs, weak guidance due to U.S. trade regulations

HP Inc., the renowned manufacturer of PCs and printers, revealed on Tuesday its plans to reduce its workforce by 4,000 to 6,000 employees. This significant downsizing comes alongside a disappointing earnings forecast for the upcoming fiscal year, sending HP's shares down by 5% in after-hours trading. The company previously conducted a similar round of layoffs in 2022, highlighting a troubling trend in the tech industry, where several firms are facing workforce reductions. The economic pressures of rising prices and increasing interest rates are weighing heavily on U.S. consumers, affecting overall market performance. In its latest financial report, HP disclosed adjusted earnings of 93 cents per share for the fourth quarter, with total revenues reaching $14.64 billion, marking a 4% increase from the previous year. However, analysts from LSEG had anticipated earnings of 92 cents per share and revenues of $14.48 billion, indicating a slight miss on expectations. Looking ahead to the first quarter of fiscal 2026, HP forecasts adjusted earnings per share between 73 cents and 81 cents, compared to an LSEG consensus of 79 cents. For the entire fiscal 2026, the company's projections range from $2.90 to $3.20 per share, falling short of the consensus estimate of $3.33. In a statement, HP attributed its cautious outlook to the financial impact of current U.S. trade regulations and the associated mitigation strategies. This situation continues to evolve, and further updates are expected as new information emerges.