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HP (HPQ) stock dropped following the PC and printing major's conservative outlook for the PC industry. HP believes that industry-wide PC unit volumes may see a mid-single-digit percentage decline in 2027 on an annual basis versus 2026. This forecast is based on the company's planning assumption, which is subject to change depending on the performance of the PC industry in the second half of 2026.
It is worth noting that the negative outlook comes after a powerful recovery of HPQ stock and the PC industry in general. HP's recent quarter was marked by double-digit revenue growth driven by growth in commercial systems, premium products, and AI-powered PCs. Meanwhile, unit volumes have been pressured, resulting in an intriguing setup where HP generates increasing revenues while delivering less PC units. The question remains as to whether this trend will continue in 2027.
