PCs Read-through from HPQ Apr-26 earnings

Research evidence excerpt

PCs Read-through from HPQ Apr-26 earnings

J P M O R G A N Asia Pacific Equity Research

28 May 2026

PCs

Read-through from HPQ Apr-26 earnings

HPQ (Neutral; covered by J.P. Morgan’s U.S. Equity Analyst, Samik Chatterjee) Technology - Hardware

ACreported Apr-Q earnings before the Taiwan market open today. The key Albert Hung

implications for the Asian tech supply chain are as follows: (886-2) 2725-9875

albert.hung@jpmchase.com

J.P. Morgan Securities (Taiwan) Limited/ J.P.• Sub-seasonal PC trend in coming quarters due to negative demand

elasticity. HPQ’s PC shipments declined YoY in Apr-Q, but ASP expansion MorganMorgan SecuritiesBroking (Hong(AsiaKong)Pacific)LimitedLimited/ J.P.

more than offset the shipment decline, leading to double-digit revenue growth Anthony Leng

in both consumer and commercial PCs. Looking forward, HPQ expects a high- (886-2) 2725-9240

teens % YoY decline in PC shipments in 2HCY26 due to the pull-in demand anthony.leng@jpmorgan.com

into 1H and negative price elasticity. This is in line with supply chain feedback J.P. Morgan Securities (Taiwan) Limited

and our expectation of a 10-15% YoY decline in global PC shipments, and Gokul Hariharan

implies a sub-seasonal PC revenue trend for PC ODMs/brands in 2HCY26 (852) 2800-8564

with negative OP leverage. For the full year, HPQ targets to grow PC revenue gokul.hariharan@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

as ASP expansion more than offsets the unit declines. Morgan Broking (Hong Kong) Limited

• Commercial PCs to outperform mainstream consumer PCs. HPQ saw

more resilient commercial PC demand vs. consumer PCs in Apr-Q, especially

in the APJ and EMEA regions, driven by continued Win10 replacement

demand. Management indicated a ~30% aging installed base, implying likely