HP reported quarterly revenue that topped analysts’ estimates, including the first increase in PC sales in two years, an optimistic signal for a long-awaited rebound in the market. Its stock was 2 per cent higher in extended trade.
Revenue from HP’s computer unit increased 3 per cent to $US8.43 billion in the fiscal second quarter, compared with the $US8.28 billion expected by analysts. The business had been declining since May 2022 on a year-over-year basis.
The jump was due to commercial sales, which rose 6 per cent to $US6.24 billion. Consumer sales continued to decline, slipping 3 per cent to $US2.18 billion, the company said in a statement.
The PC market had seen a historic decline over the last two years after many consumers, businesses and schools purchased laptops in the early months of the pandemic. In the first quarter, shipments picked up 1.5 per cent — the first increase since the end of 2021 — industry analyst IDC said in April.
PC-makers have been hopeful those numbers signalled the end of the slump and that growth would accelerate in 2024 with the launch of machines equipped with a new version of Microsoft’s Windows software as well as hardware equipped with chips to handle artificial intelligence tools.
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C3.ai Inc shares surged in late trading after the software company gave a stronger-than-expected annual sales forecast, helped by demand for artificial intelligence features.
Revenue will be $US370 million to $US395 million in fiscal 2025, which runs through next April, the company said in a statement. Even the low end of that range would top the $US367.5 million estimated by analysts on average, according to data compiled by Bloomberg.
The software company has been introducing products with generative AI, which can create text and images in response to a user’s prompts. That’s helped it benefit from soaring interest in AI by corporate customers.
But it’s been a bumpy ride. C3.ai, which went public in 2020, is also transitioning to consumption-based pricing, which lets customers pay for what they use, from a subscription-based approach. The change has caused some volatility and disruption in revenue growth, and the shares were down 17 per cent this year through the latest close.
The upbeat outlook helped send the stock up as much as 15 per cent to $US27.45 in late trading.
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Salesforce gave a sales outlook for the current quarter that missed estimates, fuelling concerns of a growth slowdown at the software giant. The shares fell 14 per cent in extended trading.
Revenue will increase about 8 per cent to as much as $US9.25 billion in the period ending in July, the San Francisco-based company said in a statement. Analysts, on average, estimated $US9.35 billion, according to data compiled by Bloomberg.
Profit, excluding some items, will be about $US2.35 a share, compared with the average estimate of $US2.40.
Investors have been concerned about Salesforce’s sliding sales growth over the past year as the company turned its attention to improving profit. Management has touted the potential for artificial intelligence-oriented software and features to boost revenue. It has also increased buybacks and initiated a dividend to keep Wall Street happy.