HP has released its fourth-quarter financial results. As of October 31, the company's sales witnessed a 4.2% year-on-year increase, reaching US$14.6 billion. Earnings per share, excluding certain items, stood at 93 cents, marking a 3% year-on-year decline. Nevertheless, both figures surpassed the expectations set by analysts. Specifically, within the company's business segments, the revenue generated by the personal computer division experienced an 8% year-on-year uptick. In contrast, the printer division reported a 4% year-on-year decrease in sales.

Looking ahead to fiscal year 2026, HP's earnings forecast has failed to meet market expectations. The company projects that its annual earnings per share will range between US$2.90 and US$3.20. In a bid to streamline operations and cut costs, HP has announced its intention to lay off 4,000 to 6,000 employees by fiscal year 2028. This move is expected to result in annual savings of approximately US$1 billion. However, it's important to note that this round of layoffs will incur restructuring expenses amounting to around US$650 million.

It's worth mentioning that three years ago, HP implemented a similar cost-cutting strategy, which ultimately led to savings of US$2.2 billion in expenditures. The primary reason behind the current earnings falling short of expectations is the escalating cost of computer memory chips. To tackle this issue, HP has stated that it will take appropriate measures.

Following the release of the earnings report, HP's stock price took a hit. On Tuesday, during after-hours trading, the stock fell by approximately 5%. Moreover, since the beginning of the year, the stock has accumulated a 25% decline.