HP Inc. has announced a significant reduction in its fiscal 2025 profit forecast, anticipating adjusted annual earnings between $3.00 and $3.30 per share. This is a drop from the previously estimated range of $3.45 to $3.75 per share. The adjustment reflects expected slowdowns in the PC market and ongoing global economic volatility, including inflationary pressures stemming from U.S. tariffs, as reported by Reuters.

Following this announcement, HP's stock took a hit, with shares falling 14% in after-hours trading, underlining investor apprehensions about the company's revised financial outlook. The Personal Systems segment, which encompasses PCs, has been particularly impacted by increased costs due to tariffs, alongside mitigation investments made to shift production to countries like Vietnam, Thailand, India, Mexico, and the U.S. Despite these efforts, the second quarter did not meet expectations.

In terms of its financial performance, HP reported Q2 revenue of $13.22 billion, which slightly exceeded estimates; however, earnings per share were 71 cents, falling short of the anticipated 80 cents. While the Personal Systems segment experienced a 7% year-over-year sales increase, the Printing segment saw a 4% decline. For Q3, HP projects earnings per share in the range of 68 to 80 cents, still below the consensus of 90 cents, signaling continued challenges in the face of tariff-related pressures.