HP Inc. (NYSE:HPQ) stock fell in premarket trading Thursday after the company reported second-quarter results that topped Wall Street expectations but narrowed its full-year adjusted profit outlook.

HP Beats Earnings Estimates, But Stock Slips On Lowered Profit Outlook

The PC and printing company reported adjusted earnings of 86 cents per share, ahead of analyst estimates of 71 cents, according to Benzinga Pro data. Revenue increased 9% year over year to $14.41 billion, exceeding expectations of $14.04 billion and marking HP's eighth consecutive quarter of revenue growth.

AI PC Growth Drives Personal Systems

Gross margin expanded to 20.9%, supported by pricing actions and growth in higher-margin businesses, although higher commodity and component costs partially offset gains. Operating margin rose 20 basis points from a year earlier to 7.5%.

Revenue in HP's Personal Systems segment climbed 13%, driven by strong commercial and consumer demand, rising adoption of AI PCs and continued growth in advanced compute and workforce solutions.

AI PCs accounted for 44% of shipments during the quarter, up ...