HP blames memory-price surge as it forecasts earnings at low end of previous guidance

MarketWatch

by Steve Goldstein

February 25, 2026

AI-Generated Deep Dive Summary

HP, a leading computer maker, has reported that surging memory chip prices have negatively impacted its earnings. The company stated that it expects its annual profits to land at the lower end of its previously issued guidance range. This outcome reflects the challenges posed by the rapid increase in costs for critical components like DRAM and NAND flash memory chips. The rise in memory chip prices has been driven by several factors, including increased demand from data center operators and cloud service providers, as well as supply chain disruptions caused by global trade tensions and manufacturing delays. These issues have made it difficult for companies like HP to maintain their profit margins despite strong sales of personal computers and other hardware products. HP's financial performance underscores the broader challenges faced by the tech industry due to the memory price surge. While the company is exploring cost-saving measures, such as optimizing its supply chain and adjusting product mixes, these efforts may take time to yield results. Investors will closely monitor how HP navigates this challenging environment and whether it can maintain its competitive position in the market. For readers interested in finance, this situation highlights the importance of understanding how external market dynamics—such as supply chain issues and fluctuating commodity prices—affect corporate profitability. The tech sector's reliance on memory chips makes it particularly vulnerable to such price swings, which can have ripple effects across industries. HP's experience also serves as a reminder of the need for companies to remain agile in应对 unforeseen challenges in global markets. In summary, HP's earnings outlook reflects the broader financial implications of the memory chip price surge. While the company is采取 steps to mitigate these impacts, the situation underscores the ongoing volatility in tech and finance sectors, offering valuable insights for investors and market analysts alike.

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Originally published on MarketWatch on 2/25/2026