HP Warns Trade Rules and Memory Costs Will Pressure FY2026 Outlook

What happened

HP ($HPQ) said US trade regulations and rising memory chip costs are expected to weigh on its fiscal 2026 outlook, with management guiding toward the low end of its prior EPS range and calling out ongoing volatility in DRAM and NAND pricing. HP also flagged a likely double-digit decline in PC shipments, and the stock dropped in after-hours trading after the update.

Why this matters for traders

This is a clean “margin squeeze” setup for PC and device OEMs:

1. Memory prices rise (DRAM and NAND) → bill-of-materials costs jump fast.

2. OEMs try to pass costs through → demand gets sensitive (especially if units are already rolling over).

3. If tariffs and trade restrictions increase cost and complexity, it adds anoth ...