HP says businesses concerned about rising cloud AI token costs should run more AI workloads locally on higher-specification PCs. The company argues this can reduce operating costs, improve response times, lessen reliance on internet connections and keep sensitive data closer to where it is created, though the shift also benefits HP by encouraging sales of more expensive machines and related services.

AI-capable PCs represented 46 per cent of HP’s PC sales mix in the quarter, and the company expects this to reach 60–70 per cent in fiscal 2027 and more than 70 per cent in 2028. Personal Systems revenue rose 18 per cent year on year to $11.8 billion despite a 16 per cent fall in PC volumes, driven by higher prices and a greater share of premium products; HP also expects further price rises as component costs increase.