HP Inc. (NYSE:HPQ) reported its Q1 results on Tuesday, with EPS coming in at $0.75, better than the Street estimate of $0.74, while the revenue of $13.8 billion missed the Street estimate of $14.15 billion.

The company expects Q2/23 EPS to be in the range of $0.73-$0.83, compared to the Street estimate of $0.76.

The company maintained its full-year EPS guidance of $3.20-$3.60 (vs. Street’s $3.29) despite much weaker enterprise demand, as it expects the stronger margin (for both PS and Print) to continue in 2023.

With regards to end demand, management highlighted tightening corporate budgets began to affect large enterprise demand, and therefore it lowered its PC unit TAM forecast for 2023 from down 10% to down high-teens percent, while it also expects channel inventory drawdown to push out by a quarter.