The great HP turnaround: tech juggernaut returns to growth

21 Feb 2014

HP, one of the world’s largest tech companies, has managed to pull itself out of a nosedive and last night reported a return to growth with earnings up almost 8pc on revenues of US$28.2bn.

The company, in striving to ease its dependence on PCs and pursue growth through the software and servers driving growth in cloud and big data, has reversed its fortunes somewhat.

While first-quarter net revenue of US$28.2bn was down 1pc on last year, the pendulum has shifted, said CEO Meg Whitman.

“HP is in a stronger position today than we’ve been in quite some time,” Whitman said. “The progress we’re making is reflected in growth across several parts of our portfolio, the growing strength of our balance sheet, and the strong support we’re receiving from customers and channel partners.

“Innovation is igniting our comeback, and at a time when many of our competitors are confronting new challenges, two years of turnaround work is setting us up for an exciting future.”

HP, which employs 4,000 people in Ireland, generated US$3bn in cash flow from operations in the first quarter, up 17pc.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years