HP Inc beat Wall Street estimates for third-quarter revenue on Wednesday, marking its first quarter of revenue growth after eight consecutive quarters of decline.

The turnaround was primarily driven by a recovery in the personal computer market, bolstered by demand for artificial intelligence-capable systems.

The PC market has been on a resurgence lately driven by customers upgrading their systems following a nearly two-year period of low demand post-pandemic.

Demand is also expected to surge as companies roll out AI-capable PCs equipped with advanced, powerful processors designed for AI tasks.

"We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup," said CEO Enrique Lores.

Global shipments of personal computers rose by 3% to 64.9 million units in the three months ended June, marking a second straight quarter of growth after two years of decline, preliminary data from research firm IDC showed in July.

For the third-quarter, HP posted a 2.4% increase in revenue to $13.52 billion, compared with analysts' average estimate of $13.38 billion,according to LSEG data.

The Palo Alto, California-based company also increased its share repurchase authorization to $10 billion.

However, the PC maker expects fourth-quarter adjusted profit per share to be between 89 cents and 99 cents, the midpoint of which was below LSEG estimates of 95 cents.

HP also tightened its fiscal year 2024 adjusted profit forecast to be in the range of $3.35 to $3.45 per share, compared with its prior outlook of between $3.30 to $3.60 per share.

Analysts on average expect annual adjusted profit per share of $3.45, according to LSEG data.

  - Reuters