HP’s recent financial discussions reveal a nuanced perspective on the current state of personal computing. The company estimates that approximately 30% of its PC customers are still operating on Windows 10, an operating system that exited standard support in October. Ketan Patel, president of personal systems at HP, articulated this phenomenon during a recent investor call, suggesting that the sluggish transition to Windows 11 is providing a financial tailwind for the company. He noted, “Windows 11: 30 percent of the installed base is still to be refreshed. That’s one tailwind which we see as an opportunity in the short run.”
Adding to this sentiment, HP’s CFO, Karen Parkhill, highlighted the regional dynamics at play, particularly in the EMEA and APJ markets during the financial second quarter that concluded on April 30. “We have roughly 30 percent of the installed base still on Windows 10, so we still have some more to go. The Win 11 refresh that we’ve driven now in EMEA and APJ is now on par with North America,” she stated.
As Microsoft prepares to end support for Windows 10 for business customers on October 14, 2025, the company will still offer security updates for those willing to pay for extended support. This impending deadline raises questions about the slow adoption of Windows 11, which may be attributed to several factors. Notably, growth in device spending has lagged behind other technology sectors, with Gartner forecasting a modest 6.1% increase in 2026, compared to more robust growth predictions for software and datacenters.
Moreover, last year’s estimates indicated that around 400 million systems are unable to upgrade to Windows 11 due to Microsoft’s hardware requirements, which include mandatory TPM 2.0 chips and more modern processors. This situation has not gone unnoticed by European campaigners, who have cited the Windows 11 upgrade as a prime example warranting EU intervention. They argue that vendor-imposed software cutoffs, rather than hardware limitations, are rendering otherwise functional PCs obsolete, thereby contributing to electronic waste. In response, Microsoft has offered consumers in the European Economic Area extended support for Windows 10 without conditions following the October deadline.
While HP is not focused on software upgrades alone, the company had anticipated that the expiration of support would catalyze a significant refresh cycle. However, this expected surge has yet to materialize, with adoption rates for the new operating system trailing behind historical trends. Looking ahead, HP is also banking on artificial intelligence as a key driver of future growth. Patel remarked, “Both short run and long run, as a lot of customers are moving workloads to the edge, with rising costs of Gen AI, that is a great opportunity, we believe… That is where we will see commercial demand remain strong.”
Despite the challenges, HP’s financial performance has shown resilience. The company’s revenue grew by 9% year-on-year, reaching .41 billion in the second quarter of its fiscal 2026, surpassing analyst expectations. Net profit also saw an increase, rising to 0 million from 6 million in the previous year.
