HP Inc. (HPQ) announced fiscal Q4 earnings after market close on Tuesday. Net sales were up 1.7% year over year, with consumer PC net revenue falling 4% and commercial sales increasing by 5% in the quarter. However, the stock fell in after-hours trading due to the company's outlook. HP expects first quarter adjusted earnings to be in a range of $0.70 to $0.76 per share, well below the Wall Street estimate of $0.86.

Operating margins dropped to 8.5% from 9% a year ago, while printing business revenue turned out to be a bright spot for the company, increasing to 19.6% from 18.9% year over year. This boost could be a result of rival Xerox's (XRX) recent struggles.

HP Inc. CEO Enrique Lores sat down with Yahoo Finance Executive Editor Brian Sozzi to discuss the company's results and expectations about the future of the business on key topics, including AI.

"When we look at the next three years, we think that about 50% of all PCs will be AI PCs," according to Lores, adding "They will drive, for the category, a price increase between 5 and 10%."

The CEO also shared his outlook on the impact of potential tariffs imposed by the upcoming Trump presidency. Lores acknowledged that the international business prefers smooth trading across countries, but added "we will work with a new administration in a collaborative way to define the best model for the companies and also for the country."

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This post was written by Luke Brooks.