HP is advancing edge AI solutions to mitigate rising token costs associated with generative AI model usage. By running AI capabilities directly on endpoint devices, HP aims to reduce reliance on cloud-based models, thereby lowering total ownership costs. Chief Strategy and Transformation Officer Prakash Arunkundrum highlighted that tasks like manufacturing quality inspection benefit from local execution due to lower latency and data sovereignty concerns. HP's AI PCs, which now constitute 35% of device sales, are part of this strategic shift. The company's first-quarter revenue for fiscal year 2026 reached $14.4 billion, with Personal Systems revenue at $10.3 billion, marking an 11% year-over-year increase. However, rising memory prices have compressed profit margins, with the operating profit margin dropping to 5.3% from 6.3% last year. HP plans to announce its second-quarter results on May 27.