HP Inc has appointed former GSK chief executive Emma Walmsley as its next CEO, bringing in a leader with experience in large-scale corporate restructuring as the PC maker faces a global memory chip shortage and a slowing computer market.
Walmsley will take over on 4 January, succeeding interim CEO Bruce Broussard, who will become the company’s board chair, replacing Chip Bergh. Reuters reported the appointment on Wednesday, 4 November.
The leadership change comes at a critical point for HP. Rising memory chip prices, driven partly by demand from artificial intelligence data centres, are putting pressure on the global PC industry and complicating the company's growth plans.
A healthcare leader takes charge of a technology company
Walmsley led pharmaceutical company GSK from 2017 until December last year. She does not have prior experience in technology hardware, although her seven years on Microsoft’s board have given her exposure to the technology sector.
Her appointment follows a period of leadership uncertainty at HP, with Broussard serving as interim CEO.
Vitor Madeira, senior market specialist at Capital.com, told Reuters that Walmsley's experience managing a major corporate restructuring could be relevant to HP's current requirements.
He cited the separation of consumer healthcare business Haleon from GSK as an example of her experience handling a significant organisational transition.
Walmsley has previously faced questions over her suitability for leadership roles. Before GSK spun off Haleon, activist investors Elliott and Bluebell questioned her ability to lead the pharmaceutical business without the steady consumer health revenue previously provided by the division.
Her earlier career included 17 years at L’Oréal, where she had led the consumer business.
Memory chip shortage puts PC makers under pressure
HP is among several major technology companies facing higher memory costs as AI data centre expansion absorbs available chip capacity. Dell Technologies, Apple and Lenovo are also exposed to the supply squeeze, Reuters reported.
The shortage is adding pressure to a PC market already dealing with weaker shipment volumes. Manufacturers are navigating higher component costs while trying to sustain demand for new devices, including computers equipped with AI features.
HP's third-quarter results, reported in August, highlighted the contrasting trends in its PC business:
PC shipments fell 16% during the quarter.
PC unit revenue increased 18%, supported by a shift towards higher-priced, higher-margin products.
AI-enabled PCs were among the products contributing to the change in product mix.
The figures indicate that higher revenue from the PC unit did not translate into shipment growth. The company benefited from customers buying more expensive products even as fewer computers were shipped.
HP expects PC market volumes to decline in fiscal 2027
The pressure on the industry also features in HP's outlook. In a September filing with the US Securities and Exchange Commission, the company said it would not provide a financial outlook for fiscal 2027.
HP also assumed industry-wide PC unit volumes would decline by a mid-single-digit percentage next year. The absence of a financial outlook adds uncertainty around the company's performance as it prepares for the next financial year.
Walmsley's immediate challenge will be to manage the impact of higher memory costs while protecting profitability. She will also need to identify growth opportunities beyond traditional PCs, particularly in AI-enabled devices, before component costs ease.
Investors respond to leadership appointment
HP shares rose 6.6% in trading before the market opened following the announcement, Reuters reported. Through the previous session's close, the stock had gained nearly 27% since the beginning of the year.
The market response comes as investors assess whether Walmsley's experience in restructuring large businesses can help HP navigate its current pressures.
Her appointment places a new chief executive at the centre of two connected challenges: managing a costlier component supply chain and finding growth in an evolving PC market. The company's performance will depend on how effectively it balances product demand, pricing and profitability while the memory chip squeeze continues.
