HP (HPQ) reported fiscal first-quarter sales that topped analys✅ts' estimates, though its soft outlook disappointed.

The company saw revenue grow 2.4% year-over-year to $13.5 billion, just above the analyst consensus from Visible Alpha. Adjusted earnings per share dropped to 74 cents from 81 cents a year ago, in line with expectations.

Looking ahead, HP ♍projected second-quarter adjusted EPS of 75 cents to 85 cents. Analysts had been looking for 84 cents, at the higher end of that rangeꦜ. 

HP said the outlook reflects its anticipation of higher costs tied to U.S. tariff increases on China and "associated mitigations." The company highlighted its efforts to diversify its supply chain and said it expects over 90% of products sold in the U.S. will be made outside of China by the end of 2025.

The results also come after HP recently reached a $116 million deal to acquire artificial intelligence technology and personnel from Humane, the developer of the AI Pin wearable device. A team of Humane engineers will be part of a new AI inno💧vation lab known as HP IQ, the company said.

Shares of HP fell close to 4% in extended trading Thursday following the release. They've gained about 17% over the past year through Thursday's close.