HP Names Emma Walmsley CEO Amid Memory Chip Squeeze

Walmsley will take over on January 4, succeeding interim chief executive Bruce Broussard. Broussard is set to become board chair, replacing Chip Bergh. Walmsley ran pharmaceutical company GSK from 2017 until December 2025 and has served on Microsoft’s board for seven years. She previously spent 17 years at L’Oréal, but has not worked in technology hardware.

HP faces rising memory costs as AI data-center construction absorbs chip capacity. The pressure was evident in its August third-quarter results: PC shipments dropped 16%, while revenue from the unit increased 18% as customers shifted toward more expensive products, including AI PCs.

In September, HP said it would not give a financial forecast for fiscal 2027. It expects PC unit sales across the industry to fall by a mid-single-digit percentage next year. Investors responded to the appointment on November 4 by pushing HP shares up more than 6%.

Walmsley’s challenge will include managing profitability through the downturn and finding growth beyond traditional PCs. Her appointment also reflects a broader pattern of companies hiring experienced former CEOs for leadership roles in unfamiliar industries. Nearly 30% of new S&P 500 chief executives over the past year had previously held the job, about twice the historical share, data from Russell Reynolds showed. CEO search firm leader Constantine Alexandrakis said boards can find reassurance in a leader’s prior experience, even when the new company operates in another sector.