Editor’s note: HP, which recently regained the No. 1 ranking for PC sales from Lenovo, shows strong growth across its traditional businesses in its latest financial report. Next up: 3D printing. So says Technology Business Research Analyst Daniel Callahan.

HAMPTON, N.H. – HP Inc. grew revenue to $13.1 billion in 2Q17, a year-to-year increase of 10%, in quarterly financials disclosed on Wednesday.

Personal systems maintained its position as the primary source of HP Inc.’s revenue growing 12% to $8.4 billion, or 64% of total revenue.

Notebooks led the race with a 16% year-to-year growth to $5 billion, supported by growth in desktops, workstations and other of 5%, 11% and 8%, respectively.

Printing also grew 6%, mostly driven by a 10% increase year-to-year in supplies which represents 66% of total printing revenue.

Commercial hardware declined 2% year-to-year and consumer hardware had a modest growth of 3% this quarter.

Both printing and personal systems had healthy margins for their respective businesses at 17.3% and 3.7% respectively.

This is a result of HP Inc. streamlining its portfolios and moving customers upmarket with higher value PCs and specialty printers, while cutting internal costs. This led HP Inc. to a corporate operating margin of 8.4%.

The overall story of HP Inc. will be mining what profits it can in the ‘new normal,’ or the PC and printing markets which promise little meaningful long-term growth, until it can have its 3D printing business ramp up and gain traction with customers.

TBR believes that HP Inc. sees 3D printing as its true growth engine in the long run. 3D printing, while an extended cousin of traditional printing, will fit in well to the successful sales, management, and supply go-to-market HP Inc. constructed around its printing business.

  • VIDEO: Watch an overview about 3D printing from HP at https://www.youtube.com/watch?v=XeTdo-w6Qx8