Hewlett-Packard beat analysts’ expectations as sales of personal computers rose sharply and the corporate computer unit returned to profitablility.

The computer and printer maker said its fiscal third quarter profit fell sharply after paying taxes that were due as a result of the repatriation of $14.5bn in cash from overseas earnings, but its operating results impressed the market. HP shares shot up 10 per cent in New York on Wednesday morning to $26.11.