Shares in HP Inc (NYSE:HPQ) shed nearly a tenth of their value in early U.S. trading on Wednesday, marking their biggest decline since May 2021, after the personal computer maker dialed back its full-year profit estimates.

In its annual earnings released after the close of trading on Tuesday, California-based HP said it now expects adjusted earnings per share of between $3.23 to $3.35 in its current fiscal year. Its initial projections had been in the range of $3.30 to $3.50.

The tempered forecasts come as HP faces headwinds from a slowdown in spending, particularly in China. Uncertain economic conditions have convinced customers to rein in expenditures, hitting demand for electronics and causing an inventory build-up across the supply chain.

HP Chief Executive Officer Enrique Lores flagged in a statement that, while sequential growth is forecast for the fourth quarter, the external environment “has not improved as quickly as anticipated.”

“[W]e are moderating our expectations as a result,” Lores added.

Net revenue at HP slipped by 9.9% to $13.20 billion in the third quarter, missing Bloomberg consensus estimates of $13.38B.