HP (NYSE:HPQ) Issues Earnings Results

HP (NYSE:HPQ) issued its quarterly earnings results on Wednesday. The computer maker reported $0.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.17, FiscalAI reports. The firm had revenue of $15.68 billion for the quarter, compared to analyst estimates of $14.44 billion. HP had a negative return on equity of 762.90% and a net margin of 4.14%.During the same period last year, the company earned $0.75 EPS. The firm’s quarterly revenue was up 12.5% on a year-over-year basis. HP updated its FY 2026 guidance to 3.190-3.290 EPS and its Q4 2026 guidance to 0.690-0.790 EPS.

Here are the key takeaways from HP’s conference call:

• HP reported record Q3 revenue of $15.7 billion, up 13% year over year, with Personal Systems revenue rising 18% to $11.8 billion. Commercial and consumer growth, premium PC share gains, pricing, and higher-value offerings more than offset a 16% unit decline.
• HP raised its fiscal 2026 outlook, increasing non-GAAP EPS guidance to $3.19–$3.29 from $2.90–$3.10 and free cash flow guidance to $3.0–$3.2 billion. Management said the cash-flow improvement was driven primarily by underlying Personal Systems performance and working-capital discipline, not just tariff refunds.
• HP is positioning AI PCs, workstations, edge-compute solutions, and software such as WXP as major growth opportunities. AI PCs reached 46% of Personal Systems shipments in Q3, with management targeting 60%–70% in fiscal 2027 as customers seek lower token costs, better privacy, security, and latency.
• Input-cost inflation, particularly for memory and storage, is expected to push Personal Systems margins lower in Q4, which management identified as the likely trough. Pricing actions, product redesign, cost reductions, and a richer mix are expected to support sequential margin improvement in fiscal 2027, but the timing and magnitude remain uncertain.
• Print revenue declined 2% year over year amid lower hardware and supplies volumes and competitive pricing, with additional softness in North American and Chinese office markets. HP is emphasizing profitable unit placement, tank printers, subscriptions, and industrial print while expecting Q4 print margins—excluding tariff refunds—to remain in the lower half of its long-term 16%–19% range.

HP Price Performance

NYSE HPQ opened at $29.69 on Friday. HP has a 1-year low of $17.56 and a 1-year high of $32.19. The firm has a market capitalization of $27.15 billion, a P/E ratio of 11.33, a P/E/G ratio of 5.05 and a beta of 1.17. The business’s 50-day simple moving average is $26.24 and its 200-day simple moving average is $22.71.

HP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Wednesday, September 9th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend is Wednesday, September 9th. HP’s payout ratio is currently 45.80%.

Key Stories Impacting HP

Here are the key news stories impacting HP this week:

• Positive Sentiment: HP reported fiscal Q3 non-GAAP EPS of $0.83, above the roughly $0.66-$0.75 analyst consensus, while revenue rose 12.5% year over year to $15.68 billion, comfortably exceeding estimates. HP Inc. Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $3.19-$3.29 and issued fourth-quarter guidance above consensus, supported by price increases, premium and AI-powered PCs, and anticipated U.S. tariff refunds. HP forecasts strong fourth-quarter profit
• Positive Sentiment: Personal Systems revenue increased 18% to $11.77 billion, indicating continued demand for higher-priced and AI-enabled computers. HP also generated $1.57 billion in free cash flow and returned $574 million through buybacks and dividends.
• Positive Sentiment: Several analysts raised their forecasts following the earnings beat, while HP maintained an attractive dividend and accelerated share repurchases. HP Analysts Boost Their Forecasts
• Neutral Sentiment: HP and Huawei signed a multiyear Wi-Fi patent cross-licensing agreement. The deal may support technology access and reduce legal uncertainty, but its near-term financial impact is unclear.
• Negative Sentiment: Investors were concerned that higher memory-chip costs could pressure PC profitability. Management’s outlook depends partly on price increases and tariff refunds, raising questions about the sustainability of earnings growth. HP stock slides as memory costs pressure PC margins
• Negative Sentiment: Non-GAAP operating margin fell to 6.5% from 7.1% a year earlier, while GAAP net income declined 13% and GAAP EPS fell to $0.71. Printing revenue also dropped 2%.
• Negative Sentiment: PC unit shipments declined even as revenue grew, suggesting that pricing rather than broad-based volume expansion drove much of the improvement. HP falls amid margin and shipment concerns
• Negative Sentiment: After an approximately 50% rally and trading near its 52-week high, HPQ’s valuation and elevated expectations left less room for disappointment, prompting profit-taking despite the headline earnings beat.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on HPQ shares. Bank of America reissued an “underperform” rating on shares of HP in a research report on Thursday. The Goldman Sachs Group upped their price target on shares of HP from $19.00 to $21.00 and gave the stock a “sell” rating in a research report on Wednesday, August 12th. Wells Fargo & Company increased their price target on shares of HP from $18.00 to $20.00 and gave the stock an “underweight” rating in a research note on Thursday, May 28th. TD Cowen increased their price target on shares of HP from $26.00 to $30.00 and gave the stock a “hold” rating in a research note on Thursday. Finally, Citigroup lifted their price target on shares of HP from $20.00 to $25.00 and gave the company a “neutral” rating in a report on Thursday, May 28th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $25.17.

Insider Transactions at HP

In related news, insider David P. Mcquarrie sold 21,048 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $29.98, for a total transaction of $631,019.04. Following the completion of the sale, the insider owned 39,580 shares of the company’s stock, valued at approximately $1,186,608.40. This represents a 34.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 52,620 shares of company stock worth $1,478,622. 0.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On HP

Several institutional investors have recently bought and sold shares of the business. State Street Corp raised its stake in shares of HP by 5.3% in the 3rd quarter. State Street Corp now owns 52,703,639 shares of the computer maker’s stock valued at $1,450,245,000 after acquiring an additional 2,651,623 shares during the period. Invesco Ltd. lifted its holdings in shares of HP by 31.7% during the 4th quarter. Invesco Ltd. now owns 15,236,428 shares of the computer maker’s stock valued at $339,468,000 after acquiring an additional 3,671,511 shares in the last quarter. AQR Capital Management LLC boosted its position in HP by 50.2% during the 4th quarter. AQR Capital Management LLC now owns 13,582,142 shares of the computer maker’s stock worth $302,610,000 after purchasing an additional 4,542,339 shares during the period. Deutsche Bank AG boosted its position in HP by 1.3% during the 4th quarter. Deutsche Bank AG now owns 8,905,459 shares of the computer maker’s stock worth $198,414,000 after purchasing an additional 118,319 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in HP by 19.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,660,225 shares of the computer maker’s stock valued at $192,950,000 after purchasing an additional 1,426,567 shares in the last quarter. 77.53% of the stock is currently owned by hedge funds and other institutional investors.

About HP

HP Inc is an American multinational information technology company that designs, manufactures and sells personal computing devices, printers and related supplies and services. Its product portfolio spans consumer and commercial notebooks and desktops, workstations, displays and accessories, as well as an extensive line of printing hardware that includes home, office and production printers. HP also provides consumables such as ink and toner, managed print services, device deployment and lifecycle support, and software for device and print management.

Founded from the original Hewlett‑Packard Company, HP Inc became a separately traded public company in 2015 following a corporate split that created Hewlett Packard Enterprise to focus on enterprise hardware and services.