HP (NYSE:HPQ) Announces Earnings Results, Beats Estimates By $0.03 EPS

HP (NYSE:HPQ) posted its quarterly earnings results on Tuesday. The computer maker reported $0.81 EPS for the quarter, beating the consensus estimate of $0.78 by $0.03, Zacks reports. HP had a negative return on equity of 330.68% and a net margin of 4.57%.

HP Trading Down 1.1%

Shares of HPQ traded down $0.20 during mid-day trading on Tuesday, hitting $18.15. 26,912,839 shares of the company traded hands, compared to its average volume of 19,315,703. HP has a one year low of $18.00 and a one year high of $35.01. The stock has a market capitalization of $16.66 billion, a price-to-earnings ratio of 6.85, a PEG ratio of 0.30 and a beta of 1.21. The business has a 50-day moving average of $20.74 and a 200 day moving average of $24.56.

HP Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 6.6%. The ex-dividend date is Wednesday, March 11th. HP’s dividend payout ratio (DPR) is presently 45.28%.

Analyst Upgrades and Downgrades

Several research analysts have commented on HPQ shares. The Goldman Sachs Group lowered HP from a “neutral” rating to a “sell” rating and set a $21.00 price objective on the stock. in a research report on Tuesday, January 13th. JPMorgan Chase & Co. dropped their price target on HP from $30.00 to $25.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 26th. TD Cowen reduced their price objective on HP from $28.00 to $26.00 and set a “hold” rating for the company in a research report on Wednesday, November 26th. Weiss Ratings restated a “hold (c)” rating on shares of HP in a research report on Thursday, January 22nd. Finally, Evercore set a $22.00 target price on shares of HP in a research note on Thursday, February 19th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Hold rating and six have given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $23.62.

Insider Activity at HP

In other HP news, insider Ketan M. Patel sold 33,321 shares of the company’s stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $23.19, for a total transaction of $772,713.99. Following the completion of the transaction, the insider owned 34,572 shares of the company’s stock, valued at $801,724.68. This represents a 49.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Enrique Lores sold 41,922 shares of the business’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $26.00, for a total transaction of $1,089,972.00. Following the transaction, the chief executive officer owned 141,456 shares in the company, valued at approximately $3,677,856. The trade was a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 91,969 shares of company stock valued at $2,277,993. 0.38% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On HP

A number of institutional investors have recently modified their holdings of the business. Baird Financial Group Inc. lifted its holdings in HP by 13.1% during the 2nd quarter. Baird Financial Group Inc. now owns 114,169 shares of the computer maker’s stock worth $2,793,000 after buying an additional 13,265 shares during the period. Gamco Investors INC. ET AL grew its holdings in shares of HP by 2.7% during the second quarter. Gamco Investors INC. ET AL now owns 21,230 shares of the computer maker’s stock valued at $519,000 after buying an additional 551 shares during the last quarter. Daiwa Securities Group Inc. boosted its holdings in HP by 6.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 145,337 shares of the computer maker’s stock worth $3,555,000 after acquiring an additional 8,779 shares during the last quarter. Treasurer of the State of North Carolina boosted its holdings in shares of HP by 70.5% in the 2nd quarter. Treasurer of the State of North Carolina now owns 731,574 shares of the computer maker’s stock worth $17,894,000 after buying an additional 302,578 shares during the last quarter. Finally, HUB Investment Partners LLC purchased a new position in HP in the second quarter valued at approximately $233,000. Institutional investors and hedge funds own 77.53% of the company’s stock.

Key HP News

Here are the key news stories impacting HP this week:

• Positive Sentiment: Q1 beat on the key metric: non‑GAAP EPS of $0.81 topped the consensus and was up ~9% year‑over‑year; revenue grew ~6.9% to $14.4B and free cash flow improved. These underlying operating beats and cash generation support valuation and dividend/buyback capacity. GlobeNewswire Q1 Release
• Positive Sentiment: Shareholder returns: HP returned ~$600M to investors via repurchases and dividends in the quarter — a constructive sign for income‑oriented holders. HP Press Release PDF
• Neutral Sentiment: Street prep and analyst updates ahead of Q1 meant expectations were actively being revised; previews highlighted investor focus on PC demand, leadership execution and margin trends. This kept the stock volatile around the print. Benzinga Coverage 24/7 Wall St. Preview
• Negative Sentiment: Guidance caution: Management said FY26 results are likely at the low end of prior guidance due to U.S. trade regulations and rising memory‑chip costs — a direct driver of the post‑close selloff. Reuters: Guidance Warning
• Negative Sentiment: Margin and GAAP softness: GAAP EPS and operating margins were slightly down year‑over‑year and HP reported a negative return on equity; combined with the guidance caveat, this raises near‑term earnings visibility concerns. HP Q1 Slide Deck / Release

HP Company Profile

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.