HP (NYSE:HPQ) Releases Quarterly Earnings Results, Beats Expectations By $0.17 EPS

HP (NYSE:HPQ) posted its quarterly earnings data on Wednesday. The computer maker reported $0.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.17, FiscalAI reports. HP had a negative return on equity of 581.36% and a net margin of 4.45%.The company had revenue of $15.68 billion during the quarter, compared to analysts’ expectations of $14.44 billion. During the same quarter in the previous year, the business earned $0.75 EPS. HP’s revenue was up 12.5% compared to the same quarter last year. 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

HPQ opened at $30.62 on Thursday. The firm has a market capitalization of $28.00 billion, a PE ratio of 11.30, a price-to-earnings-growth ratio of 4.90 and a beta of 1.17. The business’s 50-day moving average is $26.11 and its two-hundred day moving average is $22.63. HP has a 1 year low of $17.56 and a 1 year high of $32.19.

HP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 9th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 3.9%. The ex-dividend date is Wednesday, September 9th. HP’s payout ratio is 44.28%.

Analysts Set New Price Targets

A number of brokerages have commented on HPQ. Wells Fargo & Company upped their target price 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. Barclays upped their target price on HP from $16.00 to $19.00 and gave the stock an “underweight” rating in a report on Thursday, May 28th. Evercore set a $32.00 price target on HP in a research note on Monday. The Goldman Sachs Group boosted their price target on shares of HP from $19.00 to $21.00 and gave the company a “sell” rating in a report on Wednesday, August 12th. Finally, Wall Street Zen raised shares of HP from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, HP presently has a consensus rating of “Reduce” and a consensus price target of $24.17.

Insider Activity at HP

In other news, insider David P. Mcquarrie sold 21,048 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $29.98, for a total value of $631,019.04. Following the sale, the insider directly owned 39,580 shares in the company, valued at approximately $1,186,608.40. This trade represents a 34.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 52,620 shares of company stock worth $1,478,622 over the last ninety days. Corporate insiders own 0.18% of the company’s stock.

Institutional Investors Weigh In On HP

Several institutional investors have recently bought and sold shares of the company. EFG International AG acquired a new position in shares of HP in the 4th quarter valued at $186,000. Berkshire Asset Management LLC PA acquired a new position in shares of HP in the fourth quarter valued at about $205,000. Parkside Financial Bank & Trust increased its holdings in shares of HP by 25.6% in the fourth quarter. Parkside Financial Bank & Trust now owns 4,746 shares of the computer maker’s stock valued at $106,000 after purchasing an additional 966 shares during the period. Intesa Sanpaolo S.p.A. purchased a new position in shares of HP in the fourth quarter worth about $90,000. Finally, Zions Bancorporation National Association UT lifted its holdings in shares of HP by 22.9% during the fourth quarter. Zions Bancorporation National Association UT now owns 3,672 shares of the computer maker’s stock worth $82,000 after purchasing an additional 685 shares during the period. 77.53% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting HP

Here are the key news stories impacting HP this week:

• Positive Sentiment: HP reported fiscal Q3 revenue of $15.7 billion, up 12.5% year over year and above expectations. Non-GAAP EPS was $0.83, exceeding consensus estimates, while free cash flow rose 7% to $1.57 billion. HP Inc. Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management raised fiscal 2026 non-GAAP EPS guidance to $3.19–$3.29, above the roughly $3.02 analyst consensus, and forecast fourth-quarter EPS of $0.69–$0.79 versus expectations of $0.67. Price increases on premium and AI-enabled PCs, along with expected U.S. tariff refunds, are projected to offset higher memory costs. HP forecasts strong fourth-quarter profit
• Positive Sentiment: The Personal Systems segment grew 18% to $11.8 billion, indicating strong PC demand and continued potential from premium and AI-powered devices. HP also returned approximately $574 million to shareholders through buybacks and dividends. HP Q3 Revenue Rises 12.5% to $15.7 Billion
• Neutral Sentiment: HP signed a multi-year Wi-Fi patent cross-licensing agreement with Huawei. The deal may support product development, but its association with a U.S.-blacklisted company could attract regulatory and geopolitical scrutiny. HP partners with Huawei for Wi-Fi licensing
• Negative Sentiment: GAAP net earnings fell to $661 million from $763 million a year earlier, and GAAP EPS declined to $0.71 from $0.80. Q3 non-GAAP EPS also included a favorable $0.11-per-share tariff-refund benefit, raising questions about the durability of the earnings improvement. HP Revenue Rises as Higher Prices Offset Fewer PC Sales
• Negative Sentiment: Printing revenue declined 2% to $3.9 billion, while investors remain concerned that price increases, memory-chip inflation and softer unit sales could pressure future margins. The negative reaction suggests expectations had already priced in much of the earnings beat and guidance increase.

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.