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HP
(NYSE:HPQ)
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Rating:69Neutral
Price Target:
$38.00
▲(28.73% Upside)
Action:Reiterated
Date:09/21/26
HPQ scores as a moderately attractive setup driven by solid cash generation and supportive valuation (P/E ~13, ~3.5% yield), reinforced by constructive technical momentum and a raised EPS/FCF outlook. The score is held back by balance-sheet risk (negative equity, sizable debt) and profitability/margin pressures, with near-term results partly supported by one-time tariff refunds and ongoing demand uncertainty.
Positive Factors
Personal Systems Growth and AI PCs
Personal Systems is showing sustained growth across commercial and consumer markets, while rising AI-PC adoption gives HP a product-cycle opportunity. A larger AI-enabled mix and continued commercial strength could support revenue resilience and reinforce HP’s relevance in higher-value computing categories.
Negative Factors
Aggressive Capital Structure
Negative equity removes much of the conventional balance-sheet cushion available to shareholders, while sizable debt reduces financial flexibility. Although HP generates significant cash, its cash flow relative to total debt remains modest, making deleveraging gradual and leaving less room for unexpected operating pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Personal Systems Growth and AI PCs
Personal Systems is showing sustained growth across commercial and consumer markets, while rising AI-PC adoption gives HP a product-cycle opportunity. A larger AI-enabled mix and continued commercial strength could support revenue resilience and reinforce HP’s relevance in higher-value computing categories.
Read all positive factors
HP Key Performance Indicators (KPIs)
Any
Net Revenue by Segment
Breaks down revenue by business segment, offering insight into which areas are driving growth and which might be underperforming.
Breaks down revenue by business segment, offering insight into which areas are driving growth and which might be underperforming.
Data provided by:
The Fly
The FlyHP (HPQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.14B
Dividend Yield3.83%
Average Volume (3M)14.22M
Price to Earnings (P/E)11.8
Beta (1Y)1.19
Revenue Growth8.67%
EPS Growth-4.70%
CountryUS
Employees55,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.65
Shares Outstanding901,790,950
10 Day Avg. Volume11,943,196
30 Day Avg. Volume14,223,101
Financial Highlights & Ratios
PEG Ratio-1.83
Price to Book (P/B)-75.65
Price to Sales (P/S)0.47
P/FCF Ratio9.35
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda7.58
Forecast
1Y Price Target
$26.85Price Target Upside-9.06% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering13
EPS Forecast (FY)3.26
Revenue Forecast (FY)$59.96B
HP Business Overview & Revenue Model
Company Description
HP Inc. is a global technology company specializing in personal computing devices, imaging and printing solutions, and a variety of related technologies, software, and support services, serving clients both in the United States and worldwide. Its ...
How the Company Makes Money
HP primarily makes money through two major operating segments: Personal Systems and Printing. In Personal Systems, HP generates revenue mainly from selling hardware such as laptops, desktops, workstations, and accessories; it also earns revenue fr...
HP Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line momentum driven by a robust Personal Systems segment, accelerating AI-PC adoption and meaningful cash generation that enabled raised EPS and free cash flow guidance. These operational and strategic positives — including product innovation for edge AI, market share gains in premium categories and material growth in key areas — outweighed the notable headwinds of Print revenue softness, margin pressure from rising input and memory costs, PC unit declines, and one-time tariff-related benefits that partially supported results. Management emphasized mitigation actions and confidence in supply and margin recovery into FY27, but cautioned that input-cost pressures and unit-demand trends remain risks.Positive Updates
Record Q3 Revenue and Top-Line Growth
Total revenue of $15.7B in Q3, a record quarter for HP, up 13% year-over-year (11% in constant currency) and marking the ninth consecutive quarter of top-line growth.
Negative Updates
Print Revenue and Supplies Pressure
Print revenue declined 2% year-over-year (down ~4% in constant currency). Supplies revenue was down ~4% in constant currency, and the office market showed softness in North America and China.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Q3 Revenue and Top-Line Growth
Total revenue of $15.7B in Q3, a record quarter for HP, up 13% year-over-year (11% in constant currency) and marking the ninth consecutive quarter of top-line growth.
Read all positive updates
Company Guidance
HP raised its fiscal‑year outlook and provided Q4 guidance: diluted non‑GAAP net EPS is now expected at $3.19–$3.29 (up from $2.90–$3.10) including an estimated $0.19 tariff‑refund benefit, Q4 EPS is guided to $0.69–$0.79 (including ~$0.08 tariff benefit), and full‑year free cash flow guidance was increased to $3.0–$3.2 billion. In Q3 the company delivered $15.7 billion of revenue (+13% YoY, +11% cc), gross margin of 18.8%, operating margin of 6.5%, and non‑GAAP EPS of $0.83 (+11%, including $0.11 of tariff refunds); Personal Systems revenue was $11.8 billion (+18% YoY) with a PS operating margin of 4.6% (units down, channel inventory higher than normal but controlled), AI PCs were ~46% of mix this quarter with a 50% target by year‑end (60–70% in 2027), and key growth areas grew 46% YoY. Print revenue was down 2% (−4% cc), Print operating margin 18.1% (tariff benefit excluded would be in line with guidance), supplies revenue down ~4% cc, tank printers grew units ~42%, cash from operations in Q3 was >$1.7B with ~ $1.6B FCF (YTD FCF >$2.5B), returned ~ $600M to shareholders in Q3 (~$1.5B YTD), paid down just over $500M of debt, and ended with a negative 37‑day cash conversion cycle; looking ahead HP expects Q4 PS units to decline high‑teens (Q4 revenue still to grow YoY but be below seasonal), Q4 margins to be the trough with improvement into FY‑27, and memory/storage/input costs to rise further but at a slower rate.HP Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
73
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.16B | 55.30B | 53.56B | 53.72B | 62.91B | 63.46B |
| Gross Profit | 11.70B | 11.05B | 11.82B | 11.51B | 12.26B | 13.41B |
| EBITDA | 4.15B | 4.09B | 4.72B | 4.47B | 5.46B | 8.61B |
| Net Income | 2.45B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B |
Balance Sheet | ||||||
| Total Assets | 45.70B | 41.77B | 39.91B | 37.00B | 38.49B | 38.60B |
| Cash, Cash Equivalents and Short-Term Investments | 4.17B | 3.69B | 3.24B | 3.11B | 3.15B | 4.30B |
| Total Debt | 10.34B | 10.88B | 10.90B | 10.74B | 12.29B | 8.78B |
| Total Liabilities | 45.79B | 42.12B | 41.23B | 38.07B | 41.52B | 40.25B |
| Stockholders Equity | -92.00M | -346.00M | -1.32B | -1.07B | -3.02B | -1.64B |
Cash Flow | ||||||
| Free Cash Flow | 3.88B | 2.80B | 3.16B | 2.96B | 3.67B | 5.83B |
| Operating Cash Flow | 4.67B | 3.70B | 3.75B | 3.57B | 4.46B | 6.41B |
| Investing Cash Flow | -529.00M | -1.18B | -646.00M | -590.00M | -3.55B | -1.01B |
| Financing Cash Flow | -2.84B | -2.06B | -3.08B | -2.89B | -2.07B | -5.96B |
HP Technical Analysis
Positive
29.52
Price Trends
31.33
Positive
28.15
Positive
23.82
Positive
Market Momentum
0.05
Negative
62.31
Neutral
78.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPQ, the sentiment is Positive. The current price of 29.52 is below the 20-day moving average (MA) of 31.27, below the 50-day MA of 31.33, and above the 200-day MA of 23.82, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 78.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPQ.
HP Risk Analysis
HP disclosed 32 risk factors in its most recent earnings report. HP reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $77.22B | 28.95 | 10.87% | 0.98% | 26.63% | 130.65% | |
73 Outperform | $141.69B | 13.94 | 112.34% | 0.15% | -2.71% | 407.72% | |
73 Outperform | $293.47B | 27.79 | -574.57% | 0.50% | 48.86% | 152.40% | |
70 Outperform | $153.52B | 47.93 | 348.17% | 0.43% | 34.06% | 108.45% | |
69 Neutral | $28.14B | 11.82 | -727.30% | 3.83% | 8.67% | -4.70% | |
66 Neutral | $1.43B | 44.04 | 5.52% | ― | 3.11% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
HPQ
HP
33.76
7.28
27.49%
STX
Seagate Tech
642.14
417.06
185.29%
WDC
Western Digital
354.19
228.70
182.26%
HPE
Hewlett Packard Enterprise
55.47
32.69
143.50%
DELL
Dell Technologies
452.95
300.33
196.78%
CRSR
Corsair Gaming
13.64
5.24
62.38%
HP Corporate Events
Business Operations and StrategyFinancial Disclosures
HP Maintains Cautious Outlook Amid Uncertain PC Demand
Negative
Sep 21, 2026
On August 26, 2026, HP told investors during its third-quarter earnings call that it remains in a planning phase for fiscal 2027 and is not yet ready to provide a detailed financial outlook, including expectations for personal computer unit volume...
Business Operations and StrategyRegulatory Filings and Compliance
HP Updates Bylaws to Refine Director Qualification Rules
Neutral
Jun 26, 2026
On June 24, 2026, HP Inc.’s Board of Directors approved amendments to the company’s amended and restated bylaws, effective the same day. The changes revise the director qualification provisions by narrowing the definition of “com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.