HP (NYSE:HPQ) Announces Earnings Results, Beats Expectations By $0.14 EPS

Posted by Wayne Rhoads on May 27th, 2026

HP (NYSE:HPQ – Get Free Report) issued its quarterly earnings results on Wednesday. The computer maker reported $0.86 earnings per share for the quarter, topping analysts’ consensus estimates of $0.72 by $0.14, FiscalAI reports. The firm had revenue of $14.41 billion during the quarter, compared to analysts’ expectations of $13.99 billion. HP had a net margin of 4.45% and a negative return on equity of 581.36%. HP’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.71 EPS. HP updated its FY 2026 guidance to 2.900-3.100 EPS and its Q3 2026 guidance to 0.610-0.710 EPS.

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

HP reported 9% year-over-year revenue growth for Q2, marking its eighth consecutive quarter of top-line growth, and EPS came in above guidance.
Personal Systems was the main growth driver, with revenue up 13% and AI PCs rising to 44% of shipments from more than 35% last quarter, reflecting strong demand in premium and AI-enabled devices.
Management said the company is seeing a major shift toward AI at the edge and highlighted new products, software partnerships, and platform tools like HP IQ and WXP as part of its innovation push.
HP expects memory and storage costs to keep rising in the second half of fiscal 2026, with Personal Systems margins likely to be below the long-term range for the rest of the year and Q4 expected to be the low point.
Despite higher input costs, HP raised its full-year outlook, now targeting EPS of $2.90 to $3.10 and annual free cash flow of $2.8 billion to $3.0 billion, citing strong mitigation actions and disciplined execution.

HP Stock Up 7.8%

HPQ opened at $26.96 on Monday. The company has a 50 day moving average of $20.59 and a two-hundred day moving average of $21.11. HP has a 52-week low of $17.56 and a 52-week high of $29.55. The company has a market cap of $24.66 billion, a P/E ratio of 9.95, a P/E/G ratio of 4.61 and a beta of 1.16.

HP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Wednesday, June 10th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Wednesday, June 10th. HP’s payout ratio is 44.28%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of HP from $22.00 to $26.00 and gave the stock a “neutral” rating in a research report on Thursday. Weiss Ratings reissued a “hold (c-)” rating on shares of HP in a research note on Monday, May 4th. Barclays raised their price objective on HP from $16.00 to $19.00 and gave the stock an “underweight” rating in a report on Thursday. Evercore set a $22.00 price objective on HP in a research report on Thursday, February 19th. Finally, The Goldman Sachs Group reduced their target price on HP from $21.00 to $16.00 and set a “sell” rating on the stock in a research report on Wednesday, February 25th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat, HP has an average rating of “Reduce” and a consensus target price of $23.08.

Read Our Latest Report on HP

Trending Headlines about HP

Here are the key news stories impacting HP this week:

Positive Sentiment: HPQ beat Q2 earnings and revenue expectations, showing stronger-than-expected demand in Personal Systems and healthy top-line growth. HP Inc. Reports Fiscal 2026 Second Quarter Results
Positive Sentiment: Analysts raised price targets after the report, signaling improved confidence in HP’s near-term execution and earnings power. Why HP Stock Is Surging On Friday?
Neutral Sentiment: Management’s earnings call pointed to AI growth opportunities, but also stressed the need to manage input costs and margin pressure carefully. HP Inc. Earnings Call Balances AI Growth And Costs
Negative Sentiment: HP lowered its full-year outlook due to memory cost pressure and slowing unit demand, which could limit margin expansion and cap upside. HP beats Q2 estimates but trims full-year outlook on memory cost pressure
Negative Sentiment: Bank of America and Morgan Stanley remained cautious, suggesting the quarter was strong but not yet enough to confirm a full turnaround. Bank of America sends tough message on HP stock

Hedge Funds Weigh In On HP

Institutional investors and hedge funds have recently modified their holdings of the stock. DV Equities LLC acquired a new stake in HP during the fourth quarter valued at $29,000. Wilkerson Advisory Group LLC acquired a new stake in shares of HP during the 4th quarter valued at about $41,000. JPL Wealth Management LLC acquired a new position in HP in the third quarter worth approximately $43,000. Platinum Investment Management Ltd. bought a new position in HP during the fourth quarter valued at approximately $59,000. Finally, Summit Securities Group LLC grew its position in HP by 78.4% in the fourth quarter. Summit Securities Group LLC now owns 2,887 shares of the computer maker’s stock worth $64,000 after acquiring an additional 1,269 shares in the last quarter. 77.53% of the stock is currently owned by hedge funds and other institutional investors.

HP Company Profile

(Get Free Report)

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.