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HP Posts Higher Q1 Revenue but Tighter Margins as AI PCs Drive Growth

Story Highlights
  • HP’s Q1 2026 revenue rose 6.9% to $14.4 billion, with strength in Personal Systems and AI PCs.
  • Margins tightened but non-GAAP EPS grew, and HP returned $0.6 billion to shareholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
HP Posts Higher Q1 Revenue but Tighter Margins as AI PCs Drive Growth

Meet Samuel – Your Personal Investing Prophet

HP ( (HPQ) ) has provided an update.

HP Inc. reported fiscal 2026 first-quarter net revenue of $14.4 billion, a 6.9% year-over-year increase, driven in part by robust growth in its Personal Systems segment and momentum in AI PCs. Despite revenue gains, GAAP operating margin narrowed to 5.3% and GAAP diluted EPS slipped 1.7% to $0.58, while non-GAAP EPS rose 9.5% to $0.81, supported by cost discipline and mix.

Operating cash flow for the quarter was $383 million and free cash flow reached $175 million, both modestly higher than a year earlier, underscoring steady cash generation. HP returned approximately $0.6 billion to shareholders through share repurchases and dividends, signaling continued commitment to capital returns even as margin pressure persists in a competitive hardware market.

The most recent analyst rating on (HPQ) stock is a Sell with a $16.00 price target. To see the full list of analyst forecasts on HP stock, see the HPQ Stock Forecast page.

Spark’s Take on HPQ Stock

According to Spark, TipRanks’ AI Analyst, HPQ is a Neutral.

The score is held back primarily by balance-sheet leverage/negative equity risk and weak technical trend signals. Offsetting those, HPQ’s valuation is attractive (low P/E and high dividend yield) and the earnings call showed solid near-term execution, though guidance leans cautious due to memory-cost pressure and margin uncertainty.

To see Spark’s full report on HPQ stock, click here.

More about HP

HP Inc. is a U.S.-based technology company that designs and sells personal computers, printers, and related services to consumer, commercial, and enterprise markets worldwide. The company competes in the global PC and printing industries, with a growing focus on next-generation platforms such as AI-enabled personal systems to drive future growth and differentiation.

Average Trading Volume: 17,703,419

Technical Sentiment Signal: Sell

Current Market Cap: $17.39B

See more data about HPQ stock on TipRanks’ Stock Analysis page.

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