Everyone’s focus is on personal computer and printing giant HP Inc. (HPQ) for an improved output in its third-quarter earnings results set for release tomorrow. This follows a previous quarter where the company narrowly surpassed analysts’ revenue expectations.
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But what exactly are analysts’ expectations from the company that spun off from the famous Hewlett-Packard Company in 2015? A little bit of context will help.
Since the start of the year, HP has seen its stock tumble by over 13% due to a combination of factors, including the cost effect of President Donald Trump’s volatile tariff regime impacting demand for personal computers. In Q3 2025, Wall Street expects an earnings per share of $0.75, which is about a 10% fall from an EPS of $0.83 recorded in the same period last year. In the prior quarter, EPS came in at $0.71, against an estimate of $0.78.
Furthermore, HP generated $13.22 billion in revenue in Q2 2025, with a marginal turnover increase of 0.9% from the previous quarter and 3.3% year-over-year. Going into Q3, analysts expect revenue to reach $13.69 billion.
Are Improved Fundamentals Ahead?
On Monday, HP saw its stock fall by 0.87% to close at $27.50. In the past six months, the share price has also shed about 19% of its value.
However, the company has previously disclosed actions it is taking to improve its fundamentals, including pricing adjustments and expanding its manufacturing bases in Asia (Vietnam, Thailand, India) and North America (Mexico and the US). The multinational expects the impact of these steps to be visible by the end of its fourth quarter, with EPS aimed to hit between $3.00 and $3.30.
Earlier in the year, HP CEO Enrique Lores noted to Reuters that the company anticipates that almost all its products marketed in North America will be manufactured outside of China by the end of June.
Is HPQ a Buy, Hold, or Sell?
Back to Wall Street, on TipRanks, the HPQ stock has a Hold rating based on three Buys, seven Holds, and one Sell based on analysts’ average price targets over the last three months. The average HPQ price target is $28.52, with a 3.71% upside potential. The upper end of the target jumps to $40.0, while the lowest touches down at $25.0.
