HP (HPQ) AI Stock Analysis

• Market Cap: $24.25B
• Dividend Yield: 4.4%
• Average Volume (3M): 11.97M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.20
• Revenue Growth: 3.11%
• EPS Growth: -3.54%
• Country: US
• Employees: 58,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.75
• Shares Outstanding: 934,701,840
• 10 Day Avg. Volume: 10,495,319
• 30 Day Avg. Volume: 11,965,735
• PEG Ratio: -0.90
• Price to Book (P/B): -26.28
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 11.01
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 7.53
• 1Y Price Target: $28.36
• Price Target Upside: 8.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $29.00 ▲(10.81% Upside)

HP's overall stock score reflects a balance of strengths and challenges. The most significant factor is the positive outlook from the earnings call, driven by growth in personal systems and cost-saving measures. Valuation is also a strong point, offering potential value. However, financial instability and mixed technical indicators temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Operational Efficiency

Achieving significant cost savings enhances profitability and competitiveness, supporting sustainable growth and margin improvement.

Sustainability Initiatives

Strong sustainability efforts align with global trends and consumer preferences, potentially boosting brand reputation and sales.

Negative Factors

Financial Instability

Negative equity indicates financial instability, which can limit growth opportunities and increase vulnerability to economic downturns.

Leadership Change

Leadership changes can disrupt strategic continuity and impact segment performance, especially in key growth areas like Personal Systems.

Print Segment Challenges

Declining print revenue and demand softness highlight challenges in a core segment, potentially affecting overall revenue stability.

HP Business Overview & Revenue Model

Company Description

HP Inc. (HPQ) is a global technology company known for its innovative hardware, software, and services solutions. The company operates primarily in two main sectors: Personal Systems and Printing. HP's core products include laptops, desktops, workstations, printers, and 3D printing solutions, along with a range of related services and accessories. With a focus on sustainability and technology advancements, HP aims to enhance the customer experience across various industries, from individual consumers to large enterprises.

How the Company Makes Money

HP generates revenue through multiple streams, primarily from the sale of Personal Systems and Printing products. In the Personal Systems segment, HP earns money from selling laptops, desktops, and accessories, benefiting from both direct sales and partnerships with retailers and distributors. The Printing segment contributes significantly to revenue through the sale of printers, ink, and toner cartridges, with a recurring revenue model based on consumables. Additionally, HP has ventured into 3D printing and related services, expanding its market reach. The company also engages in strategic partnerships and collaborations, enhancing its product offerings and market penetration, which further supports its revenue growth.

HP Financial Statement Overview

Summary

HP's financial performance is mixed. While profitability is stable, revenue growth is volatile, and the balance sheet shows financial instability due to negative equity. Cash flow generation is relatively strong, but overall financial health is a concern.

Income Statement

HP's income statement shows a mixed performance. The Gross Profit Margin and Net Profit Margin have been relatively stable, indicating consistent profitability. However, the Revenue Growth Rate has been volatile, with recent declines. The EBIT and EBITDA margins have also decreased, suggesting pressure on operating efficiency.

Balance Sheet

The balance sheet reveals significant challenges, primarily due to negative stockholders' equity, resulting in a high Debt-to-Equity Ratio. This indicates financial instability and potential risks. Return on Equity is negative, reflecting inefficiencies in generating returns on shareholder investments.

Cash Flow

Cash flow analysis shows moderate performance. The Free Cash Flow Growth Rate has been inconsistent, though there is a positive trend in the most recent period. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are healthy, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.71B	53.56B	53.72B	62.91B	63.46B	56.64B
Gross Profit	11.43B	11.82B	11.51B	12.26B	13.41B	10.42B
EBITDA	4.19B	4.72B	4.47B	5.46B	8.61B	4.24B
Net Income	2.64B	2.77B	3.26B	3.13B	6.54B	2.81B
Balance Sheet
Total Assets	39.85B	39.91B	37.00B	38.49B	38.60B	34.68B
Cash, Cash Equivalents and Short-Term Investments	2.87B	3.24B	3.11B	3.15B	4.30B	5.14B
Total Debt	10.78B	10.90B	10.74B	12.29B	8.78B	7.40B
Total Liabilities	40.76B	41.23B	38.07B	41.52B	40.25B	36.91B
Stockholders Equity	-901.00M	-1.32B	-1.07B	-3.02B	-1.64B	-2.23B
Cash Flow
Free Cash Flow	2.84B	3.16B	2.96B	3.67B	5.83B	3.74B
Operating Cash Flow	3.70B	3.75B	3.57B	4.46B	6.41B	4.32B
Investing Cash Flow	-1.25B	-646.00M	-590.00M	-3.55B	-1.01B	-1.02B
Financing Cash Flow	-2.46B	-3.08B	-2.89B	-2.07B	-5.96B	-2.97B

HP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPQ, the sentiment is Negative. The current price of 26.17 is below the 20-day moving average (MA) of 27.45, below the 50-day MA of 27.57, and below the 200-day MA of 27.00, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 23.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPQ.

HP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	78 Outperform	$54.74B	23.34	31.48%	0.13%	-16.35%	316.56%
NTAP	72 Outperform	$23.09B	20.44	123.00%	1.83%	3.45%	9.69%
STX	70 Outperform	$58.89B	35.40	―	1.08%	31.56%	106.00%
DELL	65 Neutral	$102.48B	22.41	―	1.35%	10.68%	24.29%
SMCI	64 Neutral	$24.98B	32.23	12.79%	―	12.22%	-48.34%
HPQ	63 Neutral	$24.25B	9.44	―	4.40%	3.11%	-3.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HP Corporate Events

HP Announces Leadership Change in Personal Systems

On September 29, 2025, HP announced that Alex Cho, President of Personal Systems, will depart the company to pursue other professional interests after a 30-year tenure. Ketan Patel, with over 20 years of experience at HP, will succeed Mr. Cho as President of Personal Systems, effective November 1, 2025, ensuring a smooth transition until the end of the year.

The most recent analyst rating on (HPQ) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on HP stock, see the HPQ Stock Forecast page.

HP Inc. Earnings Call: Growth Amid Challenges

HP Inc. recently held its earnings call, reflecting a balanced sentiment of growth and challenges. The company showcased its continued momentum, particularly in personal systems, while addressing concerns in the print segment and competitive pricing pressures. Strategic initiatives and operational efficiencies were highlighted as key factors in maintaining a positive outlook.

HP Inc. Reports Strong Revenue Growth in Fiscal Q3 2025

HP Inc. reported its fiscal 2025 third-quarter results, showcasing a 3.1% increase in net revenue to $13.9 billion, driven by strong performance in Personal Systems and key growth areas. Despite a decline in non-GAAP earnings per share, the company demonstrated financial resilience with a 23.1% increase in GAAP diluted net EPS and a robust cash flow, highlighting its agility and focused execution in the market.

The most recent analyst rating on (HPQ) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on HP stock, see the HPQ Stock Forecast page.

HP Inc. Reports Mixed Q3 2025 Earnings

HP Inc., a global technology leader in personal computing and printing, has reported its fiscal 2025 third quarter earnings, showcasing a mix of growth and challenges. The company, known for its innovative solutions in hybrid work, gaming, and 3D printing, operates in over 170 countries worldwide.