HP (HPQ) AI Stock Analysis

• Market Cap: $22.41B
• Dividend Yield: 4.75%
• Average Volume (3M): 12.85M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.20
• Revenue Growth: 3.94%
• EPS Growth: -5.77%
• Country: US
• Employees: 58,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.93
• Shares Outstanding: 934,701,840
• 10 Day Avg. Volume: 16,175,571
• 30 Day Avg. Volume: 12,850,770
• 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: 1.44
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 8.19
• 1Y Price Target: $25.08
• Price Target Upside: 4.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 3.31
• Revenue Forecast (FY): $56.18B

• Rating: 63 Neutral
• Price Target: $26.00 ▲(8.42% Upside)

HP's overall stock score is driven by strong earnings call highlights and attractive valuation metrics, which are offset by mixed financial performance and bearish technical indicators. The company's strategic focus on AI and innovation provides a positive outlook, but high leverage and declining profitability margins pose risks.

Positive Factors

Revenue Growth

Sustained revenue growth over multiple quarters indicates strong demand for HP's products, enhancing its market position and long-term growth prospects.

AI-Powered Innovation

AI innovation can drive competitive advantage by enhancing product capabilities and customer experience, positioning HP for future technological leadership.

Cost Savings Initiative

Achieving significant cost savings enhances profitability and provides financial flexibility to invest in growth opportunities and withstand market fluctuations.

Negative Factors

Negative Equity

Negative equity reflects financial instability, potentially limiting HP's ability to raise capital and invest in long-term growth initiatives.

Decline in Print Revenue

Declining print revenue suggests challenges in a key business segment, which could impact overall profitability and necessitate strategic adjustments.

Rising Memory Costs

Increased memory costs pressure margins, potentially reducing profitability unless mitigated through pricing strategies or cost efficiencies.

HP Business Overview & Revenue Model

Company Description

HP Inc. (HPQ) is a global technology company specializing in personal computers, printers, and related supplies. It operates primarily in two segments: Personal Systems and Printing. The Personal Systems segment includes desktops, laptops, workstations, and related accessories, while the Printing segment encompasses consumer and commercial printers, as well as supplies such as ink and toner cartridges. HP is known for its innovation in printing technology and its commitment to sustainability in product design and manufacturing.

How the Company Makes Money

HP generates revenue through multiple key streams. The Personal Systems segment contributes significantly by selling a wide range of computing devices, including notebooks, desktops, and workstations, often bundled with services and accessories. The Printing segment generates revenue primarily from the sale of printers and a substantial portion from recurring revenues through the sale of ink and toner cartridges. HP also benefits from a subscription model through its Instant Ink service, which delivers ink to customers automatically. Additionally, partnerships with businesses and educational institutions, along with investments in 3D printing technology, further contribute to its earnings. The company also focuses on cost management and operational efficiency to enhance profitability.

HP Financial Statement Overview

Summary

HP's financial performance is mixed. The income statement shows modest revenue growth but declining profitability margins. The balance sheet is concerning due to high leverage and negative equity, posing financial risks. However, cash flow remains a strong point, with positive growth and adequate coverage ratios.

Income Statement

HP's income statement shows a modest revenue growth rate of 1.07% in the TTM period, indicating a slight recovery from previous declines. The gross profit margin is stable at 20.6%, but the net profit margin has decreased to 4.57%, reflecting pressure on profitability. EBIT and EBITDA margins have also declined, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.62, indicating significant leverage. The return on equity is negative, highlighting profitability challenges. The equity ratio is low, suggesting potential financial instability. Overall, the balance sheet reflects high leverage and low equity, posing financial risks.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 5.42%, indicating improved cash generation. The operating cash flow to net income ratio is 0.13, and the free cash flow to net income ratio is 0.81, suggesting adequate cash flow coverage. Despite some fluctuations, cash flow remains a relative strength for HP.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.30B	53.56B	53.72B	62.91B	63.46B	56.64B
Gross Profit	11.39B	11.82B	11.51B	12.26B	13.41B	10.42B
EBITDA	3.93B	4.72B	4.47B	5.46B	8.61B	4.24B
Net Income	2.53B	2.77B	3.26B	3.13B	6.54B	2.81B
Balance Sheet
Total Assets	41.77B	39.91B	37.00B	38.49B	38.60B	34.68B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.24B	3.11B	3.15B	4.30B	5.14B
Total Debt	9.67B	10.90B	10.74B	12.29B	8.78B	7.40B
Total Liabilities	38.08B	41.23B	38.07B	41.52B	40.25B	36.91B
Stockholders Equity	3.69B	-1.32B	-1.07B	-3.02B	-1.64B	-2.23B
Cash Flow
Free Cash Flow	3.00B	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	-1.18B	-646.00M	-590.00M	-3.55B	-1.01B	-1.02B
Financing Cash Flow	-2.06B	-3.08B	-2.89B	-2.07B	-5.96B	-2.97B

HP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 23.98 is below the 20-day moving average (MA) of 24.96, below the 50-day MA of 26.44, and below the 200-day MA of 26.50, indicating a bearish trend. The MACD of -0.90 indicates Negative momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.38 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	79 Outperform	$53.93B	23.00	31.48%	0.13%	-16.35%	316.56%
NTAP	77 Outperform	$21.64B	19.01	125.35%	1.90%	2.64%	4.12%
STX	66 Neutral	$58.15B	34.95	―	1.08%	31.56%	106.00%
HPQ	63 Neutral	$22.41B	9.05	―	4.75%	3.94%	-5.77%
DELL	63 Neutral	$89.31B	17.76	―	1.52%	10.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMCI	58 Neutral	$19.60B	26.31	12.79%	―	12.22%	-48.34%

HP Corporate Events

HP Inc. Reports Mixed Fiscal 2025 Results

HP Inc., a global leader in technology solutions, operates in more than 170 countries, offering innovative devices and services for personal computing, printing, and more. The company has reported its fiscal 2025 full-year and fourth-quarter financial results, showcasing a mix of growth and challenges. HP’s fiscal 2025 net revenue reached $55.3 billion, marking a 3.2% increase from the previous year, while the fourth-quarter revenue rose by 4.2% to $14.6 billion.

HP Board Approves Strategic AI Plan for Savings

On November 25, 2025, HP‘s Board of Directors approved a strategic plan to enhance customer satisfaction, product innovation, and productivity through AI adoption, aiming for $1 billion in savings by fiscal 2028. The plan involves restructuring costs of approximately $650 million, including workforce reductions of 4,000 to 6,000 employees. Additionally, HP reported fiscal 2025 results with a 3.2% increase in net revenue to $55.3 billion, despite a decline in GAAP and non-GAAP EPS. The company returned $1.9 billion to shareholders and announced an increased quarterly dividend of $0.30 per share, reflecting its commitment to shareholder value and long-term growth.

The most recent analyst rating on (HPQ) stock is a Sell with a $21.00 price target. To see the full list of analyst forecasts on HP stock, see the HPQ Stock Forecast page.

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.