HP (HPQ)
NYSE:HPQ
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HP
(NYSE:HPQ)
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Rating:57Neutral
Price Target:
$19.00
▼(-2.36% Downside)
Action:ReiteratedDate:02/25/26
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.
Positive Factors
Strong cash generation
Consistent TTM operating cash flow (~$3.7B) and free cash flow (~$2.9B) provide durable internal funding for buybacks, dividends, restructuring and capex. This cash conversion supports strategic flexibility even with elevated leverage, sustaining operations and long‑term investments.
Negative Factors
Elevated leverage and negative equity history
High gross leverage and recurring negative equity history constrain financial flexibility, increase refinancing and interest risks, and reduce capacity to absorb shocks. This capital structure makes sustained investment, opportunistic M&A or aggressive buybacks riskier if earnings weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent TTM operating cash flow (~$3.7B) and free cash flow (~$2.9B) provide durable internal funding for buybacks, dividends, restructuring and capex. This cash conversion supports strategic flexibility even with elevated leverage, sustaining operations and long‑term investments.
Read all positive factors
HP (HPQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.67B
Dividend Yield5.09%
Average Volume (3M)19.46M
Price to Earnings (P/E)8.3
Beta (1Y)1.22
Revenue Growth4.09%
EPS Growth-5.77%
CountryUS
Employees58,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.81
Shares Outstanding914,550,200
10 Day Avg. Volume19,362,712
30 Day Avg. Volume19,456,311
Financial Highlights & Ratios
PEG Ratio-1.83
Price to Book (P/B)-75.65
Price to Sales (P/S)0.47
P/FCF Ratio9.35
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda5.97
Forecast
1Y Price Target
$18.58Price Target Upside-4.52% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering12
EPS Forecast (FY)2.86
Revenue Forecast (FY)$55.96B
HP Business Overview & Revenue Model
Company Description
HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems,...
How the Company Makes Money
HP generates revenue through multiple key streams. The Personal Systems segment primarily contributes by selling hardware products such as laptops and desktops, along with accessories and services. The Printing segment generates revenue through th...
HP Key Performance Indicators (KPIs)
Any
Net Revenue by Segment
Breaks down revenue by business segment, offering insight into which areas are driving growth and which might be underperforming.
Breaks down revenue by business segment, offering insight into which areas are driving growth and which might be underperforming.
Data provided by:
The Fly
The FlyHP Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid operational and financial execution (revenue +7%, EPS +9%, AI PC momentum, share gains, strong cash returns) alongside a material near-term headwind from rapidly rising memory costs that pressure Personal Systems margins and increase uncertainty for the back half of fiscal '26. Management has multiple mitigation plans (supply agreements, cost actions, pricing and product configuration changes) and maintained annual guidance ranges but expects to be closer to the lower end of EPS and free cash flow guidance given current assumptions.Positive Updates
Revenue Growth
Total revenue of $14.4 billion, up 7% year-over-year (5% constant currency), driven by strength in Personal Systems and growth across all regions.
Negative Updates
Severe Memory Cost Inflation
DRAM and NAND prices rose sharply; company estimates memory/storage will represent roughly 35% of the PC BOM for the year (up from ~15%–18% historically) and noted memory prices increased roughly 100% sequentially with further increases possible.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $14.4 billion, up 7% year-over-year (5% constant currency), driven by strength in Personal Systems and growth across all regions.
Read all positive updates
Company Guidance
HP reiterated full‑year non‑GAAP diluted EPS guidance of $2.90–$3.20 (expecting to be nearer the low end) and free cash flow guidance of $2.8–$3.0B (again nearer the low end), with Q2 non‑GAAP EPS $0.70–$0.76 and Q2 GAAP EPS $0.52–$0.58; Q1 results included revenue $14.4B (+7% YoY, +5% cc), non‑GAAP EPS $0.81 (+9% YoY), gross margin 19.6%, non‑GAAP operating margin 6.9%, Personal Systems operating margin 5%, Print operating margin 18.3%, diluted shares ~932M, cash from operations ≈$400M and free cash flow ≈$200M, and >$600M returned to shareholders (> $300M repurchases). Guidance assumes PC unit TAM down double‑digits CY‑26, memory costs that rose roughly 100% sequentially into Q2 and are estimated to represent ~35% of the PC BOM for the year (vs. 15–18% previously), PSOP expected below its long‑term range for the remainder of FY‑26, print margins near the top of their long‑term range for Q2 and the year, non‑GAAP OI&E and Corporate Other roughly flat YoY, and ongoing mitigation actions including pricing, supply agreements, and a $1B gross run‑rate savings target by FY‑28 (≈$300M targeted by end FY‑26).HP Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
32
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.23B | 55.30B | 53.56B | 53.72B | 62.91B | 63.46B |
| Gross Profit | 11.33B | 11.05B | 11.82B | 11.51B | 12.26B | 13.41B |
| EBITDA | 4.07B | 4.09B | 4.72B | 4.47B | 5.46B | 8.61B |
| Net Income | 2.51B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B |
Balance Sheet | ||||||
| Total Assets | 41.53B | 41.77B | 39.91B | 37.00B | 38.49B | 38.60B |
| Cash, Cash Equivalents and Short-Term Investments | 3.15B | 3.69B | 3.24B | 3.11B | 3.15B | 4.30B |
| Total Debt | 9.70B | 10.88B | 10.90B | 10.74B | 12.29B | 8.78B |
| Total Liabilities | 38.13B | 42.12B | 41.23B | 38.07B | 41.52B | 40.25B |
| Stockholders Equity | 3.41B | -346.00M | -1.32B | -1.07B | -3.02B | -1.64B |
Cash Flow | ||||||
| Free Cash Flow | 2.88B | 2.80B | 3.16B | 2.96B | 3.67B | 5.83B |
| Operating Cash Flow | 3.71B | 3.70B | 3.75B | 3.57B | 4.46B | 6.41B |
| Investing Cash Flow | -1.15B | -1.18B | -646.00M | -590.00M | -3.55B | -1.01B |
| Financing Cash Flow | -2.30B | -2.06B | -3.08B | -2.89B | -2.07B | -5.96B |
HP Technical Analysis
Positive
19.46
Price Trends
18.92
Positive
21.27
Negative
23.42
Negative
Market Momentum
-0.05
Negative
58.50
Neutral
62.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPQ, the sentiment is Positive. The current price of 19.46 is above the 20-day moving average (MA) of 18.71, above the 50-day MA of 18.92, and below the 200-day MA of 23.42, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 62.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPQ.
HP Risk Analysis
HP disclosed 32 risk factors in its most recent earnings report. HP reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $92.68B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
70 Outperform | $82.60B | 26.06 | -889.39% | 1.02% | 31.56% | 106.00% | |
70 Outperform | $113.54B | 13.34 | -218.24% | 1.45% | 19.12% | 39.59% | |
64 Neutral | $20.82B | 14.44 | 116.57% | 1.89% | 2.64% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $13.30B | 10.90 | 13.33% | ― | 12.22% | -48.34% | |
57 Neutral | $17.67B | 8.26 | 1135.29% | 5.09% | 4.09% | -5.77% |
* Technology Sector Average
HPQ
HP
19.32
-7.95
-29.15%
NTAP
NetApp
104.45
15.20
17.04%
STX
Seagate Tech
413.22
326.83
378.34%
SMCI
Super Micro Computer
22.21
-12.51
-36.03%
WDC
Western Digital
273.35
231.62
555.06%
DELL
Dell Technologies
175.82
80.49
84.43%
HP Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
HP Appoints Bruce Broussard as Interim CEO
Neutral
Feb 3, 2026
On February 3, 2026, HP Inc. announced a leadership transition in which long-time executive Enrique Lores stepped down as president, chief executive officer and board member at the end of February 2, 2026, to pursue another professional opportunit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.