HP (HPQ) AI Stock Analysis

• Market Cap: $22.71B
• Dividend Yield: 4.72%
• Average Volume (3M): 12.72M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.21
• Revenue Growth: 4.09%
• EPS Growth: -5.77%
• Country: US
• Employees: 58,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.93
• Shares Outstanding: 917,984,500
• 10 Day Avg. Volume: 12,155,232
• 30 Day Avg. Volume: 12,720,641
• PEG Ratio: -1.83
• Price to Book (P/B): -75.65
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 9.35
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 8.07
• 1Y Price Target: $25.30
• Price Target Upside: 2.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 3.1
• Revenue Forecast (FY): $56.34B

• Rating: 61 Neutral
• Price Target: $26.00 ▲(5.09% Upside)

HP's overall stock score reflects a balance of strengths and challenges. The company's attractive valuation and positive earnings call sentiment are offset by financial performance concerns, particularly in operational efficiency and balance sheet stability. Technical indicators suggest a cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth in Personal Systems indicates strong market demand and effective product strategies, supporting long-term business expansion.

AI-Powered Innovation

AI integration enhances product differentiation and positions HP as a leader in tech innovation, potentially driving future growth and competitive advantage.

Cost Savings Initiative

Successful cost-saving measures improve operational efficiency and profitability, providing financial flexibility for strategic investments and growth.

Negative Factors

Decline in Print Revenue

A decline in print revenue reflects challenges in a key segment, potentially impacting overall revenue stability and requiring strategic adjustments.

Rising Memory Costs

Increased memory costs pressure margins, necessitating cost management strategies to maintain profitability in a competitive market.

Balance Sheet Concerns

Negative equity raises solvency concerns, limiting financial flexibility and potentially impacting long-term financial health and investment capacity.

HP Business Overview & Revenue Model

Company Description

HP Inc. (HPQ) is a global technology company specializing in personal computers, printers, and related supplies. The company operates primarily in two segments: Personal Systems and Printing. HP's product lineup includes laptops, desktops, and workstations, alongside a diverse range of printers, including laser, inkjet, and 3D printing solutions. Additionally, HP offers a suite of services including device management, printing solutions, and digital marketing services, catering to both individual consumers and enterprises.

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 the sale of printers and printing supplies, including ink and toner cartridges. HP also benefits from its subscription-based services, such as HP Instant Ink, which provides customers with ink delivery based on usage. Significant partnerships with retailers and businesses enhance HP's distribution channels, while contracts with enterprises for managed print services and device management solutions further bolster its earnings. Overall, HP's diversified product offerings and strategic collaborations play a crucial role in sustaining its revenue growth.

HP Financial Statement Overview

Summary

HP's financial performance is mixed. The income statement shows moderate profitability with stable margins, but operational efficiency is declining. The balance sheet is concerning due to negative equity, and cash flow management highlights both strengths and weaknesses.

Income Statement

HP's income statement shows moderate performance with a stable gross profit margin of around 20% and a net profit margin of approximately 4.6% for TTM. However, there is a notable decline in EBIT and EBITDA margins compared to previous years, indicating pressure on operational efficiency. Revenue growth is positive at 1.07% for TTM, but the growth trajectory has been inconsistent over the years.

Balance Sheet

The balance sheet reveals significant challenges with a negative stockholders' equity, leading to a high debt-to-equity ratio. Despite a positive return on equity of 22.94% for TTM, the negative equity position poses a risk to financial stability. The equity ratio is also negative, highlighting potential solvency concerns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative rate of -1.51% for TTM. The operating cash flow to net income ratio is relatively low at 0.13, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio remains healthy at 0.81, suggesting efficient cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.30B	53.56B	53.72B	62.91B	63.46B
Gross Profit	11.05B	11.82B	11.51B	12.26B	13.41B
EBITDA	4.09B	4.72B	4.47B	5.46B	8.61B
Net Income	2.53B	2.77B	3.26B	3.13B	6.54B
Balance Sheet
Total Assets	41.77B	39.91B	37.00B	38.49B	38.60B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.24B	3.11B	3.15B	4.30B
Total Debt	9.67B	10.90B	10.74B	12.29B	8.78B
Total Liabilities	42.12B	41.23B	38.07B	41.52B	40.25B
Stockholders Equity	-346.00M	-1.32B	-1.07B	-3.02B	-1.64B
Cash Flow
Free Cash Flow	2.80B	3.16B	2.96B	3.67B	5.83B
Operating Cash Flow	3.70B	3.75B	3.57B	4.46B	6.41B
Investing Cash Flow	-1.18B	-646.00M	-590.00M	-3.55B	-1.01B
Financing Cash Flow	-2.06B	-3.08B	-2.89B	-2.07B	-5.96B

HP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.74
• 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 24.74 is above the 20-day moving average (MA) of 24.18, below the 50-day MA of 25.65, and below the 200-day MA of 25.77, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.04 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	77 Outperform	$60.29B	25.71	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$22.91B	20.13	125.35%	1.80%	2.64%	4.12%
STX	68 Neutral	$61.43B	36.92	―	1.00%	31.56%	106.00%
DELL	65 Neutral	$86.14B	17.34	―	1.45%	10.81%	31.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$22.71B	9.32	―	4.72%	4.09%	-5.77%
SMCI	58 Neutral	$19.30B	25.91	12.79%	―	12.22%	-48.34%

HP Corporate Events

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.

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.