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HP
(NYSE:HPQ)
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Rating:65Neutral
Price Target:
$26.00
▲(30.78% Upside)
Action:Reiterated
Date:06/02/26
The score is primarily driven by strong cash generation and supportive valuation (low P/E and solid dividend). Offsetting these positives are meaningful balance-sheet leverage and margin pressure risk (including management’s outlook for higher input costs and a near-term margin trough). Technicals remain in an uptrend, but overbought signals temper the near-term setup.
Positive Factors
Free cash flow generation
Sustained FCF (~$3.8B TTM and ~31% growth) indicates strong cash conversion of earnings, enabling durable capital return, reinvestment in product development and strategic inventory, and cushioning the business through cyclical PC and print demand swings over the next 2–6 months.
Negative Factors
Balance sheet leverage
Meaningful leverage (debt-to-equity ~2.5x) reduces financial flexibility and raises interest and refinancing sensitivity if operating cash flow weakens. In a margin trough or demand slowdown, elevated debt amplifies downside risk to investment capacity and credit metrics over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained FCF (~$3.8B TTM and ~31% growth) indicates strong cash conversion of earnings, enabling durable capital return, reinvestment in product development and strategic inventory, and cushioning the business through cyclical PC and print demand swings over the next 2–6 months.
Read all positive factors
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 (HPQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.15B
Dividend Yield5.09%
Average Volume (3M)18.56M
Price to Earnings (P/E)8.9
Beta (1Y)1.24
Revenue Growth7.20%
EPS Growth4.12%
CountryUS
Employees58,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.74
Shares Outstanding914,522,700
10 Day Avg. Volume12,390,621
30 Day Avg. Volume18,560,595
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 Cap1.23
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda6.93
Forecast
1Y Price Target
$21.50Price Target Upside8.15% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering8
EPS Forecast (FY)3.02
Revenue Forecast (FY)$57.70B
HP Business Overview & Revenue Model
Company Description
HP Inc. is a global technology company specializing in personal computing devices, imaging and printing solutions, and a variety of related technologies, software, and support services, serving clients both in the United States and worldwide. Its ...
How the Company Makes Money
HP primarily makes money by selling hardware and capturing ongoing, higher-frequency revenue from consumables and services tied to its installed base. (1) Personal Systems: Revenue is generated from the sale of commercial and consumer PCs (laptops...
HP Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong operational execution and product momentum (notably in Personal Systems, AI/edge offerings, cash flow and EPS outperformance) alongside meaningful near-term headwinds from rising memory, storage and other commodity costs that are expected to pressure margins in the back half. Management highlighted tangible mitigation actions (supplier agreements, strategic inventory, repricing, planning model) and provided upward confidence on full-year EPS and free cash flow guidance, but also warned that Q3/Q4 will see margin pressure with a Q4 trough before sequential improvement. Overall, positive operational momentum is balanced by significant near-term cost risks.Positive Updates
Sustained Top-Line Growth
Revenue grew 9% year-over-year (6% in constant currency), marking the eighth consecutive quarter of top-line growth.
Negative Updates
Rising Input Costs and Commodity Pressures
Memory and storage costs increased sequentially in Q2 and are expected to continue rising in Q3 and Q4; management also flagged broader inflationary pressures including oil and transportation costs that will pressure margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Sustained Top-Line Growth
Revenue grew 9% year-over-year (6% in constant currency), marking the eighth consecutive quarter of top-line growth.
Read all positive updates
Company Guidance
HP strengthened its outlook while warning of H2 input‑cost pressure: it now expects fiscal 2026 diluted non‑GAAP EPS of $2.90–$3.10 (Q3 EPS $0.61–$0.71) and full‑year free cash flow of $2.8–$3.0B. Q2 results that drove the update included revenue +9% YoY (+6% CC), gross margin 20.9%, operating margin 7.5% (+20 bps YoY), diluted EPS $0.86 on ~925M shares, >$900M cash from operations and ~ $800M free cash flow in the quarter, and nearly $400M returned to shareholders while finishing the quarter within target leverage. Segment details: Personal Systems revenue +13% YoY, PS operating margin 5.2% with operating profit +30% YoY, AIPC mix up from >35% to 44% of shipments (targeting 60–70% next fiscal year and >70% by FY28); Print revenue was flat YoY and supplies were flat YoY in constant currency but are still expected to decline low‑single‑digit for the year. Looking ahead, HP expects PC TAM to decline in the high‑teens in H2 of the calendar year, memory and storage costs to rise in Q3/Q4, PS margins to trough in Q4 with sequential improvement thereafter, OI&E of ~$500M for the year and corporate other expense slightly under $1B.HP Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.42B | 55.30B | 53.56B | 53.72B | 62.91B | 63.46B |
| Gross Profit | 11.61B | 11.05B | 11.82B | 11.51B | 12.26B | 13.41B |
| EBITDA | 3.92B | 4.09B | 4.72B | 4.47B | 5.46B | 8.61B |
| Net Income | 2.55B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B |
Balance Sheet | ||||||
| Total Assets | 42.94B | 41.77B | 39.91B | 37.00B | 38.49B | 38.60B |
| Cash, Cash Equivalents and Short-Term Investments | 3.70B | 3.69B | 3.24B | 3.11B | 3.15B | 4.30B |
| Total Debt | 9.67B | 10.88B | 10.90B | 10.74B | 12.29B | 8.78B |
| Total Liabilities | 43.08B | 42.12B | 41.23B | 38.07B | 41.52B | 40.25B |
| Stockholders Equity | -144.00M | -346.00M | -1.32B | -1.07B | -3.02B | -1.64B |
Cash Flow | ||||||
| Free Cash Flow | 3.78B | 2.80B | 3.16B | 2.96B | 3.67B | 5.83B |
| Operating Cash Flow | 4.59B | 3.70B | 3.75B | 3.57B | 4.46B | 6.41B |
| Investing Cash Flow | -327.00M | -1.18B | -646.00M | -590.00M | -3.55B | -1.01B |
| Financing Cash Flow | -3.29B | -2.06B | -3.08B | -2.89B | -2.07B | -5.96B |
HP Technical Analysis
Positive
19.88
Price Trends
23.12
Positive
20.91
Positive
22.03
Positive
Market Momentum
-0.01
Negative
57.39
Neutral
88.85
Negative
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 19.88 is below the 20-day moving average (MA) of 23.40, below the 50-day MA of 23.12, and below the 200-day MA of 22.03, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 88.85 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $200.81B | 31.11 | 91.94% | 0.18% | -18.43% | 242.76% | |
75 Outperform | $33.08B | 26.26 | 114.18% | 1.89% | 5.29% | 10.66% | |
72 Outperform | $204.12B | 83.00 | 916.38% | 1.02% | 28.92% | 55.56% | |
71 Outperform | $281.98B | 34.50 | -363.24% | 1.45% | 38.87% | 99.71% | |
65 Neutral | $22.15B | 8.87 | -473.44% | 5.09% | 7.20% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $18.31B | 13.69 | 18.21% | ― | 56.58% | 1.94% |
* Technology Sector Average
HPQ
HP
24.22
0.60
2.55%
NTAP
NetApp
168.87
66.00
64.16%
STX
Seagate Tech
910.34
762.48
515.68%
SMCI
Super Micro Computer
28.31
-21.42
-43.07%
WDC
Western Digital
582.59
515.84
772.80%
DELL
Dell Technologies
434.97
311.18
251.39%
HP Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
HP Updates Bylaws to Refine Director Qualification Rules
Neutral
Jun 26, 2026
On June 24, 2026, HP Inc.’s Board of Directors approved amendments to the company’s amended and restated bylaws, effective the same day. The changes revise the director qualification provisions by narrowing the definition of “com...
Executive/Board ChangesShareholder Meetings
HP Shareholders Back Board, Auditor and Pay Practices
Positive
Apr 21, 2026
On April 16, 2026, HP Inc. held its 2026 annual meeting of stockholders, where investors elected twelve directors to serve on the board for the coming year, reaffirming the company’s existing leadership slate. Shareholders also ratified Erns...
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.