HP Reports Strong Q1 Earnings, Exceeds Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy HPQ?
Source: seekingalpha
HP Inc (HPQ) shares rose 5.00% as the stock reached a 5-day high following the company's strong Q1 FY2026 earnings report.
HP reported a net revenue of $14.4 billion, up 6.9% year-over-year, and an adjusted EPS of $0.81, exceeding analyst expectations. The company also generated $383 million in cash from operating activities and demonstrated a commitment to shareholder returns with $300 million in dividends and share repurchases. Despite challenges from rising memory costs, HP remains optimistic about its future performance, projecting Q2 GAAP diluted EPS between $0.52 and $0.58.
The strong earnings report reflects HP's effective execution of its Future of Work strategy, particularly in the Personal Systems segment, which is expected to continue driving growth despite market pressures.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 19.050
Low
20.00
Averages
25.30
High
30.00
Current: 19.050
Low
20.00
Averages
25.30
High
30.00
About HPQ
HP Inc. is a global provider of sustainable devices, services and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming and other related technologies. The Company’s segments include Personal Systems, Printing and Corporate Investments. Its Personal Systems segment offers desktops, notebooks, and workstations, thin clients, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions including endpoint security and services. Its Printing segment provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Its Corporate Investments segment includes certain business incubation and investment projects. Its security solutions provide layered resiliency using features such as containment and isolation technology as well as artificial intelligence (AI) deep learning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Sustainable Value Concerns: Following the initial surge in AI investments, there is a critical question regarding the sustainability of these valuations, prompting investors to seek more grounded entry points.
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See More
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- Deteriorating Market Outlook: Morgan Stanley analysts highlighted that the challenges facing HP and the broader PC industry are intensifying, including rising memory prices and shortages, CPU supply constraints, and price hikes, leading to a more pessimistic outlook for the next 12 months.
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