HP Inc. Q1 2026 Earnings Call Insights Highlight Growth and Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HPQ?
Source: seekingalpha
- Revenue Growth: HP reported Q1 revenue of $14.4 billion, a 7% year-over-year increase, primarily driven by growth in the Personal Systems segment due to strong PC demand, particularly from the Windows 11 refresh and AI PCs, indicating a positive market share performance.
- AI PC Shipment Increase: AI PCs accounted for over 35% of shipments, up from 30% in the previous quarter, showcasing HP's successful new product launches, including the HP EliteBoard G1a and HP Digital Passport hub, which further solidify its market position.
- Cost Management Strategy: In response to rising memory costs, HP has secured long-term agreements with new suppliers and implemented targeted pricing actions to offset cost pressures, with memory costs expected to rise approximately 100% for fiscal 2026, impacting profit margins.
- Future Outlook: HP maintains its annual EPS guidance in the range of $2.90 to $3.20, with expectations leaning towards the lower end, reflecting a cautious outlook on the market environment, while also keeping free cash flow guidance at $2.8 billion to $3 billion, demonstrating ongoing commitment to financial targets.
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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: 18.350
Low
20.00
Averages
25.30
High
30.00
Current: 18.350
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.
HP Inc. Q1 2026 Earnings Call Insights Highlight Growth and Challenges
- Revenue Growth: HP reported Q1 revenue of $14.4 billion, a 7% year-over-year increase, primarily driven by growth in the Personal Systems segment due to strong PC demand, particularly from the Windows 11 refresh and AI PCs, indicating a positive market share performance.
- AI PC Shipment Increase: AI PCs accounted for over 35% of shipments, up from 30% in the previous quarter, showcasing HP's successful new product launches, including the HP EliteBoard G1a and HP Digital Passport hub, which further solidify its market position.
- Cost Management Strategy: In response to rising memory costs, HP has secured long-term agreements with new suppliers and implemented targeted pricing actions to offset cost pressures, with memory costs expected to rise approximately 100% for fiscal 2026, impacting profit margins.
- Future Outlook: HP maintains its annual EPS guidance in the range of $2.90 to $3.20, with expectations leaning towards the lower end, reflecting a cautious outlook on the market environment, while also keeping free cash flow guidance at $2.8 billion to $3 billion, demonstrating ongoing commitment to financial targets.
See More
HP Reports Strong Q1 Earnings but Mixed Guidance Raises Concerns
- Strong Earnings Report: HP reported a non-GAAP EPS of $0.81 for Q1, exceeding expectations by $0.04, demonstrating the company's resilience in a challenging market environment.
- Revenue Beats Expectations: The company achieved revenue of $14.44 billion in Q1, surpassing forecasts by $510 million, indicating robust demand for its products, particularly in the PC and printing segments.
- Mixed Guidance: Despite the strong earnings, HP's guidance for the future appears less optimistic, which may undermine investor confidence and lead to stock price volatility.
- Negative Market Reaction: The unclear outlook has resulted in a decline in HP's stock price, intensifying investor concerns about the company's future growth prospects and potentially impacting its competitive position in a challenging market.
See More
HP Inc. Reports Strong Q1 Earnings Amid Mixed Guidance
- Earnings Beat: HP Inc. reported a non-GAAP EPS of $0.81 for Q1, exceeding expectations by $0.04, indicating robust profitability despite market challenges.
- Revenue Growth: The company achieved Q1 revenue of $14.44 billion, surpassing estimates by $510 million, showcasing strong performance in product sales and services relative to competitors.
- Mixed Guidance: Despite strong results, HP's mixed guidance may create uncertainty among investors, potentially leading to stock price volatility in the near term.
- Stock Price Struggles: HP's shares are trading at cycle lows, reflecting investor concerns about the company's future growth potential, which could adversely affect its performance in capital markets.
See More
HP Inc. Reports Decline in Q1 Earnings
- Earnings Overview: HP Inc. reported a net income of $545 million for Q1, translating to $0.58 per share, which is a decline from $565 million and $0.59 per share in the same period last year, indicating pressure on the company's profitability.
- Adjusted Earnings: Excluding certain items, HP's adjusted earnings stood at $753 million, or $0.81 per share, reflecting some resilience in profitability despite the overall decline in net income.
- Revenue Growth: The company experienced a 6.9% year-over-year increase in revenue, reaching $14.438 billion compared to $13.504 billion last year, suggesting strong sales performance potentially driven by new product launches.
- Future Guidance: HP provided EPS guidance for the next quarter in the range of $0.70 to $0.76 and a full-year EPS guidance of $2.90 to $3.20, indicating a cautiously optimistic outlook for future performance despite current challenges.
See More
HP Reports Strong Q1 FY2026 Earnings with Revenue Growth
- Revenue Growth: HP's Q1 FY2026 net revenue reached $14.4 billion, up 6.9% year-over-year, showcasing robust growth in Personal Systems, particularly in AI PCs, reflecting effective execution of the company's Future of Work strategy.
- Non-GAAP EPS Increase: The first quarter non-GAAP diluted EPS was $0.81, a 9.5% increase from the prior year, exceeding market expectations and indicating the company's ability to enhance profitability in a dynamic environment.
- Cash Flow and Shareholder Returns: The first quarter generated $383 million in cash from operating activities and $175 million in free cash flow, with HP repurchasing approximately 13.3 million shares and paying $300 million in dividends, demonstrating a strong commitment to shareholder returns.
- Future Outlook: HP anticipates Q2 FY2026 GAAP diluted EPS in the range of $0.52 to $0.58, and despite challenges from rising memory costs, the company remains confident in its annual performance outlook, expecting free cash flow between $2.8 billion and $3.0 billion.
See More
Major Earnings Reports Expected After Tuesday's Close
- Major Earnings Preview: After the market closes on Tuesday, Realty Income Corporation (O), Lucid Group (LCID), MercadoLibre (MELI), and First Solar (FSLR) are set to report earnings, with market participants keenly awaiting their performance and future guidance.
- Diverse Earnings Releases: In addition to these companies, others such as ABCL, ALC, and ATEC are also expected to release earnings after Tuesday's close, indicating a broad interest across various sectors that could influence investor sentiment.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports, particularly regarding the achievement of profit expectations, which will directly impact the stock price volatility of the respective companies and overall market confidence.
- Significance of Earnings Season: The earnings season serves as a critical period for investors to assess the financial health and future growth potential of companies, with market reactions to these reports potentially shaping overall market trends.
See More
HP Inc. Q1 2026 Earnings Call Insights Highlight Growth and Challenges
- Revenue Growth: HP reported Q1 revenue of $14.4 billion, a 7% year-over-year increase, primarily driven by growth in the Personal Systems segment due to strong PC demand, particularly from the Windows 11 refresh and AI PCs, indicating a positive market share performance.
- AI PC Shipment Increase: AI PCs accounted for over 35% of shipments, up from 30% in the previous quarter, showcasing HP's successful new product launches, including the HP EliteBoard G1a and HP Digital Passport hub, which further solidify its market position.
- Cost Management Strategy: In response to rising memory costs, HP has secured long-term agreements with new suppliers and implemented targeted pricing actions to offset cost pressures, with memory costs expected to rise approximately 100% for fiscal 2026, impacting profit margins.
- Future Outlook: HP maintains its annual EPS guidance in the range of $2.90 to $3.20, with expectations leaning towards the lower end, reflecting a cautious outlook on the market environment, while also keeping free cash flow guidance at $2.8 billion to $3 billion, demonstrating ongoing commitment to financial targets.
See More
HP Reports Strong Q1 Earnings but Mixed Guidance Raises Concerns
- Strong Earnings Report: HP reported a non-GAAP EPS of $0.81 for Q1, exceeding expectations by $0.04, demonstrating the company's resilience in a challenging market environment.
- Revenue Beats Expectations: The company achieved revenue of $14.44 billion in Q1, surpassing forecasts by $510 million, indicating robust demand for its products, particularly in the PC and printing segments.
- Mixed Guidance: Despite the strong earnings, HP's guidance for the future appears less optimistic, which may undermine investor confidence and lead to stock price volatility.
- Negative Market Reaction: The unclear outlook has resulted in a decline in HP's stock price, intensifying investor concerns about the company's future growth prospects and potentially impacting its competitive position in a challenging market.
See More
HP Inc. Reports Strong Q1 Earnings Amid Mixed Guidance
- Earnings Beat: HP Inc. reported a non-GAAP EPS of $0.81 for Q1, exceeding expectations by $0.04, indicating robust profitability despite market challenges.
- Revenue Growth: The company achieved Q1 revenue of $14.44 billion, surpassing estimates by $510 million, showcasing strong performance in product sales and services relative to competitors.
- Mixed Guidance: Despite strong results, HP's mixed guidance may create uncertainty among investors, potentially leading to stock price volatility in the near term.
- Stock Price Struggles: HP's shares are trading at cycle lows, reflecting investor concerns about the company's future growth potential, which could adversely affect its performance in capital markets.
See More
HP Inc. Reports Decline in Q1 Earnings
- Earnings Overview: HP Inc. reported a net income of $545 million for Q1, translating to $0.58 per share, which is a decline from $565 million and $0.59 per share in the same period last year, indicating pressure on the company's profitability.
- Adjusted Earnings: Excluding certain items, HP's adjusted earnings stood at $753 million, or $0.81 per share, reflecting some resilience in profitability despite the overall decline in net income.
- Revenue Growth: The company experienced a 6.9% year-over-year increase in revenue, reaching $14.438 billion compared to $13.504 billion last year, suggesting strong sales performance potentially driven by new product launches.
- Future Guidance: HP provided EPS guidance for the next quarter in the range of $0.70 to $0.76 and a full-year EPS guidance of $2.90 to $3.20, indicating a cautiously optimistic outlook for future performance despite current challenges.
See More
HP Reports Strong Q1 FY2026 Earnings with Revenue Growth
- Revenue Growth: HP's Q1 FY2026 net revenue reached $14.4 billion, up 6.9% year-over-year, showcasing robust growth in Personal Systems, particularly in AI PCs, reflecting effective execution of the company's Future of Work strategy.
- Non-GAAP EPS Increase: The first quarter non-GAAP diluted EPS was $0.81, a 9.5% increase from the prior year, exceeding market expectations and indicating the company's ability to enhance profitability in a dynamic environment.
- Cash Flow and Shareholder Returns: The first quarter generated $383 million in cash from operating activities and $175 million in free cash flow, with HP repurchasing approximately 13.3 million shares and paying $300 million in dividends, demonstrating a strong commitment to shareholder returns.
- Future Outlook: HP anticipates Q2 FY2026 GAAP diluted EPS in the range of $0.52 to $0.58, and despite challenges from rising memory costs, the company remains confident in its annual performance outlook, expecting free cash flow between $2.8 billion and $3.0 billion.
See More
Major Earnings Reports Expected After Tuesday's Close
- Major Earnings Preview: After the market closes on Tuesday, Realty Income Corporation (O), Lucid Group (LCID), MercadoLibre (MELI), and First Solar (FSLR) are set to report earnings, with market participants keenly awaiting their performance and future guidance.
- Diverse Earnings Releases: In addition to these companies, others such as ABCL, ALC, and ATEC are also expected to release earnings after Tuesday's close, indicating a broad interest across various sectors that could influence investor sentiment.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports, particularly regarding the achievement of profit expectations, which will directly impact the stock price volatility of the respective companies and overall market confidence.
- Significance of Earnings Season: The earnings season serves as a critical period for investors to assess the financial health and future growth potential of companies, with market reactions to these reports potentially shaping overall market trends.
See More
