HP Shares Rise Following Q3 Earnings Report: Here's the Reason
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Updated: Aug 27 20250mins
Quarterly Earnings Report: HP Inc. reported third-quarter earnings of 75 cents per share, matching analyst expectations, with revenue of $13.93 billion exceeding the consensus estimate of $13.69 billion.
Segment Performance: Personal Systems net revenue increased by 6% year-over-year to $9.9 billion, while Printing net revenue decreased by 4% to $4 billion, indicating mixed performance across segments.
CEO's Statement: CEO Enrique Lores highlighted the company's fifth consecutive quarter of revenue growth, emphasizing strong performance in Personal Systems and commitment to future work strategies.
Stock Movement and Outlook: HPQ stock rose by 1.18% to $27.43 in after-hours trading, with an estimated fourth-quarter non-GAAP diluted net EPS projected between 87 cents and 97 cents.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPQ is 25.08 USD with a low forecast of 20.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
9 Hold
3 Sell
Hold
Current: 25.900
Low
20.00
Averages
25.08
High
30.00
Current: 25.900
Low
20.00
Averages
25.08
High
30.00
Goldman Sachs
Neutral
downgrade
$28 -> $24
2025-11-26
Reason
Goldman Sachs
Price Target
$28 -> $24
2025-11-26
downgrade
Neutral
Reason
Goldman Sachs lowered the firm's price target on HP Inc. to $24 from $28 and keeps a Neutral rating on the shares. HP posted in-line EPS with a modest revenue beat, and its FY26 outlook calls for revenue growth ahead of the market driven by AI PCs, Workforce Solutions, and subscription/industrial print categories, the analyst tells investors in a research note. However, FY26 EPS guidance came in below consensus due to sharply higher memory costs pressuring Personal Systems margins, which are expected to recover gradually starting mid-2027, aided by a new multi-year cost-savings program, Goldman says.
Morgan Stanley
Underweight
downgrade
$21 -> $20
2025-11-26
Reason
Morgan Stanley
Price Target
$21 -> $20
2025-11-26
downgrade
Underweight
Reason
Morgan Stanley lowered the firm's price target on HP Inc. to $20 from $21 and keeps an Underweight rating on the shares. FY26 guidance embeds 30c, or about 10%, of EPS headwinds from memory inflation, primarily in PCs, but doesn't embed much end-market demand elasticity from higher prices and assumes an improving print market, notes the analyst, who is cutting the firm's "below-Street EPS further" as the firm still believes risks are "biased downward."
JPMorgan
Neutral
downgrade
$30 -> $25
2025-11-26
Reason
JPMorgan
Price Target
$30 -> $25
2025-11-26
downgrade
Neutral
Reason
JPMorgan lowered the firm's price target on HP Inc. to $25 from $30 and keeps a Neutral rating on the shares following the fiscal Q4 report. The firm says concerns of a "tough" operating environment in fiscal 2026 were manifested in HP's outlook.
TD Cowen
Hold
downgrade
$28 -> $26
2025-11-26
Reason
TD Cowen
Price Target
$28 -> $26
2025-11-26
downgrade
Hold
Reason
TD Cowen lowered the firm's price target on HP Inc. to $26 from $28 and keeps a Hold rating on the shares. The firm said Memory price increases and supply scarcity is a key factor in the company's below-consensus FY26 EPS outlook ($0.30 memory impact F2H weighted) and likely precipitated the latest $1B cost restructuring plan.
See All Ratings
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
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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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