Company Reports

HP reported record fiscal third-quarter net revenue of $15.7 billion, a 12.5% year-over-year increase, while non-GAAP diluted earnings per share of $0.83 easily exceeded guidance and FactSet consensus, albeit tariff refunds contributed $0.11.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which eventually receded.

HP reported a healthy second-quarter result, with revenue growing 9% year over year to $14.4 billion and non-GAAP diluted EPS of $0.86, both exceeding FactSet consensus estimates. Rising memory costs continue to be a headwind.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which eventually receded.

HP reported decent first-quarter earnings, with revenue up 7% and earnings per share up 10%, both ahead of our estimates. However, memory pricing pressure is now expected to drive 2026 results to the low end of the original guidance range.

HP's fourth-quarter 2025 results largely met expectations, as revenue grew 4% year over year in the quarter, while diluted EPS of $0.93 was squarely within the $0.87-$0.97 guided range.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which eventually receded.

HP reported revenue growth of 3% and a 10% adjusted earnings per share decline, as some tariff pressure still lingers. Pressure was already starting to fade compared with the previous quarter.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which eventually receded.

HP reported second-quarter earnings that started to show the impact of tariffs. Revenue grew, however, gross margins began to deteriorate, with management lowering their full-year outlook.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which has now receded.

No-moat-rated HP reported first-quarter earnings that were roughly as expected. Revenues were just ahead of our expectations, while margins were a bit lower, bringing adjusted EPS of $0.74 exactly in line with our forecast. Key trends were directionally as we expected, with weakness in consumer PCs and commercial printers, while commercial PCs saw strength. Given there were no big surprises, we are maintaining our fair value estimate of $33 per share and view shares as fairly valued.

HP is a technology company with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which has now receded.

No-moat-rated HP reported fourth-quarter results that largely aligned with our expectations. The 2025 outlook was also about what we expected, although arguably the revenue outlook was a bit soft, implying a low-single-digit percentage revenue growth rate for the year. Non-GAAP earnings per share growth is still expected to grow closer to 10%. After updating our projections, primarily slightly lowering our revenue growth assumptions but improving our margin assumptions, we raise our fair value estimate to $33 per share from $32, largely due to the time value of money.

No-moat HP reported OK fiscal third-quarter earnings, which had similar themes to the previous quarter. The recovery in PC-related revenue continued, while the printing business remained under pressure. As we adjust our forecasts, we are increasing our fair value estimate to $32 from $31, largely driven by slightly higher PC growth assumptions as we give a bit more credit for growth driven by the upcoming PC refresh cycle. We went into earnings viewing the stock as slightly overvalued (roughly 15%), and with shares down roughly 4% after hours (we think largely driven by weaker growth and margins in printing) in combination with our 3% fair value raise, we now view shares as approximately fairly valued.

HP is a legacy technology titan with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which has now receded.

No-moat HP reported decent fiscal second-quarter earnings with a recovery in PC-related revenue becoming more established even as printing remains under some pressure. As we adjust our forecasts and transfer coverage to a new analyst, we are increasing our fair value to $31 from $27, largely driven by slightly less punitive margin assumptions, even as our overall growth outlook remains largely unchanged. We assume that HP will only see mild margin degradation in the future, even as the PCs and printer markets remain intensely competitive and as the higher-margin printer business slowly declines. We expect cost controls to mostly offset pricing and margin pressure. We also expect minimal revenue growth over the next 5 years, projecting a compound annual growth rate of 1%. Updated guidance was mostly in line with previous ranges with the full-year EPS outlook narrowed to a range of $3.30-$3.60 from a previous range of $3.25-$3.65. With no surprises in results or guidance, we view shares as roughly fairly valued and remain skeptical of any dramatic changes in PC demand driven by the introduction of artificial intelligence PCs.

HP is a legacy technology titan with a strong share in the personal computer and printer markets. The PC and printer markets are consolidated, with the top several players controlling the majority of each market. The printer market is in a slow secular decline while growth in PCs is also minimal, tending to oscillate with overall refresh cycles as equipment ages and technology improves. The covid-19-driven work-from-home trend led to an unusual boost in demand for PCs, which has now receded.

HP is a legacy technology Titan with poor competitive positioning in our view, but we like its shareholder returns. HP's core markets of PCs and printing offer low growth, slim profitability, and, in our view, don’t have much potential to aid HP in warranting an economic moat. We don’t anticipate HP improving its midcycle growth potential or margin profile, but we do expect it to continue generating heady cash flow and sending nearly all of it back to shareholders between its dividend and repurchase program. Investors able to look past HP’s low growth may find the company’s distributions enticing.

We lower our fair value estimate for no-moat HP to $27 from $30 per share as we cut our short-term revenue estimates. HP’s end demand still looks soft, and we no longer model a significant recovery in fiscal 2024. PC sales continue to look challenged after the pandemic-driven demand surge of 2021, and we believe printing still looks like a market in secular decline. We expect HP to return to stable, low growth after fiscal 2024, but we no longer model a more meaningful recovery from these levels. HP’s profitability and cash flow have been positive of late, but we expect these to revert to lower levels in the longer term. We see shares as fairly valued.