Hewlett Packard, NetApp Better Positioned To Sidestep Tariff Headwinds Ahead of Earnings: Analyst

Core Viewpoint - JP Morgan analyst Samik Chatterjee anticipates conservative earnings results for several hardware companies due to ongoing demand uncertainty and renewed tariff risks [1][2] Group 1: Company-Specific Insights - Dell Technologies Inc. is expected to benefit from AI spending and a stronger-than-expected AI market share, leading to an Overweight rating and a price forecast increase from $108 to $111 [5][4] - Hewlett Packard Enterprise Company is viewed as well-positioned for upcoming earnings, with projected revenue of $32.4 billion, reflecting an 8% year-over-year growth, and gross margins at 28.7% [9][8] - HP Inc. is anticipated to post solid second-quarter results due to strong PC demand, with a price forecast increase from $29 to $30, despite facing higher tariffs and uncertainty in future PC demand [11][10] - NetApp, Inc. is expected to see stable demand with a slight revenue beat in F4Q25E, but FY26 revenue growth is projected to be in the low-to-mid single digits due to a muted macro environment [12][13] Group 2: Market Trends and Economic Factors - The analyst notes that macroeconomic trends will significantly impact HPQ and HPE throughout the year, with NTAP showing resilience but limited revenue upside [5][6] - The upcoming earnings reports are likely to reflect management's strategies to mitigate risks for the second half of the year, especially after stronger-than-expected performances in the first half [2][3] - The tariff landscape remains a key concern, with expectations that it will affect second-quarter guidance and fiscal 2026 outlooks [6][7]