Why HP Stock Sagged by 11% This Week

Core Insights - HP experienced a significant decline in stock price, dropping 11% over the past week due to an earnings miss and disappointing guidance [1] Financial Performance - HP reported net revenue of $13.2 billion for fiscal Q2 2025, a 3% increase compared to the same period in fiscal 2024 [2] - Non-GAAP adjusted net income fell to $678 million ($0.71 per share), down from $812 million in the previous year [2] - Analysts had anticipated adjusted net income of $0.79 per share, indicating a larger-than-expected drop in profitability [4] - Despite the earnings miss, HP exceeded the revenue consensus of under $13.1 billion [4] Guidance and Future Outlook - The company has lowered its fiscal year guidance for adjusted per-share earnings to a range of $3.00 to $3.30, down from the previous estimate of $3.45 to $3.75 [5] - Free cash flow is projected to be between $2.6 billion and $3 billion [5] - The ongoing tariff situation is expected to impact HP's operations, as many components are sourced internationally [5] Market Conditions - The PC market has been stagnant for years, with the popularity of mobile devices continuing to affect demand [6] - The ongoing tariff war is likely to further impact the PC market, contributing to a lack of confidence in HP's stock [6]