It has been about a month since the last earnings report for HP (HPQ) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is HP due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for HP Inc. before we dive into how investors and analysts have reacted as of late.HPQ's Q1 Earnings Beat Estimates, Revenues In ...

Core Insights - HP Inc. reported first-quarter fiscal 2026 earnings of 81 cents per share, exceeding the Zacks Consensus Estimate by 5.2% and up from 74 cents per share a year ago [1] - The company posted revenues of $14.4 billion for the first quarter, a 6.7% year-over-year increase, surpassing the Zacks Consensus Estimate by 1.22% [2] Financial Performance - Personal Systems revenues, which account for 71.5% of net revenues, reached $10.3 billion, reflecting an 11% year-over-year growth [3] - Total PC units increased by 12%, with Consumer PS shipments up 14% and Commercial PS shipments up 11% [4] - The Printing business generated $4.2 billion, down 2% year over year, with total hardware units declining by 6% [4] Geographic Performance - Revenue growth was observed in all regions, with the Americas rising 1%, EMEA up 5%, and Asia Pacific & Japan growing 13% year over year [5] Margins and Cash Flow - HP's gross margin for the first quarter was 19.6%, influenced by a favorable mix from Personal Systems and cost reduction measures [5] - The company ended the quarter with $3.2 billion in cash, down from $3.7 billion in the previous quarter, and generated $383 million from operating activities [6] Guidance - HP expects fiscal 2026 non-GAAP earnings to range between $2.90 and $3.20, with the Zacks Consensus Estimate at $2.95, indicating a year-over-year decline of 5.5% [7] - For the second quarter of fiscal 2026, HP anticipates non-GAAP earnings per share between 70 cents and 76 cents, with a consensus estimate of 72 cents, reflecting a 1.4% year-over-year increase [9] Revenue Projections - The Zacks Consensus Estimate for HP's fiscal 2026 revenues is $55 billion, indicating a slight year-over-year decline of 0.1% [9][10]

Financial Performance - For the quarter ended January 2026, HP reported revenue of $14.44 billion, a 6.9% increase year-over-year, and EPS of $0.81, up from $0.74 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $14.26 billion by 1.22%, and the EPS also surpassed the consensus estimate of $0.77 by 4.65% [1] Key Metrics - Personal Systems revenue was $10.25 billion, a year-over-year increase of 11.1%, but below the average estimate of $10.39 billion [4] - Commercial Personal Systems revenue was $7.25 billion, a 9.2% increase year-over-year, but below the average estimate of $7.43 billion [4] - Consumer Personal Systems revenue reached $3 billion, exceeding the estimated $2.96 billion, with a year-over-year growth of 16.3% [4] - Printing revenue totaled $4.19 billion, slightly above the average estimate of $4.14 billion, but represented a year-over-year decline of 1.9% [4] Operational Earnings - Earnings from operations in Personal Systems were $511 million, below the average estimate of $568.76 million [4] - Corporate Investments reported a loss of $24 million, significantly better than the estimated loss of $155.43 million [4] - Earnings from operations in Printing were $765 million, slightly above the average estimate of $759.07 million [4] Stock Performance - HP shares have returned -5.7% over the past month, compared to a -1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - HP Inc. reported a strong first quarter for fiscal 2026, with net revenue of $14.4 billion, reflecting a year-over-year increase of 6.9% [3][10] - The company experienced growth in its Personal Systems segment, particularly in AI PCs, despite facing industry-wide challenges [4][10] - Non-GAAP diluted net earnings per share (EPS) increased by 9% to $0.81, while GAAP diluted EPS decreased by 2% to $0.58 [10][12] Financial Performance - GAAP net revenue for Q1 FY26 was $14.4 billion, up from $13.5 billion in Q1 FY25, marking a 6.9% increase [1][3] - GAAP operating margin decreased to 5.3%, down from 6.3% year-over-year [1][10] - Non-GAAP net earnings rose to $0.8 billion, a 7% increase from $0.7 billion in the prior year [1][10] Segment Results - Personal Systems net revenue reached $10.3 billion, an 11% increase year-over-year, with a 5.0% operating margin [11][10] - Printing segment net revenue was $4.2 billion, down 2% year-over-year, with an 18.3% operating margin [11][10] - Consumer Printing revenue decreased by 8%, while Commercial Printing revenue fell by 3% [11][10] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $0.4 billion, with free cash flow of $0.2 billion, a significant increase of 150% from the previous year [1][10] - The company returned $0.6 billion to shareholders through dividends and share repurchases [10][8] - HP's dividend payment was $0.30 per share, resulting in cash usage of $277 million [8][10] Outlook - For Q2 FY26, HP estimates GAAP diluted EPS to be in the range of $0.52 to $0.58 and non-GAAP diluted EPS to be between $0.70 and $0.76 [12][13] - The company maintains its annual guidance for FY26, projecting GAAP diluted EPS between $2.47 and $2.77 and non-GAAP diluted EPS between $2.90 and $3.20 [13][12] - HP anticipates generating free cash flow in the range of $2.8 to $3.0 billion for FY26, but expects to be at the lower end of this range due to a challenging operating environment [13][12]

Core Viewpoint - HP Inc. is under pressure as its stock has declined 17% year-to-date, trading near its 52-week low of $18.12, with significant concerns regarding memory cost inflation and the sustainability of the PC refresh cycle impacting its earnings outlook [1]. Group 1: Financial Performance - HP's fiscal Q4 2025 revenue was $14.64 billion, exceeding the consensus estimate of $14.49 billion and representing a 4% year-over-year growth [1]. - Non-GAAP EPS for Q4 2025 was $0.93, slightly above expectations of $0.92 [1]. - Personal Systems revenue grew by 8% due to increased average selling prices and a 7% increase in unit sales, while Printing revenue declined by 4% year-over-year [1]. Group 2: Earnings Guidance and Challenges - For fiscal Q1 2026, consensus estimates are a non-GAAP EPS of $0.77 and revenue of $13.925 billion [1]. - Management has indicated a 30-cent headwind to full-year earnings due to projected memory cost increases, which now account for 15% to 18% of the cost of a typical PC [1]. - The company is implementing strategies to mitigate memory cost impacts, including qualifying lower-cost suppliers and redesigning products for reduced memory configurations [1]. Group 3: Market Sentiment and Analyst Ratings - Wall Street analysts are cautious, with 10 out of 17 analysts rating the stock as a hold, 3 as a sell, and 1 as a strong sell, with an average price target of $23.21 [1]. - Major firms like Morgan Stanley and Bank of America have sell ratings with price targets set at $18 [1]. Group 4: Future Outlook - HP's Investor Day is scheduled for April 23, where management will discuss the impact of AI on the business, making the upcoming earnings results critical for setting the narrative [1]. - The demand for AI PCs (AIPCs) is expected to increase, with AIPCs representing over 30% of shipments in Q4 and projected to reach 40% to 50% in fiscal 2026 [1].

Core Viewpoint - HP is expected to report quarterly earnings of $0.77 per share, reflecting a 4.1% increase year-over-year, with revenues forecasted at $14.06 billion, also a 4.1% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.8%, indicating a reassessment by analysts of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Analysts forecast 'Net revenue- Personal Systems- Commercial PS' to reach $7.19 billion, indicating an 8.2% year-over-year increase [5]. - 'Net revenue- Personal Systems- Consumer PS' is projected at $2.91 billion, reflecting a 12.8% increase from the same quarter last year [5]. - The total 'Net revenue- Personal Systems' is estimated at $10.10 billion, showing a 9.5% year-over-year change [5]. - 'Net revenue- Printing- Supplies' is expected to be $2.73 billion, a decrease of 3.3% from the prior year [6]. - 'Net revenue- Printing- Commercial Printing' is projected at $1.13 billion, down 1.1% from the previous year [6]. - 'Net revenue- Printing- Consumer Printing' is estimated at $290.46 million, a decline of 2.9% year-over-year [7]. - The total 'Net revenue- Printing' is expected to be $4.16 billion, indicating a 2.7% decrease from the prior year [7]. Operational Metrics - 'Days in accounts payable' is estimated to be 137 days, down from 139 days year-over-year [7]. - 'Days of sales outstanding in accounts receivable' is projected at 31 days, compared to 28 days last year [8]. - 'Days of supply in inventory' is expected to be 68 days, down from 72 days year-over-year [8]. - 'Earnings from operations- Personal Systems' is estimated at $554.07 million, up from $507.00 million in the same quarter last year [8]. - 'Earnings from operations- Printing' is projected at $761.43 million, down from $810.00 million year-over-year [9]. Market Performance - HP shares have decreased by 6% over the past month, contrasting with a -0.8% change in the Zacks S&P 500 composite [9]. - HPQ holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [9].

Core Insights - HP Inc. reported fourth-quarter fiscal 2025 earnings of 93 cents per share, exceeding the Zacks Consensus Estimate by 2.2%, but down from 96 cents per share a year ago [1] - The company's revenues for the fourth quarter were $14.64 billion, reflecting a year-over-year increase of 4.2%, but missing the Zacks Consensus Estimate by 2.2% [2] Revenue Breakdown - Personal Systems (PS) revenues, which account for 71% of net revenues, reached $10.4 billion, up 8% year over year, driven by strong demand in both commercial and consumer PC segments [3] - The Printing business, contributing 29% of net revenues, generated $4.27 billion, down 4% year over year, primarily due to declines in Supplies and Commercial Printing [4] Geographic Performance - Revenue growth was observed in all regions, with the Americas rising 1.1%, EMEA up 1.1%, and Asia Pacific & Japan growing 11% year over year [5] Operating Results - Personal Systems' non-GAAP operating margin was 5.8%, down 40 basis points year over year, while the Printing division's non-GAAP operating margin was 18.9%, down 70 basis points [6] - Overall non-GAAP operating margin for HP was 8.0%, contracting 80 basis points from the prior-year quarter [6] Financial Position - At the end of the fiscal fourth quarter, HP had $3.7 billion in cash and cash equivalents, an increase from $2.9 billion in the previous quarter [7] - The company generated $1.6 billion from operating activities and delivered $1.5 billion in free cash flow, returning $0.8 billion to shareholders through dividends and share repurchases [7] Summary of Earnings - HPQ's Q4 earnings beat estimates, with revenues rising 4.2% year over year, while Personal Systems revenues grew 8% due to stronger demand [9]

Core Insights - HP reported $14.64 billion in revenue for the quarter ended October 2025, a year-over-year increase of 4.2% [1] - The EPS for the same period was $0.93, unchanged from a year ago, with a surprise of +2.2% compared to the consensus estimate of $0.91 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $14.97 billion, resulting in a surprise of -2.23% [1] Financial Performance Metrics - HP's shares have returned -12.7% over the past month, underperforming the Zacks S&P 500 composite's -1.2% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Key Operational Metrics - Days in accounts payable: 139 days, slightly above the estimated 137 days [4] - Days of sales outstanding in accounts receivable: 35 days, exceeding the estimated 31.5 days [4] - Days of supply in inventory: 66 days, close to the estimated 67 days [4] Revenue Breakdown - Personal Systems - Commercial PS: $6.97 billion, below the estimated $7.34 billion, with a year-over-year change of +6.9% [4] - Personal Systems - Consumer PS: $3.38 billion, matching the estimated $3.38 billion, with a year-over-year change of +10.2% [4] - Total Personal Systems revenue: $10.35 billion, below the estimated $10.72 billion, with a year-over-year change of +7.9% [4] - Printing - Supplies: $2.76 billion, below the estimated $2.81 billion, with a year-over-year change of -3.6% [4] - Printing - Commercial Printing: $1.21 billion, slightly above the estimated $1.18 billion, with a year-over-year change of -4.2% [4] - Printing - Consumer Printing: $296 million, below the estimated $302.61 million, with a year-over-year change of -8.9% [4] - Total Printing revenue: $4.27 billion, slightly below the estimated $4.29 billion, with a year-over-year change of -4.2% [4] Earnings from Operations - Earnings from operations in Personal Systems: $597 million, below the estimated $632.41 million [4] - Earnings from operations in Corporate Investments: -$34 million, significantly better than the estimated -$156.27 million [4]

Core Insights - HP Inc. reported fiscal 2025 net revenue of $55.3 billion, an increase of 3.2% year-over-year, with a 3.7% increase in constant currency [4][8] - The company experienced a decline in GAAP diluted net EPS to $2.65, down 5.7% from the previous year, while non-GAAP diluted net EPS decreased to $3.12, down 9.0% [5][8] - HP generated $3.7 billion in net cash from operating activities and $2.9 billion in free cash flow for fiscal 2025, returning $1.9 billion to shareholders through dividends and share repurchases [10][8] Financial Performance - Fiscal 2025 GAAP net revenue was $55.3 billion, with a GAAP operating margin of 5.7%, down from 7.1% in the prior year [8][5] - Fourth quarter net revenue reached $14.6 billion, up 4.2% year-over-year, with a GAAP diluted net EPS of $0.84, down from $0.93 [6][7] - Non-GAAP operating margin for fiscal 2025 was 7.4%, a decrease from 8.5% in the previous year [8][5] Cash Flow and Shareholder Returns - HP's net cash provided by operating activities for fiscal 2025 was $3.7 billion, with free cash flow of $2.9 billion [10][8] - The company returned $1.9 billion to shareholders, including $1.1 billion in dividends and $850 million in share repurchases [10][8] - In the fourth quarter, HP generated $1.5 billion in free cash flow and returned $0.8 billion to shareholders [12][8] Strategic Initiatives - HP announced a company-wide initiative aimed at driving customer satisfaction and product innovation through AI, estimating gross run rate savings of approximately $1 billion by the end of fiscal 2028 [20][8] - The initiative will incur approximately $650 million in restructuring costs, with an expected reduction of 4,000-6,000 employees [20][8] - The company plans to increase its quarterly dividend to $0.30 per share, payable on January 2, 2026 [14][8] Outlook - For fiscal 2026, HP estimates GAAP diluted net EPS to be in the range of $2.47 to $2.77 and non-GAAP diluted net EPS to be in the range of $2.90 to $3.20 [18][16] - The company anticipates generating free cash flow between $2.8 billion and $3.0 billion for fiscal 2026 [18][16] - HP's outlook reflects added costs driven by current U.S. trade-related regulations [18][16]

Core Insights - HP is expected to report quarterly earnings of $0.92 per share, reflecting a decline of 1.1% year-over-year, while revenues are forecasted to reach $15.02 billion, indicating a 6.9% increase compared to the previous year [1] - The consensus EPS estimate has been revised downward by 1.3% in the last 30 days, showing a reassessment by analysts [1][2] Revenue Projections - Analysts project 'Net revenue- Personal Systems- Commercial PS' to be $7.34 billion, a year-over-year increase of 12.5% [4] - The estimated 'Net revenue- Personal Systems- Consumer PS' is $3.38 billion, reflecting a 10.1% increase year-over-year [4] - Total 'Net revenue- Personal Systems' is expected to reach $10.72 billion, indicating an 11.8% increase from the prior year [4] - 'Net revenue- Printing- Supplies' is projected at $2.81 billion, showing a decline of 2% year-over-year [5] - 'Net revenue- Printing- Commercial Printing' is estimated at $1.18 billion, reflecting a 6.1% decrease [5] - 'Net revenue- Printing- Consumer Printing' is forecasted at $302.61 million, indicating a 6.9% decline [6] - Overall 'Net revenue- Printing' is expected to be $4.29 billion, a decrease of 3.5% from the previous year [6] Operational Metrics - 'Days in accounts payable' is estimated to be 137 days, slightly down from 138 days in the previous year [6] - 'Days of sales outstanding in accounts receivable' is projected at 32 days, compared to 33 days reported last year [7] - 'Days of supply in inventory' is expected to reach 67 days, up from 63 days in the same quarter last year [7] Earnings from Operations - 'Earnings from operations- Personal Systems' is projected at $632.41 million, an increase from $550.00 million reported last year [8] - 'Earnings from operations- Printing' is expected to be $798.79 million, down from $874.00 million in the previous year [8] Stock Performance - Over the past month, HP shares have declined by 18.8%, contrasting with a -0.3% change in the Zacks S&P 500 composite [8]