HP Inc. (NYSE:HPQ) reported earnings per share (EPS) of $0.93, beating the estimated $0.91.Revenue for the quarter was $14.64 billion, a 4.2% increase year-over-year, but fell short of the Zacks Consensus Estimate.The company's price-to-earnings (P/E) ratio stands at approximately 9.02, indicating its market valuation relative to its earnings.HP Inc. (NYSE:HPQ) is a prominent figure in the technology sector, competing with giants like Dell and Lenovo in the realms of personal computers, printers, and relate ...

HP Inc. (NYSE:HPQ) is one of the stocks on Jim Cramer’s game plan for the week. Cramer does not believe that the company would be “able to make the numbers,” as he remarked: “I would definitely not trade HP the same way. I think HP is genuinely hostage to commodity prices, and it won’t be able to make the numbers. Even though it went up almost 6% today, the stock’s a little…  it might not matter, but you know that’s not really a compelling reason to buy, is it?” A man in black suit holding a tablet loo ...

Dell Technologies Inc. (NYSE:DELL) is set to release its quarterly earnings with an expected EPS of $2.48 and revenue of approximately $27.29 billion.The company's performance is anticipated to be driven by strong demand for AI-optimized servers and robust expectations for its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).Dell's financial health shows a price-to-earnings (P/E) ratio of 17.68 and a debt-to-equity ratio of -10.37, highlighting a higher level of debt compared to equity. ...

Core Viewpoint - Dell Technologies has received a "Strong Buy" rating from analysts, driven by increasing demand for AI servers and data infrastructure, indicating strong fundamentals and growth potential [1][2]. Financial Performance - Dell's stock has surged 33.8% year-to-date, outperforming the S&P 500 Index, which gained 14.6% [2]. - In the second quarter of fiscal 2026, Dell reported revenue of $29.8 billion, a 19% year-over-year increase, attributed to strong demand for AI servers and enterprise adoption [5]. - The Infrastructure Solutions Group (ISG) revenue increased by 44% to a record $16.8 billion, with server and networking revenue in the ISG segment rising by 69% to $12.9 billion [5]. Product Development - Dell introduced its 17th-generation servers, designed for enhanced performance and efficiency, allowing customers to prepare for AI integration [6]. - Over 70% of the installed base is still using 14th-generation or older servers, presenting significant upgrade opportunities for the company [6]. Client Solutions Group - The Client Solutions Group (CSG), which includes PCs and notebooks, saw a revenue increase of 1% to $12.5 billion, with business PCs rising by 2% while consumer PCs fell by 7% [7]. - Despite the decline in consumer PC revenue, profitability improved due to deflationary trends and stronger product positioning [7].

Core Insights - Dell's stock reached an all-time intraday high, driven by a significant increase in long-term revenue guidance due to heightened demand for data center offerings essential for AI [1][2] - The company raised its long-term annual revenue growth forecast from 3-4% to 7-9% and increased its earnings per share growth target from 8% to 15% [2] Financial Performance - Dell's servers and networking business experienced a remarkable 69% year-over-year growth, generating $12.9 billion in revenue [6] - Total revenue for the second quarter reached $29.8 billion, reflecting a 19% increase compared to the same period last year [6] Market Position - Dell's portfolio, which includes personal computers and data center infrastructure, is well-positioned to meet the demands of the AI boom [3] - The company has established partnerships with key players in the AI sector, including Nvidia, OpenAI, and CoreWeave, and has contracts with the Energy Department and G42 [6] CEO Statement - Dell's CEO highlighted the strong demand for AI-related computing resources and the company's ability to translate this demand into growth and cash flow, which has been largely returned to shareholders [4]

Group 1: Technology Sector Overview - Technology stocks constitute approximately one-third of the S&P 500 index and are significantly outperforming the broader index this year [1] - The lack of dividends in many tech stocks is due to reinvestment of profits into scaling successful products, research, and AI infrastructure [2][4] Group 2: Cisco Systems - Cisco Systems reported third-quarter fiscal 2025 revenue of $14.1 billion, an 11% increase year-over-year, with earnings per share (EPS) of $0.62, up 35% from the previous year [5] - The company generated over $1 billion in AI-related revenue in 2024 and aims to double that in 2025, aided by the $28 billion acquisition of Splunk [6] - Cisco's stock has risen 15% in 2025 and offers a dividend yield of 2.3% [7] Group 3: International Business Machines (IBM) - IBM, known for its long history, is currently focused on cybersecurity, cloud computing, and consulting, with 81% of Fortune 500 companies using its mainframe computers [8] - The company has gained 30% in stock value this year, bolstered by its 2019 acquisition of Red Hat, which enhanced its hybrid cloud-computing capabilities [9] - Analysts project IBM's revenue to increase by 5.5% to $66.2 billion this year, with a further 4% growth expected in fiscal year 2026, alongside a 2.3% dividend yield [10] Group 4: Paychex - Paychex, a leader in payroll and human resources services, surpassed $5 billion in revenue in 2024 and serves over 745,000 clients [11][13] - The company experienced double-digit growth in its retirement services division, which now manages $52 billion in assets [13] - Paychex's revenue for fiscal Q4 2025 was $1.42 billion, a 10% increase year-over-year, despite an 11% drop in operating income due to a $4 billion acquisition of Paycor [13] - The company forecasts revenue growth of 16.5% to 18.5% and EPS growth of 8.5% to 10.5% for the next fiscal year [14] - Paychex stock has increased by 2% this year and offers a dividend yield of 3%, with a forward price-to-earnings (P/E) ratio of 26 [15]

Group 1: Stock Performance - HP closed at $24.83, down 2.32% from the previous trading session, underperforming the S&P 500 which gained 0.14% [1] - Prior to the recent trading day, HP shares had increased by 6.63%, outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Group 2: Earnings Expectations - HP is expected to report EPS of $0.74, a decrease of 10.84% from the prior-year quarter, with a projected revenue of $13.69 billion, reflecting a 1.26% increase from the same quarter last year [2] - For the entire fiscal year, earnings are predicted to be $3.09 per share and revenue at $54.5 billion, indicating changes of -8.58% and +1.75% respectively from the previous year [3] Group 3: Analyst Estimates and Valuation - Recent changes in analyst estimates for HP suggest a favorable outlook on business health and profitability, with the Zacks Rank system indicating a 3 (Hold) rating for HP [4][5] - HP's Forward P/E ratio is 8.24, which is lower than the industry average of 11.92, indicating a potential valuation discount [6] - HP has a PEG ratio of 2.06, compared to the industry average PEG ratio of 1.56, suggesting a higher anticipated earnings growth rate relative to its peers [7] Group 4: Industry Context - The Computer - Micro Computers industry, to which HP belongs, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Core Insights - HP's international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $13.22 billion, a 3.3% increase from the previous year [4] International Revenue Trends - Europe, Middle East and Africa generated $4.36 billion, accounting for 33.00% of total revenue, but was a surprise decrease of -7.56% from the expected $4.72 billion [5] - Asia-Pacific and Japan contributed $3.04 billion, representing 23.00% of total revenue, with a surprise decrease of -5.2% from the expected $3.21 billion [6] Future Revenue Projections - Analysts project total revenue for the next fiscal quarter to reach $13.69 billion, a 1.3% increase year-over-year, with Europe, Middle East and Africa expected to contribute $4.95 billion (36.2%) and Asia-Pacific and Japan $3.36 billion (24.6%) [7] - For the full year, total revenue is expected to be $54.97 billion, a 2.6% increase, with contributions from Europe, Middle East and Africa at $19.51 billion (35.5%) and Asia-Pacific and Japan at $13.26 billion (24.1%) [8] Market Observations - HP's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends to project future performance [9][10]

Core Viewpoint - HP's stock performance has lagged behind major indices, with a significant decline over the past month, raising concerns ahead of its upcoming earnings report [1][2]. Financial Performance - HP is expected to report an EPS of $0.80, reflecting a 2.44% decrease year-over-year, while revenue is anticipated to reach $13.26 billion, a 3.6% increase compared to the same quarter last year [2]. - For the entire year, Zacks Consensus Estimates project earnings of $3.45 per share and revenue of $54.64 billion, indicating increases of +2.07% and +2.03% respectively compared to the previous year [3]. Analyst Sentiment - Recent revisions to analyst forecasts for HP are crucial, as they often indicate shifts in near-term business trends, with positive changes suggesting optimism regarding the company's profitability [4]. - The Zacks Rank system currently places HP at 3 (Hold), with a 2.76% decline in the consensus EPS estimate over the past month [6]. Valuation Metrics - HP's Forward P/E ratio stands at 6.89, which is lower than the industry's Forward P/E of 8.65, indicating a valuation discount [7]. - The current PEG ratio for HP is 2.48, compared to the average PEG ratio of 1.4 for the Computer - Micro Computers industry [7]. Industry Context - The Computer - Micro Computers industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of all industries [8].