/HP%20Inc%20logo%20and%20stock%20chart-by%20T_Schneider%20via%20Shutterstock.jpg)
Palo Alto, California-based HP Inc. (HPQ) is a leading provider of PCs and other hardware devices including printers, hard disks, and more. Valued at $30.7 billion by market cap, HP’s operations span the Americas, Indo-Pacific, and EMEA. The PC maker is expected to announce its first-quarter results on Wednesday, Feb. 26.
Ahead of the event, analysts expect HP to report a non-GAAP profit of $0.74 per share, down 8.6% from $0.81 per share reported in the year-ago quarter. While the company has surpassed or matched Wall Street’s bottom-line estimates twice over the past four quarters, it has missed the projections on two other occasions. Its EPS for the last reported quarter increased by a modest 3.3% year-over-year to $0.93, missing the consensus estimates by 1.1%.
For the full fiscal 2025, HP is expected to deliver an adjusted EPS of $3.56, up 5.3% from $3.38 in fiscal 2024. While in fiscal 2026, its earnings are expected to grow 6.2% year-over-year to $3.78 per share.
HP stock has gained 11.1% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund’s (XLK) 12.8% returns and the S&P 500 Index’s ($SPX) 22.9% surge during the same time frame.
HP’s stock prices plummeted 11.4% in the trading session after the release of its fiscal 2024 results on Nov. 26. The company reported a marginal drop in net revenues to $53.6 billion, which missed Wall Street’s topline expectations. Meanwhile, the company reported a notable 5.6% year-over-year increase in selling, general, and admin expenses to $5.7 billion, which unsettled investor confidence. On the positive, HP has observed a slight improvement in cash flow generation, its operating cash flows for the year increased nearly 5% year-over-year to approximately $3.8 billion.
The consensus opinion on HP stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 14 analysts covering the stock, four recommend “Strong Buy,” nine suggest “Hold,” and one advises a “Strong Sell” rating. Its mean price target of $37.11 represents an 11.3% premium to current price levels.
