HP Inc (HPQ) shares tumbled 5.84% in after-hours trading on Tuesday following the release of its fiscal fourth-quarter earnings and disappointing forward guidance. While the company's Q4 results slightly beat analyst estimates, with adjusted earnings per share of $0.93 versus the expected $0.92, investors focused on the weaker-than-anticipated outlook for the coming quarters.

For the fiscal first quarter, HP projects adjusted earnings between $0.73 and $0.81 per share, falling short of the $0.79 consensus estimate. More concerning to investors was the full-year fiscal 2026 guidance, with HP forecasting adjusted EPS of $2.90 to $3.20, significantly below analysts' expectations of $3.33. CEO Enrique Lores attributed the softer outlook primarily to surging memory chip prices, estimating a "fairly significant" impact of around 30 cents per share for the full year.

Adding to the pressure, HP announced plans to cut 4,000-6,000 jobs by the end of fiscal 2028 as part of a restructuring effort. The company also reported a 4% year-over-year decline in its printer business revenue, with Lores noting that customers are prioritizing AI investments over printer upgrades. Despite these challenges, HP aims to mitigate the impact through aggressive actions, including qualifying lower-cost suppliers, optimizing memory configurations, and strategic price increases.