On June 1, HP Inc. rose 5.33% overnight, trading at $28.46/share, with trading volume of $241,700. The rally continues to be fueled by the companys strong fiscal Q2 earnings report and subsequent positive analyst actions.

HP reported adjusted earnings per share of $0.86, significantly exceeding the consensus estimate of $0.71. Revenue grew 9.2% year-over-year to $14.4 billion, also surpassing analyst expectations of $13.99 billion. AI PC penetration emerged as the standout metric, with approximately one-third of PC shipments in the quarter featuring AI capabilities. Management noted that roughly 30% of users remain on Windows 10, suggesting a substantial untapped upgrade cycle ahead.

Following the results, JPMorgan raised its target price from $22 to $26, while Citi lifted its target from $20 to $25. However, the company lowered its full-year adjusted EPS guidance ceiling from $3.20 to $3.10, citing persistent memory and storage cost pressures. Morgan Stanley acknowledged the better-than-feared quarter but flagged remaining uncertainties around price elasticity responses. Some analysts also cautioned that demand may have been pulled forward, potentially weighing on Q4 performance.

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