On May 29, HP Inc. rose 5.44% in pre-market trading, trading at $26.3/share, with trading volume of $778,100. The gain follows the company's fiscal Q2 earnings report released on May 27 after market close, which significantly exceeded market expectations.

HP reported adjusted earnings per share of $0.86, well above the consensus estimate of $0.71, while quarterly revenue grew 9.2% year-over-year to $14.4 billion, also surpassing analyst forecasts. AI PC penetration emerged as the standout metric, with approximately one-third of HP's PC shipments comprising AI-capable models, signaling strong momentum in the AI personal computing segment. Prior to the earnings release, HP had already rallied over 20% across six consecutive trading sessions, catalyzed by competitor Lenovo's robust results.

However, HP's CFO cautioned that rising input costs, particularly memory chip prices, are expected to increasingly pressure operating margins in the Personal Systems segment, leading the company to lower its full-year profit ceiling. Morgan Stanley noted the quarter was better than feared, but uncertainties including price elasticity remain. JPMorgan raised its target price to $26 while maintaining a Neutral rating.

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