Overview
Technology firm's Q1 revenue rose 6.9% yr/yr, beating analyst expectations
Adjusted EPS for Q1 beat analyst expectations, rising 9.5% yr/yr
Company returned $0.6 bln to shareholders via share repurchases and dividends
Outlook
HP estimates Q2 GAAP EPS between $0.52 and $0.58
HP expects Q2 non-GAAP EPS between $0.70 and $0.76
HP maintains FY26 guidance, expects EPS at lower end of range due to memory costs
Result Drivers
PERSONAL SYSTEMS GROWTH - HP's Personal Systems segment saw an 11% increase in net revenue, driven by AI PCs and strong consumer demand
FUTURE OF WORK STRATEGY - HP's performance benefited from its Future of Work strategy, aiding in overcoming industry headwinds
Company press release: ID:nGNX4GnpPy
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Adjusted EPS | Beat | $0.81 | $0.77 (10 Analysts) |
Q1 EPS | $0.58 | ||
Q1 Adjusted Net Income | Beat | $800 mln | $714.66 mln (7 Analysts) |
Q1 Net Income | $500 mln | ||
Q1 Free Cash Flow | $200 mln | ||
Q1 Income from Operations | $759 mln | ||
Q1 Pretax Profit | $671 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for HP Inc is $22.00, about 19.9% above its February 23 closing price of $18.35
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)