Hp Inc (HPQ) Stock Analysis and Metrics

NYSE: HPQ

$24.77 ▲ +0.55 (+2.27%)

At close: Jul 13, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap20.30 Bn

P/E7.95

P/S0.35

Div. Yield0.05

ROIC (Qtr)0.07

Total Debt (Qtr)9.67 Bn

Revenue Growth (1y) (Qtr)8.99

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About

HP Inc delivers innovative and AI-powered devices, software, services, and subscriptions that drive business growth and professional fulfillment. HP generates revenue from the sale of products and services. Products net revenue includes revenue from the sale of hardware, supplies, subscriptions and software licenses. Services net revenue includes revenue from service offerings and support on hardware devices. The company operates through the following segments: Personal…

Investment Thesis

▲ Bull case

HPQ's AIPC shipment mix accelerated to 44% this quarter from 35% previously, with management forecasting 60%-70% next fiscal year and exceeding 70% by FY28, reflecting structural demand from enterprise and consumer migration to edge AI workloads; this transition allows HPQ to capture higher-margin premium PC categories while leveraging its trusted edge position in AI workflow orchestration, a capability increasingly valued as cloud costs rise and latency/privacy concerns drive localized processing, positioning the company to benefit from a multi-year upgrade cycle beyond temporary Windows 11 refresh effects.
Despite flat Print segment revenue year-over-year, HPQ achieved double-digit growth in All-In Plan subscribers and consumer print subscriptions, indicating successful execution of its recurring revenue strategy; this shift toward subscription models, combined with international rollout plans for All-In Plan, creates predictable, high-margin revenue streams less vulnerable to hardware cycle volatility, with management noting increased customer lifetime value and profitability from attached services like paper, a trend underappreciated by the market focused solely on hardware declines.
Geographic strength in APJ (18% constant currency growth) and EMEA (6% growth) was driven by Windows 11 refresh cycles, yet structural demand from AI PCs and premium PCs remains strong across all regions due to edge computing adoption; management highlighted that 30% of the installed base still runs Windows 10, providing a tailwind, but emphasized that AI and edge workloads represent a structurally available opportunity for premium category share gains, suggesting growth sustainability beyond the current refresh cycle as enterprises prioritize edge AI for sovereignty, cost control, and performance.
HPQ secured memory and storage needs for FY26 through long-term supplier agreements and strategic inventory, with CFO Parkhill stating they are "utilizing long-term supplier agreements for ongoing needs," and the company plans to replicate this playbook for FY27 by qualifying new suppliers and accelerating component quality checks; this proactive supply chain de-risking, combined with cost-saving initiatives on track to deliver $1B in gross annualized run-rate savings by FY28, provides a durable buffer against commodity inflation that the market may be underestimating given recent margin resilience.
Industrial Graphics and 3D printing delivered eleven and five consecutive quarters of double-digit revenue growth respectively, reflecting successful diversification into high-growth adjacent markets; these segments, while smaller than Personal Systems, benefit from industrial digitization trends and HPQ's integrated hardware-software-security offerings like HP IQ and Multi Jet Fusion 1.2k, creating cross-selling opportunities and reducing reliance on cyclical PC demand, a structural shift the market overlooks when focusing on traditional PC TAM contractions.

HPQ's AIPC shipment mix accelerated to 44% this quarter from 35% previously, with management forecasting 60%-70% next fiscal year and exceeding 70% by FY28, reflecting structural demand from enterprise and consumer migration to edge AI workloads; this transition allows HPQ to capture higher-margin premium PC categories while leveraging its trusted edge position in AI workflow orchestration, a capability increasingly valued as cloud costs rise and latency/privacy concerns drive localized processing, positioning the company to benefit from a multi-year upgrade cycle beyond temporary Windows 11 refresh effects.
Despite flat Print segment revenue year-over-year, HPQ achieved double-digit growth in All-In Plan subscribers and consumer print subscriptions, indicating successful execution of its recurring revenue strategy; this shift toward subscription models, combined with international rollout plans for All-In Plan, creates predictable, high-margin revenue streams less vulnerable to hardware cycle volatility, with management noting increased customer lifetime value and profitability from attached services like paper, a trend underappreciated by the market focused solely on hardware declines.
Geographic strength in APJ (18% constant currency growth) and EMEA (6% growth) was driven by Windows 11 refresh cycles, yet structural demand from AI PCs and premium PCs remains strong across all regions due to edge computing adoption; management highlighted that 30% of the installed base still runs Windows 10, providing a tailwind, but emphasized that AI and edge workloads represent a structurally available opportunity for premium category share gains, suggesting growth sustainability beyond the current refresh cycle as enterprises prioritize edge AI for sovereignty, cost control, and performance.
HPQ secured memory and storage needs for FY26 through long-term supplier agreements and strategic inventory, with CFO Parkhill stating they are "utilizing long-term supplier agreements for ongoing needs," and the company plans to replicate this playbook for FY27 by qualifying new suppliers and accelerating component quality checks; this proactive supply chain de-risking, combined with cost-saving initiatives on track to deliver $1B in gross annualized run-rate savings by FY28, provides a durable buffer against commodity inflation that the market may be underestimating given recent margin resilience.
Industrial Graphics and 3D printing delivered eleven and five consecutive quarters of double-digit revenue growth respectively, reflecting successful diversification into high-growth adjacent markets; these segments, while smaller than Personal Systems, benefit from industrial digitization trends and HPQ's integrated hardware-software-security offerings like HP IQ and Multi Jet Fusion 1.2k, creating cross-selling opportunities and reducing reliance on cyclical PC demand, a structural shift the market overlooks when focusing on traditional PC TAM contractions.

▼ Bear case

HPQ's Print segment revenue was flat year-over-year despite pricing and share gains offsetting hardware volume declines, with CFO Parkhill explicitly stating they expect Supplies revenue to "decline low single digit in constant currency this fiscal year" and anticipating further low-to-mid single digit annual declines long term, signaling a structural erosion in the core consumables business that subscriptions like All-In Plan may not fully offset, especially as tank printer growth targets cost-conscious segments with lower lifetime value.
Management acknowledged a 2%-3% demand pull-forward in commercial Personal Systems revenue due to ahead-of-rising-commodity-prices purchasing, meaning a portion of the reported 14% commercial growth is temporary; with PC unit TAM projected to contract at a high-teens rate in the second half of the calendar year per industry experts, the sustainability of double-digit revenue growth in commercial and consumer segments is questionable once this pull-forward effect reverses, particularly as Q3 guidance implies below-seasonal performance.
Personal Systems operating margins are expected to be "below our long term range for the balance of the year" with Q4 cited as a "low point" due to rising input costs and diminishing benefit from lower-cost inventory, with Parkhill noting input costs will continue to rise in the back half; despite Q2 margin strength from mitigation actions, the company has limited room for further cost reduction as OpEx remains flat as a percentage of revenue, leaving pricing as the primary lever, which risks demand elasticity in a weakening unit TAM environment.
HPQ's geographic performance shows Americas revenue flat year-over-year due to earlier Windows 11 refresh timing, contrasting with APJ's 18% constant currency growth; this disparity suggests the company is benefiting from regional timing differences rather than broad-based demand strength, and as the refresh cycle completes globally, the tailwind will fade, leaving HPQ exposed to a contracting PC market without equivalent structural growth drivers in its largest market (Americas).
The CEO search remains unresolved with the board "actively evaluating candidates" but providing no timeline, creating leadership uncertainty during a critical AI-driven transition; while Broussard emphasizes the need for a leader with global multi-segment experience in complex environments, the lack of permanence may hinder long-term strategic execution in innovation pipeline and go-to-market initiatives, particularly as competitors like Dell and Lenovo advance their own AIPC strategies under stable leadership.

HPQ's Print segment revenue was flat year-over-year despite pricing and share gains offsetting hardware volume declines, with CFO Parkhill explicitly stating they expect Supplies revenue to "decline low single digit in constant currency this fiscal year" and anticipating further low-to-mid single digit annual declines long term, signaling a structural erosion in the core consumables business that subscriptions like All-In Plan may not fully offset, especially as tank printer growth targets cost-conscious segments with lower lifetime value.
Management acknowledged a 2%-3% demand pull-forward in commercial Personal Systems revenue due to ahead-of-rising-commodity-prices purchasing, meaning a portion of the reported 14% commercial growth is temporary; with PC unit TAM projected to contract at a high-teens rate in the second half of the calendar year per industry experts, the sustainability of double-digit revenue growth in commercial and consumer segments is questionable once this pull-forward effect reverses, particularly as Q3 guidance implies below-seasonal performance.
Personal Systems operating margins are expected to be "below our long term range for the balance of the year" with Q4 cited as a "low point" due to rising input costs and diminishing benefit from lower-cost inventory, with Parkhill noting input costs will continue to rise in the back half; despite Q2 margin strength from mitigation actions, the company has limited room for further cost reduction as OpEx remains flat as a percentage of revenue, leaving pricing as the primary lever, which risks demand elasticity in a weakening unit TAM environment.
HPQ's geographic performance shows Americas revenue flat year-over-year due to earlier Windows 11 refresh timing, contrasting with APJ's 18% constant currency growth; this disparity suggests the company is benefiting from regional timing differences rather than broad-based demand strength, and as the refresh cycle completes globally, the tailwind will fade, leaving HPQ exposed to a contracting PC market without equivalent structural growth drivers in its largest market (Americas).
The CEO search remains unresolved with the board "actively evaluating candidates" but providing no timeline, creating leadership uncertainty during a critical AI-driven transition; while Broussard emphasizes the need for a leader with global multi-segment experience in complex environments, the lack of permanence may hinder long-term strategic execution in innovation pipeline and go-to-market initiatives, particularly as competitors like Dell and Lenovo advance their own AIPC strategies under stable leadership.

Geographical Breakdown of Revenue (2025)

Peer Comparison

Companies in the Computer Hardware

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SNDK	Sandisk Corp	300.77 Bn	104.11	22.81	-
2	DELL	Dell Technologies Inc.	276.28 Bn	32.86	2.06	31.16 Bn
3	ANET	Arista Networks, Inc.	209.63 Bn	56.35	21.59	-
4	WDC	Western Digital Corp	204.64 Bn	6,821.42	17.38	1.58 Bn
5	STX	Seagate Technology Holdings plc	202.26 Bn	85.05	18.37	3.86 Bn
6	P	Everpure, Inc.	25.55 Bn	112.90	6.49	-
7	HPQ	Hp Inc	20.30 Bn	7.95	0.35	9.67 Bn
8	SMCI	Super Micro Computer, Inc.	16.60 Bn	13.21	0.49	0.03 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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