HP falls as PC shipment decline overshadows Q3 beat

HP

27/08/2026 10:08

  

** Shares of PC and printer maker HP HPQ.N fall 8.27% to $28 in premarket trading
** Lower PC shipments and shrinking margins overshadowed Q3 revenue beat, strong Q4 forecast
** While PC unit revenue rose 18% in Q3, shipments dropped 16% as HP focused on pricier AI PCs; the segment's operating margin shrank due to rising commodity and memory chip costs
** Co posted Q3 rev of $15.7 bln, above estimates of $14.38 bln, and forecast Q4 adj EPS above Wall Street estimates, with both periods helped by tariff refunds
** J.P. Morgan says investors are likely to remain cautious about elevated cost pressures heading into FY27, as those headwinds could add to concerns over whether recent strength in the PC market can be sustained as the Windows 11 upgrade cycle eases in the coming quarters
** 2 of 19 brokerages rate the stock "buy" or higher, 11 "hold" and 6 "sell" or lower; their median PT is $25 - LSEG-compiled data
** As of last day's close, stock up ~37% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))