HP Q1 adjusted profit beats analyst expectations on Personal Systems strength

HP

24/02/2026 21:27

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.)