HP slips after second-quarter results; margin pressures weigh

HP

28/05/2026 09:19

** Shares of PC and printer maker HP Inc HPQ.N fall nearly 2.7% to $24.90 premarket
** Co beat analysts' estimates for the second-quarter revenue and profit on Wednesday, helped by strong demand for AI-optimized personal computers, but warned that rising memory costs would pressure margins
**J.P. Morgan raises PT by $4 to $26; maintains a "Neutral" stance on the stock
** Brokerage says investor caution may persist due to a more pronounced, likely temporary PC pull-forward relative to servers and networking, alongside rising, broadening input cost pressures that raise concerns into 2027
** Co's Q2 revenue rose 9% to $14.41 bln from a year ago, beating LSEG-compiled analysts' average estimate of $14.07 bln
** Average rating of nineteen analysts is "hold"; with a median PT of $20 - data compiled by LSEG
** Up to last close, stock up ~14% YTD

(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh)))