| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 13.5x | 17.8x | Top tier | |
Growth | 33 | 8.1% | 7.1% | Bottom tier | |
Quality | 73 | 28.6% | 4.5% | Top tier | |
Safety | 60 | 1.5x | 2.6x | Around median | |
Capital Return | 75 | 3.36% | 2.12% | Top tier | |
Momentum | 91 | 1.5% | 2.9% | Top tier | |
Sentiment | 49 | 9 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HP Inc. operates through two main pillars: Personal Systems and Printing. Personal Systems includes commercial and consumer PCs, premium PCs, workstations, AI PCs, as well as peripherals and services such as WXP; commercial activity accounted for more than 70% of this segment's revenue in Q3 FY2026, while adjacent businesses generated approximately one-third of the segment's total profit. In Printing, the company generates revenue from hardware, supplies, subscriptions, and industrial printing, with a focus on tank printers that generate profit upfront and AI-powered solutions.
In Q3 FY2026, HP reported record third-quarter revenue of $15.7 billion, up 13% year over year according to the earnings call and up 12.5% according to the provided news, marking the ninth consecutive quarter of revenue growth. Net income according to EDGAR was approximately $661 million, GAAP earnings per share were $0.71, while adjusted earnings per share were $0.83, including $0.11 from tariff refunds. Adjusted gross margin was 18.8% and operating margin was 6.5%, with gross profit according to EDGAR of $2.9 billion.
Personal Systems was the primary mix driver, generating record third-quarter revenue of $11.8 billion and year-over-year growth of 18%, equivalent to approximately 75% of HP's total revenue, while its operating margin was 4.6%. Commercial Systems revenue increased 22% and Consumer Systems revenue increased 10%, but unit volumes declined, meaning pricing, a higher-value mix, and services offset lower volumes. Printing revenue declined 2%, and Supplies revenue declined 4% in constant currency, while Printing operating margin was 18.1%, benefiting significantly from tariff refunds.
The average analyst target is $24.71, within a wide range of $19 to $32, and the overall consensus remains Neutral. The average target is approximately 23% below the 52-week range high of $32.19 and approximately 41% above its low of $17.56, illustrating the breadth of the stock's rerating range. Underperform ratings from Bank of America Securities and a Sell rating from Goldman Sachs temper the optimistic implication of the average target, particularly amid declining units and pressure on margins from memory costs.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
HP's revenue was approximately $15.7 billion, with year-over-year growth of 13% according to the earnings call, driven primarily by an 18% increase in Personal Systems revenue to $11.8 billion. Commercial revenue grew 22% and consumer revenue grew 10%, with the commercial category accounting for more than 70% of segment revenue. Growth came despite declining units, as price increases, a higher-value mix, and adjacent services offset volume weakness.
AI PCs represented 46% of HP's shipment mix in Q3 FY2026, and the company expects them to reach 50% by the end of FY2026. HP is targeting a mix of 60%–70% in FY2027 and more than 70% in FY2028. This direction is supported by products such as HP ZGX Fury and OmniBook Ultra 6, in addition to work with more than 150 software company partners to develop use cases that run locally on devices.
HP raised its FY2026 adjusted earnings per share outlook to a range of $3.19–$3.29, compared with the previous range of $2.90–$3.10. The new range includes a positive impact of $0.19 from estimated tariff refunds. The company also raised its free cash flow outlook to $3.0–$3.2 billion after generating more than $2.5 billion during the first nine months of FY2026.
Automated analysis for informational purposes only — not investment advice.
The primary pressures are higher memory and storage costs and the flow-through of higher-cost inventory to the income statement. Personal Systems operating margin was 4.6%, below the long-term range, and management expects the Q4 FY2026 margin to be lower than the Q3 margin. The mitigation plan relies on repricing, qualifying new suppliers, redesigning products, improving platforms, and increasing the mix of premium PCs and adjacent services.
Printing revenue declined 2% in Q3 FY2026, while Supplies revenue fell 4% in constant currency amid a competitive market and declining volumes. In contrast, tank printer units increased 42%, industrial printing recorded its twelfth consecutive quarter of revenue growth, and HP signed a three-year, $100 million agreement with RRD. Printing operating margin was 18.1%, but it benefited significantly from tariff refunds and was at the low end of the long-term range after excluding this benefit.
