HP earnings beat expectations but shares tumble

Investing.com -- HP Inc (NYSE: HPQ) reported third quarter results that exceeded analyst expectations, but shares fell over 9% in after-hours trading Wednesday as investors took profits following an 18.5% gain in the past month.

The company posted adjusted earnings per share of $0.83, beating the analyst consensus of $0.66 by $0.17. Revenue reached $15.7 billion, up 12.5% YoY and well above the $14.34 billion estimate. The results included an $0.11 favorable impact from tariff refunds. HP raised its full fiscal year 2026 adjusted EPS guidance to a range of $3.19 to $3.29, with a midpoint of $3.24 that exceeds the analyst consensus of $3.04. "In the third quarter we increased both total sales and share in premium products and continued to attract new customers with innovations in WXP, Print, workstations and AI PCs," said Bruce Broussard, Interim CEO.

For the fiscal 2026 fourth quarter, HP expects adjusted EPS in the range of $0.69 to $0.79, including an $0.08 favorable impact from estimated tariff refunds. The company also raised its free cash flow outlook for fiscal 2026 to a range of $3.0 billion to $3.2 billion.

The Personal Systems segment delivered strong performance with revenue of $11.8 billion, up 18% YoY, though total units declined 16%. Commercial PS revenue jumped 22% while Consumer PS revenue increased 10%. The Printing segment saw revenue of $3.9 billion, down 2% YoY, with supplies revenue declining 3%.

HP generated $1.6 billion in free cash flow during the quarter and returned $574 million to shareholders through $300 million in share repurchases and $274 million in dividends. The company ended the quarter with $4.2 billion in gross cash.

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