HP Q1 adjusted profit beats analyst expectations on Personal Systems strength

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

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

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