HP Inc. (HPQ) AI Stock Analysis

HP Inc. is a global provider of personal computing devices, imaging and printing solutions, and related services and technologies. Headquartered in Palo Alto, California, and founded in 1939, the company operates across three segments: Personal Systems, Printing, and Corporate Investments. Personal Systems provides commercial and consumer desktop and notebook PCs, workstations, mobility devices, thin clients, point-of-sale systems, displays, and peripherals, along with software and support services. The Printing segment offers consumer and commercial printer hardware, supplies, solutions, services, and graphics and 3D imaging solutions. Corporate Investments manages HP Labs research, business incubation, and strategic investment projects.

Revenue moved from $63.46B in FY2021 to $55.30B in FY2025, recording a 5-year revenue CAGR of -0.5% from FY2020 to FY2025. Annual net income decreased from $6.54B in FY2021 to $2.53B in FY2025, with net margins contracting from 10.3% to 4.6% over the same timeframe. In FY2025, revenue increased 3.2% to $55.30B, while operating margin was 6.6%. For the trailing twelve months, revenue reached $59.16B and operating margin stood at 5.4%. In the latest quarter ended July 31, 2026, quarterly revenue grew 12.5% year-over-year, while quarterly earnings contracted 11.3%.

As of July 31, 2026, HP held $4.17B in cash and short-term investments against $10.34B in total debt, resulting in net debt of $6.17B. The company recorded negative shareholders' equity of -$92.0M on total assets of $45.70B, with a current ratio of 0.79. In FY2025, HP generated $3.70B in operating cash flow and $2.80B in free cash flow. Cash deployment in FY2025 included $897.0M in capital expenditures, $850.0M in share buybacks, and $1.09B in dividends paid, contributing to an 18.8% reduction in share count over 5 years.

At a last close of $30.01, HP trades at an enterprise value of $35.06B and a market cap of $27.06B. Its trailing P/E of 11.5x and forward P/E of 9.9x compare to the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. The company's EV-to-EBITDA stands at 8.3x versus the peer median of 19.9x, and its price-to-sales of 0.5x is below the peer median of 6.3x. Over the past year, the stock returned 16.0%, trailing the S&P 500 (SPY) return of 16.8%, while its 5-year return of 28.1% lagged the index's 83.0%.

HP pays a quarterly dividend with an annual forward payout of $1.20, representing a 4.00% dividend yield. The company has maintained consecutive payments for 57 years, with a 5-year annualized dividend growth rate of 10.1%. Its payout ratio stands at 35.0%, and its last ex-dividend date was September 9, 2026.

Wall Street analysts cover the stock with 2 Strong Buy, 0 Buy, 11 Hold, 2 Sell, and 3 Strong Sell ratings. The mean price target is $27.31, representing a 9.0% discount to the last close of $30.01. For the current fiscal year ending October 31, 2026, consensus estimates project EPS of $3.25 on revenue of $59.85B. For the following fiscal year, 18 analysts forecast EPS of $3.15 and revenue of $59.94B. HP has beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 24, 2026.

This page is an AI-written research summary of HP Inc. (HPQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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