With a market cap of $24.1 billion, HP Inc. (HPQ) is a global leader in personal computing, printing, 3D printing, hybrid work, gaming, and related technologies and services. Operating through its Personal Systems, Printing, and Corporate Investments segments, HP serves consumers, SMBs, large enterprises, and public sector clients worldwide, with regional headquarters in Geneva and Singapore.
The Palo Alto, California-based company is slated to announce its fiscal Q2 2025 earnings results on Wednesday, June 4. Ahead of this event, analysts expect HPQ to report an adjusted EPS of $0.80, a 2.4% decline from $0.82 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in one of the past four quarters while missing on three other occasions.
For fiscal 2025, analysts expect HP to report an adjusted EPS of $3.39, marking a marginal growth from $3.39 in fiscal 2024. Moreover, adjusted EPS is anticipated to grow 7.1% year-over-year to $3.63 in fiscal 2026.
Shares of HP have declined 10.2% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 9.3% return and the Technology Select Sector SPDR Fund's (XLK) 5.2% rise over the same period.
On Feb. 27, HP reported its Q1 2025 results, leading to a 6.8% drop in share price the next day as adjusted EPS came in at $0.74, missing estimates and down 9% year-over-year. The company provided a softer Q2 outlook with projected adjusted EPS between $0.75 and $0.85. Revenue from the Printing segment declined 2%, while total PC units sold dropped 1%, reflecting weak consumer demand. Investor concerns were further heightened by rising U.S.-China tariffs, higher restructuring expenses, and planned workforce reductions.
Analysts' consensus view on HP stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 14 analysts covering the stock, four recommend a "Strong Buy," nine "Holds," and one "Strong Sell." As of writing, HPQ is trading below the average analyst price target of $33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.