HP Inc (NYSE:HPQ) reported fiscal third-quarter results that exceeded analyst expectations for both earnings and revenue, while its guidance for the current quarter came roughly in line with market estimates.
Despite the beat, HP shares fell more than 2% in premarket trading Thursday.
For Q3, adjusted earnings per share reached $0.75, slightly above the consensus forecast of $0.74. Revenue totaled $13.93 billion, surpassing the $13.68 billion projected by analysts and marking a 3.1% increase compared to the same period last year.
The Personal Systems segment recorded net revenue of $9.9 billion, up 6% year-over-year, with Consumer and Commercial units rising 8% and 5%, respectively. Total PC shipments climbed 5%, and the segment maintained an operating margin of 5.4%, demonstrating steady profitability despite cost pressures.
“Although print market fundamentals remain somewhat soft, continued PC strength provides an offset which should enable HPQ’s top line to remain positive over the next few quarters,” said analysts at Evercore ISI.
The Printing segment saw revenue decline 4% to $4.0 billion, with both consumer and commercial printing units softening and supplies also down 4%. Still, the division retained a strong operating margin of 17.3%, underscoring the resilience of HP’s high-margin printing business.
“In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas,” said Enrique Lores, President and CEO of HP Inc. “These results demonstrate our agility and focused execution in the quarter, reinforce the strength of our strategy, and our commitment to be a leader in the future of work.”
HP projected fiscal fourth-quarter non-GAAP EPS between $0.87 and $0.97, roughly aligned with the $0.91 consensus midpoint. The company also reaffirmed full-year free cash flow guidance of $2.6 billion to $3.0 billion, despite higher costs linked to U.S. trade regulations and global supply chain adjustments.
“Looking forward, we remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption,” said CFO Karen Parkhill. Q3 results highlighted a shift toward AI-enabled models, reflecting HP’s strategic investment in future-ready computing platforms.
Investor confidence was supported by the PC segment’s resilience and disciplined operations amid macroeconomic and regulatory challenges. With improved Days Sales of Inventory and rising free cash flow, HP appears well-positioned to navigate market volatility while advancing its AI PC and modern computing initiatives.
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