Key Stats for HP Inc. Stock
- Current Price: ~$25 (May 27, 2026)
- Q2 FY26 Revenue: $14.4B, +9% YoY
- Q2 FY26 Adjusted EPS: $0.86, +21% YoY
- Q2 FY26 EBITDA: $1.3B, beat Street by ~20%
- FY26 EPS Guidance (raised): $2.90–$3.10
- Q2 FY26 Personal Systems Revenue: +13% YoY
- TIKR Model Price Target: ~$34
- Implied Upside: ~34%
HP Inc. Stock Beats on EPS and Lifts Guidance as AI PCs Drive Eighth Straight Quarter of Growth
HP Inc. (HPQ) delivered fiscal Q2 2026 adjusted EPS of $0.86, beating the Street estimate of $0.72 by 19%, while revenue of $14.4B came in 2.4% above consensus, extending the company’s streak of top-line growth to eight consecutive quarters.
The beat was not a revenue story.
Personal Systems drove 13% revenue growth year-over-year, with Commercial up 14% and Consumer up 10%, as HP executed a disciplined repricing strategy to offset rising memory and storage costs.
The segment’s operating profit jumped 30% year-over-year to a 5.2% operating margin, above internal expectations, as accelerated component reconfiguration and lower-cost inventory management absorbed more of the input cost headwind than analysts had modeled.
Karen Parkhill, Chief Financial Officer, stated on the Q2 2026 earnings call that “through disciplined execution and an emphasis on what we can control, we also delivered EPS above our guidance range,” tying the beat directly to a four-pillar mitigation playbook that included supplier diversification, strategic inventory positioning, demand steering to higher-margin configurations, and differentiated repricing by customer segment and geography.
AI PCs grew from 35% to 44% of HP’s shipment mix in the quarter, and management committed to reaching 60% to 70% in fiscal 2027 and above 70% by fiscal 2028, underscoring a structural portfolio shift that raises per-unit revenue and positions HP as the edge computing layer for enterprise AI workloads.
Management raised full-year EPS guidance from a range that was tracking toward the lower end to $2.90–$3.10, a meaningful upgrade given the commodity headwinds the company had flagged in February.
Free cash flow exceeded $800M in the quarter, above expectations, and HP returned nearly $400M to shareholders through dividends and buybacks, with a $0.30 per share quarterly dividend payable July 1 to shareholders of record June 10.
Is HP Inc. Stock Undervalued in 2026? TIKR’s Model Points to $34
TIKR’s base case values HP stock at approximately $34 by October 2030, implying around 34% total return from the current price of $25.49, or roughly 7% annualized over 4 and a half years.
If HP’s mitigation playbook continues to outperform and AI PC mix reaches the 70%-plus target management outlined for fiscal 2028, the TIKR high case targets approximately $44, implying around 72% total return, or roughly 7% annualized.
If back-half margin compression in Personal Systems proves deeper or more persistent than management has guided, the low case targets approximately $32, implying around 25% total return, or roughly 3% annualized.
How Did HP Stock Perform in Q2 2026 Earnings?
HP stock delivered adjusted EPS of $0.86 in Q2 FY26, beating the $0.72 Street estimate by approximately 19%.
Revenue reached $14.4B, up 9% year-over-year and 2.4% above the consensus estimate. Personal Systems was the primary engine, posting 13% revenue growth with operating profit up 30% year-over-year as HP’s mitigation actions absorbed more of the memory cost headwind than expected.
Management raised full-year EPS guidance to $2.90–$3.10, above the prior consensus, and affirmed free cash flow guidance of $2.8B–$3.0B for the fiscal year.
Is HP Stock a Buy Right Now?
TIKR’s base case values HP Inc. stock at approximately $34 by October 2030, implying around 34% total return from the current price of $25.49, or roughly 7% annualized.
HP has now delivered eight consecutive quarters of revenue growth, and AI PC mix expanded from 35% to 44% in a single quarter, ahead of management’s own trajectory.
The key variable is Personal Systems margin recovery: if HP exits the Q4 trough and margins begin rebuilding toward the long-term range in fiscal 2027 as management indicated, the base case is well supported.
What Is the Price Target for HP Stock?
The 12-analyst consensus on HP Inc. stock carried a mean price target of $21.42 before the Q2 print, reflecting a Hold rating anchored by back-half margin concerns. TIKR’s independent model targets approximately $34, implying around 34% upside from the current price.
The gap between the consensus target and the TIKR model reflects the street’s near-term focus on Q3 and Q4 margin pressure versus a longer-term view on AI PC mix and EPS recovery into fiscal 2027.
Should You Invest in HP Inc.?
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