HP IncHPQ
▼ NegativeSupplyrelevance
Rising component costs and sharply lower PC shipments pressure margins.
Impact on stocks 2
Information Technology
HP IncFinancials
Morgan StanleyMS
Mentioned
HP shares fell about 11% in premarket trading Thursday after the PC and printer maker reported strong revenue growth but warned of rising component costs and sharply lower PC shipments pressuring margins. Fiscal third-quarter revenue rose 12.5% year over year to $15.7 billion, with non-GAAP EPS up 10.7% to $0.83, but total PC units fell 16%, including a 19% decline in consumer units and a 14% decline in commercial systems. CFO Karen Parkhill said input costs are expected to rise, particularly in Personal Systems, and the company expects the broader PC unit market to decline by a high-teens percentage in the second half of calendar 2026. Morgan Stanley analyst Erik Woodring raised his price target to $19 from $17 but maintained an Underweight rating, citing potential for more than 10% PC unit declines in fiscal 2027 and continued Print pressure. HP raised its fiscal 2026 non-GAAP EPS outlook to $3.19 to $3.29 and free-cash-flow guidance to $3.0 billion to $3.2 billion, while fourth-quarter non-GAAP EPS is expected at $0.69 to $0.79.
HP IncRising component costs and sharply lower PC shipments pressure margins.
Morgan Stanley