HP Inc. (HPQ) Stock: What to Watch When Earnings Drop Today

TLDR

• HP reports fiscal Q2 earnings after market close Wednesday, with analysts expecting $0.71 EPS on $14B revenue
• Rising memory costs pushed management to guide toward the low end of their full-year range back in February
• HP stock jumped 15% after peer Lenovo posted a strong quarter, signaling optimism around PC demand
• HPQ fell 3.2% on May 26, trading at $24.43 — well below its GF Value estimate of $31.82
• Investors are also watching for an update on the CEO search after Enrique Lores stepped down in February

HP is set to report fiscal second-quarter earnings after the bell on Wednesday, and there are a few things Wall Street is watching closely.

HP Inc., HPQ

Analysts polled by FactSet expect HP to post adjusted earnings of $0.71 per share on revenue of $14 billion for the quarter ended in April.

The stock fell 3.2% on May 26, closing at $24.43. It has traded between $17.56 and $29.55 over the past 52 weeks.

Memory costs have been the headline story for HP and other tech hardware makers. As AI infrastructure buildout accelerates, memory demand has outpaced supply, pushing costs higher and squeezing margins.

When HP reported Q1 results in February, management flagged the pressure, saying they expected full-year results to land “closer to the low end of our range.”

To offset the rising costs, HP and its peers have pushed through multiple rounds of price increases. The question now is whether those hikes are starting to hurt demand.

Evercore ISI analyst Amit Daryanani, who rates HP as In Line with a $20 price target, wrote on May 22 that PC demand has held up well despite the increases so far.

Lenovo’s Strong Quarter Lifted HP Stock

HP got a boost last week when peer Lenovo reported a blowout fiscal fourth quarter. HP stock jumped 15% on the back of those results, with Dell rising 17% as well — a sign that the market sees Lenovo’s strength as a read-through for the broader PC space.

That optimism may carry into Wednesday’s print, but analysts aren’t fully in the clear yet.

BofA Securities analyst Wamsi Mohan, who rates HP Underperform with a $16 price target, acknowledged that near-term PC demand looks solid. His concern is the second half of 2026, where double-digit price increases could start to weigh on consumer and business purchases.

The GF Score for HPQ currently sits at 71 out of 100, rated above average. Valuation scores an 8/10, while growth comes in at just 3/10. The stock trades at a forward P/E of 8.5x.

CEO Search Still Unresolved

Beyond the numbers, investors are still waiting on news about HP’s permanent CEO. Enrique Lores stepped down in early February, and board member Bruce Broussard has been serving as interim CEO since then.

No timeline has been given for when a permanent replacement will be named.

Insider activity over the last three months shows $0.8 million in stock sales with no reported buying — a detail some investors may factor in alongside the earnings results.

HP reports after market close on Wednesday.

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