HPQ US S&P 500Russell 1000 Earnings call
HP Inc. (HPQ) · Q2 2026 results and valuation
Share price: $28.96 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 26 Aug 2026 and 27 May 2026
Net income up 46.9% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+46.9%
Net income vs Q1 2026
Guidance raised
Net income 661.0M vs 450.0M
Revenue +8.8%
Against the same quarter last year (Q2 2025) it is −13.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
More upbeat than 60% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
HP Inc. delivered $15.7 billion in revenue, which is a record Q3 for the company.
Valuation
Is HP Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-10-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −4.2% growth a year (3-year revenue growth), the model's fair value is $25.31 a share — the stock trades 14% above it. Today's price assumes −2.4% growth a year.
Current price
$28.96
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-2.4% for 10 yrs
Fair value / share
$25.31
Buy below
$18.98
Price vs fair value
Overvalued 14%
Price vs buy-below price
Overvalued 53%
Read between the lines
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Guidance
Commodity-driven price hikes are expected to push Q4 revenue below normal seasonal levels.
Source quote
“Given the impact of commodity-driven price increases, we expect below seasonal revenue performance in Q4.”
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Guidance ↑
HPQ increased its free cash flow outlook for the remainder of the year due to improved earnings performance and strong free cash flow in Q3.
Source quote
“And given our improved earnings performance and strong free cash flow in Q3, we are also increasing our outlook for free cash flow to be in the range...”
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Figure
HP delivered $15.7 billion in revenue, which is a record Q3 for the company.
Source quote
“This quarter, we delivered $15.7 billion in revenue, a record Q3 for HP.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In Print, we will remain focused on protecting operating profit through share gains in profit upfront tank printers, expansion in consumer subscriptions, strengthening our position in office through AI-enabled innovation,...”
“Aligned with our strategy, we continue to increase our penetration of the tank printer market, delivering 42% unit growth in this important profit upfront category and gaining share both year-over-year...”
“And consistent with our strategy, we gained share in the premium PC categories and delivered strong performance from our key growth areas, with double-digit revenue growth in AI PCs, advanced...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 15.68B | 14.41B | +8.8% | 13.93B | +12.5% |
| Gross profit | 2.94B | 3.02B | −2.4% | 2.85B | +3.3% |
| Operating income | 892.0M | 612.0M | +45.8% | 716.0M | +24.6% |
| Net income | 661.0M | 450.0M | +46.9% | 763.0M | −13.4% |
| EPS | 0.71 | 0.49 | +44.9% | 0.80 | −11.3% |
| P/E today 12.0 | 10.4 | 7.7 | +2.7 | 9.0 | +1.4 |
Topics
Most discussed now
- HP posted the earnings release and accompanying slide presentation on its Investor Relations web page at investor.hp.com.
- In Print, HP will remain focused on protecting operating profit through share gains in profit upfront tank printers, expansion in...
- New On top of it, they also see advantages of keeping sensitive data closer to where it is generated, reduce dependency...
- New It right now is helping us on higher-value use cases where the return on investment to the customer is clear,...
- References to HP's channel inventory refer to Tier 1 channel inventory and market share references are based on calendar quarter...
Faded since Q1 2026
- Fading In print, HP is aligned with industry experts anticipating a low single digit decline in the hardware market in the...
- Fading HP optimizes the use of lower cost inventory on hand, while shaping demand to higher margin units.
- Fading HP continues enrolling new suppliers taking strategic inventory positions, strengthening its operational muscle, through demand steering…
- Fading As signaled, HP expects input costs to continue to increase through the back half.
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Director or officer change; Articles or bylaws amended; Regulation FD disclosure · SEC 8-K
- Results of operations; Restructuring costs; Regulation FD disclosure · SEC 8-K