HP issues cautious guidance after fiscal Q1 results top estimates

HP Inc (NYSE:HPQ) reported archetypal 4th fiscal 2026 results that exceeded Wall Street expectations, but its shares were small changed connected the study arsenic the steadfast issued cautious guidance amid tariff uncertainty and manufacture challenges.

For Q1, the institution posted nett gross of $14.44 billion, up 6.9% from the aforesaid play past twelvemonth and supra expert estimates of $13.87 cardinal to $13.90 billion.

Adjusted, non-GAAP net per stock came successful astatine $0.81, exceeding the statement estimation of $0.77.

HP’s Personal Systems segment, peculiarly AI-enabled PCs, saw important growth, with portion shipments rising 12% year-over-year, good supra expectations for mid-single-digit growth.

GAAP EPS was $0.58, somewhat down from $0.59 a twelvemonth earlier but wrong the company’s antecedently provided guidance of $0.58 to $0.66.

HP generated $383 cardinal successful nett currency from operations and $175 cardinal successful escaped currency flow, returning $600 cardinal to shareholders done dividends and stock repurchases.

“We are pleased to study a beardown archetypal quarter, highlighted by robust maturation successful Personal Systems, including the continued momentum successful AI PCs,” HP’s interim CEO Bruce Broussard said successful a statement.

“Our show reflects the spot of our portfolio and our disciplined execution of our Future of Work strategy, adjacent arsenic we navigate industry-wide headwinds.”

Looking ahead, HP issued cautious guidance for fiscal 2026. For the 2nd quarter, the institution estimates GAAP EPS of $0.52 to $0.58 and non-GAAP EPS of $0.70 to $0.76.

For the afloat year, HP maintains its yearly guidance, projecting GAAP EPS of $2.47 to $2.77, non-GAAP EPS of $2.90 to $3.20, and escaped currency travel of $2.8 to $3.0 billion.

However, the institution noted that it presently expects results to beryllium astatine the little extremity of these ranges, citing the interaction of rising costs, US trade-related regulations, and ongoing manufacture headwinds.

Bank of America described HP’s first-quarter results arsenic astir successful enactment with expectations but noted that the institution is guiding full-year EPS and escaped currency travel toward the debased extremity of its antecedently provided ranges.

The analysts highlighted that Personal Systems operating margins are present expected to autumn beneath the semipermanent 5% to 7% people for the remainder of the year, portion Print margins person been raised to the apical extremity of the semipermanent 16% to 19% scope owed to pricing and outgo reductions.

The steadfast added that absorption is employing respective strategies to offset pressures from rising representation costs, including pricing adjustments, qualifying caller representation and different constituent vendors, proviso concatenation management, and gathering inventory.