/HP%20Inc%20logo%20and%20stock%20chart-by%20T_Schneider%20via%20Shutterstock.jpg)
Palo Alto, California-based HP Inc. (HPQ) is a leading provider of PCs and other hardware devices, including printers, hard disks, and more. Valued at $23.6 billion by market cap, HP’s operations span the Americas, the Indo-Pacific, and EMEA.
The PC designer has significantly underperformed the broader market over the past year. HP stock has plunged 24% on a YTD basis and 30.2% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 7.8% gains in 2025 and 16.6% returns over the past year.
Zooming in further, HP has also lagged behind the Technology Select Sector SPDR Fund’s (XLK) 13% gains in 2025 and a 25.2% surge over the past 52 weeks.
HP’s stock price dropped 8.3% in the trading session after the release of its mixed Q2 results on May 28. While the company’s printing revenues took a 4% hit, its personal systems’ net revenues observed a significant 7% growth compared to the year-ago quarter. This led to a 3.3% increase in HP’s overall topline to $13.2 billion. However, the company failed to deliver on efficiency and experienced a notable increase in unexpected expenses. This led to a 16.5% year-over-year decline in non-GAAP net income to $678 million.
Furthermore, its non-GAAP EPS of $0.71 missed the consensus estimates by 11.3%, despite its revenues surpassing the Street expectations by more than 1%, signifying a major failure in cost control measures.
For the full fiscal 2025, ending in October, analysts expect an 8.6% year-over-year decline in non-GAAP EPS to $3.09. Moreover, the company has a poor earnings surprise history. It has missed the Street’s bottom-line estimates in each of the past four quarters.
The stock maintains a consensus “Hold” rating overall. Of the 14 analysts covering the stock, opinions include three “Strong Buys,” 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more bearish than two months ago, when one of the analysts gave a “Moderate Buy” recommendation.
On May 29, Wells Fargo (WFC) analyst Aaron Rakers maintained an “Underweight” rating on HP and reduced the price target from $35 to $25.
HP’s mean price target of $27.26 suggests a 9.9% upside from current price levels, while the Street-high target of $34 represents a staggering 37.1% premium.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
