HP Inc. (HPQ) Tops Revenue and Profit Estimates

HP Inc. (NYSE:HPQ) is one of the 11 Most Undervalued Tech Stocks to Buy Right Now.

On May 28, Reuters reported that HP Inc. (NYSE:HPQ) had second-quarter revenue growth by 9% to $14.41 billion and adjusted EPS of 86 cents, beating LSEG estimates of $14.07 billion and 71 cents. The firm said demand for artificial intelligence advanced PCs drove results.

AI PCs accounted for 44% of shipments, jumping from over 35% in the prior quarter. CFO Karen Parkhill told Reuters the company “took deliberate actions to lower memory costs” through product reconfiguration, sourcing changes, and pricing adjustments.

HP Inc. (NYSE:HPQ) guided third quarter adjusted EPS to 61-71 cents as compared to 64 cent estimates, with the midpoint slightly above consensus. The firm also projected fiscal 2026 EPS to be between $2.90 and $3.10.

HP Inc. (HPQ) Tops Revenue and Profit Estimates

manaemedia / Shutterstock.com

Reuters reported that the corporation sees operating margins bottoming out in the fourth quarter as memory chip scarcity pressures costs. The company also expects improvement in fiscal 2027 with a Windows 11 shift toward premium PCs after Windows 10 support ended in October.

HP Inc. (NYSE:HPQ) also said AI PC shipments will rise toward 60-70% next year and exceed 70% by fiscal 2028.

HP Inc. (NYSE:HPQ) is an information technology company. It works through the following Personal Systems, Printing, and Corporate Investments segments.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.