HP Inc. (NYSE:HPQ) is among the 13 Most Undervalued S&P 500 Stocks to Invest In.
On February 25, 2026, Morgan Stanley lowered its price target on HP Inc. (NYSE:HPQ) to $16 from $18 and maintained an Underweight rating. The firm said fiscal Q1 earnings “played out largely as we expected,” noting that HP reduced EPS and free cash flow guidance only modestly despite ongoing input cost pressure and the risk of demand destruction in the second half of the fiscal year. While describing the stock as “cheap,” Morgan Stanley said it still sees “14%-plus downside” to FY26 EPS guidance. The same day, Evercore ISI reduced its price target to $20 from $22 and kept an In Line rating, stating that HP is navigating a “tough memory environment” following earnings.
On February 24, 2026, HP Inc. reported Q1 EPS of 81c versus consensus of 77c. Q1 revenue was $14.44 billion compared to the consensus of $13.93 billion. Bruce Broussard, interim CEO, said, “We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs. Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds.”
The company said, “For fiscal 2026, HP maintains its annual guidance with estimated GAAP diluted net EPS to be in the range of $2.47 to $2.77 and non-GAAP diluted net EPS to be in the range of $2.90 to $3.20.” It added that fiscal 2026 non-GAAP EPS estimates exclude $0.43 per diluted share related primarily to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, certain litigation charges, tax adjustments, and related tax impacts. HP expects fiscal 2026 free cash flow of $2.8 billion to $3.0 billion. However, given the “increasingly fluid operating environment,” the company expects to be at the lower end of the fiscal 2026 guidance range for GAAP EPS, non-GAAP EPS, and free cash flow. HP said its outlook reflects added costs driven by current U.S. trade-related regulations and associated mitigations.
HP Inc. (NYSE:HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and related technologies in the United States and internationally.
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