HP Inc.

HPQ
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$14.5B
Q4 FY2025 · +4% YoY
TTM ROIC
8.8%
FY2025 · NOPAT / EV (EV-based ROIC: NOPAT = EBIT × (1 − effective tax rate); Invested Capital = Market Cap + Net Debt) · WACC ~10% · Moat spread +-1.2pp

Financial Snapshot

ticker: HPQ step: 04 generated: 2026-05-12 source: quick-research

HP Inc. (HPQ) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $62.91B $53.72B $53.56B -0.3%
Gross Margin ~22% ~21% ~22% +~100bp
Operating Margin ~8% ~8% ~8% flat
Net Income ~$3.1B ~$3.0B $3.78B +26%
EPS (diluted, GAAP) ~$3.05 $3.26 ~$3.94 +21%

FY ends October 31. FY2022 peak reflects post-COVID PC demand surge; FY2023 declined sharply (-14.6%) as PC demand normalized post-cycle. FY2025 (actual): revenue $55.3B (+3.2%), FCF $2.9B.

Cash Flow & Balance Sheet (FY2024/FY2025)

Metric Value
Operating Cash Flow ~$3.5B
Free Cash Flow ~$2.9B (FY2025)
Shareholder Returns (FY2025) ~$1.9B (buybacks + dividends)
Cash & Equivalents ~$3.3B
Total Debt ~$9.5B

Key Ratios (approximate)

  • P/E: ~8x | P/Sales: ~0.35x | Dividend Yield: ~4%
  • Revenue Growth (FY2025): +3.2% | FCF Margin: ~5%
  • Dividend growth CAGR (3–5yr): >5%; 22+ consecutive years of dividend payments

Growth Profile

HP's revenues contracted sharply from a COVID-driven PC boom peak of $62.9B in FY2022 to $53.6B in FY2024 as the PC upgrade cycle normalized. Recovery is underway: FY2025 revenue reached $55.3B (+3.2%) driven by commercial PC demand recovery, AI PC mix shift (premium pricing), and resilient services/supplies. HP's "Future Ready" structural cost plan targeted $1.9B in savings by FY2025 end, supporting margin resilience despite top-line pressure. The Windows 10 end-of-life refresh cycle (40% of enterprise installed base still on Windows 10) is expected to extend commercial tailwinds into FY2026.

Forward Estimates

  • FY2026: AI PCs targeting 40–50% of shipments (vs. 30% in Q4 FY2025); premium ASPs expected to drive revenue growth
  • Memory cost inflation: $0.30/share headwind estimated in FY2026 H2 — key near-term risk to margins
  • Q1 FY2026: Strong revenue growth reported, driven by Personal Systems and AI PC adoption
  • Analyst consensus: ~$29–30 price target (17 analysts); range $25–39; JPMorgan, HSBC, Bernstein coverage

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $HPQ.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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