XVARY Composite Score
61
/ 100
Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
HP sells laptops, desktops, printers, ink, and related services to consumers and businesses worldwide.
How it gets paid
Last year Hp made $55.3B in revenue.
Why it's growing
Revenue grew 3.2% last year. Revenue rose 7.0% vs. prior year in fiscal Q1 2026.
What just happened
HP posted $14.4B in quarterly revenue, but EPS still slipped to $0.58 as margin pressure stuck around.
At a Glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
8.0x trailing p/e — the market's not buying it — or you found a deal
4.8% dividend yield — cash in your pocket every quarter
38.5% return on capital — every dollar works hard here
XVARY composite: 61/100 — average
What They Do
HP sells laptops, desktops, printers, ink, and related services to consumers and businesses worldwide.
HP wins because your printer is really an annuity with a power button. Printing was 33% of 2024 revenue but 60% of pretax profit, which means supplies and installed devices do most of the heavy lifting. Personal Systems brings 67% of revenue, so you get scale in PCs plus a printer base that keeps pulling buyers back for ink, toner, service, and support.
How They Make Money
$55.3B
annual revenue · their business grew +3.2% last year
total revenue
$55.3B
+3.2%
The Products That Matter
Pcs, printers, and supplies
Personal Systems and Printing
$55.3B total revenue
The snapshot data here is thin on segment breakout, so the right way to read HP is as one $55.3B hardware-and-supplies business earning a 5.2% net margin. Hardware gets devices onto desks. Supplies are where the model gets stickier.
5.2% margin
Key Numbers
8.0x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying a low price for each dollar HP already earns.
4.8%
dividend yield
Dividend yield → cash paid to shareholders each year → so what: HP pays you more income than many tech stocks.
38.5%
return on capital
Return on capital → profit from money invested in the business → so what: HP still squeezes a lot out of a pretty ordinary business.
10.5%
operating margin
Operating margin → profit after running the business → so what: HP does not have much room for pricing mistakes.
Financial Health
B++
Strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $8.8B (27% of capital)
- net profit margin 6.2% — keeps 6 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total Return vs. Market
You invested $10000 in HPQ 3 years ago → it's now worth $9830.
The index would have given you $13920.
source: institutional data · total return
What Just Happened
beat estimates
HP posted $14.4B in quarterly revenue, but EPS still slipped to $0.58 as margin pressure stuck around.
Revenue rose 7.0% vs. prior year in fiscal Q1 2026, according to the company and SEC filing. But EPS fell 2.0% to $0.58, which tells you higher sales did not fully convert into profit.
$14.4B
revenue
$0.58
eps
19.6%
gross margin
the number that mattered
Gross margin was 19.6%. Gross margin → money left after making the product → so what: HP needs that number stable, because a low-margin hardware model breaks fast when costs rise.
-
Hp inc. ended fiscal 2025 (october 31st) on a down note.
-
Non-gaap earnings came in two cents below our estimate and a penny above last year’s tally.
-
Fourth-quarter revenue did rise 4.2%, to $14.6 billion.however, operating margins tightened (see below) by 80 basis points in the final stanza, and 110 basis points for the fiscal year. hp has been dealing with tariff complications, rising reshoring costs, as well as pricing pressures brought on by increased competition for many quarters.
-
Another obstacle to a projected earnings recovery has emerged.in addition to the aforementioned headwinds, prices for memory products, predominantly dram semiconductors, but also flash and storage components used in pc’s and other items, are surging. management estimates a $0.30 per-share hit to earnings, and now forecasts fiscal 2026 non-gaap earnings per share between $2.90 and $3.20.
-
We have shaved our earnings per share estimate by $0.30 for fiscal 2026.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is margin compression in PCs and printing.
Med
Pricing pressure keeps taking bites out of profit
Latest-quarter revenue rose 4.2% to $14.6B, but operating margin still fell 80 basis points. HP can grow sales and still disappoint you if the mix gets less profitable.
The full-year margin decline was 110 basis points. In a business with a 5.2% net margin, that is the story.
Med
Component inflation hits earnings fast
Management estimated memory, flash, and storage cost inflation could reduce FY2026 earnings by $0.30 per share.
Against a $2.90–$3.20 FY2026 EPS guide, that is roughly a tenth of expected earnings.
Med
The business is mature, so low growth may be the normal state
FY2026 revenue is estimated at $56B versus $55.3B last year. That is only about 1.3% growth. Cheap can stay cheap when the company is mostly treading water.
If revenue stays flat and EPS lands near $2.90 instead of $3.20, the current 8x multiple may be fair rather than attractive.
Med
Printing monetization remains a scrutiny magnet
A federal judge dismissed a U.S. class action over ink pricing, but the case is still a reminder of where HP’s most profitable customer relationship can attract heat.
This is less about one lawsuit and more about protecting the supplies model that helps offset commodity-like hardware economics.
A $0.30 EPS hit on a $2.90–$3.20 guide is about a tenth of expected earnings, and that is before any further margin erosion.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Guide
Fy2026 EPS range
Management guided to $2.90–$3.20. Where results land inside that band will tell you whether cost pressure is temporary or the new baseline.
Risk
Operating margin
After an 80-basis-point quarterly decline and a 110-basis-point full-year decline, this is the metric that matters more than headline revenue.
Metric
Revenue vs. $56B estimate
The street expects roughly $56B in FY2026 revenue. That is barely above last year, so even a small miss matters.
Flow
Institutional conviction
3Q2025 showed 497 buyers versus 480 sellers. Positive, yes. A stampede, no. Watch whether that gap widens.
Analyst Rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a strong short-term edge either way.
risk profile
average
Stability score 3 means middle-of-the-road risk. Not a bunker stock. Not a rollercoaster.
chart momentum
below average
Technical score 4 says the chart still looks weaker than most. Cheap valuation has not fixed that yet.
earnings predictability
80 / 100
Management’s numbers are usually reliable. The issue is not surprise. It is whether the trend is good enough.
Source: institutional data
Institutional Activity
institutions have been net buying for 2 consecutive quarters — 497 buyers vs. 480 sellers in 3q2025. net buying for 2 quarters.
Source: institutional data
Price Targets
3-5 year target range
$20
$49
$25
Current price
$35
Target midpoint · +40% from current · 3-5yr high: $50 (+100% · 22% ann'l return)
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