HP Inc. (NYSE:HPQ) Quarterly Earnings Overview

HP Inc. (NYSE:HPQ) is a leading entity in the computer and printer industry, competing within the Zacks Computer - Micro Computers sector against other technological behemoths. The company's recent quarterly earnings report on May 28, 2025, showcased a mixed financial performance, capturing the attention of both investors and market analysts.

The earnings report highlighted several key financial figures and strategic decisions by HPQ, including:

• Earnings Per Share (EPS) of $0.71, missing the Zacks Consensus Estimate of $0.80 and marking a decrease from the previous year's $0.82 per share.
• Revenue of $13.22 billion, surpassing the expected $13.13 billion, yet indicating a modest year-over-year growth of 3.3%.
• A significant stock price decline of 15% post-earnings announcement, influenced by the earnings miss and future financial outlook adjustments due to U.S. tariffs.

Despite the earnings shortfall, HPQ's revenue exceeded market expectations, reporting $13.22 billion against the forecasted $13.13 billion. This represents a 3.3% increase from the $12.8 billion reported in the same period the previous year. However, it's important to note that HP has only surpassed consensus revenue estimates once in the last four quarters, indicating potential volatility in its revenue streams.

The aftermath of the earnings report saw HPQ's stock experiencing a significant downturn, dropping by 15%. The company attributed this decline to the "added cost driven by the current U.S. tariffs" implemented by President Donald Trump's administration. In an effort to counteract these challenges, HP announced intentions to increase product prices and diversify its production base outside of China.

Looking ahead, HPQ has revised its financial outlook, projecting third-quarter adjusted earnings to range between $0.68 and $0.80 per share, which is below the average analyst estimate of $0.90. The full-year adjusted earnings are expected to be between $3 and $3.30 per share, not meeting the anticipated $3.49 per share. The company's financial health, as indicated by a P/E ratio of 9.49 and a price-to-sales ratio of 0.48, reflects the market's current valuation of its earnings and revenue performance.