HP Inc. Guides Q1 Revenue to $14.06B, EPS to $0.77 with 6.5% Yield
HP set to report Q1 results Feb. 25 with projected revenue of $14.06 billion (up 4.1%) and non-GAAP EPS guidance of $0.73–$0.81 (midpoint $0.77). Separately, HP offers a 6.5% dividend yield yet its analyst consensus holds a sell-grade ranking and –0.65% earnings surprise indicator, signalling a likely earnings miss.
1. Q1 Earnings Expectations
HP is scheduled to release fiscal Q1 results on Feb. 25 after market close, with analysts projecting $14.06 billion in revenue (up 4.1% year-over-year) and non-GAAP EPS of $0.73–$0.81, centering at $0.77 per share. Historical performance shows mixed surprises, with two misses and one beat across the last four quarters and an average negative surprise of 2.6%.
2. Momentum from AI PCs and Gaming
Continued strength in the Personal Systems segment, led by new AI-enabled PCs such as the OmniBook Ultra Flip and EliteBook X Next-Gen AI models, is expected to bolster top-line growth. Similarly, the latest OMEN gaming laptops, monitors and accessories have driven elevated demand in HP’s gaming portfolio.
3. Macroeconomic Headwinds and Margin Pressure
Softness in the Printing division, elevated interest rates and protracted inflation have dampened consumer and enterprise spending, while enterprises have delayed large IT investments. Additionally, surging DRAM and NAND prices have eroded PC vendor margins as memory costs account for a significant share of total build cost.
4. High Dividend Yield and Analyst Sentiment
HP’s shares currently yield 6.5%, positioning it among the highest-yielding tech equities but raising concerns amid cautious analyst consensus. The company holds a sell-grade consensus ranking with a –0.65% earnings surprise indicator, signalling market skepticism over its upcoming quarter.