HP Inc Shares Slide to 52-Week Low After Q1 EPS Beat and CFO Warning
HP Inc delivered fiscal Q1 adjusted EPS of $0.81 vs. a $0.77 consensus, with revenue up 6.9% to $14.4B and operating margin down 40 basis points to 6.9%. CFO warned rising memory costs could push annual adjusted EPS toward the $2.90–$3.20 range’s low end, sending shares to a 52-week low.
1. Fiscal Q1 Performance
HP Inc reported adjusted EPS of $0.81, beating the $0.77 consensus, and revenue rose 6.9% year over year to $14.4 billion. Operating margin contracted by 40 basis points to 6.9%, operating cash flow reached $383 million, free cash flow was $175 million, and the company returned capital with a $0.30 dividend and $325 million in share repurchases.
2. Segment Dynamics
The Personal Systems segment drove growth with revenue up 11% to $10.3 billion, including a 16% increase in Consumer PS and 9% in Commercial PS. In contrast, Printing revenue fell 2% to $4.2 billion, with Consumer Printing down 8% and Commercial Printing down 3%, and total hardware units declined 6%.
3. Outlook and CFO Commentary
HP Inc reaffirmed its fiscal 2026 adjusted EPS guidance of $2.90 to $3.20, but CFO Karen Parkhill cautioned that rising memory costs and a dynamic environment could pull results toward the low end of the range. Second-quarter adjusted EPS are expected between $0.70 and $0.76, compared with a $0.74 consensus.
4. Market Reaction
Shares fell over 4% in premarket trading to a new 52-week low after the CFO’s warning, despite the earnings beat. The stock’s decline reflects investor concerns over cost pressures and conservative guidance outlook.