HP Q3 profit squeezed as PC segment margin thins on higher costs
HPQ•Quarterly results
HP said fiscal third-quarter net earnings fell 13% from a year earlier, as higher costs squeezed margin in its PC segment.
Adjusted EPS for the fiscal third quarter beat analyst expectations, helped by favorable tariff refunds. Shares of the company were down about 11% in extended trading.
Outlook and drivers
HP raised its FY26 GAAP diluted net EPS outlook to $2.52-$2.62, including $0.19 from tariff refunds.
The company also lifted its FY26 non-GAAP diluted net EPS forecast to $3.19-$3.29, including $0.19 from tariff refunds, and now expects FY26 free cash flow of $3.0-$3.2 billion.
HP said quarterly revenue was driven by growth in Personal Systems, with commercial revenue up 22% and consumer revenue up 10%. The company said its strategy to address environmental constraints led to meaningful improvements in memory supply and higher fulfillment rates. Adjusted EPS benefited from an $0.11 favorable impact from tariff refunds.
Key figures and analyst view
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q3 Adjusted EPS | $0.83 | $0.69 |
| Q3 EPS |
