HP Inc earnings beat by $0.01, revenue topped estimates

HP Inc (NYSE: HPQ) reported stronger-than-expected Q3 results, with EPS of $0.75 and revenue of $13.93 billion both exceeding analyst consensus. The company also provided Q4 2025 EPS guidance ($0.87-$0.97) that largely aligns with expectations. However, investor sentiment remains mixed, evidenced by 12 negative EPS revisions in the past 90 days and the stock's 22.01% decline over the last year, despite an 8.88% gain in the last three months.

Analysis

HP Inc. (HPQ) delivered third-quarter results that modestly exceeded Wall Street expectations, with earnings per share of $0.75 beating the consensus by $0.01 and revenue of $13.93 billion surpassing the $13.68 billion estimate. The company's forward guidance for fourth-quarter EPS is set at a range of $0.87 to $0.97, with a midpoint of $0.92 that is slightly above the analyst consensus of $0.91. However, these positive data points are contrasted by significant underlying caution from the analyst community, as evidenced by 12 negative EPS revisions against zero positive revisions in the last 90 days. This mixed sentiment is also reflected in the stock's performance, which, despite an 8.88% gain over the last three months, is still down -22.01% over the past year, indicating that the recent quarterly beat is pushing against a longer-term bearish trend.

Key Decisions for Investors

• Investors might view the stronger-than-expected Q3 results and constructive Q4 guidance as a potential inflection point, warranting a closer look at the stock as a value or turnaround opportunity.
• Caution is warranted due to the 12 negative EPS revisions over the past 90 days, which suggest underlying analyst concerns about sustained performance beyond this single quarter.
• Monitor future analyst estimate revisions closely, as a reversal from the recent negative trend would serve as a strong confirmation signal, while continued downward revisions would validate long-term concerns.