HP Stock Drops 10% Post-Earnings Miss, Outlook Disappoints

HP Inc HPQ shares have fallen 10% this week to $24.56, including a 0.14% drop on Friday. On Wednesday, the company reported mixed second-quarter earnings and cut its outlook.

What To Know: While HP’s revenue for the quarter came in at $13.22 billion, slightly ahead of analyst estimates of $13.15 billion, the company missed on earnings, posting adjusted EPS of 71 cents versus the expected 80 cents.

CEO Enrique Lores highlighted strong commercial performance in the Personal Systems division but noted challenges from a "dynamic regulatory environment," including increased costs due to U.S. tariffs.

Looking ahead, HP guided for third-quarter earnings of 68 cents to 80 cents per share, well below analysts' 90 cent forecast. It also slashed its full-year earnings outlook from a range of $3.45–$3.75 to $3.00–$3.30 per share.

Analyst sentiment turned more cautious following the results. JPMorgan cut its price target from $30 to $27 while maintaining an Overweight rating. Barclays lowered its target from $36 to $28 and reiterated an Equal-Weight rating.

The disappointing earnings and guidance have weighed heavily on HP shares, which now trade near their lowest levels since early 2023.

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How To Buy HPQ Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in HP’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, HPQ has a 52-week high of $39.80 and a 52-week low of $21.21.