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Research Alert: Hpq: Decent Q2, Driven By Price Increases; Fy 26 Guidance Largely Maintained

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

HP's Q2 FY 26 results exceeded consensus with revenue of $14.41B (+9% Y/Y) vs. $14.07B estimate and non-GAAP EPS of $0.86 (+21%) vs. $0.72 consensus, with operating margin of 7.5% up 20 bps. Personal Systems grew 13% driven entirely by price increases while units declined 7%, and operating margin expanded 70 bps to 5.2% despite elevated component costs. We believe AI PC momentum provides upside as shipments reached 44% of mix (up from 35% prior quarter), though we expect consumer demand destruction as prices rise with memory/CPU costs. Management maintained FY 26 guidance with non-GAAP EPS of $3.00 midpoint, down from $3.05 but improved versus prior commentary, and free cash flow of $2.9B. We see downside to estimates given component price volatility, as recent price-increase-driven growth is likely unsustainable medium-term while Printing continues structural decline with revenue down 2% despite maintaining strong 18.3% operating margins.

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