HP’s first quarter results showed resilience amid a complex market backdrop, with management crediting disciplined execution and a clear focus on high-value product categories for its performance. Interim CEO Bruce Dale Broussard pointed to the company’s ongoing efforts to strengthen its market position and accelerate the rollout of AI-driven solutions, particularly in personal systems and printing. Management emphasized the importance of strategic inventory positions and supply chain management as key contributors to margin stability, despite rising commodity costs and a competitive environment.
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HP (HPQ) Q1 CY2026 Highlights:
- Revenue: $14.41 billion vs analyst estimates of $13.91 billion (9% year-on-year growth, 3.6% beat)
- Adjusted EPS: $0.86 vs analyst estimates of $0.72 (20.3% beat)
- Management lowered its full-year Adjusted EPS guidance to $3 at the midpoint, a 1.6% decrease
- Operating Margin: 4.2%, in line with the same quarter last year
- Market Capitalization: $24.96 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From HP’s Q1 Earnings Call
- Samik Chatterjee (JPMorgan) asked about margin offsets in personal systems given rising memory costs; CFO Karen L. Parkhill said mitigation actions are ongoing but expects margins to reach a low point in Q4 before improving sequentially.
- Amit Daryanani (Evercore) questioned the durability of commercial PC demand versus pull-forward dynamics; Parkhill estimated that 2–3% of growth was due to pull-forward and noted underlying demand remains, supported by Windows refresh cycles.
- Erik Woodring (Morgan Stanley) pressed on demand elasticity amid higher pricing and PC upgrade cycles; Parkhill said unit demand will likely decline as prices rise, but HP intends to offset this via premium mix and service attachment.
- Brian Luke (UBS) inquired about HP's ability to secure memory and storage; Ketan Patel, head of personal systems, said supply is secured for the year, with ongoing efforts to qualify new suppliers and maintain inventory flexibility.
- Wamsi Mohan (BofA) sought clarity on the sustainability of supply revenue and margin outlook in print; Parkhill attributed the flat supplies revenue to pricing and share gains, but reaffirmed expectations for a gradual decline over the long term.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will monitor (1) HP’s ability to manage margin pressures from rising input costs, (2) the pace of adoption for AI-enabled personal systems and print solutions, and (3) the effectiveness of supply chain strategies in maintaining inventory and pricing discipline. Additional attention will be paid to the company’s execution of its cost-saving initiatives and expansion of recurring revenue streams.
HP currently trades at $27.16, up from $25.49 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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