HP Inc. reported third-quarter fiscal 2026 earnings that exceeded analyst expectations, though its outlook prompted a sharp decline in after-hours trading.
Adjusted earnings per share reached $0.83, surpassing the $0.66 consensus estimate by $0.17. Revenue totaled $15.7 billion, up 12.5% from the prior year and ahead of the $14.34 billion forecast. The company noted an $0.11 favorable impact from tariff refunds in the period. Free cash flow for the quarter stood at $1.6 billion, while shareholder returns totaled $574 million, including $300 million in buybacks and $274 million in dividends. HP ended the quarter with $4.2 billion in gross cash.
Segment performance showed mixed trends. The Personal Systems division generated $11.8 billion in revenue, an 18% year-over-year increase, despite a 16% decline in total units shipped. Commercial segment revenue rose 22%, while consumer revenue grew 10%. The Printing segment reported $3.9 billion in revenue, down 2% year-over-year, with supplies revenue declining 3%.
Despite the strong quarterly results, HP’s shares fell more than 9% in extended trading. The company also raised its full-year fiscal 2026 adjusted EPS guidance to a range of $3.19 to $3.29, with a midpoint of $3.24, exceeding the $3.04 consensus. For the fourth quarter, adjusted EPS is projected between $0.69 and $0.79, including an estimated $0.08 benefit from tariff refunds. Full-year free cash flow guidance was increased to a range of $3.0 billion to $3.2 billion.
Interim CEO Bruce Broussard highlighted growth in premium products and new customer acquisition, citing innovations in WXP, Print, workstations, and AI PCs as key drivers. The company’s outlook, however, appears to have weighed on investor sentiment despite the beat.
