HP Inc. reported fiscal third-quarter 2026 revenue of $15.7 billion, up 13% from a year earlier and exceeding Wall Street’s $14.34 billion estimate by 9.5%. Adjusted diluted net earnings per share reached $0.83, surpassing the consensus forecast of $0.66 by 25.8%. The company attributed $0.11 of the EPS to a one-time tariff refund benefit, with underlying EPS reported at $0.72.
Gross margin declined to 18.8% from a year earlier, while operating margin stood at 6.5%. Free cash flow for the quarter totaled approximately $1.6 billion, bringing the year-to-date figure to more than $2.5 billion. Shareholder returns in the period included nearly $600 million through dividends and buybacks, with the stock yielding 3.93%.
After closing the regular session up 3.39% at $30.52, HP shares fell 9.21% in after-hours trading to $27.71. The 52-week range spans $17.56 to $32.19, with a trailing P/E ratio of 11.1.
Full-year fiscal 2026 guidance was raised, with diluted net EPS now projected at $3.19 to $3.29, up from the prior range of $2.90 to $3.10. Excluding tariff benefits, guidance is set at $3.00 to $3.10 per share. Free cash flow guidance was increased to $3.0 billion to $3.2 billion. For the fourth quarter, HP forecast EPS of $0.69 to $0.79, including an estimated $0.08 tariff refund benefit.
Personal Systems revenue reached a record $11.8 billion, up 18% year-over-year, marking the 10th consecutive quarter of growth. Commercial revenue climbed 22%, while consumer revenue rose 10%. AI PCs accounted for 46% of Personal Systems shipments in the quarter, with management projecting the segment to reach 50% by the end of fiscal 2026, 60% to 70% in 2027, and above 70% in 2028.
Print revenue declined 2% year-over-year, though industrial printing posted its 12th straight quarter of growth. Tank printer unit sales grew 42%, contributing to a 4-point gain in market share. HP also signed a three-year, $100 million strategic agreement with print services provider RRD to advance AI and industrial automation in print production.
