HP Inc. shares fell 8.3% in after-hours trading on Wednesday after the company reported stronger-than-expected third-quarter results but provided cautious fourth-quarter guidance.
The stock dropped to $27.98, extending losses after HP’s shares had recently climbed to a 52-week high of $32.19 in mid-August. The broader market showed modest gains, with the S&P 500 up 0.1%, the Dow Jones rising 0.3%, and the Nasdaq increasing 0.2%.
For the fiscal third quarter, HP reported adjusted earnings per share of $0.83, exceeding the $0.66 consensus estimate. Revenue totaled $15.7 billion, a 12.5% year-over-year increase and above the $14.34 billion to $14.38 billion range anticipated by Wall Street. The beat included a $0.11 per-share benefit from tariff refunds.
Fourth-quarter guidance projected adjusted EPS of $0.69 to $0.79, surpassing the $0.67 estimate, though the outlook embedded an estimated $0.08 per-share contribution from tariff refunds. Options market activity ahead of the earnings release showed a bearish skew, with put volume nearly four times call volume.
HP’s results follow a period of strong performance, with shares gaining momentum in recent weeks before Wednesday’s decline.
