HP Inc. shares slid 8.3% to $27.98 in extended trading after the company reported fiscal third-quarter earnings that exceeded Wall Street expectations but provided cautious fourth-quarter guidance.
The Palo Alto-based technology company posted adjusted earnings per share of $0.83, surpassing the $0.66 consensus estimate from analysts surveyed by Refinitiv. Revenue reached $15.7 billion, a 12.5% increase from the same period a year earlier and above the anticipated range of roughly $14.34–$14.38 billion. The quarter included a $0.11 per-share benefit from tariff refunds, which contributed to the earnings beat.
Despite the strong headline results, HP’s outlook for the current quarter tempered investor enthusiasm. Adjusted earnings per share guidance for the fiscal fourth quarter was set at $0.69–$0.79, above the $0.67 consensus but below the company’s recent performance. The guidance embedded an estimated $0.08 contribution from tariff refunds, indicating a potential normalization in tariff-related benefits moving forward.
Options market activity ahead of the earnings release had signaled a bearish tilt, with put volume nearly four times higher than call volume. This positioning reflected investor skepticism despite the company’s upbeat results.
HP’s stock had climbed to a 52-week high of $32.19 in mid-August, but the shares have retraced since the earnings release. In broader U.S. equity markets, the S&P 500 edged up 0.1%, the Dow Jones gained 0.3%, and the Nasdaq rose 0.2% during the regular session.
