Recent Performance
HP Inc. (NYSE:HPQ) is trading lower in the after-hours session following the release of its fiscal fourth-quarter results for 2025. The stock has declined approximately 5.7% in post-market trading, a significant move that suggests investor disappointment despite the company largely meeting analyst expectations. This negative reaction stands in contrast to the stock's relatively flat performance over the past week and its more pronounced monthly decline of over 13%.
Earnings and Revenue Versus Estimates
The company's financial results for the quarter presented a mixed, though largely in-line, picture when held against Wall Street's projections. The key metrics from the report are detailed below.
- Non-GAAP Earnings Per Share (EPS): Reported at $0.93, which was virtually identical to the analyst estimate of $0.9315.
- Revenue (Sales): Reported at $14.639 billion, slightly edging out the consensus estimate of $14.628 billion.
While HP Inc. successfully met the bar set for its bottom line and even delivered a slight top-line beat, the market's negative reaction implies that investors may have been hoping for a more substantial outperformance. It also suggests that factors beyond the headline numbers, such as the company's forward-looking statements or broader market conditions, are influencing sentiment.
Press Release Summary and Outlook Context
The earnings press release from November 25, 2025, confirmed the reported figures for the fourth quarter and full fiscal year 2025. A notable element from the release, corroborated by recent news headlines, is the company's announcement of a significant workforce reduction. HP Inc. plans to cut between 4,000 and 6,000 jobs, a strategic move it attributes to the adoption of artificial intelligence initiatives. This restructuring effort is a clear signal of the company's focus on streamlining operations and integrating new technologies to improve long-term profitability.
The press release did not provide a specific quantitative financial outlook from management for the upcoming periods. Therefore, the market's reaction cannot be directly attributed to the company's guidance falling short of expectations. In the absence of an official outlook, investor attention naturally turns to the consensus estimates already available for future performance.
Looking Ahead: Analyst Estimates for 2026
With no formal guidance from HP, the analyst community's projections for the coming year become a critical benchmark for investors. The current consensus provides a glimpse into Wall Street's expectations for HP's recovery and growth trajectory.
- Q1 2026 Estimates:
- Revenue: $14.084 billion
- EPS: $0.79
- Full Year 2026 Estimates:
- Revenue: $56.608 billion
- EPS: $3.40
These figures will serve as the new targets against which HP Inc.'s performance will be measured in the upcoming quarters. The company's ability to meet or exceed these estimates, particularly in light of its ongoing restructuring, will be crucial for rebuilding investor confidence.
For a more detailed breakdown of historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the security mentioned. All investment decisions involve risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
