HP Inc. (NYSE:HPQ) Just Reported, And Analysts Assigned A US$25.88 Price Target

As you might know, HP Inc. (NYSE:HPQ) recently reported its annual numbers. Results were roughly in line with estimates, with revenues of US$55b and statutory earnings per share of US$2.65. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following last week's earnings report, HP's 15 analysts are forecasting 2026 revenues to be US$56.3b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.75, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$56.1b and earnings per share (EPS) of US$3.07 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for HP

The average price target fell 7.9% to US$25.88, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on HP, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$20.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2026. Historically, HP's top line has shrunk approximately 3.4% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.8% annually. Although HP's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of HP's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple HP analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for HP (1 is a bit concerning!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.