What HP (HPQ)'s Strong Q3 Results and AI PC Momentum Mean For Shareholders

• HP Inc. recently reported its third-quarter fiscal 2025 results, with revenue rising to US$13.93 billion and net income increasing to US$763 million compared to the same period last year.
• Management highlighted strong Personal Systems demand, rapid AI PC adoption ahead of expectations, and ongoing supply chain shifts to offset tariff impacts, while Print segment revenue continued to soften.
• We'll examine how HP's AI PC adoption and ongoing cost controls shape the company's investment narrative and longer-term outlook.

Find companies with promising cash flow potential yet trading below their fair value.

HP Investment Narrative Recap

Owning shares in HP means believing in the company's ability to drive growth through innovation in Personal Systems and AI-enabled products while navigating print market headwinds and geopolitical supply chain challenges. The latest quarterly results support ongoing momentum in AI PC adoption, the main short-term growth catalyst, yet the biggest risk, tariff-driven costs from China exposure, remains mostly unchanged as supply chain shifts are still underway.

Of HP’s recent announcements, the completion of another share buyback tranche stands out, highlighting ongoing capital returns during a period of steady Personal Systems growth and persistent print revenue pressure. This underscores HP's focus on delivering shareholder value despite sector challenges, even as the company works to offset tariff-related risks through diversified manufacturing.

Yet, despite improved headline numbers, some investors may want to pay close attention to the risks tied to ongoing tariff and supply chain uncertainties...

Read the full narrative on HP (it's free!)

HP's outlook anticipates $56.6 billion in revenue and $3.0 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 1.4% and a $0.5 billion increase in earnings from the current level of $2.5 billion.

Uncover how HP's forecasts yield a $27.73 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates range from US$27.73 to US$67.39, showing a broad split in views. While some see significant upside, the persistent risk of tariff-related costs continues to influence opinion on HP’s future returns, be sure to consider the full range of insights.

Explore 6 other fair value estimates on HP - why the stock might be worth over 2x more than the current price!

Build Your Own HP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HP research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free HP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HP's overall financial health at a glance.

Searching For A Fresh Perspective?

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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.

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