HPQ Q3 Earnings Preview: What to Expect From the Tech Giant

HP Inc. (HPQ) is set to release its Q3 earnings tomorrow, with analysts expecting an EPS of $0.75, a 10% fall from last year's $0.83 EPS. Revenue is expected to reach $13.69 billion. Despite a 13% stock tumble this year, HP has disclosed actions to improve fundamentals, including pricing adjustments and expanding manufacturing bases. TipRanks analysts have a Hold rating with an average price target of $28.52, a 3.71% upside potential.

HP Inc. (HPQ) is set to release its third-quarter fiscal 2025 earnings results on Aug. 27, after the market close. Analysts are expecting an earnings per share (EPS) of $0.75, a 10% fall from the $0.83 EPS reported in the same period last year. Revenue is forecasted to reach $13.96 billion, reflecting a 3.3% improvement from the prior-year quarter [1].

HP Inc. has been navigating various factors that could influence its Q3 performance. The company's Personal Systems segment is expected to drive growth, with sales pegged at $9.99 billion, indicating a 6.7% year-over-year increase. This growth is attributed to the momentum in the AI PC category, driven by recent product launches and increased adoption of AI technology [1]. However, the Printing division may see a decline in sales due to softened consumer demand in China, partially offset by higher hardware placements and Big Tank printer growth [1].

Despite a 13% stock tumble this year, HP has taken steps to improve its fundamentals. The company has implemented pricing adjustments and expanded its manufacturing bases. Additionally, HP has introduced several AI-based computing devices, such as the HP OmniBook Ultra Flip 14-inch Next-Gen AI PC and the HP EliteBook X 14-inch Next-Gen AI PC, which are likely to boost its top-line growth [1].

Analysts have provided a mixed outlook for HP Inc. TipRanks analysts have a Hold rating with an average price target of $28.52, indicating a 3.71% upside potential [2]. However, other analysts have revised their earnings estimates, suggesting a decline in EPS from the year-ago quarter. The Zacks Consensus Estimate for earnings has been revised upward by a penny to 75 cents, indicating a 9.6% decline from the year-ago quarter’s EPS of 83 cents [1].

Institutional investors and hedge funds own 77.53% of HP's stock. Hsbc Holdings PLC has reduced its stake in HP by 3.1%, holding approximately 4.36 million shares valued at $120.56 million as of the latest quarter [2]. Other institutional investors have also adjusted their stakes in HP, with some increasing their holdings and others reducing their positions.

HP Inc. has a market capitalization of $26.04 billion, a price-to-earnings ratio of 10.70, and a P/E/G ratio of 2.25. The stock has a 52-week low of $21.21 and a 52-week high of $39.79. The stock has a 50-day simple moving average of $25.41 and a 200-day simple moving average of $26.95 [2].

Investors are advised to closely monitor HP Inc.'s earnings report for insights into the company's performance and future prospects. The upcoming earnings announcement is expected to provide clarity on the company's ability to navigate the current economic challenges and its position in the competitive tech market.

References:
[1] https://www.nasdaq.com/articles/hpq-set-report-q3-earnings-whats-store-stock
[2] https://www.marketbeat.com/instant-alerts/filing-hsbc-holdings-plc-lowers-holdings-in-hp-inc-hpq-2025-08-20/