HPQ Slips 0.87% with $230M Volume Ranks 405th as Q3 Earnings Near and Segments Diverge

On August 25, 2025, HP Inc. (HPQ) closed with a 0.87% decline, trading with a volume of $0.23 billion, ranking 405th in market activity. The stock is set to report Q3 fiscal 2025 earnings on August 27, with analysts forecasting revenue of $13.96 billion, a 3.3% year-over-year increase. However, non-GAAP earnings per share are projected at $0.75, reflecting a 9.6% decline from the prior-year period, driven by four consecutive quarters of negative earnings surprises averaging 4.3%.

HP’s performance is expected to be shaped by contrasting dynamics across its segments. The Personal Systems division, bolstered by AI PC demand, is likely to outperform, with new product launches like the HP OmniBook Ultra Flip 14-inch and HP EliteBook X 14-inch driving growth. Gaming-related offerings, including the OMEN MAX 16 Gaming Laptop, also contribute to revenue. Conversely, the Printing division faces challenges, with revenue forecast to drop 4.6% to $3.95 billion, weighed down by softer demand in China and delayed enterprise spending amid macroeconomic uncertainties.

Strategic initiatives highlight HP’s focus on AI-driven innovation. The company has introduced NPU-powered workstations and co-engineered AI tools like the HP Z Captis with Adobe. Partnerships and product advancements aim to capture 44% of AI PC notebook shipments. However, rising component costs from U.S. tariffs on Chinese imports and global inflationary pressures pose risks to margin expansion. Despite a 10.7 P/E discount to the Nasdaq Hardware Index and a 4.2% dividend yield, the stock carries a Zacks #3 Hold rating, indicating cautious investor sentiment ahead of the earnings report.

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