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    HP (HPQ) Posted Record Fiscal Q3 Revenue

    Simply Wall St·08/27/2026 20:25:26
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    • HP (NYSE: HPQ) reported record fiscal third quarter revenue even though PC unit shipments declined 16% year over year.
    • Management highlighted rising memory and storage costs that are pressuring margins and could weigh on near term profitability.
    • The contrast between record sales and softer PC volumes is drawing attention to HP's product mix and cost controls.
    • Investors now have a fresh data point on how component pricing may influence HP's upcoming earnings results.

    Readers looking for more ideas in adjacent technology themes may want to explore 55 AI infrastructure stocks.

    NYSE:HPQ 1-Year Stock Price Chart
    NYSE:HPQ 1-Year Stock Price Chart

    HP, a US tech company with a market cap of about $27.0b, sells personal computers, printers, 3D printing gear, hybrid work tools, and gaming hardware across global markets. This mix of hardware exposure means shifts in component costs can have a direct and visible impact on its reported margins.

    See which insiders are buying and selling HP following this latest news.

    Why did HP’s profit move differently to its record revenue?

    HP reported fiscal Q3 revenue of US$15.7b compared with US$13.9b a year earlier, yet net income moved from US$763m to US$661m. Basic EPS from continuing operations shifted from US$0.81 to US$0.72. The company is selling a richer mix of systems, while higher memory and storage costs are squeezing margins.

    What does this say about the current HP Narrative?

    The latest quarter lines up with the Narrative that points to tighter PC and print competition and pressure on net margins, even as AI driven and premium PCs help support revenue. Memory and storage inflation sits squarely in the listed risks and helps explain why analysts still see only modest margin expansion from about 4.4% to 4.6% over several years.

    If we take a look at the community Narrative for HP, we can see how this news fits into the bigger investment story.

    How are guidance and capital moves shaping market sentiment on HP?

    HP raised full year 2026 GAAP diluted EPS guidance to a range of US$2.52 to US$2.62 and guided Q4 EPS to a range of US$0.74 to US$0.84. It also repurchased 12.2m shares for US$300m between May and July 2026. At the same time, it registered up to 80.1m shares for an ESOP related offering. Together, these signals give investors mixed data on how management balances confidence, incentives and financial flexibility.

    What is the key signpost to test whether margin worries are overdone?

    The clearest test will be HP’s fiscal Q4 2026 and early 2027 results, specifically whether reported GAAP EPS lands toward the top or bottom of the US$0.74 to US$0.84 range and how Personal Systems margins react to memory and storage costs. A sustained improvement in segment margins while those input prices stay elevated would challenge the more cautious read.

    For the full picture including more risks and rewards, check out the complete HP analysis.

    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.