HP Beats Revenue Estimates, Then Tanks 6% on Weak Outlook
HP posted strong Q1 numbers but spooked investors with a cautious fiscal 2026 forecast.
HP Inc. just pulled the classic Wall Street move: beat expectations, then watch your stock crater anyway.
The PC maker reported Q1 revenue of $14.44 billion, up 6.9% year-over-year and comfortably ahead of the $13.94 billion analysts had penciled in. Solid numbers by any measure.
But here's where things got ugly. HP told investors to expect fiscal 2026 results at the low end of its previously issued guidance. That was enough to send HPQ shares tumbling more than 6% in after-hours trading.
The culprit? HP is still wrestling with headwinds in the personal computer market. Despite the revenue beat, the cautious forward outlook signals the company isn't expecting conditions to improve anytime soon.
Investors clearly wanted more than a decent quarter — they wanted confidence. HP didn't deliver that part.