Overview
- HP reported fiscal second-quarter revenue of $14.41 billion and adjusted EPS of $0.86, both above Wall Street estimates on Wednesday, May 27.
- Investors had driven HP shares up about 15% days earlier after rival Lenovo disclosed that roughly 40% of its revenue came from AI‑related products, which the market treated as a read‑through for HP.
- Options traders had been pricing a near 9.8% post‑earnings swing, reflecting the market view that HP’s AI‑PC penetration and guidance would determine whether the recent rally holds.
- HP said memory cost inflation remains a headwind and trimmed the top end of its fiscal 2026 EPS range to $2.90–$3.10, signaling margins will be tested even as premium device demand strengthens.
- The company still lacks a permanent CEO, trades at a single‑digit forward P/E and pays a near 5% yield, so sustained commercial AI PC growth would be the clearest path to a lasting valuation re‑rating.