HP Inc. Reports Strong Q3 Earnings and Free Cash Flow Despite Declining Unit Sales
HP Inc. reported strong fiscal third-quarter results with revenue up 12.5% year-over-year, earnings per share rising to $0.71 (including a one-time tariff refund), and free cash flow increasing by 7%. The company also raised its FCF guidance for FY 2026. Despite these positive financial metrics, HP experienced a significant drop in unit sales—down 16% year-over-year—for personal systems, which account for the majority of revenue. Management warned that rising memory costs could impact future margins and potentially lead to further declines in volume if price increases are passed on to consumers. Analysts remain cautiously optimistic about near-term performance but note flat or slightly declining revenue forecasts through fiscal 2027. Despite strong fundamentals, HPQ stock fell by nearly 3% following the report. Options traders continue to show interest in long-dated put options as short-sellers seek high yields from cash-secured puts at strike prices below $27.
Tickers: $HPQ