HP Inc. Q3 2026: EPS Beats by 26% on AI PC Surge
As seen on the 24/7 Wall St. homepage on August 26, 2026.
Personal Systems revenue rose 18% to $11.77 billion on commercial and premium AI machines even as unit shipments fell 16%. Management raised FY26 non-GAAP EPS guidance to $3.19 to $3.29, though $0.19 of that comes from tariff refunds.
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HP's Personal Systems segment drove the quarter, with revenue rising 18% to $11.77 billion even as total unit shipments fell 16%. HP is earning more per device on a deliberate shift toward commercial and premium AI-enabled PCs.
The earnings beat was the fourth consecutive quarter HP topped Wall Street's expectations, with adjusted non-GAAP EPS of $0.83 clearing the $0.66 consensus estimate by nearly 26%.
The $0.83 EPS figure included an $0.11 favorable impact from tariff refunds, and full-year FY26 non-GAAP EPS guidance of $3.19 to $3.29 carries $0.19 of tariff refund benefit baked in. Investors will want to weigh how much of the earnings strength is structural versus a temporary policy windfall.
Management raised free cash flow guidance to $3.0 to $3.2 billion for the full year alongside continued buybacks and dividends. Those capital returns signal confidence under interim CEO Bruce Broussard, leaving a leadership question hanging over the company heading into Q4.
Mentioned: HPQ