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The Zacks Consensus Estimate for revenues is pegged at $13.96 billion, suggesting an improvement of 3.3% from the prior-year quarter.
HP expects non-GAAP earnings per share between 68 cents and 80 cents (midpoint 74 cents) for the third quarter of fiscal 2025. The Zacks Consensus Estimate for earnings has been revised upward by a penny to 75 cents over the past seven days and indicates a decline of 9.6% from the year-ago quarter’s EPS of 83 cents.
In the trailing four quarters, HPQ’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, with an average negative surprise of 4.3%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence HPQ’s Q3 Results
HP’s overall third-quarter fiscal 2025 performance is likely to have been driven by continued momentum across the Personal Systems, slightly offset by softness in the Printing division. Strength in the AI PC category, driven by recent product launches, Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted the top-line growth and result in sequential margin improvement for the third quarter of fiscal 2025. The Zacks Consensus Estimate for the Personal Systems segment’s third-quarter sales is pegged at $9.99 billion, reflecting year-over-year growth of 6.7%.
HP’s latest introduction of AI-based computing devices like the HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop, HP OmniStudio PC and HP ZGX AI Station is likely to have gained traction among consumers, driving its top-line growth.
Growing adoption of gaming experiences by customers is likely to have aided the third-quarter performance. The latest gaming gears, including OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, are likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.
However, macroeconomic challenges like still-high interest rates and protracted inflationary conditions are expected to have negatively impacted the demand for HP’s consumer PCs. Furthermore, enterprises are postponing their large IT spending plans due to the weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt HP’s commercial PC sales in the to-be-reported quarter.
HP’s Printing division’s sales are likely to have been affected by softened consumer demand in China, partially offset by higher hardware placements, pricing actions and Big Tank printer growth. The Zacks Consensus Estimate for the Printing division’s third-quarter sales is pegged at $3.95 billion, suggesting a year-over-year decline of 4.6%.
Earnings Whispers for HPQ Stock
Our proven model does not conclusively predict an earnings beat for HP this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though HPQ carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Image: Bigstock
HPQ Set to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
HP Inc. (HPQ - Free Report) is set to release its third-quarter fiscal 2025 results on Aug. 27, after market close.
The Zacks Consensus Estimate for revenues is pegged at $13.96 billion, suggesting an improvement of 3.3% from the prior-year quarter.
HP expects non-GAAP earnings per share between 68 cents and 80 cents (midpoint 74 cents) for the third quarter of fiscal 2025. The Zacks Consensus Estimate for earnings has been revised upward by a penny to 75 cents over the past seven days and indicates a decline of 9.6% from the year-ago quarter’s EPS of 83 cents.
In the trailing four quarters, HPQ’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, with an average negative surprise of 4.3%.
HP Inc. Price and EPS Surprise
HP Inc. price-eps-surprise | HP Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence HPQ’s Q3 Results
HP’s overall third-quarter fiscal 2025 performance is likely to have been driven by continued momentum across the Personal Systems, slightly offset by softness in the Printing division. Strength in the AI PC category, driven by recent product launches, Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted the top-line growth and result in sequential margin improvement for the third quarter of fiscal 2025. The Zacks Consensus Estimate for the Personal Systems segment’s third-quarter sales is pegged at $9.99 billion, reflecting year-over-year growth of 6.7%.
HP’s latest introduction of AI-based computing devices like the HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop, HP OmniStudio PC and HP ZGX AI Station is likely to have gained traction among consumers, driving its top-line growth.
Growing adoption of gaming experiences by customers is likely to have aided the third-quarter performance. The latest gaming gears, including OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, are likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.
However, macroeconomic challenges like still-high interest rates and protracted inflationary conditions are expected to have negatively impacted the demand for HP’s consumer PCs. Furthermore, enterprises are postponing their large IT spending plans due to the weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt HP’s commercial PC sales in the to-be-reported quarter.
HP’s Printing division’s sales are likely to have been affected by softened consumer demand in China, partially offset by higher hardware placements, pricing actions and Big Tank printer growth. The Zacks Consensus Estimate for the Printing division’s third-quarter sales is pegged at $3.95 billion, suggesting a year-over-year decline of 4.6%.
Earnings Whispers for HPQ Stock
Our proven model does not conclusively predict an earnings beat for HP this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though HPQ carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Nvidia (NVDA - Free Report) has an Earnings ESP of +1.13% and carries a Zacks Rank of #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nvidia shares have surged 32.5% year to date. Nvidia is set to report its second-quarter fiscal 2026 results on Aug. 27.
Affirm (AFRM - Free Report) currently has an Earnings ESP of +19.25% and a Zacks Rank #3 at present.
Affirm shares have gained 30.5% year to date. Affirm is slated to report its fourth-quarter fiscal 2025 results on Aug. 28.
Okta (OKTA - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #3 at present.
Okta shares have appreciated 16.8% year to date. Okta is slated to report its second-quarter fiscal 2026 results on Aug. 26.