📊 HPQ Key Takeaways
Is Hp Inc. (HPQ) a Good Investment?
HP faces severe balance sheet deterioration with negative stockholders equity of -$144M and critically weak liquidity ratios (current: 0.79x, quick: 0.49x), indicating structural financial stress. While the company generates positive free cash flow of $906M and maintains modest 3.2% revenue growth, net income stagnation combined with thin 3.4% net margins and $8.9B debt load creates elevated refinancing and operational risk.
HP shows modest top-line growth, but that growth is not translating into stronger shareholder economics: net income was flat, diluted EPS declined, and free cash flow remains thin at just 1.0% of revenue. Profitability is low for a hardware business, and the balance sheet adds risk with negative equity, sub-1.0 liquidity ratios, and meaningful long-term debt.
Hp Inc. Key Strengths (HPQ)
- Positive free cash flow of $906M provides near-term liquidity buffer despite balance sheet weakness
- Interest coverage of 7.0x demonstrates current ability to service debt obligations
- Modest revenue growth of 3.2% YoY indicates maintained market demand in legacy product lines
- Revenue grew 3.2% year over year, indicating the business is still generating demand
- Gross profit remains sizable and interest coverage of 7.7x suggests debt service is currently manageable
- The company remains profitable at the operating and net income level
HPQ Stock Risks: Hp Inc. Investment Risks
- Negative stockholders equity (-$144M) signals capital structure distress, likely from aggressive share buybacks or accumulated losses
- Critical liquidity ratios (current 0.79x, quick 0.49x) indicate inability to cover short-term obligations from current/liquid assets
- Margin compression: net income flat YoY despite 3.2% revenue growth; thin 3.4% net margin leaves no cushion for operational challenges
- Negative stockholders equity points to a weak balance sheet structure and limits the usefulness of ROE and debt-to-equity analysis
- Current ratio of 0.76x and quick ratio of 0.46x indicate tight liquidity
- Growth quality is weak because revenue increased while net income stayed flat, EPS fell, and free cash flow was only $150M
Key Metrics to Watch
- Stockholders equity trajectory and any debt restructuring actions
- Operating cash flow sustainability and free cash flow generation
- Gross and operating margin trends amid competitive hardware pricing pressures
- Free cash flow margin and operating cash flow conversion
- Liquidity and balance sheet repair, especially equity trend and debt levels
Hp Inc. (HPQ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HPQ Profit Margin, ROE & Profitability Analysis
HPQ vs Technology Sector: How Hp Inc. Compares
How Hp Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hp Inc. Stock Overvalued? HPQ Valuation Analysis 2026
Based on fundamental analysis, Hp Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hp Inc. Balance Sheet: HPQ Debt, Cash & Liquidity
HPQ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hp Inc.'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $3.26 reflects profitable operations.
HPQ Revenue Growth, EPS Growth & YoY Performance
HPQ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $13.2B | $406.0M | $0.42 |
| Q1 2026 | $13.5B | $545.0M | $0.58 |
| Q3 2025 | $13.5B | $406.0M | $0.65 |
| Q2 2025 | $12.8B | $406.0M | $0.42 |
| Q1 2025 | $13.2B | $565.0M | $0.59 |
| Q3 2024 | $13.2B | $469.0M | $0.65 |
| Q2 2024 | $12.8B | $469.0M | $0.61 |
| Q1 2024 | $13.2B | $469.0M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hp Inc. Dividends, Buybacks & Capital Allocation
HPQ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hp Inc. (CIK: 0000047217)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HPQ
What is the AI rating for HPQ?
Hp Inc. (HPQ) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HPQ's key strengths?
Claude: Positive free cash flow of $906M provides near-term liquidity buffer despite balance sheet weakness. Interest coverage of 7.0x demonstrates current ability to service debt obligations. ChatGPT: Revenue grew 3.2% year over year, indicating the business is still generating demand. Gross profit remains sizable and interest coverage of 7.7x suggests debt service is currently manageable.
What are the risks of investing in HPQ?
Claude: Negative stockholders equity (-$144M) signals capital structure distress, likely from aggressive share buybacks or accumulated losses. Critical liquidity ratios (current 0.79x, quick 0.49x) indicate inability to cover short-term obligations from current/liquid assets. ChatGPT: Negative stockholders equity points to a weak balance sheet structure and limits the usefulness of ROE and debt-to-equity analysis. Current ratio of 0.76x and quick ratio of 0.46x indicate tight liquidity.
What is HPQ's revenue and growth?
Hp Inc. reported revenue of $28.8B.
Does HPQ pay dividends?
Hp Inc. pays dividends, with $551.0M distributed to shareholders in the trailing twelve months.
Where can I find HPQ SEC filings?
Official SEC filings for Hp Inc. (CIK: 0000047217) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HPQ's EPS?
Hp Inc. has a diluted EPS of $1.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HPQ's fundamental grade?
Based on our AI fundamental analysis in June 2026, Hp Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HPQ stock overvalued or undervalued?
Valuation metrics for HPQ: ROE of N/A (sector avg: 22%), net margin of 3.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is HPQ's AI grade for 2026?
Our dual AI analysis gives Hp Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HPQ's free cash flow?
Hp Inc.'s operating cash flow is $1.3B, with capital expenditures of $403.0M. FCF margin is 3.1%.
How does HPQ compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.4% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.79 (avg: 2.5).