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HP Inc. Surpasses Q1 Expectations Amid Rising Costs

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 2/26/2026, 5:04 pm ET 2/26/2026, 5:04 pm ET | 4 min 4 min read
HP Inc. Surpasses Q1 Expectations Amid Rising Costs Thumbnail

HP Inc.’s stocks have been trading up by 3.9 percent due to promising market developments and renewed investor confidence.

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Live Update At 17:03:39 EST: On Thursday, February 26, 2026 HP Inc. stock [NYSE: HPQ] is trending up by 3.9%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

HP Inc. has demonstrated its financial muscles with a quarterly showing that exceeded market projections, presenting strong top-line growth. The company’s performance is backed by robust technology investments and market share expansions, particularly in Personal Systems and AI PCs.

Revenue figures have been impressive, with Q1 reporting a climb to $14.44B surpassing the FactSet forecast, reflecting a stronger-than-anticipated demand. The operating revenue stands firm despite obstacles like increased component costs and a slight downturn in printing segment margins. Such hurdles have, however, not deterred overall high-margin preservation.

The valuation metrics reveal a promising picture with a P/E ratio of 6.92, one that indicates good value when juxtaposed against earnings. The price-to-sales figure rests at 0.3, and the price-to-cash-flow ratio is 2.6, reflecting a stable financial footing. Gross profitability margins are bolstered at 20.3%, demonstrating the firm’s competency in maintaining profit under economic pressures.

The financial strength is evident, with an operating cash flow of $383M that facilitates responsible financial strategies, despite incurring a net cash change of $559M this quarter. The balance sheet toggles caution with liabilities pegged at $42.3B, counterbalanced by significant constructive investments in R&D and intangible assets worth $8.7B.

Market Reactions: Caution Under Economic Strains

The financial markets have shown a mixed response to HP’s latest earnings report. Share prices, post-earnings disclosure, experienced a marginal downturn of over 3% after hours, reflecting market caution amid stated concerns about memory costs and global headwinds.

Analysts and investors focus on HP’s forward guidance for insights. The management’s outlook for Q2 is poised at $0.70–$0.76 in non-GAAP EPS figures, subtly pointing towards a cautious fiscal approach impacted by sectoral and economic complexities. An acknowledgment of rising component costs as a critical factor introduces a layer of market unease, likely to influence stock volatility.

Simultaneously, the positive reception of strategic progressions such as the AI PC sector indicates investor confidence in HP’s ability to innovate and stay competitive. These investments are forecasted to grant HP a significant edge, especially when considering the emerging market demands for advanced tech solutions.

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Conclusion

HP Inc. showcases robust agility and strategic foresight in navigating a challenging business terrain. The ability to drive growth in its Personal Systems department, in parallel with the prudent management of cost pressures, signifies the firm’s capacity for resilient financial stewardship.

Traders will likely keep a keen eye on HP’s strategic maneuvers in emerging sectors, particularly facilities like AI PCs and advanced power solutions from HPQ Silicon’s pilot projects. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” As HP Inc. adapts its strategies to counteract memory cost surges and macroeconomic headwinds, the unfolding quarters will reveal the efficacy of its comprehensive, forward-thinking financial approach.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”