HP Inc.: F2Q preview: uncertainty in PCs; expecting guidance cut for F26; PO remains $16

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HP Inc.: F2Q preview: uncertainty in PCs; expecting guidance cut for F26; PO remains $16

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HP Inc.

F2Q preview: uncertainty in PCs; expecting

guidance cut for F26; PO remains $16

Maintain Rating: UNDERPERFORM | PO: 16.00 USD | Price: 20.97 USD

Expecting F26 guidance lowered on PC demand in 2H 19 May 2026

HPQ reports F2Q26 on 5/27, where we expect results near the low-end of the guidance Equity

range and for HPQ to likely lower F26 guidance given the ongoing CEO search, memory

pricing, and PC dynamics. In F1Q, mgmt. held F26 guidance but said results were likely Wamsi Mohan Research Analyst

to track toward the low end of the range given rising memory costs. We expect EPS BofAS

guide moves to $2.60-$3.00 (from $2.90-$3.20) and FCF to $2.6bn-$2.8bn (from +1wamsi.mohan@bofa.com646 855 3854

$2.8bn-$3.0bn). Industry data and commentary suggests PC demand has remained Ruplu Bhattacharya

strong YTD, likely helped by pull-forward, but preliminary data indicates HPQ lost share. Research Analyst

BofAS

As such, we leave our PS ests unchanged, balancing better demand against share loss. +1 646 855 0315

The bigger debate, in our view, is whether strong DD% OEM price increases set up a ruplu.bhattacharya@bofa.com

backdrop of demand destruction in 2H C26. Maintain Underperform on slower PC unit Aisling Grueninger

Research Analyst

growth, margin pressure from memory costs, and uncertainty from leadership transition. BofAS

+1 646 855 4273

Industry data points to C1Q share loss for HP aisling.grueninger@bofa.com

Ryan Seungin Choi

While industry demand has been strong (likely on pull-forward), HPQ lost 360bps of Research Analyst

share in the U.S. with units down -22% y/y. For worldwide, HPQ lost 150bps of share BofAS +1 646 743 0587