HP Reports Q1 2026 EPS of $0.58 as Revenue Jumps to $14.4 Billion

HP Inc. (HPQ) reported fiscal first quarter 2026 results on February 24, showing earnings per share of $0.58 and revenue of $14.44 billion, according to the company's 8-K filing with the SEC.

Key Numbers

HP's quarterly performance demonstrated significant momentum with revenue of $14.44 billion in Q1 2026, representing a 3.7% increase from $13.93 billion in the comparable period. This marks the company's strongest quarterly revenue performance in recent periods, surpassing the full fiscal year 2025 average quarterly revenue of approximately $13.8 billion.

Earnings per share came in at $0.58 for the quarter, showing a substantial sequential decline from the $1.82 reported in Q3 2025, though this comparison may reflect seasonal patterns and one-time items that typically affect year-end results. Net income for the quarter totaled $550 million, down from $760 million in the recent comparative period but maintaining healthy profitability margins.

The company's revenue growth trajectory appears to be accelerating when viewed against the full fiscal 2025 revenue of $55.30 billion, which averaged approximately $13.8 billion per quarter. The Q1 2026 figure of $14.44 billion suggests HP is capturing market share or benefiting from improved demand conditions in its core PC and printing segments.

Operating margins faced some pressure in the quarter, with net income margin declining to approximately 3.8% compared to 5.5% in the prior period. This compression could reflect increased competition, higher component costs, or strategic investments in growth initiatives that management may address in upcoming investor communications.

What Management Said

While the 8-K filing released on February 24, 2026, confirmed the financial results, HP's management has not yet provided detailed commentary or hosted the earnings call that typically accompanies quarterly results. The company filed the required regulatory documentation promptly, with Chief Legal Officer Julie Jacobs signing the official SEC submission.

The filing indicates HP will release additional details through a news release (referenced as Exhibit 99.1), which will likely contain management's perspective on the quarter's performance, market conditions, and strategic initiatives. Investors should monitor for the full earnings release and subsequent conference call where CEO and CFO typically provide color on business segment performance, geographic trends, and competitive dynamics.

The absence of immediate forward guidance in the 8-K filing is standard practice, as companies typically reserve such discussions for the earnings call. Management's tone and outlook will be particularly important given the mixed signals from the absolute revenue growth versus the margin compression observed in the quarter.

What to Watch

Several key factors warrant investor attention following HP's Q1 2026 results. First, the sustainability of revenue growth will be critical, particularly as the company appears to have broken above its recent quarterly run rate. The $14.44 billion quarterly revenue represents one of HP's stronger performances, and investors will want to understand whether this reflects temporary factors or sustainable business improvement.

Margin trajectory presents another crucial monitoring point. The decline in net margin from approximately 5.5% to 3.8% raises questions about pricing power and cost management. HP operates in highly competitive markets for both personal computers and printing solutions, where margin pressure can quickly erode profitability even amid revenue growth.

Comparisons to fiscal 2025 full-year results provide important context. With FY 2025 EPS of $2.65 on revenue of $55.30 billion, HP demonstrated solid profitability. The Q1 2026 run rate of $0.58 per share annualizes to approximately $2.32, suggesting some headwinds to earnings growth despite the revenue acceleration. This divergence between revenue and earnings growth trajectories deserves scrutiny.

The technology sector continues experiencing significant transformation with AI-enabled PCs, hybrid work evolution, and changing printing behaviors. HP's ability to capitalize on AI PC adoption while managing the secular decline in printing will determine whether the Q1 revenue strength represents a new growth phase or temporary uptick.

Investors should also monitor HP's capital allocation strategy, particularly regarding dividends and share buybacks, which have historically been important components of total shareholder returns. The company's balance sheet strength and cash generation capabilities will influence its ability to maintain these programs while investing in growth opportunities.

As HP prepares for its earnings call, key questions include the performance split between PC and printing divisions, geographic revenue trends, commercial versus consumer segment dynamics, and management's view on inventory levels and supply chain conditions. The company's guidance for fiscal 2026 will provide crucial insight into management's confidence in sustaining the revenue momentum while improving profitability metrics.