HP Inc. Q3 Results Spark Momentum Amid AI PC Strength, Yet Print Weakness Persists

HP Inc. (NYSE: HPQ) posted stronger-than-expected fiscal third-quarter results on August 26, 2026, signaling renewed momentum in its Personal Systems segment, particularly through AI-capable PCs, while printing continues to lag.

Robust Q3 Performance Anchored by AI PCs and Tariff Refund Tailwind

For the quarter ended July 31, 2026, HP reported net revenue of $15.7 billion, up 12.5% year-over-year (10.9% in constant currency). Non‑GAAP diluted EPS reached $0.83, an 10.7% increase, buoyed in part by a $0.11 per-share benefit from tariff refunds. GAAP diluted EPS came in at $0.71, slipping 11.3% due to prior-year tax and litigation offsets. With this quarter’s results exceeding its guidance range, HP raised its fiscal year EPS and free cash flow outlook. The company reaffirmed its position in the premium PC category and continued investments in AI-driven devices and systems.

Personal Systems Outpace Printing

Within its Personal Systems unit, HP posted net revenue of $11.8 billion, an 18% year-over-year increase (17% in constant currency), with gains across both consumer (+10%) and commercial (+22%) segments despite a decline in units sold. The stronger ASPs and AI PC demand clearly powered growth even amid supply constraints.

By contrast, the Printing segment generated $3.9 billion in revenue, down 2% year-over-year (down 4% in constant currency). Supplies revenue declined 3%, while hardware units dropped 7%. The print business continues to face headwinds and lags the broader turnaround seen in systems.

Why It Matters

HP’s results reflect clear bifurcation across its core businesses. The acceleration of AI-capable PC sales underscores HP’s success in positioning itself among enterprise and consumer users for the generative AI wave. At the same time, persistent softness in printing highlights the company’s mixed operational footing and the importance of its diversification strategy.

Looking Ahead

HP raised its full-year guidance for both EPS and free cash flow. The trajectory of printing will bear watching, particularly if AI PC demand begins to offset continued print pressures. Investors may also monitor forthcoming analyst reactions and whether multiple expansion follows this earnings beat.

Note: Verified live stock data as of September 24, 2026, shows HPQ trading at $31.14, down 2.7% from the prior session. This movement may reflect broader market sentiment rather than earnings-specific drivers.