HPQ Set to Report Q4 Earnings: What's in Store for the Stock?

HP Inc. HPQ is set to release its fourth-quarter fiscal 2025 results on Nov. 25, after market close.

The Zacks Consensus Estimate for revenues is pegged at $15.02 billion, suggesting an improvement of 6.87% from the prior-year quarter.

HP expects non-GAAP earnings per share between 87 cents and 97 cents (midpoint 92 cents) for the fourth quarter of fiscal 2025. The Zacks Consensus Estimate for earnings has been revised upward by a penny to 92 cents over the past 30 days and indicating a decline of 1.1% from the year-ago quarter’s EPS of 93 cents.

In the trailing four quarters, HPQ’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, while matching the same on one occasion, with an average negative surprise of 3.4%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence HPQ’s Q4 Results

HP’s overall fourth-quarter fiscal 2025 performance is likely to have been driven by continued momentum across the Personal Systems, slightly offset by softness in the Printing division. Strength in the AI PC category, driven by recent product launches, Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted the top-line growth and result in sequential margin improvement for the fourth quarter of fiscal 2025.

HP’s latest introduction of AI-based computing devices like the HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop, HP OmniStudio PC and HP ZGX AI Station is likely to have gained traction among consumers, driving its top-line growth.

Growing adoption of gaming experiences by customers is likely to have aided the fourth-quarter performance. The latest gaming gears, including OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, are likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.

However, macroeconomic challenges like still-high interest rates and protracted inflationary conditions are expected to have negatively impacted the demand for HP’s consumer PCs. Furthermore, enterprises are postponing their large IT spending plans due to the weakening global economy amid ongoing macroeconomic and geopolitical issues. This might have hurt HP’s commercial PC sales in the to-be-reported quarter.

HP’s Printing division’s sales are likely to have been affected by softened consumer demand in China, partially offset by higher hardware placements, pricing actions and Big Tank printer growth.

Earnings Whispers for HPQ Stock

Our proven model does not conclusively predict an earnings beat for HP this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though HPQ has an Earnings ESP of +1.64%, it carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Pure Storage PSTG presently has an Earnings ESP of +1.31% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

PSTG shares have risen 41.7% year to date. PSTG is scheduled to report second-quarter fiscal 2026 results on Dec. 12.

Semtech Corporation SMTC presently has an Earnings ESP of +1.29% and a Zacks Rank #2.

Semtech Corporation shares have gained 5.9% year to date. SMTC is scheduled to report third-quarter fiscal 2026 results on Nov. 24.

Workday WDAY presently has an Earnings ESP of +2.94% and a Zacks Rank #3.

Workday shares have plunged 10.5% year to date. WDAY is scheduled to report third-quarter fiscal 2026 results on Nov. 25.

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This article originally published on Zacks Investment Research (zacks.com).

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