HP Earnings Preview: Options Traders Brace for Big Move

HP Inc (NYSE:HPQ) is scheduled to report third-quarter fiscal 2026 earnings after the close on Wednesday, Aug. 26. Wall Street analysts expect earnings of $0.66 per share on revenue of $14.60 billion, representing a 12% year-over-year decline in earnings alongside 4.8% revenue growth. Investors will be watching demand for AI PCs and the Windows 11 refresh, as well as rising memory chip, resin, and transportation costs that could pressure margins.

HPQ stock was last seen up 2.2% at $29.22. The shares have staged an impressive recovery from their February lows, adding 60.4% over the past six months and 31% year to date. More recently, the stock pulled back from an Aug. 13 52-week high of $32.19.

Options traders are pricing in a 14.1% post-earnings move, regardless of direction, which is more than triple HPQ stock's average reaction of 4.5% over the last eight quarters. The shares have finished lower after five of those eight reports, including a 1.9% decline following the company's May results.

Options traders have been more bearish than usual ahead of the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HPQ's 10-day put/call volume ratio of 1.04 ranks higher than 87% of readings from the past year.

Short interest represents 8.6% of the stock's available float. It would take short sellers 4.24 days to buy back their bearish bets at HPQ's average pace of trading. This leaves room for a short squeeze should the shares make a positive post-earnings move.