Evercore ISI Trims HP Inc's Price Target, Maintains Outperform Rating

Evercore ISI reduced its price target for HP Inc (NYSE:HPQ) from $32 to $29 on May 29, 2025, but maintained an Outperform rating on the company’s shares. The firm cited HP’s mixed second-quarter performance.

HP reported $13.2 billion in revenue for Q2 2025, narrowly beating the consensus forecast of $13.1 billion. However, the company’s earnings per share (EPS) of $0.71 missed Wall Street’s expectation of $0.80. According to the earnings report, the Personal Systems segment drove a lot of the revenue growth. This segment, the report says, benefited immensely from Windows OS refresh demand in the Commercial sector.

But the growth in the Personal Systems segment was offset by a 3% year-over-year constant currency decline in the Printing division. The Supplies segment revenue also fell by 3% at constant currency. Much of the decline, HP says, is down to “challenges posed by global trade policies.” And in response, the company has revised its FY 2025 EPS outlook downward to a range of $3.00 to $3.30, a reduction of $0.45 at the midpoint.

Evercore ISI views HP’s updated guidance as a cautious approach given the current tariff and macroeconomic challenges. However, the firm expects the company to stabilize EPS and free cash flow on a year-over-year basis in the latter half of the fiscal year.

HP Inc. (NYSE:HPQ) is a global technology company that provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. It operates in two main segments: Personal Systems (includes laptops, desktops, and workstations) and Printing (covers printers, ink, and 3D printing solutions). The company sells to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors.

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