On August 27, HP Inc declined 10.48% in regular trading, trading at $28.025/share, with turnover of $94.78 million. The selloff followed the company's fiscal Q3 earnings release, where despite beating expectations, investors focused on deteriorating PC demand and margin headwinds.

HP reported fiscal Q3 revenue of $15.7 billion, up approximately 13% year-over-year, with adjusted EPS of $0.83 (including $0.11/share from tariff refunds). Full-year adjusted EPS guidance was raised to $3.19-$3.29, above the FactSet consensus of $3.05. However, while PC segment revenue grew 18%, unit shipments fell 16%, indicating growth was entirely price-driven. The CFO stated the company aligns with industry experts forecasting a 15%-19% year-over-year decline in PC total addressable market for the second half of the calendar year.

Margins remain under significant pressure as memory and storage costs continue rising as a share of the bill of materials. Personal Systems operating margin fell to 4.6%, with Q4 expected to mark the trough. Management anticipates margin recovery beginning in fiscal 2027. Additionally, HP disclosed approximately $500 million in workforce restructuring costs planned during fiscal 2026.

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