Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
HPQ delivered Q1 FY2026 revenue of $14.4B (+6.9% YoY), but margin compression drove operating income down 10.2% and net income down 3.5%, reflecting rising costs outpacing top-line growth.
Revenue
$14.44B
+6.92% YoY
EPS (Diluted)
$0.58
-1.69% YoY
Gross Margin
19.6%
-1.4 pts YoY
Operating Income
$759M
-10.18% YoY
Source: SEC XBRL
Hp (HPQ) reported Q1 FY2026 revenue of $14.44B, up 6.9% year over year. Operating margin was 5.3%, down 1.0 points from 6.3% a year earlier. Operating cash flow was $383M, up 2.4% year over year. HPQ's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.86 | 0.72 | Beat +19.8% |
| Mar 2026This filing | 0.81 | 0.77 | Beat +4.9% |
| Dec 2025 | 0.93 | 0.93 | Miss -0.2% |
| Sep 2025 | 0.75 | 0.76 | Miss -1.1% |
Adjusted (non-GAAP) EPS of $0.81 versus the $0.77 analyst consensus — a +4.9% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.58.
Compiled by AI from this SEC filing
HPQ grew total revenue to $14.44B in Q1 FY2026, up 6.9% from $13.50B in Q1 FY2025, indicating solid demand across its product segments despite a challenging macro environment.
Source: 10-Q Income Statement, Q1 FY2026
Gross margin declined approximately 140 basis points YoY to 19.6% from 21.0%, as cost of revenue grew 8.8%—faster than revenue growth of 6.9%—squeezing profitability at the gross level.
Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Operating income fell 10.2% YoY to $759M from $845M, with operating margin contracting ~100 bps to 5.3%, driven by higher cost of revenue and a 3.1% increase in SG&A expenses to $1.50B.
Source: 10-Q Income Statement, Q1 FY2026
HPQ repurchased $325M in shares during Q1 FY2026, a 225% increase from $100M in Q1 FY2025, reflecting management's commitment to returning capital to shareholders even as operating cash flow grew modestly to $383M.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Stockholders' equity remained negative at -$766M, though it improved 28.5% from -$1.07B a year ago, reflecting ongoing share buyback activity and accumulated deficits that are a structural feature of HPQ's balance sheet.
Source: 10-Q Balance Sheet, Q1 FY2026
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
HPQ carries negative stockholders' equity of -$766M, a structural balance sheet concern driven by years of aggressive share repurchases and accumulated deficits. While improving YoY, this limits financial flexibility and may concern creditors and counterparties.
Source: 10-Q Balance Sheet, Q1 FY2026
HPQ's current ratio stands at 0.76, meaning current liabilities of $29.3B significantly exceed current assets of $22.2B. This negative working capital position requires HPQ to continually refinance short-term obligations and rely on operating cash flows and credit facilities.
Source: 10-Q Balance Sheet & Key Ratios, Q1 FY2026
Cost of revenue grew 8.8% YoY versus revenue growth of 6.9%, compressing gross margin by ~140 bps to 19.6%. If input costs—including components, logistics, and labor—continue to rise faster than pricing power allows, profitability could deteriorate further.
Source: 10-Q Income Statement, Q1 FY2026
Long-term debt increased 6.8% YoY to $8.84B, adding to an already leveraged balance sheet with negative equity. Combined with higher financing cash outflows of -$673M (up 55.4% YoY), debt servicing costs could pressure future free cash flow.
Source: 10-Q Balance Sheet & Cash Flow Statement, Q1 FY2026
HPQ's net margin of 3.77% leaves minimal room to absorb unexpected cost shocks, competitive pricing pressure, or macroeconomic headwinds. Net income of $545M on $14.4B in revenue reflects a low-margin business model vulnerable to even modest cost increases.
Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 14.44 $B | 13.50 $B | +6.92% |
Cost of Revenue $B | 11.60 $B | 10.66 $B | +8.81% |
Gross Profit $B | 2.84 $B | 2.84 $B | -0.18% |
Operating Income $M | 759.00 $M | 845.00 $M | -10.18% |
Net Income $M | 545.00 $M | 565.00 $M | -3.54% |
EPS (Basic) $ | 0.59 $ | 0.60 $ | -1.67% |
EPS (Diluted) $ | 0.58 $ | 0.59 $ | -1.69% |
R&D Expense $M | 392.00 $M | 397.00 $M | -1.26% |
SG&A Expense $B | 1.50 $B | 1.46 $B | +3.08% |
Answers draw on this SEC filing and the data on this page
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