HP Inc. (NYSE: HPQ) Stock Analysis: Price Target, Earnings, and AI PC Strategy

• Barclays analyst Tim Long raised the price target for HP Inc. (NYSE: HPQ) to $23.00 from $19.00, but the current stock trading at $29.63 suggests a potential downside of approximately 22.38%.
• HP Inc. reported strong third-quarter results, with revenue of $15.70 billion, a 12.5% increase year-over-year, leading to raised full-year non-GAAP earnings per share (EPS) guidance between $3.19 and $3.29.
• Despite robust revenue growth, the company faces ongoing margin contraction, particularly in its Personal Systems segment, but is strategically focusing on higher-priced AI PCs to improve future margins.

HP Inc. (NYSE: HPQ) is a global technology company known for its personal computers and printers. It operates in a competitive market, facing rivals like Dell Technologies (NYSE: DELL) and Lenovo. The company provides a wide range of hardware, software, and related services to consumers, small and medium-sized businesses, and large enterprises.

On August 28, 2026, Barclays analyst Tim Long raised the price target for HP Inc. to $23.00 from $19.00. With the stock trading at $29.63 per share at the time, this new target suggests a potential downside of about 22.38%. This cautious outlook comes despite some positive company announcements.

HP Inc. recently reported third-quarter results that beat Wall Street's estimates, with revenue of $15.70 billion, a 12.5% increase year-over-year. This performance led management to raise its full-year guidance. The company now expects non-GAAP earnings per share (EPS), a measure of profitability, to be between $3.19 and $3.29.

Despite strong revenue, there are underlying concerns about profitability. The company faces ongoing margin contraction, which means it is making less profit on its sales. For example, while the Personal Systems segment saw 18% revenue growth, it also had profit and margin declines due to rising costs, as highlighted by Seeking Alpha.

To counter falling unit sales, HP Inc. is focusing on higher-priced premium products, including AI PCs. As reported by Invezz, this strategy helped lift revenue even as PC unit shipments fell 16%. Management expects margins to improve in fiscal 2027, supported by the growing demand for these new AI-powered computers.