HP Stock Sinks After Barrage Of Price Target Cuts On Wall Street, Analysts Highlight Weak Outlook

HP Inc. (HPQ) shares tumbled more than 7% on Thursday as a slew of price target cuts poured in after the company reported downbeat second-quarter earnings and trimmed its guidance for the rest of the fiscal year.

According to TheFly, brokerages highlighted that the company’s second-quarter (Q2) earnings were below the mark and that its outlook remains weak.

Analysts at Barclays trimmed their price target to $28 from $36, noting that the company’s gross margins missed expectations due to the impact of Trump’s tariffs. The brokerage maintained its ‘Equal Weight’ rating on the stock.

JPMorgan said HP’s Q2 performance will serve as a reminder to investors about the tough economic environment for non-artificial intelligence IT growth drivers. 

The brokerage trimmed its target to $27 from $30, while adding that it sees near-term headwinds and tariff hurdles to limit the upside in HP’s stock. However, it maintained an ‘Overweight’ rating on the shares.

Analysts at Bank of America Securities underscored that HP is facing headwinds due to lower growth from the personal computer refresh cycle. It slashed its price target to $29 from $33, while maintaining a ‘Neutral’ rating on the shares.

HP reported earnings per share (EPS) of $0.71 in Q2, lower than an estimated $0.80. Its revenue stood at $13.22 billion, slightly above the expected $13.13 billion.

The PC maker slashed its 2025 EPS guidance to the range of $3.00 to $3.30, compared to the previous guidance of $3.45 to $3.75. Analyst consensus stood at $3.49.

“HP's outlook reflects the added cost driven by the current U.S. tariffs in place, and associated mitigations,” the company said.

HP stock has declined 22.42% year-to-date and 22.96% over the past 12 months.

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