HP Inc. (NYSE: HPQ) Posts Record Q3 Revenue of $15.7B, Raises Full-Year EPS Guidance

HP Inc. (NYSE: HPQ) reported fiscal third-quarter results ended July 31, 2026, posting record Q3 net revenue of $15.7 billion, up 12.5% year over year, while raising its full-year earnings guidance above Wall Street's prior consensus. The company also generated $1.6 billion in free cash flow during the quarter.

Q3 Fiscal 2026 Results

• Revenue: $15.7 billion, up 12.5% (10.9% in constant currency) from $13.9 billion in Q3 2025, marking a record for the company's fiscal third quarter.
• GAAP diluted EPS: $0.71, down 11.3% year over year from $0.80, reflecting one-time tax and litigation benefits in the prior-year period; includes an $0.11 favorable impact from tariff refunds.
• Adjusted (non-GAAP) diluted EPS: $0.83, up 10.7% from $0.75 in Q3 2025; beat the $0.72 consensus estimate by 15.3%.
• GAAP operating income: $892 million, up 24.6% from $716 million, with GAAP operating margin expanding 0.6 percentage points to 5.7%.
• Free cash flow: $1.57 billion, up from $1.47 billion a year earlier, on operating cash flow of $1.74 billion.
• Capital return: $0.6 billion returned to shareholders via $300 million in share repurchases (approximately 12.2 million shares) and $274 million in dividends ($0.30 per share).

What Drove the Results

Adjusted EPS of $0.83 beat the $0.72 consensus by $0.11, landing above the top of HP's own guidance range of $0.61-$0.71. GAAP EPS of $0.71 also exceeded the prior guidance range of $0.47-$0.63, though the year-over-year GAAP decline of 11.3% reflects a $139 million tax benefit in Q3 2025 that was absent this quarter, with a $137 million tax provision recorded instead. Restructuring charges fell sharply to $48 million from $110 million a year ago, contributing to the 24.6% year-over-year rise in GAAP operating income.

Personal Systems net revenue reached $11.8 billion, up 18% year over year (17% in constant currency), with Commercial PS net revenue rising 22% and Consumer PS up 10%. Total unit shipments declined 16%, as revenue growth was driven by a mix shift toward premium products rather than volume. Printing net revenue of $3.9 billion declined 2% year over year (4% in constant currency), with supplies revenue down 3% and hardware units down 7%.

Interim CEO Bruce Broussard noted that the quarter included "meaningful improvements in memory supply and higher fulfillment rates," citing the company's strategy to address component constraints. CFO Karen Parkhill described the result as "record third quarter revenue, EPS above the top of our guidance range."

Guidance Raised

HP raised its full-year fiscal 2026 GAAP diluted EPS outlook to $2.52-$2.62, up from the prior range of $2.15-$2.45, versus a prior analyst consensus of $2.42. Full-year non-GAAP diluted EPS guidance was raised to $3.19-$3.29. For Q4 fiscal 2026, HP guided GAAP diluted EPS of $0.74-$0.84 and non-GAAP diluted EPS of $0.69-$0.79, both above the $0.60 analyst estimate. Both Q4 and full-year figures include estimated favorable tariff refund impacts of $0.08 and $0.19 per diluted share, respectively. Full-year free cash flow guidance was raised to $3.0-$3.2 billion.

Investor Takeaway

HP's Q3 print was notable for the combination of record quarterly revenue and an adjusted EPS result that cleared the high end of its own guidance by $0.12. The raised full-year GAAP EPS midpoint of $2.57 now sits above the prior $2.42 consensus, and the Q4 GAAP EPS midpoint of $0.79 substantially exceeds the $0.60 estimate. Investors weighing the full-year outlook should note that both guidance ranges embed an estimated $0.19 per share benefit from tariff refunds, a line item that may not recur in fiscal 2027 and warrants scrutiny as a component of the earnings quality picture.