HP Inc. (HPQ) Stock: Rises Over 3% After Q3 Revenue Beats Estimates, AI PCs Drive Growth

TLDRs;

• HP reports Q3 revenue of $13.9B, up 3.28 %, narrowly beating analyst expectations.
• AI PCs now account for over 25% of HP’s product mix, boosting growth.
• Printer unit sales fell 4%, impacting overall profit margins for the quarter.
• Supply chain diversification outside China helps HP mitigate rising U.S. tariffs.

HP Inc. (HPQ) saw its stock rise 3.28% following the announcement of stronger-than-expected fiscal third-quarter results, fueled in large part by growth in its AI-powered PC lineup.

The company reported revenue of US$13.9 billion for the quarter, marking a 3.1% increase year-over-year and slightly exceeding analyst forecasts.

Adjusted earnings per share (EPS) came in at 75 cents, narrowly beating market expectations. Following the earnings release, HP shares rose in trading, reflecting investor optimism over the company’s ability to navigate tariff pressures, deliver AI-driven growth, and maintain overall financial health despite headwinds in the printer segment.

Revenue climbs to $13.9 billion

HP’s growth was primarily driven by its personal systems division, which generated $9.9 billion in revenue, up 6% from the previous year.

Commercial PC sales increased by 5%, while consumer PC revenue rose by 8%. This solid performance underscores HP’s ability to capitalize on continued demand for computing solutions, even as global market conditions remain volatile.

A key highlight of the quarter was the expansion of HP’s AI PC segment, which now makes up more than 25% of the company’s total product mix. This milestone was achieved ahead of internal projections, reflecting both strong market demand for AI-enabled devices and HP’s proactive strategy to integrate advanced computing technology across its portfolio.

The success of this segment is seen as a crucial driver of HP’s revenue growth and long-term competitive positioning.

Printer sales decline weighs on margins

Despite strong PC performance, HP’s printer unit experienced a 4% decline in revenue, totaling $4.0 billion, which fell short of estimates and exerted pressure on overall profit margins.

Analysts noted that while HP continues to face challenges in the printer market, the impact is partially offset by growth in higher-margin personal systems and AI PC sales.

Supply chain shift cushions tariff impact

HP’s proactive approach to supply chain management also played a significant role in its Q3 performance. The company had moved most manufacturing for North America-bound products out of China before the recent surge in U.S. tariffs, which rose from 2.3% at the end of 2024 to 15.8% in 2025, with expectations of reaching 18-20%.

This early diversification allowed HP to mitigate the majority of tariff-related costs while maintaining EPS guidance of 87-97 cents per share for Q4, in line with analyst forecasts.

Interestingly, while industry-wide data suggested that PC purchases were being accelerated to avoid tariffs, HP’s CEO stated the company did not observe any “material” front-loading of orders. This suggests that HP’s superior supply chain positioning or distinct customer behavior may have contributed to its stability in a complex market environment.

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