HP Inc. (HPQ) Monthly Stock Report - December 2025

Company Overview

HP Inc., headquartered in Palo Alto, California, is a dominant player in the computer hardware industry within the technology sector. Formed in 1939, the company specializes in a diverse portfolio that includes personal computing, printing, 3D printing, hybrid work solutions, and gaming technologies. Operating through three segments--Personal Systems, Printing, and Corporate Investments--HP Inc. caters to small- and medium-sized businesses, public sector entities, and large enterprises. Following its rebranding from Hewlett-Packard Company in October 2015, HP Inc. has reinforced its commitment to innovation and technology leadership, positioning itself effectively to meet evolving market demands.

As of this report, HP Inc. has achieved robust financial performance with total revenue approximating $55.3 billion, affirming its substantial market presence despite the ever-changing dynamics of the tech industry. Even with this impressive revenue figure, the current investment recommendation primarily leans toward holding, given the cautious outlook from analysts amidst several challenges.

52-Week Price Performance Analysis

52-Week Price Performance Chart

HP Inc.'s stock has shown significant volatility over the past year, with a 52-week high of $35.28 and a low of $21.21. Currently trading at $24.83, the stock has experienced a decrease of approximately 20.19% from its yearly commencement around $32. This bearish trend is characterized by a series of lower highs and lower lows, with the presence of a downward-sloping trendline accentuating investor concerns.

The technical chart analysis reveals critical support and resistance levels, crucial for future price movement. The $32 mark stands as a significant resistance level, having been tested in February and March but never breached. Conversely, the $24 level has emerged as a vital support zone, evident as the stock rebounded in April and June from this threshold. The significance of these levels means that a break below $24 could prompt further declines, while overcoming the $32 resistance might signal a prospective reversal.

Moreover, the fifty-day moving average currently stands at $25.90, with HPQ's current price slightly below this average. This indicates a potential for upward momentum; however, the stock continues to exhibit weak bullish momentum, underscored by the recent price action failing to maintain above the moving average. Without substantial catalyst-driven breakouts, caution remains prudent for investors looking to enter at this juncture.

Financial Performance and Metrics

HP Inc.'s financial results for fiscal 2025 showcase resilience amid challenging market conditions, yet they hint at underlying pressures. The company reported a year-over-year increase in net revenue of 3.2%, totaling $55.3 billion. However, it faced challenges in profitability, with GAAP diluted earnings per share (EPS) declining by 5.7% to $2.65.

The report also highlights HP Inc.'s EBITDA of approximately $4.47 billion, lending credence to its operational profitability and efficient cash flow generation capability. Additionally, with a consistent dividend increase to $0.30 per share, HP is committed to returning value to shareholders, even as it navigates through strategic shifts aimed at cost-saving.

Key Financial Metrics:

• Total Revenue: $55.3 billion
• EBITDA: $4.47 billion
• GAAP EPS: $2.65 (down 5.7% YoY)
• Dividend per share: $0.30

Recent News and Developments

In recent developments, HP Inc. announced plans to implement strategic workforce reductions, estimating a layoff of approximately 4,000 to 6,000 employees by the end of fiscal 2028. This decision is designed to streamline operations and enhance productivity through the integration of artificial intelligence in product development. The company anticipates achieving around $1 billion in gross run-rate savings through these initiatives.

Furthermore, analysts have provided cautious insights concerning future earnings outlook. Major financial institutions, including JPMorgan Chase & Co., Goldman Sachs, and Morgan Stanley, have recently adjusted their price targets for HPQ to $25.00, $24.00, and $20.00, respectively, highlighting an underlying concern over HP's projections for profitability and strategic direction.

Market Sentiment and Analyst Recommendations

The current market sentiment surrounding HP Inc. leans towards caution, as conveyed by analyst recommendations. The consensus rating is classified as a "hold," indicating that investors may want to maintain their current positions rather than aggressively buying or selling. With a target high price of $30.00 and a mean target price around $25.88, analysts display a moderate degree of optimism. The median target, slightly lower at $25.50, reflects a balanced approach to the company's potential future performance.

Analyst Sentiment Overview:

• Current Stock Price: $24.83
• Mean Price Target: $25.88
• Target High Price: $30.00
• Target Low Price: $20.00
• Analyst Consensus: Hold (Mean score of 3.0)

The relatively high short position, with approximately 10.22% of shares sold short, suggests an existing bearish sentiment among investors, potentially reflecting distrust in the stock's immediate recovery potential. Investors should monitor HP's price action closely in relation to historical figures and remain attuned to market developments that could influence stock dynamics.

Conclusion

While HP Inc. presents itself as a company with solid revenue figures and operational cash flow, its stock performance over the past year has raised flags for cautious investors. The company's strategic initiatives may offer long-term benefits, yet immediate challenges remain as reflected in market sentiments and analyst forecasts.

Investors are encouraged to keep an eye on key price levels and market developments while considering holding HPQ shares under the current market conditions. The ongoing adjustments in analyst targets indicate that while there is potential for recovery, the path may be muddied by sector-wide challenges ahead.