Mixed Earnings Report Sparks 15% After-Hours Drop — Is HP Being Oversold?

TradingKey
29 May

TradingKey - HP Inc. (HPQ.US) released its Q2 2025 earnings report with mixed results. The company posted earnings per share (EPS) of USD 0.71, below the expected USD 0.79, while revenue came in at USD 13.2 billion, slightly above the forecast of USD 13.07 billion. Despite the revenue beat, the stock tumbled more than 15% in after-hours trading, closing down 11.47% at USD 25.09.

Concerns over margin pressure and sustained profitability in the face of rising tariffs have kept investor sentiment cautious.

During the earnings call, CEO Enrique Lores emphasized HP’s focus on AI, stating: “We are committed to harnessing the power of AI to make work more personalized, efficient, and fulfilling — which will ultimately drive our success.”

Chief Financial Officer Karen Parkhill added: “We continue to focus on what we can control, and we’re confident that the actions we are taking will lay a solid foundation for long-term profitable growth.”

During HP Inc.'s Q2 2025 earnings call, the CEO noted that despite ongoing global market uncertainties, HP has swiftly adjusted its supply chain structure and expects to fully offset the cost pressures from tariffs and trade-related factors by the fourth quarter. The company remains confident in its ability to adapt flexibly to changes while identifying new growth opportunities.

As a global leader in the PC market, HP has been significantly impacted by rising global supply chain costs and tariff pressures. With the phased suspension of certain tariffs, HP’s fundamentals may gradually improve. While it may not yet be time to celebrate, from tariff relief to bottoming fundamentals, HP appears to be quietly setting the stage for a potential rebound.

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