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Investing.com -- HP Inc forecast fiscal 2026 profit below Wall Street expectations, overshadowing a fourth-quarter revenue beat and sending its shares down 6% in extended trading.
HP unveiled a company-wide “fiscal 2026 plan” to boost customer satisfaction, productivity and product innovation through wider AI adoption. The initiative includes $650 million in restructuring and related charges and a planned reduction of 4,000–6,000 jobs, targeting $1 billion in annual cost savings by fiscal 2028.
The PC and printer maker expects FY26 non-GAAP EPS of $2.90–$3.20, well short of analysts’ estimate of $3.32, as it absorbs higher costs tied to U.S. trade regulations and ramps up spending on AI-enabled product upgrades.
For the current quarter, HP projected EPS of $0.73–$0.81, around the consensus of $0.78.
Fourth-quarter adjusted EPS came in at $0.93, down from $0.96 a year earlier but slightly above estimates. Revenue rose 4.2% to $14.6 billion, topping expectations of $14.5 billion and marking a sixth straight quarter of growth.
Personal Systems, HP’s largest unit, was the bright spot, with revenue up 8% and unit volumes up 7% on stronger consumer and commercial demand. Printing revenue fell 4%, with double-digit declines in hardware units and softer supplies.
For fiscal 2025, HP posted revenue of $55.3 billion, up 3.2%, while adjusted EPS fell to $3.12 from $3.43. The company generated $2.9 billion in free cash flow and returned $1.9 billion to shareholders via dividends and buybacks. It also lifted its quarterly dividend to $0.30 per share.
CEO Enrique Lores said the company will focus on “disciplined execution” as it invests in AI-powered devices, while CFO Karen Parkhill said HP is taking steps to offset recent cost pressures and strengthen its long-term growth profile.