Sector: Technology / Personal Computing & Printing
What do they do?
HP Inc. is a global leader in personal computing and printing. Formed in 2015 after the split of the original Hewlett-Packard Company, HP focuses on consumer and commercial hardware. Their business is divided into:
- Personal Systems: Laptops, desktops, and workstations
- Printing: Home and office printers, 3D printing, and supplies
In 2026, they are heavily focused on their "Fiscal 2026 Plan," which integrates Artificial Intelligence across their entire product portfolio to drive productivity and "AI-native" experiences.
What is their best product?
The HP OmniBook Ultra Flip 14 is their premier flagship laptop for 2026:
- Why it's the Best: HP's top-tier AI-powered convertible, featuring a 3K OLED display and the latest Intel Core Ultra processors capable of high-performance AI tasks (up to 48 TOPS)
- For Business: The EliteBook X Flip G1i is the standout for enterprise users, coming pre-packaged with HP Wolf Pro Security
- Printing: The HP Smart Tank series remains the best for high-volume users due to its ultra-low cost-per-page and refillable ink system
Do they have a competitive advantage?
HP's competitive advantage lies in its massive global scale and hybrid work ecosystem:
- Innovation in AI PCs: One of the first to market with a comprehensive "AI PC" lineup, hoping to spark a massive refresh cycle in corporate offices
- Brand Loyalty & Security: Wolf Security platform is deeply integrated into their hardware, providing endpoint protection highly valued by IT departments
- Print Supplies Model: A highly profitable "razor and blade" model; while hardware sales can be flat, recurring revenue from high-margin ink and toner supplies provides consistent cash flow
Does this company have the potential to change the world?
HP is positioning itself as a leader in Sustainable Impact and the Future of Work:
- Circular Economy: Achieved EPEAT 2.0 Gold designations for dozens of products, using recycled ocean-bound plastics and metals in their chassis
- Democratizing AI: By embedding AI acceleration into mid-range laptops, they are making advanced machine learning tools accessible to everyday students and small business owners, not just elite developers
Who are their competitors?
- In PCs: Lenovo (the global market leader) and Dell Technologies
- In Premium/Consumer: Apple (MacBook series)
- In Printing: Canon, Epson, and Brother
Who are the leaders?
HP's leadership is composed of long-tenured industry veterans:
- Enrique Lores (President & CEO) - Polytechnic University of Valencia (Electrical Engineering) and Esade Business School (MBA). With HP for over 35 years
- Karen Parkhill (CFO) - Southern Methodist University (Business Administration) and University of Chicago Booth School of Business (MBA). Joined HP in late 2024 from Medtronic
- Prakash Arunkundrum (Chief Strategy Officer) - University of Maryland (Master's in Materials Engineering). Tasked with leading the company's AI-driven transformation
Are the financials strong?
Stable, but under pressure:
- Revenue: For fiscal 2025, HP reported $55.3 billion in revenue, showing modest growth of 3.2%
- Margins: Personal Systems margins are tight (~5.8%), while Printing margins remain very high (~18.9%)
- Efficiency: Currently executing a restructuring plan to save $1 billion annually by fiscal 2028, including a reduction of 4,000–6,000 employees globally
- Dividends: A "dividend darling" for many, recently raising their quarterly payout to $0.30 per share
How is the valuation?
HP is currently viewed as a "Value Play":
- P/E Ratio: Trading at a very low 8.6x trailing P/E, significantly cheaper than the broader tech sector
- Sentiment: Analysts were cautious in late 2025 due to a "softer than expected" 2026 forecast, but recent upgrades suggest the stock may have bottomed out
- The Opportunity: If AI PC adoption accelerates faster than expected in mid-2026, HP is perfectly positioned to capture that upside at a "bargain" entry price
Final verdict
HP Inc. is a steady, income-generating giant in a mature industry. It lacks the explosive growth of a semiconductor company, but its high dividend yield and low valuation make it an attractive pick for conservative investors. Their success in 2026 will depend entirely on whether businesses believe "AI PCs" are a necessity or a luxury.
This analysis is for informational purposes only and should not be considered financial advice.