HP Shares Drop Over 5% After Earnings Outlook Misses Expectations—'Trade Restrictions Factored In'

(Seoul=Yonhap Infomax) Min Jae Lee – Shares of Hewlett-Packard Co. (NYSE: HPQ), a leading PC and printer manufacturer, tumbled more than 5% in after-hours trading following the release of an earnings outlook that fell short of market expectations and the announcement of a large-scale workforce reduction plan.

On the 25th (local time), according to CNBC and other sources, Hewlett-Packard reported revenue of $14.64 billion and adjusted earnings per share (EPS) of $0.93 for the fourth quarter of fiscal 2025 (August–October).

Market consensus had forecast revenue of $14.48 billion and EPS of $0.92.

However, for the first quarter of fiscal 2026 (November–January), HP projected EPS in the range of $0.73 to $0.81, below the market estimate of $0.79.

The company also guided for full-year fiscal 2026 EPS of $2.90 to $3.20, underperforming the market expectation of $3.33.

Hewlett-Packard stated, "The outlook reflects additional costs arising from current U.S. trade-related regulations and associated mitigation measures."

Additionally, the company announced plans to reduce its workforce by 4,000 to 6,000 employees, aiming to complete the restructuring by the end of fiscal 2028.

HP expects the restructuring to generate at least $1 billion in annual savings by the end of fiscal 2028.

The company anticipates incurring approximately $650 million in costs over the period, with $250 million of that expected in fiscal 2026.

HP shares closed down 0.25% at $24.32 on the New York Stock Exchange and fell more than 5% in after-hours trading.

mjlee@yna.co.kr

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