HP Inc. shares plunged 8.3% following the release of its quarterly earnings on May 28, raising investor concerns over rising costs and declining profits. Despite a 7% increase in personal systems revenue and total revenue reaching $13.2 billion, the company reported a 16.5% drop in non-GAAP net income to $678 million.

HP’s stock closed at $27.26 — down 24% year-to-date and 30% over the past year, significantly underperforming the S&P 500, which rose 7.8% YTD and 16.6% year-over-year. The company also lagged behind the broader tech sector, with XLK gaining over 25% in the same period.

The profit miss was particularly concerning: adjusted EPS came in at $0.71 — 11.3% below analysts’ expectations, even though revenue slightly beat the consensus.

Analysts now expect further weakness: full fiscal year 2025 EPS is projected to decline 8.6%. HP has also missed earnings estimates in each of the past four quarters.

The overall analyst consensus remains “Hold”: out of 14 analysts, three rate the stock a “Strong Buy,” ten a “Hold,” and one a “Strong Sell.” Wells Fargo analyst Aaron Rakers lowered the price target from $35 to $25, maintaining an “Underweight” rating. The highest price target remains $34 — 37% above current levels.