HP Inc. (NYSE:HPQ) is a prominent figure in the technology sector, competing with giants like Dell and Lenovo in the realms of personal computers, printers, and related supplies. On November 25, 2025, HPQ showcased a strong performance in its earnings report, with an earnings per share (EPS) of $0.93, surpassing the estimated $0.91.
HPQ's revenue for the quarter ending in October 2025 reached $14.64 billion, exceeding the estimated $13.91 billion and marking a 4.2% increase from the same period last year, which was $14.06 billion. However, this figure fell short of the Zacks Consensus Estimate of $14.97 billion, resulting in a revenue surprise of -2.23%.
Despite the revenue shortfall, HPQ's EPS of $0.93 matched the previous year's figure, delivering a positive EPS surprise of 2.2% against the consensus estimate. This achievement highlights the importance of comparing key metrics to both Wall Street estimates and year-ago figures, marking the only time in the past four quarters that HPQ has exceeded consensus EPS estimates.
HPQ's financial metrics offer further insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 9.02, indicating how the market values its earnings. Its price-to-sales ratio stands at 0.41, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is 0.52, slightly higher than its market capitalization, reflecting the company's overall valuation, including debt.
The company's financial health is also evident in its debt-to-equity ratio of 2.62, indicating a higher reliance on debt financing. The current ratio of 0.77 suggests potential challenges in covering short-term liabilities with short-term assets. Despite these challenges, HPQ's earnings yield of about 11.09% offers insight into the return on investment for shareholders.
