HP’s second quarter saw a positive market reaction as the company delivered revenue growth above Wall Street expectations, despite ongoing margin pressures. Management attributed the performance to continued strength in the personal systems business, particularly from higher-value segments like AI-powered PCs and commercial premium products. CEO Enrique Lores highlighted that the Windows 11 refresh cycle and accelerating AIPC (AI PC) adoption were key growth drivers. The company also made notable progress in shifting its North American manufacturing footprint outside of China, helping to mitigate the impact of trade-related costs.

Is now the time to buy HPQ? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From HP’s Q2 Earnings Call

• Steven Chin (TD Cowen) asked about the quantifiable impact of tariffs and the speed of mitigation. CFO Karen Parkhill explained that most trade-related costs were offset through supply chain changes and selective price increases, and HP expects to fully mitigate these costs soon.
• Irvin Liu (Evercore ISI) questioned whether AI PCs carry a higher margin or price premium. CEO Enrique Lores confirmed that AIPCs are seeing a 5–10% price uplift compared to comparable devices, and that ecosystem development will further support demand.
• David Vogt (UBS) inquired about the sustainability of PC market strength and print margin volatility. Lores attributed ongoing PC demand to unfinished Windows 11 upgrades and premium product focus, while Parkhill said print margins would rebound with seasonality and cost management.
• Wamsi Mohan (Bank of America) probed whether HP’s print margin range should be recalibrated higher given recent performance. Lores maintained that current guidance ranges are appropriate, citing mix dynamics and flexible unit placement strategies.
• Maya (Morgan Stanley) asked which industries and regions are driving AIPC adoption. Lores responded that actual shipment data show strong uptake, especially as more software leverages AIPC capabilities, with growth seen across geographies and both commercial and consumer sectors.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will closely watch (1) further adoption and monetization of AI-powered PCs and related software partnerships, (2) HP’s ability to sustain margin improvements as cost actions mature, and (3) evidence of stabilization or growth in key print segments, particularly subscriptions and industrial print. Execution on global supply chain diversification and product refresh cycles will also be important indicators.

HP currently trades at $28.91, up from $27.14 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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