HP Inc. stock rises as Huawei Wi-Fi patent deal and AI PC cycle frame Q3 2026 earnings day
Published on 08/26/2026 at 17:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
HP Inc. stock (ISIN US40434L1052) is trading close to the upper end of its recent range in late August 2026, with investors focused on a fresh Wi-Fi patent cross-licensing agreement with Huawei and the company’s fiscal third-quarter 2026 earnings report scheduled for August 26, 2026. As of the latest completed New York Stock Exchange session on August 25, 2026, HPQ closed at $29.52, up 3.3 percent on the day.
Patent deal with Huawei underpins Wi-Fi roadmap
On August 26, 2026, Huawei said it had entered into a multi-year global patent cross-licensing agreement with HP Inc. covering Wi-Fi technology, including the latest Wi-Fi 7 standard, resolving prior disputes related to Wi-Fi 6 patents. A report on the Wi-Fi patent agreement notes that the deal spans multiple generations of Wi-Fi technology, giving HP clearer long-term access to connectivity intellectual property.
Market data compiled on August 26, 2026 indicate that HPQ shares gained 3.29 percent in the prior session to close at $29.52, with the stock up 32.50 percent year-to-date and down 1.47 percent over the last five trading days. A quote snapshot tied to the patent news shows HP Inc.’s average analyst price target in the high $20s, leaving the latest closing price modestly above that level.
Valuation metrics published on August 26, 2026 highlight that at a price of $29.52 HPQ trades at a price-to-earnings ratio of 10.89 compared with its five-year median of 9.36. A valuation overview estimates a fair value of $32.77 per share, which implies that HP Inc. stock is modestly undervalued by 9.9 percent relative to that fair-value gauge.
Q3 2026 earnings expectations and AI PC momentum
HP Inc. is set to report financial results for the third fiscal quarter ended July 31, 2026 after the closing bell on August 26, 2026, with a live audio webcast scheduled for 5:30 p.m. ET. An earnings preview states that Wall Street expects earnings per share of $0.66 for the quarter, down from $0.75 in the prior-year period, alongside revenue of $14.60 billion, which would represent revenue growth of 4.8 percent year over year.
Additional consensus data compiled on August 26, 2026 indicate that analysts forecast revenue of roughly $14.43 billion and net income of $579.62 million for HP Inc.’s third fiscal quarter of 2026. An earnings calendar overview shows that these estimates, if met, would correspond to a net margin near 4 percent for the quarter.
One preview of the quarter highlights that the expected $0.66 in earnings per share would be 12 percent below the prior-year figure for the same quarter, while the revenue consensus of $14.34 billion to $14.60 billion implies year-over-year growth between 3 percent and 4.8 percent. An analysis of earnings expectations notes that analysts also see a sequential decline of 23 percent in earnings per share compared with the prior quarter’s $0.86, underscoring the margin pressure that accompanies the current AI PC upgrade cycle.
The same analysis points out that HP Inc.’s Personal Systems segment, which covers PCs and notebooks, grew revenue by 13 percent year over year in the preceding quarter, helped by demand for personal computers with artificial intelligence capabilities and the Windows 11 upgrade cycle. While that prior-quarter figure serves as a historical comparison, investors watching the third-quarter 2026 report will be looking to see whether similar double-digit growth rates can be sustained while also stabilizing profitability.
Analyst view and institutional positioning
Across multiple recent portfolio disclosures, several institutional investors reported new or expanded positions in HP Inc. during 2026, reflecting differing strategies around the stock’s valuation. One filing highlights a new position valued at $2.08 million, while another notes a separate new holding with 114,502 shares valued at $2,592,000, both using price levels in the high $20s for HPQ.
Recent coverage summarizing analyst recommendations indicates that HP Inc. stock carries an overall consensus rating in the Reduce range, with an average price target of $24.17 to $27.32 per share depending on the specific dataset. When compared to the August 25, 2026 closing price of $29.52, those targets imply downside potential of approximately 7.5 percent to more than 17 percent, suggesting that the stock currently trades above the central band of published target prices even as valuation tools that compare price to historical averages point to moderate undervaluation.
Options market commentary ahead of the August 26, 2026 report notes that traders are bracing for a sizable post-earnings move, with consensus expectations calling for earnings of $0.66 per share on revenue of $14.60 billion and HPQ recently quoted at $29.22 intraday. This setup means that any significant deviation from those earnings or revenue figures, especially in the context of guidance for the fourth quarter of fiscal 2026, could quickly reset both the price and the perception of HP Inc.’s AI PC-driven growth narrative.
Core PC and printing offerings
HP Inc.’s business centers on two main segments: Personal Systems and Printing. In Personal Systems, the company sells desktops, notebooks, and workstations that target both consumers and commercial customers, including new generations of personal computers enhanced with built-in artificial intelligence capabilities that support productivity applications and modern operating systems like Windows 11.
On the printing side, HP Inc. offers home and office printers, multifunction devices, and related consumables such as ink and toner cartridges, often bundled with subscription-based services for automatic supplies replenishment. These offerings generate recurring revenue streams and contribute to margin stability, but they also face ongoing competitive and pricing pressures as customers adjust printing volumes in hybrid work environments.
HP Inc. stock level and recent performance
HP Inc. stock is listed on the New York Stock Exchange under the ticker HPQ and closed at $29.52 on August 25, 2026, after gaining 3.3 percent in that session. Data from that same quote snapshot report that the shares have advanced 32.50 percent since the start of 2026, even as they remain modestly below the fair-value estimate of $32.77 cited in one valuation framework, and only slightly below the latest observed intraday level of $29.56 published in separate market-data commentary.
For investors, the key tension is that while HP Inc. stock trades materially above the average analyst price target range of $24.17 to $27.32, the company is also expected to deliver revenue growth of between 3 percent and 4.8 percent year over year in the third fiscal quarter of 2026 and to benefit from a 13 percent year-over-year increase in Personal Systems revenue recorded in the prior quarter. How the August 26, 2026 earnings report reconciles that growth trajectory with the forecast 12 percent year-over-year decline in earnings per share and the 23 percent sequential drop from $0.86 to $0.66 will heavily influence whether the latest rally in HP Inc. stock can be sustained.
Go deeper
More on HP Inc. stock and its Q3 2026 earnings preview
AI-enabled laptops as a flagship offering
One of HP Inc.’s representative products in the current cycle is its line of AI-enabled laptops designed for both consumers and enterprise users. These devices integrate dedicated AI acceleration hardware and software features that support tasks such as real-time transcription, video conferencing enhancements, and on-device intelligence for productivity applications, while also being engineered to meet the hardware requirements of Windows 11 and upcoming operating system updates.
By positioning these AI PCs at the core of its Personal Systems portfolio, HP Inc. aims to capture demand from customers looking to refresh aging fleets of laptops and desktops, particularly in corporate environments where remote and hybrid work models have become more entrenched. The 13 percent year-over-year growth in Personal Systems revenue reported for the previous quarter underscores how this product category can help drive top-line expansion even as the company faces cost and margin pressures in other parts of its business.
HP Inc. stock price context
As of the New York Stock Exchange close on August 25, 2026, HP Inc. stock traded at $29.52 in U.S. dollars, reflecting a 3.3 percent gain on the day and a 32.50 percent advance since the start of 2026. Against an average price target band ranging from $24.17 to $27.32 and a fair-value estimate of $32.77 in one valuation model, the stock currently sits above most published analyst targets but below that fair-value projection, framing a narrow corridor between downside risk and potential upside tied to execution on the AI PC and Wi-Fi-focused connectivity roadmap.
Fact box
Company: HP Inc.
ISIN: US40434L1052
Ticker: HPQ
Exchange: New York Stock Exchange (NYSE)
Price (as of August 25, 2026, 4:00 p.m. ET): $29.52 USD
Sector / Industry: Information Technology / Computer Hardware and Printing
