HP Inc Shares Tumble After Hours Despite Fiscal Q3 Earnings Beat and Raised Annual Outlook

HP Inc. reported fiscal third-quarter 2026 results on August 26 that beat Wall Street expectations on both top and bottom lines, with non-GAAP earnings per share coming in roughly $0.17 above consensus estimates and revenue topping analyst forecasts of $14.6 billion. The company also raised its full-year earnings and free cash flow guidance. Despite those positive signals, shares fell sharply after hours, a reaction that highlights investor concern about ongoing margin pressure in the Personal Systems segment from rising memory chip and commodity costs, which Bank of America had flagged ahead of the report as a key risk.

The disconnect between the headline beat and the stock selloff reflects skepticism that cost headwinds will ease in the back half of the fiscal year even as HP's AI PC lineup continues to gain traction.