What Happened?
Shares of personal computing and printing company HP (NYSE: HPQ) jumped 10.1% in the afternoon session after the company reported better-than-expected second-quarter fiscal 2026 results and provided a strong forecast, fueled by demand for its AI-powered personal computers.
HP's revenue for the quarter rose 9% year-over-year to $14.4 billion, while adjusted earnings per share reached 86 cents, both surpassing analyst expectations. The growth was largely driven by its Personal Systems division, which is responsible for PC sales and saw revenues climb 13% to $10.2 billion. The company noted that shipments of AI PCs now account for 44% of its total, a significant increase from the previous quarter.
Looking ahead, HP projected that AI PCs could make up 60% to 70% of its shipment mix next year. Adding to investor optimism, the company's earnings guidance for the current quarter also exceeded analyst projections, signaling confidence in its continued performance.
The shares closed the day at $27.04, up 8.3% from the previous close.
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What Is The Market Telling Us
HP’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for HP and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 15.6% on the news that investor optimism grew around the demand for its new AI-powered PCs as traders positioned themselves ahead of its upcoming fiscal Q2 2026 earnings report.
The earnings announcement was scheduled for May 27, and the stock's surge was also influenced by recent analyst price target adjustments. Options market activity suggested anticipation of a significant price swing around the report, which likely prompted buying. Adding to the positive sentiment, HP announced a $0.30 quarterly dividend, reinforcing investor confidence in the company's financial health. The move was part of a broader market rally that also saw competitor Dell Technologies experience a significant stock increase following its own positive analyst revisions.
HP is up 22.5% since the beginning of the year, and at $27.09 per share, it is trading close to its 52-week high of $29.35 from September 2025. Despite the year-to-date gain, investors who bought $1,000 worth of HP’s shares 5 years ago would now be looking at only $907.23.
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