Why HP Inc. (HPQ) Keeps Missing the Mark in 2026

HP Inc. is struggling to keep pace with market expectations, and the numbers tell a troubling story. The company, which provides personal computers, printing, and related technologies globally, is facing a perfect storm of headwinds that investors need to watch closely.

The Earnings Miss Trap

Here’s what stands out: HP has fallen short of earnings targets in four of the last six quarters, posting a trailing average miss of -2.6%. That’s not a one-time fluke—it’s a pattern. Worse, analysts have become increasingly pessimistic about the company’s prospects. In just the past 60 days, earnings estimates for fiscal 2026 have been slashed by 9.64%. The consensus EPS estimate now sits at $3.00 per share, which represents a -3.9% year-over-year decline.

When a company consistently disappoints on earnings and analysts keep revising estimates downward, the market typically responds with selling pressure. HPQ stock has already fallen more than 30% over the past year, and shares are trading near 52-week lows while major indexes hit all-time highs.

PC and Print Segments Under Pressure

The core issue is demand. HPQ’s management expects PC unit volumes to decline in 2026, and the print business isn’t faring better. Print revenues fell 4% year-over-year in the latest quarter as office demand remained weak across North America and Europe. The structural shift toward digital workflows means the print segment faces a long-term headwind.

Competition is fierce on both fronts. In PCs, HPQ competes directly with Apple, Dell, Lenovo, and Acer. Lower volumes combined with persistent price pressures make it increasingly difficult to maintain profit margins and hit earnings targets.

Technical Picture Confirms the Downtrend

The chart tells the story: HPQ stock has formed a “death cross,” where the 50-day moving average (blue line) has crossed below the 200-day moving average (red line). That’s textbook bearish. Shares are trading well below both trend lines, and the stock would need a significant rally plus positive earnings revisions to break this downtrend.

Industry Headwinds Compound the Problem

HPQ operates in the Computer – Micro Computers industry group, which ranks in the bottom 14% of all Zacks-ranked industries. When a stock is part of a weak industry group, it faces structural headwinds that make recovery harder, even if the individual company improves.

The Outlook

A weakening fundamental backdrop combined with deteriorating technicals leaves little reason to be optimistic about HPQ in the near term. The company’s history of earnings misses, falling future estimates, and competitive pressures will likely keep the stock range-bound or moving lower. Until management demonstrates meaningful improvement in PC demand, print stabilization, or margin protection, the risk/reward appears skewed to the downside.

For traders and investors, HPQ may be worth considering as part of a short strategy or hedging portfolio, not as a long position.