TLDR
- HP stock fell as much as 3.6%, or 4% rounded, in Monday premarket trading after a new PC market warning.
- HP expects industry PC unit volumes to decline by a mid-single-digit percentage in calendar 2027 versus 2026.
- The company is not yet providing fiscal 2027 financial guidance because it remains in its planning period.
- Memory shortages and higher component costs are pressuring PC volumes, pricing and Personal Systems margins.
- HP plans to give investors another update on cost-control measures with its fiscal fourth-quarter results.
HP Inc. (HPQ) stock fell as much as 3.6% in Monday premarket trading after the company warned of another difficult year for PC demand. HPQ closed Friday at $34.40, down 0.75%.
The company expects industry-wide PC unit volumes to fall by a mid-single-digit percentage in calendar 2027 compared with 2026. HP disclosed the planning assumption in a regulatory filing Monday.
HP stopped short of providing full fiscal 2027 guidance. The company said it remains in its planning period and believes it is still too early to provide detailed financial targets.
That position is consistent with comments made during HP’s Aug. 26 earnings call. CFO Karen Parkhill said at the time that it was premature to give specific guidance for the coming fiscal year.
HP Sees PC Weakness Continuing Through 2027
HP said its PC market assumption is broadly consistent with current third-party forecasts. The company cautioned that conditions in the second half of 2026 remain fluid and could change its planning assumptions.
A shortage of memory chips has become one of the main pressures facing PC manufacturers. Rising component costs have also pushed companies toward selling fewer devices at higher prices.
Those higher input costs are putting pressure on HP’s Personal Systems operating margins. Management discussed those pressures during its latest quarterly earnings call.
The PC warning arrives after a volatile September for HPQ. The stock gained nearly 6% on Sept. 17 before dropping 0.75% Friday.
HPQ closed Sept. 18 at $34.40 after trading between $33.76 and $35.15. Volume reached about 35.5 million units during the session.
Fiscal 2027 Guidance Still to Come
HP’s decision to withhold guidance does not represent a withdrawal of previously issued fiscal 2027 targets. The company has not yet issued that outlook and says its normal planning process is still underway.
Investors will be watching how HP plans to offset higher memory and component costs. The company has said it will provide more information on cost-mitigation efforts with its fiscal fourth-quarter report.
Pricing will also remain important if manufacturers continue selling fewer PCs. Higher average selling prices could help offset weaker unit volumes, but elevated costs can still pressure margins.
The warning specifically concerns the broader PC industry’s unit volumes rather than an HP-specific sales forecast. HP currently assumes the market will contract at a mid-single-digit rate in 2027.
HP also stressed that the 2027 assumption could change depending on how demand develops during the rest of 2026. The company has therefore avoided giving investors a fixed fiscal-year revenue or earnings target at this stage.
The next detailed financial update will come with HP’s fiscal fourth-quarter results. Investors will then get a clearer view of cost controls, component pricing and management’s assumptions for the 2027 PC market.
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