HP Inc. (NYSE: HPQ) stock fell 4% on Monday after the company withheld financial guidance for fiscal 2027 and warned that global personal computer unit volumes could decline next year.
In a regulatory disclosure filed with the Securities and Exchange Commission, HP said it remains in its planning period for fiscal 2027 and is not yet providing specific financial guidance.
The company said its preliminary planning assumption, based on current third-party industry forecasts, is that industry-wide personal computer unit volumes will decline by roughly mid-single-digit percentage terms in calendar 2027 compared with 2026.
HP cautioned that the assumption depends on market performance during the second half of calendar 2026 and remains subject to change.
HP expects lower global PC shipments
HP’s preliminary outlook points to a contraction in worldwide PC unit volumes next year, although the company did not provide a specific forecast for its own shipments or revenue.
“Consistent with current third-party industry forecasts, HP’s preliminary planning assumption is that industry-wide personal computer unit volumes decline roughly mid-single-digits in percentage terms in calendar year 2027 as compared to calendar year 2026,” HP said in the filing.
The company added that the assumption is dependent on market performance during the second half of 2026, which remains fluid.
HP’s latest disclosure follows comments made during its fiscal third-quarter earnings call on Aug. 26.
At the time, the company said it was premature to provide specific expectations for fiscal 2027, including PC unit volumes.
HP holds back fiscal 2027 financial guidance
HP said Monday’s disclosure should not be interpreted as financial guidance for fiscal 2027.
The company remains in its planning period and said changes in market conditions during the remainder of calendar 2026 could affect its assessment of the PC market.
The disclosure comes after HP reported fiscal third-quarter results that topped estimates.
The company also raised its outlook for adjusted earnings per share and free cash flow.
In the quarter, HP’s Personal Systems revenue increased 18% year over year to $11.8 billion, despite total unit volumes declining 16%. The segment reported a 4.6% operating margin.
The company’s adjusted earnings per share of $0.83 included an $0.11 benefit from tariff refunds.
CFO Karen Parkhill said HP’s earlier benefit from lower-cost inventory was “largely behind us,” with higher-cost inventory moving through the profit and loss statement.
Morgan Stanley flags PC and margin pressure
Morgan Stanley has maintained an Underweight rating on HP, citing concerns about the company’s unit and margin challenges.
The firm said HP’s PC margin divergence from peers was making its recent re-rating increasingly difficult to justify and identified HPQ as its top enterprise Underweight.
Morgan Stanley raised its price target to $19 from $17 following HP’s fiscal third-quarter results.
Analyst Erik Woodring previously argued that PC unit declines of more than 10% in fiscal 2027, together with continued pressure in HP’s printing business, could outweigh benefits from AI PCs.
HP has been raising prices, shifting toward premium products and pursuing product redesign and other cost actions to offset cost pressures.
Parkhill said the company expects input costs to continue rising, although at a slower pace, and aims to return Personal Systems operating margins to its long-term range “as quickly as possible” in fiscal 2027.
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