How Does This Tech Giant Earn Revenue?
HP Inc sells personal computers, printers, and related supplies and services. The business spans consumer and commercial customers, with a large installed base tied to printing. Revenue is driven by hardware units and ongoing printing usage tied to supplies. The company operates at global scale and is widely distributed through retail, channel partners, and enterprise procurement.
Are Margins Stable Amid Modest Growth?
FundamentalsFor the year ended October 31, 2025 (reported in USD), revenue was about USD 55.3 billion, up 3.2% versus the prior annual period. Trailing margins show a 20.31% gross margin, a 5.31% operating margin, and a 4.45% net profit margin.
Balance sheet and reinvestment figures are clear: total debt stood at roughly USD 9.7 billion. Depreciation and amortization was about USD 916 million, while capital spending was around USD 897 million, placing reinvestment close to reported non-cash wear-and-tear.
Is The Market Overpricing Future Cash?
DCF / MultiplesAt USD 25.10, the stock trades above the full DCF-based fair value range implied by the modeled scenarios. The headline multiples alongside that setup include a 9.03 P/E and an 8.59 EV/EBITDA.
Leverage Limits The Upside
TakeawayThe price looks ahead of the cash the business is modeled to produce. The balance sheet matters more when margins are this slim. The case depends on keeping revenue steady and protecting margins. If cash generation softens, leverage becomes less forgiving.