HP Inc (HPQ) reported earnings with net revenues of $13.9 billion, up 3.1% from last year, and EPS fell to $0.75. It returned $400 million to shareholders. The PC segment grew 6%, while Printing fell 4%. Analysts rate HP a “Hold” with a target price below current levels.

HP expects growth in the PC market due to Windows 11, AI PCs, and aging PC base. Most products sold in the U.S. are made outside of China. HP, a cash flow powerhouse, aims to generate $2.6-$3 billion in free cash flows this year. With a P/E of 8.78x and 4% dividend yield, HP looks fairly priced.

HP is not the fastest-growing company but is expected to deliver double-digit annualized returns to investors. The company faces tariffs impacting its business, but it has reoriented its supply chain. HP projects increased cash flows next year due to top-line growth, higher ASPs, and cost cuts.

Read more at Yahoo Finance: Can AI PCs and Windows 11 Refresh Take HPQ Higher?