HP Inc. faces challenges in 2026 due to changes in customer behavior and industry component availability. The company’s outlook is also affected by a difficult macroeconomic environment and inflationary conditions. PC demand forecast for the year raises concerns for short-term growth, with PC unit volumes expected to decline.

Competition remains stiff for HP in the PC and printer businesses, with print revenues falling 4% year-over-year. The print segment faces structural challenges as customers shift to digital workflows. HPQ stock, part of the Zacks Computer – Micro Computers industry group, is currently ranked as a Zacks Rank #5 (Strong Sell) stock, underperforming the market.

HP has missed earnings estimates in four of the past six quarters, with negative earnings estimate revisions for the current fiscal year. The FY2026 Zacks Consensus EPS Estimate reflects negative growth of -3.9% compared to the prior year. The stock is currently in a sustained downtrend, trading below key moving averages. A “death cross” has occurred, indicating further downside potential.

With a deteriorating fundamental and technical backdrop, HPQ stock may not see new highs soon. Earnings misses and falling future estimates suggest a challenging road ahead. Investors may want to avoid the stock or consider it for short or hedge strategies.

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Read more at Nasdaq: Bear of the Day: HP Inc. (HPQ)