HP Inc (HPQ) stock plummeted 5.58% in the pre-market trading session on Friday, following the company's fiscal Q1 2025 earnings report that met estimates but provided weaker-than-expected guidance for the second quarter.
For Q2 2025, HP forecast adjusted earnings per share of 75-85 cents, below the consensus estimate of 86 cents. The company also announced plans to lay off between 1,000 to 2,000 additional employees as part of an ongoing restructuring plan, which is expected to result in $300 million in cost savings for fiscal 2025.
Analysts lowered their price targets on HPQ shares following the earnings release, citing increased competitive pressures, concerns around potential tariffs on tech products, and a weak profit outlook. There are also broader worries about tech companies overspending on AI initiatives, as well as escalating trade tensions between the US and China under the Trump administration, which could negatively impact HP's business.
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