HP’s Indian Market Strength Contrasts With Investor Skepticism

While HP Inc. maintains a commanding position in India’s personal computer sector, the technology giant faces a significant confidence deficit among investors at its home market. The company’s shares have declined by more than a quarter since the start of the year, creating intense focus on its upcoming quarterly earnings release. Market participants are questioning whether HP will surpass forecasts this time or deliver another disappointing performance.

Upcoming Earnings in Focus

All attention turns to Wednesday, August 27, when HP will announce its third fiscal quarter 2025 results after market close. Market experts present a mixed outlook, projecting earnings per share of $0.74 on revenue of $13.7 billion. This reporting event carries particular significance following HP’s previous quarterly performance, where it reported EPS of $0.71 – falling short of the $0.80 expectation – despite achieving revenue of $13.22 billion.

Dividend Appeal Amid Market Challenges

For investors seeking income generation, HP continues to present an attractive proposition. The company recently distributed a quarterly dividend of $0.2894 per share, translating to an annualized yield of 4.3%. The next dividend payment is scheduled for October 1.

Asian Dominance and Consumer Challenges

The company demonstrates remarkable strength throughout the Asia-Pacific region, particularly in India where it controls 30.8% of the PC market as of the second quarter of 2025. This dominance becomes even more pronounced in the commercial segment, where HP commands a 35% market share driven by robust demand from enterprise clients.

Should investors sell immediately? Or is it worth buying HP?

However, this success story contains concerning elements. The consumer division experienced a substantial 16.8% year-over-year contraction. This decline occurred despite the broader Indian PC market achieving 3.0% growth, marking its eighth consecutive quarter of expansion.

Strategic Positioning for AI and Gaming Growth

The future landscape clearly favors artificial intelligence-enabled devices. The first half of 2025 witnessed explosive growth of 145.2% for AI notebooks within the Indian market. HP has responded to this technological shift by introducing its Omen 16 gaming laptop in India, equipped with either Intel Core Ultra or AMD Ryzen AI processors alongside Nvidia’s GeForce RTX 5070 Ti GPU.

The critical question remains whether HP can leverage its formidable market position in India to deliver strong quarterly results and initiate a reversal in investor sentiment. The company’s upcoming earnings report will provide the answer.