HP vs PTC
HP ships printers and PCs into a hardware market fighting secular decline while PTC sells industrial software that makes physical assets smarter and more connected, splitting the comparison between yesterday's hardware giant and a software company riding the industrial IoT wave. Both companies have undergone significant portfolio transformations and now pitch recurring revenue as the core of their investment case. HP vs PTC shows readers how software-driven margin expansion compares to hardware attach rates and subscription conversion when you strip away the buzzwords and look at actual cash generation.
HP ships printers and PCs into a hardware market fighting secular decline while PTC sells industrial software that makes physical assets smarter and more connected, splitting the comparison between ye...
Why It's Moving
HPQ Eyes Strong 2026 Rebound as AI PCs and Resilient Print Margins Fuel Analyst Optimism
- AI PCs now comprise 35% of Q1 shipments and climbing quarterly, validating HP's pivot to high-demand computing trends.
- Print division holds top-tier 18.3% operating margins within its 16-19% long-term range, underscoring two-segment cash generation resilience.
- Free cash flow set to recover from $2.85B in FY2026 toward $3.12B by FY2028, supporting EPS normalization and multiple re-rating.
PTC's Q1 Earnings Momentum Fuels Analyst Optimism for 33% Upside by 2026
- Executed $200 million in share repurchases in Q1 under a $2 billion authorization, with plans for $150-250 million quarterly, reducing share count and boosting shareholder value.
- CEO Neil Barua emphasized strong demand capture from large deals and competitive wins, building a more predictable growth engine via go-to-market shifts.
- CFO Jen DiRico noted progress on Kepware and ThingWorx divestitures to fund further buybacks, while embedding AI across the portfolio accelerates customer adoption.
HPQ Eyes Strong 2026 Rebound as AI PCs and Resilient Print Margins Fuel Analyst Optimism
- AI PCs now comprise 35% of Q1 shipments and climbing quarterly, validating HP's pivot to high-demand computing trends.
- Print division holds top-tier 18.3% operating margins within its 16-19% long-term range, underscoring two-segment cash generation resilience.
- Free cash flow set to recover from $2.85B in FY2026 toward $3.12B by FY2028, supporting EPS normalization and multiple re-rating.
PTC's Q1 Earnings Momentum Fuels Analyst Optimism for 33% Upside by 2026
- Executed $200 million in share repurchases in Q1 under a $2 billion authorization, with plans for $150-250 million quarterly, reducing share count and boosting shareholder value.
- CEO Neil Barua emphasized strong demand capture from large deals and competitive wins, building a more predictable growth engine via go-to-market shifts.
- CFO Jen DiRico noted progress on Kepware and ThingWorx divestitures to fund further buybacks, while embedding AI across the portfolio accelerates customer adoption.
Investment Analysis
HP
HPQ
Pros
- HP Inc. reported a 3% year-over-year increase in net revenue in Q3 2025, demonstrating top-line growth.
- The company maintains strong profitability with a healthy gross profit margin above 21% and consistent dividend payments for 55 years.
- HP has expanded its product portfolio with AI-powered solutions now comprising 25% of its offerings, supporting future growth.
Considerations
- HP's net margin remains relatively low at around 4.8%, indicating limited profitability compared to some peers.
- EPS declined from the previous year and an earnings growth slowdown of over 7% is expected, raising concerns about sustaining earnings momentum.
- Recent insider stock sales and a notably negative return on equity may signal internal management or efficiency challenges.
PTC
PTC
Pros
- PTC Inc.’s stock price around $190 reflects strong valuation from sustained demand in enterprise and industrial software markets.
- The company focuses on growing revenue through innovative digital transformation products that align with industry trends.
- PTC operates in a niche software sector with opportunities for expansion via partnerships and recurring subscription revenues.
Considerations
- Recent stock price volatility with notable short-term declines suggests some market sensitivity or execution risk.
- PTC faces competitive pressure from larger technology firms in the digital transformation and CAD software segments.
- Exposure to macroeconomic fluctuations and technology spending cycles may create periodic revenue and profit headwinds.
HP (HPQ) Next Earnings Date
HP Inc. (HPQ) is estimated to report its next earnings for the fiscal second quarter of 2026 between May 27, 2026, and June 1, 2026, following the pattern of prior releases after market close. This comes after the Q1 2026 results announced on February 24, 2026. The company has not yet confirmed the exact date.
PTC (PTC) Next Earnings Date
PTC's next earnings date is estimated for April 29 to May 4, 2026, following the company's historical reporting pattern after market close. This release will cover the second fiscal quarter of 2026, ending March 31, 2026. Investors should monitor for an official announcement from PTC, as the exact date remains unconfirmed.
HP (HPQ) Next Earnings Date
HP Inc. (HPQ) is estimated to report its next earnings for the fiscal second quarter of 2026 between May 27, 2026, and June 1, 2026, following the pattern of prior releases after market close. This comes after the Q1 2026 results announced on February 24, 2026. The company has not yet confirmed the exact date.
PTC (PTC) Next Earnings Date
PTC's next earnings date is estimated for April 29 to May 4, 2026, following the company's historical reporting pattern after market close. This release will cover the second fiscal quarter of 2026, ending March 31, 2026. Investors should monitor for an official announcement from PTC, as the exact date remains unconfirmed.
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