HP vs PTC
HP Inc. and PTC Inc. are contrasted here to inform readers about their business models, financial performance, and market context. This page presents a neutral, accessible comparison of how each company operates, generates value, and positions itself within the technology and software landscape for investors. Educational content, not financial advice.
HP Inc. and PTC Inc. are contrasted here to inform readers about their business models, financial performance, and market context. This page presents a neutral, accessible comparison of how each compa...
Why It's Moving
HP shares react to fiscal‑2025 results and a $1B AI-driven cost plan as memory costs cloud 2026 outlook
- Earnings and dividend: HP posted fiscal‑2025 revenue of $55.3 billion and delivered GAAP EPS of $2.65, while the board declared a $0.30 quarterly cash dividend payable in January, signaling free‑cash‑flow strength and capital allocation discipline.[1][4]
- AI cost‑savings plan and charges: Management unveiled a fiscal‑2026 plan to accelerate AI in products and operations that it says will drive about $1 billion of gross run‑rate savings by FY2028, but expects roughly $650 million of restructuring and related charges (≈$250 million in FY2026), which front‑loads costs to enable longer‑term margin improvement.[1]
- Memory supply and 2026 margin risk: Management and analysts flagged rising memory prices tied to AI infrastructure demand as a material headwind for fiscal‑2026 margins; HP is pursuing supplier diversification, price and configuration changes, and warned the second half of 2026 could be the most affected period, creating near‑term earnings uncertainty despite the company’s operational moves.[1][2]
HP shares react to fiscal‑2025 results and a $1B AI-driven cost plan as memory costs cloud 2026 outlook
- Earnings and dividend: HP posted fiscal‑2025 revenue of $55.3 billion and delivered GAAP EPS of $2.65, while the board declared a $0.30 quarterly cash dividend payable in January, signaling free‑cash‑flow strength and capital allocation discipline.[1][4]
- AI cost‑savings plan and charges: Management unveiled a fiscal‑2026 plan to accelerate AI in products and operations that it says will drive about $1 billion of gross run‑rate savings by FY2028, but expects roughly $650 million of restructuring and related charges (≈$250 million in FY2026), which front‑loads costs to enable longer‑term margin improvement.[1]
- Memory supply and 2026 margin risk: Management and analysts flagged rising memory prices tied to AI infrastructure demand as a material headwind for fiscal‑2026 margins; HP is pursuing supplier diversification, price and configuration changes, and warned the second half of 2026 could be the most affected period, creating near‑term earnings uncertainty despite the company’s operational moves.[1][2]
Which Baskets Do They Appear In?
Powering The PC Resurgence
Lenovo's recent announcement of a 108% profit increase highlights a resilient and growing PC market. This theme invests in the key hardware and semiconductor suppliers poised to benefit from sustained demand for personal computers and AI infrastructure.
Published: August 14, 2025
Explore BasketPlanned Obsolescence
These companies have mastered the art of creating products designed for replacement. Our analysts have carefully selected businesses that benefit from predictable upgrade cycles, generating reliable revenue streams as consumers continually refresh their purchases.
Published: June 17, 2025
Explore BasketRazor & Blade Cartel
This carefully selected group of stocks represents companies that have mastered the art of customer lock-in. These businesses offer attractive initial products to secure customers, then generate predictable, high-margin revenue from necessary add-ons and consumables. Each company has been chosen by expert analysts for their successful execution of this powerful business strategy.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Powering The PC Resurgence
Lenovo's recent announcement of a 108% profit increase highlights a resilient and growing PC market. This theme invests in the key hardware and semiconductor suppliers poised to benefit from sustained demand for personal computers and AI infrastructure.
Published: August 14, 2025
Explore BasketPlanned Obsolescence
These companies have mastered the art of creating products designed for replacement. Our analysts have carefully selected businesses that benefit from predictable upgrade cycles, generating reliable revenue streams as consumers continually refresh their purchases.
Published: June 17, 2025
Explore BasketRazor & Blade Cartel
This carefully selected group of stocks represents companies that have mastered the art of customer lock-in. These businesses offer attractive initial products to secure customers, then generate predictable, high-margin revenue from necessary add-ons and consumables. Each company has been chosen by expert analysts for their successful execution of this powerful business strategy.
Published: June 17, 2025
Explore BasketThe Turnaround Artists
These companies are led by elite CEOs with impressive track records of rescuing struggling businesses. Our analysts have carefully selected these stocks based on leadership that has the potential to engineer dramatic corporate revivals and create significant investor value.
Published: June 17, 2025
Explore BasketInvestment 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.
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