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Is HP (HPQ) Using Gaming Education And Buybacks To Redefine Its Long‑Term Profit Story?

Simply Wall St·12/04/2025 09:32:52
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  • In recent weeks, Xsolla announced a relationship with HP that links HP’s Gaming Garage learning platform to Xsolla’s Accelerator, aiming to reach over 100,000 aspiring game creators globally through integrated education, incubation, and access to industry resources, while HP also reported its fourth-quarter and full-year 2025 results, issued fiscal 2026 guidance, raised its quarterly dividend to US$0.30 per share, updated its long-running buyback, and scheduled a UBS conference appearance.
  • The combination of HP’s earnings, capital returns, and its push into game education and entrepreneurship with Xsolla highlights how the company is pairing shareholder payouts with efforts to build new ecosystems around its technology and services.
  • With HP’s profitability under scrutiny and its Gaming Garage–Xsolla tie-up expanding developer outreach, we’ll examine how this shapes HP’s investment narrative.

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HP Investment Narrative Recap

To own HP, you need to believe its core PC and print businesses can generate steady cash flows while new initiatives, like gaming and services, gradually broaden the model. The latest earnings showed modest revenue growth but weaker profitability, so margin recovery remains the key short term catalyst, while persistent pressure in print and PC hardware is still the biggest risk. The Gaming Garage partnership with Xsolla does not materially change that near term picture.

Among the recent announcements, HP’s fiscal 2026 EPS guidance of US$2.47 to US$2.77 stands out as most relevant. It gives investors a reference point for how management sees earnings holding up while HP continues to invest in areas like AI PCs, gaming, and education programs such as the Xsolla collaboration, against competitive and structural headwinds in its print and PC businesses.

Yet investors should be aware that ongoing structural declines in traditional print demand could still...

Read the full narrative on HP (it's free!)

HP's narrative projects $56.8 billion revenue and $2.9 billion earnings by 2028.

Uncover how HP's forecasts yield a $25.92 fair value, a 3% upside to its current price.

Exploring Other Perspectives

HPQ Community Fair Values as at Dec 2025
HPQ Community Fair Values as at Dec 2025

Four members of the Simply Wall St Community value HP between US$25.93 and US$47.11 per share, highlighting a wide spread of views. Set this against the risk that long term shifts away from traditional PCs and printers may weigh on HP’s core earnings and consider how different scenarios could affect the company’s ability to support its ecosystem investments over time.

Explore 4 other fair value estimates on HP - why the stock might be worth as much as 87% more than the current price!

Build Your Own HP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your HP research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
  • Our free HP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HP's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.