JPMorgan Raises HPQ Price Target to $105 Ahead of Earnings

Analysts at JPMorgan Chase & Co. increased their price target on shares of HP Inc. to $105 from a previous level of $98 in a research note distributed on Monday, 25 May 2026. The adjustment precedes the technology firm's forthcoming quarterly earnings announcement and implies a roughly 10% potential upside from HPQ's trading level. JPMorgan shares traded at $306.38, up 1.46% on the day, as of 17:57 UTC today, reflecting a strong session for the financial sector, while the broader market showed positive momentum with Target Corp. rising 2.67% to $125.60.

Context — [why this matters now]

The analyst action arrives during a critical period for the global personal computing market. After multi-quarter declines in shipments, industry trackers from IDC and Gartner have signaled a return to growth in the first quarter of 2026, driven by a long-anticipated refresh cycle for enterprise laptops and desktops. The last significant upgrade wave occurred in the immediate aftermath of the pandemic, with PC shipments surging over 13% year-over-year in Q1 2021 before entering a prolonged contraction.

The current macro backdrop is defined by stabilizing interest rates, with the 10-year Treasury yield hovering near 4.3%, providing a more predictable environment for corporate IT budgeting. What triggered JPMorgan's reassessment now is the confluence of this improving demand picture with HP's demonstrated success in defending its profit margins through cost-control measures, even during the downturn. The firm's upcoming earnings report will serve as a key test of whether these positive indicators are translating into tangible financial results.

Data — [what the numbers show]

JPMorgan's new $105 price target represents a 7.1% increase from its previous target of $98. Based on HPQ's closing price prior to the note, this projects an approximate 10% upside. HP Inc. commands a market capitalization of approximately $42 billion, positioning it as a major player in the hardware sector alongside competitors like Dell Technologies, which has a market cap near $95 billion.

The following table illustrates the change in analyst outlook:

Metric	Previous Target	New Target	Change
JPMorgan HPQ Price Target	$98	$105	+7.1%

Year-to-date, the S&P 500 Information Technology sector has advanced approximately 12%, slightly outperforming the broader S&P 500's 8% gain. HPQ's stock performance has been volatile, closely tied to quarterly shipment data, but has shown resilience in recent months as the recovery narrative gains traction. The company's forward price-to-earnings ratio of 12.5 sits below the sector median, often cited as a value opportunity if growth resumes.

Analysis — [what it means for markets / sectors / tickers]

The raised price target from a bulge-bracket institution like JPMorgan signals confidence that HP is a primary beneficiary of the commercial PC refresh cycle. This has positive second-order effects for semiconductor suppliers with significant exposure to the PC market, notably Intel (INTC) and AMD. Memory manufacturers like Micron Technology (MU) should also see sustained demand for DRAM and NAND modules used in new enterprise devices. Conversely, pure-play consumer PC brands or those with weaker commercial exposure may not capture the same magnitude of benefit.

A key limitation to this optimistic view is the risk that the refresh cycle proves shorter or less strong than currently anticipated, potentially due to enterprises extending device lifecycles further if macroeconomic uncertainty returns. Another counter-argument is that pricing pressure in the consumer segment could offset gains in the more profitable commercial segment. Options market flow data indicates that speculative positioning in HPQ has been leaning bullish in the weeks leading to earnings, with notable buying of out-of-the-money call options expiring in June and July.

Outlook — [what to watch next]

The immediate catalyst is HP Inc.'s fiscal second-quarter 2026 earnings report, scheduled for release on 2 June. Investors will scrutinize revenue from the Personal Systems segment and the accompanying operating margin for confirmation of the growth narrative. Following earnings, management's commentary on demand visibility for the second half of the year will be critical.

Key technical levels to monitor for HPQ include a support zone around $92, which has held on multiple tests over the past three months, and resistance near the 52-week high of $102. A decisive break above $102 on heavy volume following the earnings report would likely validate the bullish thesis and could propel the stock toward JPMorgan's $105 target. A failure to hold $92 would signal a breakdown of the recent positive momentum.

Frequently Asked Questions

What does a price target increase mean for HPQ stock?

A price target increase is an analyst's revised estimation of a stock's future value, typically over a 12-month horizon. JPMorgan's move to $105 suggests their research model now forecasts stronger earnings, revenue, or cash flows for HP Inc. than previously expected. It is not a guarantee of performance but reflects a professional assessment that often influences institutional investor sentiment and trading activity around the stock.

How does JPMorgan's HPQ target compare to other analysts?

The new $105 target places JPMorgan at the more optimistic end of the analyst consensus. The current average price target for HPQ among major brokerages is approximately $98, with ratings ranging from Underperform to Outperform. This divergence highlights differing views on the sustainability of the PC market recovery and HP's ability to maintain pricing power, making the upcoming earnings a key data point for the entire analyst community.

What is the historical accuracy of JPMorgan's tech stock forecasts?

Like all analysts, JPMorgan's accuracy varies. Their tech team has a strong track record in identifying long-term trends, such as the cloud computing shift, but short-term price targets can be volatile and are often adjusted after earnings reports. The credibility of this specific forecast will be tested by HP's actual financial results and guidance, making the early June earnings call a critical event for verifying the thesis.

Bottom Line

JPMorgan's target hike signals conviction in HP's earnings potential amid a commercial PC market rebound.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.