HP Inc. stock research
FY2026 Q1
HP (HPQ) Gross Margin — Quarter Ended Jan 31, 2026
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit decreased from the prior quarter and was unchanged from a year earlier, while cost of revenue declined slightly from the prior quarter but increased from a year ago, resulting in a gross margin that weakened compared with both periods.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit decreased from the prior quarter and was unchanged from a year earlier, while cost of revenue declined slightly from the prior quarter but increased from a year ago, resulting in a gross margin that weakened compared with both periods.
- The relative movement of cost of revenue compared with revenue drove the margin change: from the prior quarter, cost of revenue fell less than revenue, and from a year ago, cost of revenue rose while gross profit was flat.
- Compared with the prior quarter, gross margin weakened as revenue and gross profit both decreased, but cost of revenue declined less. Compared with the same quarter last year, gross margin also weakened because revenue grew while gross profit was unchanged, implying a higher cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.6%
Gross profit
$2.8B
Revenue
$14.4B
Cost of revenue
$11.6B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 30, 2025 | $13.2B | $2.7B | $10.5B | 20.7% |
| Jul 31, 2025 | $13.9B | $2.9B | $11.1B | 20.5% |
| Oct 31, 2025 | $14.6B | $3.0B | $11.7B | 20.2% |
| Jan 31, 2026 | $14.4B | $2.8B | $11.6B | 19.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
-0.6 pts
Year-over-year change
Jan 31, 2025
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative movement of cost of revenue compared with revenue drove the margin change: from the prior quarter, cost of revenue fell less than revenue, and from a year ago, cost of revenue rose while gross profit was flat.
Compared with the prior quarter, gross margin weakened as revenue and gross profit both decreased, but cost of revenue declined less. Compared with the same quarter last year, gross margin also weakened because revenue grew while gross profit was unchanged, implying a higher cost of revenue.
Monitor whether the gross margin stabilizes or continues to weaken in the next quarter.