HPXSWX:HPQ -1.69%73 Gross Margin % is 20.93% as of Apr. 2026, which is 9% above its 10-year median of 19.25. GuruFocus rates XSWX:HPQ with a GF Score™ of 73/100 and a GF Value™ of CHF26.43. The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, HP ranks worse than 59.9% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. HP's Gross Profit for the
three
months ended in Apr. 2026 was CHF2,375 Mil. HP's Revenue for the
three
months ended in Apr. 2026 was CHF11,348 Mil. Therefore, HP's Gross Margin % for the quarter that ended in Apr. 2026 was 20.93%.
The historical rank and industry rank for HP's Gross Margin % or its related term are showing as below:
XSWX:HPQ'
s Gross Margin % Range Over the Past 10 Years
Min: 18.25 Med: 19.25 Max: 22.07
Current: 20.32
During the past 13 years, the highestGross Margin % of HP was 22.07%. The lowest was 18.25%. And the median was 19.25%.
XSWX:HPQ's Gross Margin % is ranked worse than 59.9% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs XSWX:HPQ: 20.32
HP had a gross margin of 20.93% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for HP was 2.30% per year.
HP (XSWX:HPQ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
HP had a gross margin of 20.93% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
HP Gross Margin % Related Terms
HP Gross Margin % Historical Data
* Premium members only.
The historical data trend for HP's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:HPQ vs P, IONQ, SMCI: Gross Margin % Comparison
For the Computer Hardware subindustry, HP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HP Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, HP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HP's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
HP (XSWX:HPQ) has a Gross Margin % of 20.93% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HP and its competitors. This is near median its historical median of 19.25. Over the past decade, HP's Gross Margin % has ranged from 18.25 to 22.07. According to the industry distribution chart, HP ranks #1470 out of 2454 companies in the Hardware industry, placing it in the top 59.9%.
Is HP's Gross Margin % too high?
HP's current Gross Margin % of 20.93% is near median its 10-year median of 19.25. Over the past 10 years, this metric has ranged from a low of 18.25 to a high of 22.07. The Hardware industry median Gross Margin % is 24.57. HP's value of 20.93% is 14.8% below this industry median. Based on the distribution chart, HP ranks #1470 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, HP has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does HP's Gross Margin % compare to P and IONQ?
According to the Hardware industry distribution chart, HP ranks #1470 out of 2454 companies for Gross Margin %. This places HP in the lower half of its industry. The industry median Gross Margin % is 24.57. HP's value of 20.93% is 14.8% below this benchmark. Historically, HP's own Gross Margin % has ranged from 18.25 to 22.07 over the past decade. While the company's 10-year median is 19.25 vs. the industry median of 24.57, HP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HP's current Gross Margin % of 20.93% is 14.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on HP and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HP's current Gross Margin % is 20.93%, which is near median its own 10-year median of 19.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HP stock overvalued right now?
HP (XSWX:HPQ) has a current Gross Margin % of 20.93%. The stock's GF Value™ is CHF26.43, compared to a current price of CHF18.58 — trading 29.7% below its estimated fair value. The current Gross Margin % is 20.93%, which is near median its 10-year median of 19.25 and 14.8% below the Hardware industry median of 24.57. HP's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For HP (XSWX:HPQ), the current Gross Margin % is 20.93% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HP (XSWX:HPQ) Overvalued in 2026?
Based on GuruFocus' analysis, HP stock appears to be undervalued.
The current stock price of CHF18.58 is trading 29.7% below its estimated GF Value™ of CHF26.43.
Key valuation signals for XSWX:HPQ:
Gross Margin %: 20.93% (near median its 10-year median of 19.25)
GF Value™: CHF26.43 vs. price of CHF18.58 (29.7% below fair value)
Industry Position: 14.8% below the Hardware median (#1470 of 2454)
No single metric tells the full story. See the XSWX:HPQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one third of sales coming from the US. HP completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.
73GF Score
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