HP Inc. (HPQ) and Apple Inc. (AAPL) are two leading players in the computer hardware industry, each with distinct market segments. HP focuses on personal computing, workstations, and printing services, while Apple operates an integrated ecosystem including iPhones, Macs, iPads, wearables, and digital services. Both companies are investing in AI-enabled products to drive growth and customer engagement.
HPQ is well-positioned to benefit from the rising demand for AI-capable personal computers, premium commercial devices, and industrial printing. In the third quarter of fiscal 2026, AI PCs accounted for 46% of Personal Systems shipments, up from 44% in the previous quarter. HPQ expects this mix to reach 50% by fiscal year-end and 60-70% in fiscal 2027. The company is also collaborating with over 150 software partners to expand AI use cases. HPQ's premium and commercial PC strategy is already delivering revenue growth despite declining unit volumes. In the third quarter of fiscal 2026, Personal Systems revenues increased 18.5% year over year to $11.77 billion, while PC units declined 15.8%. The Zacks Consensus Estimate for HPQ's fiscal 2027 revenues is $60 billion, indicating year-over-year growth of 8.5%.
Apple is leveraging its integrated hardware and software ecosystem, growing Services business, and expanding AI capabilities. The company introduced the iPhone 18 Pro in September 2026, featuring the A20 Pro chip and enhanced Siri AI capabilities. Apple's Services revenues increased 12.1% year over year to $30.74 billion in the third quarter of fiscal 2026, accounting for 28.1% of total sales. The Mac business is another potential growth driver, with third-quarter fiscal 2026 Mac revenues increasing 28.7% year over year to $10.35 billion. The Zacks Consensus Estimate for Apple’s fiscal 2026 revenues is $477 billion, indicating year-over-year growth of 14.7%.
Shares of HPQ and AAPL have surged 45.7% and 26.5%, respectively, in the year-to-date period. HPQ is trading at a forward 12-month Price-to-Sales ratio of 0.48X, much lower than AAPL’s P/S multiple of 9.55X. From a valuation perspective, HPQ seems to be a better choice right now. Both HPQ and AAPL carry a Zacks Rank #3 (Hold) at present.