Wall Street Breakfast HP downsizes to power up
6 snips
Nov 26, 2025 HP faces challenges with a disappointing forecast and plans to cut 6,000 jobs while shifting focus to AI products. Meanwhile, the Trump administration has negotiated a massive 71% discount on popular diabetes medications for Medicare patients. Foxconn is set to invest an additional $569 million in Wisconsin, aiming to bolster US AI infrastructure and create new jobs. Trending stories include a potential revival of 'Rush Hour 4' and an antitrust probe against Meta related to WhatsApp. Market movements and a coffee symposium highlight the latest in investment news.
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HP Restructures To Prioritize AI
- HP plans deep restructuring to stay competitive amid near-term weakness.
- Management will cut up to 6,000 jobs and shift spending toward AI-driven products and productivity tools.
Quarterly Beat But Weak Forward Guide
- HP beat quarterly expectations with adjusted EPS of $0.93 and revenue of $14.64 billion.
- Despite the beat, the company gave weaker fiscal 2026 guidance with a midpoint below analyst estimates.
Medicare Scores Big Drug Price Cuts
- The Trump administration struck a negotiated price cut for 15 drugs under Medicare's negotiation program.
- CMS will pay $274 for a 30-day supply versus $959 today, a 71% reduction effective in 2027 and expected to save ~$12 billion.