HP Inc. reported fourth‑quarter 2025 results on November 25, 2025, with net revenue of $14.6 billion, a 4.2% year‑over‑year increase that reflects a 8% rise in the Personal Systems segment and a 4% decline in Printing revenue. The company’s non‑GAAP diluted earnings per share were $0.93, beating the consensus estimate of $0.91–$0.92 by $0.01–$0.02, or roughly 1–2%. The beat was driven by disciplined cost management and a favorable product mix that shifted toward higher‑margin PCs and AI‑enabled devices.
The Personal Systems segment, which includes laptops, desktops, and workstations, grew 8% YoY, supported by strong demand for AI‑powered PCs and the Windows 11 refresh cycle. In contrast, the Printing segment fell 4% as the market for traditional printers and copiers continues to contract, a trend that HP has been addressing through product portfolio rationalization and a focus on high‑margin services.
Operating margins contracted modestly: the non‑GAAP operating margin fell to 8.0% from 8.8% in Q4 2024, reflecting higher memory and component costs that offset the revenue lift. Despite margin pressure, HP maintained a robust cash‑flow profile, with free cash flow of $1.2 billion, up from $1.0 billion in the prior year, thanks to strong working‑capital management and disciplined capital allocation.
Management highlighted the company’s AI strategy and cost‑mitigation program, noting that the 4,000‑to‑6,000‑person workforce reduction is part of a broader initiative to achieve $1 billion in gross‑run‑rate savings by fiscal 2028. CEO Enrique Lores said the company’s “Future of Work” strategy continues to deliver revenue growth and that disciplined execution will sustain profitability amid rising component costs.
The market reaction was mixed: while the earnings beat expectations, investors focused on the announced workforce reductions and the lack of a clear FY2025 guidance range, which left uncertainty about the company’s long‑term outlook. Analysts noted that HP’s guidance for FY2026—projected non‑GAAP EPS of $2.90 to $3.20—does not provide a direct comparison to FY2025, adding to the cautious sentiment.
HP’s dividend was increased to $0.30 per share, reflecting confidence in cash‑flow generation and a commitment to shareholder returns.
The company’s guidance for FY2025 was not disclosed in the earnings release, and the previously cited $3.00–$3.30 range is unsupported by the available data. Investors should therefore focus on the FY2026 guidance and the company’s strategic initiatives as the primary forward‑looking indicators.
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