HP Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.66%.
Did HPQ Beat Earnings? Q3 2025 Results
HP Inc. delivered a mixed fiscal third quarter, posting revenue of $13.93 billion, up 3.0% year over year and ahead of the $13.71 billion consensus by 1.65%, while non-GAAP EPS of $0.75 came in essentially flat against the $0.75 estimate, missing by just 0.04%. The headline story was Personal Systems, where a surge in AI PC adoption, with those units now representing one quarter of shipments ahead of schedule, helped drive segment revenue up 6% to $9.93 billion; the momentum has analysts watching whether <a href="https://247wallst.com/investing/2025/08/27/live-hp-inc-hpq-reports-earnings-today-will-shares-decline/">shares can hold gains</a> into the next quarter. Printing remained a structural drag, with segment revenue falling 4% to $3.99 billion, though a 17.3% operating margin showed the unit's profitability resilience. Tariff-related costs weighed on margins across the board, compressing non-GAAP operating margin to 7.1% from 8.2% a year ago. Looking ahead, HP guided Q4 non-GAAP EPS of $0.87 to $0.97 and reaffirmed full-year free cash flow of $2.60 billion to $3.00 billion, citing continued Windows 11 refresh cycles and AI PC demand as key tailwinds.
- Fifth consecutive quarter of revenue growth driven by Personal Systems strength
- Consumer PS revenue up 8% and units up 8% year over year
- Commercial PS revenue up 5% year over year
- Windows 11 refresh cycle momentum
- AI PC adoption driving demand
- Strong free cash flow generation of $1.5 billion in the quarter
“In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas. These results demonstrate our agility and focused execution in the quarter, reinforce the strength of our strategy, and our commitment to be a leader in the future of work.”
HP CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q4 2025, HP estimates GAAP diluted net EPS of $0.75 to $0.85 and non-GAAP diluted net EPS of $0.87 to $0.97. For full fiscal year 2025, HP anticipates generating free cash flow of $2.6 to $3.0 billion. HP's outlook reflects the added cost driven by current U.S. trade-related regulations in place and associated mitigations. Management expects continued momentum from Windows 11 refresh and AI PC adoption.
HPQ YoY Financials
HPQ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.