HP Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.08%.
Did HPQ Beat Earnings? Q4 2025 Results
HP Inc. closed its fiscal fourth quarter with a modest but clean beat, reporting non-GAAP EPS of $0.93 against the $0.92 consensus estimate, a 1.09% beat, while revenue of $14.64 billion edged past the $14.54 billion forecast and rose 4.2% year over year, marking the company's sixth consecutive quarter of revenue growth. The primary engine was Personal Systems, which surged 8% to $10.35 billion on the strength of a 10% jump in Consumer PS revenue, more than offsetting an ongoing 4% decline in Printing to $4.27 billion. The results, however, carried meaningful caveats: non-GAAP operating margin compressed to 8.0% from 8.8% a year ago, and analysts have flagged rising memory costs as a potential 10% drag on fiscal 2026 EPS. To address structural margin pressure, HP unveiled a sweeping restructuring plan targeting roughly $1.00 billion in gross run-rate cost savings by fiscal 2028, involving 4,000 to 6,000 job cuts. Looking ahead, HP guided full-year fiscal 2026 non-GAAP EPS of $2.90 to $3.20, with the outlook explicitly incorporating costs tied to current U.S. trade regulations.
- Sixth consecutive quarter of revenue growth
- Personal Systems revenue up 8% YoY driven by strong Consumer PS growth of 10% and Commercial PS growth of 7%
- Total Personal Systems units up 7% YoY
- Strong profit improvement in the back half of fiscal 2025
- Returned 66% of free cash flow to shareholders in fiscal 2025
“HP's strategy to lead the Future of Work continues to deliver strong performance, marked by our sixth consecutive quarter of revenue growth. Our FY25 results reinforce the power of our portfolio and the strength of our team in a dynamic environment. As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution. We are committed to driving measurable results - ensuring that our plans translate into long-term value for our shareholders.”
HP CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2026, HP estimates GAAP diluted net EPS of $0.58 to $0.66 and non-GAAP diluted net EPS of $0.73 to $0.81. For full fiscal year 2026, HP estimates GAAP diluted net EPS of $2.47 to $2.77 and non-GAAP diluted net EPS of $2.90 to $3.20, with free cash flow anticipated in the range of $2.8 to $3.0 billion. The outlook reflects added costs driven by current U.S. trade-related regulations and associated mitigations. HP also announced a company-wide initiative targeting approximately $1 billion in gross run-rate cost savings by the end of fiscal 2028, with approximately $650 million in restructuring charges and a global headcount reduction of approximately 4,000-6,000 employees.
HPQ YoY Financials
HPQ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.