What is the market's earnings forecast for HP next quarter?

What were the key takeaways from HP's earnings call?

Did HP beat or miss consensus estimates last quarter?

What factors drove the changes in HP's revenue and profit?

What does HP do and what are its main business segments?

What is HP's gross profit margin?

What is the revenue and EPS growth rate for HP year over year?

What were the key takeaways from HP’s earnings call?

- **Revenue Growth**: Q4 2025 revenue up 4% YoY, driven by 8% growth in Personal Systems and double-digit gains in AI PCs. FY25 key growth areas (AI, print solutions) contributed >1/3 of revenue.
- **AI Transformation**: $1B+ savings target via AI by FY28, with 4,000-6,000 workforce reductions. Internal AI adoption boosted productivity 16%.
- **Memory Headwinds**: FY26 EPS guidance reduced by $0.30 due to rising memory costs (15-18% of PC COGS). First half unaffected by inventory, second half to see margin pressure.
- **Free Cash Flow**: FY26 expected $2.8B-$3.0B, supporting 100% dividend payout. Dividend raised to $0.30/Q, 10th consecutive increase.
- **Strategic Wins**: 10 new customers from top 200 companies in Workforce Solutions. Industrial graphics revenue exceeds $1.8B annually.


**【CEO Summary Section】**
- **Q4 2025 Performance**: Revenue grew 4% YoY, driven by Personal Systems (8% YoY) and AI-powered devices. Non-GAAP EPS was $0.93, above midpoint of guidance. AI PCs represented over 30% of shipments, with double-digit revenue growth in advanced compute solutions.
- **AI Strategy**: Embedding AI into product development, customer service, and operations to achieve $1B in gross savings by FY28, with 4,000-6,000 workforce reductions.
- **Memory Cost Challenges**: Memory costs (15-18% of PC COGS) expected to impact FY26 margins. Mitigation strategies include supplier diversification, redesigns, and price adjustments. First half of FY26 expected to be unaffected due to inventory on hand.
- **FY26 Outlook**: Personal Systems revenue growth driven by Windows 11 refresh (60% installed base converted), AI PCs, and premium devices. Print to grow faster than industry decline via Big Tank and subscriptions. Workforce Solutions to expand recurring revenue.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $14.2B (4% YoY), Non-GAAP EPS $0.93 (24% sequential increase). Free cash flow $1.6B, FY25 total $2.9B. Dividend raised to $0.30/Q, 10th consecutive increase.
- **FY26 Guidance**: Non-GAAP EPS $2.90-$3.20 (down $0.30 due to memory costs). Free cash flow $2.8B-$3.0B. PS operating margin 5-6% in H1, print margins 16-19%.
- **Cost Management**: Future-ready program delivered $2.2B in savings vs. $1.4B target. Restructuring charges $650M over 3 years, $250M in FY26.

**【Q&A Highlights】**
- **Memory Mitigation**: Workforce Experience platform used to optimize configurations for 2.4M connected endpoints. Pricing adjustments to be tactical, with 30-40% AI PC penetration targeted for FY26.
- **Print Strategy**: Big Tank and industrial printing growth offsetting traditional hardware decline. All-In subscriptions nearing $1B annual revenue. Supplies share gains despite 2% decline.
- **AI Impact**: Internal AI adoption boosted productivity 16%. AI station for edge computing and 49-inch ultra-wide monitor with AI noise reduction showcased innovation.
- **Tariff Considerations**: No immediate PCV inflation concerns. Focus on profitable unit placement in print and premium mix in PS.


HP Inc. (HPQ) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: 3% YoY driven by 6% Personal Systems growth, AI PCs at 25% of mix (25% ahead of target).
- **Trade Mitigation Success**: $200M+ costs offset; all North America products now non-China-sourced.
- **AI Leadership**: AI PCs with 5-10% ASP premium growing double-digit sequentially; ecosystem partnerships with Microsoft, Adobe, Zoom.
- **Financial Strength**: Non-GAAP EPS $0.75 vs. $0.72-$0.78 guidance; $1.7B free cash flow, $400M returned to shareholders.
- **Risk Management**: Print hardware softness due to enterprise AI/PC prioritization, but supplies and industrial graphics offset.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue increased 3% YoY, driven by Personal Systems (6% YoY growth) and strong AI PC adoption (25% of mix, ahead of target). Commercial and consumer segments both saw growth, with AI PCs growing double-digit sequentially.
- **Trade Mitigation**: Nearly all North America products now built outside China, reducing trade costs. Vietnam, Thailand, Mexico, and U.S. production ramped up.
- **AI Strategy**: AI PC ecosystem expanding with Microsoft, Adobe, and Zoom integrating NPU capabilities. Non-GAAP EPS up 6% sequentially, slightly above guidance midpoint.
- **Future-Ready Savings**: On track for $2B annualized gross savings by FY25, supporting margin improvements.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420M, Non-GAAP EPS $0.75 (vs. $0.72-$0.78 guidance). Free cash flow $1.7B, returning $400M to shareholders via dividends and buybacks.
- **Segment Performance**: Personal Systems revenue +6% YoY (margin back to target range), Print revenue -4% YoY (17.3% operating margin). Advanced compute and services drove key growth areas.
- **Cost Management**: Offset $200M+ in trade-related costs through pricing, diversification, and cost reductions. Future-ready savings program progressing toward $2B annualized target.

**【Q&A Highlights】**
- **Tariff Impact**: Mitigated majority of Q3 tariff costs; expect full offset by end of FY25. Sequential margin improvement in Q4 due to mitigation actions.
- **Print Business**: Office hardware demand soft due to enterprise AI/PC investment prioritization, but supplies and industrial graphics growth offset. 2026 outlook cautious due to macro uncertainty.
- **AI PC Margins**: AI PCs command 5-10% ASP premium, driving margin expansion. Momentum expected to continue with Windows 11 refresh and holiday season.
- **Capital Allocation**: Leverage ratio improving; expect increased buybacks if leverage <2x. FY25 free cash flow guidance $2.6B-$3B.

HP Inc. (HPQ) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: 5% constant-currency growth despite $0.12 EPS tariff impact, driven by 8% PC Commercial growth.
- **AI PC Acceleration**: 25% of PC shipments now AI-enabled, targeting >25% by year-end with 10-20% ASP premium.
- **Supply Chain Shifts**: All North America products now built outside China; $2B+ annual savings from cost restructuring.
- **FY25 Outlook**: $3-3.30 EPS vs. prior $3.15-3.45, reflecting cautious macro assumptions.
- **Tariff Mitigation**: 100% offset by Q4 via pricing, diversification, and cost actions.

**【CEO Summary Section】**
- HP delivered 5% constant-currency revenue growth in Q2, driven by 8% growth in Personal Systems (PCs) and strong Commercial demand. 
- Non-GAAP operating profit was impacted by $0.12 EPS from unmitigated tariffs, primarily in North America.
- The company is accelerating manufacturing diversification, with nearly all North America-bound products now built outside China by June 2025.
- AI PCs now represent ~25% of PC shipments, targeting >25% mix by year-end. Workforce solutions and industrial print also showed strong growth.
- FY25 guidance updated to $3-3.30 EPS, reflecting cautious market outlook amid macro uncertainty.

**【CFO Financial Commentary】**
- Q2 GAAP net income: $420M; Non-GAAP EPS: $0.71 (vs. $0.83 prior guidance). 
- Personal Systems operating margin: 4.5% (vs. 5-7% target), impacted by tariffs and commodity costs.
- Print segment operating margin: 18% (above 16-19% long-term range), driven by cost discipline and subscriptions growth.
- Free cash flow expected at $2.6-3.0B FY25, constrained by working capital investments for supply chain diversification.
- $2B+ annual structural savings from future-ready initiatives now expected by FY25, up from prior $1.8B target.

**【Q&A Key Themes】**
1. **PC Market Outlook**: FY25 global PC market growth revised to low-single digits (vs. prior mid-single), with Commercial demand resilience. 
2. **Tariff Mitigation**: 100% tariff impact expected to be offset by Q4 via pricing, supply chain shifts, and cost savings. 
3. **AI PC Strategy**: Mainstream AI PCs launched in Q2, targeting 50% of shipments in 3 years. Pricing premium of 10-20% vs. standard PCs.
4. **Cash Flow Dynamics**: Negative free cash flow in Q2 due to inventory builds; temporary leverage increase expected to persist into Q3.
5. **Print Resilience**: Supplies revenue down 3% YoY but offset by 3% unit growth in consumer segment. Workforce solutions and industrial print driving margin expansion.

HP Inc. (HPQ) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 revenue up 2% YoY, driven by commercial AI PC adoption and strategic realignment. 
- **AI Ecosystem Expansion**: Acquired [Human] assets to accelerate AI at the edge, targeting seamless device integration (e.g., PCs + conference rooms).
- **Cost Efficiency**: $1.9B annualized structural savings by FY25 via supply chain diversification (90% US products built outside China) and cost reductions.
- **Tariff Mitigation**: Current 10% China tariffs baked into FY25 guidance; additional tariffs would be offset via global production and pricing.
- **AI PC Momentum**: Penetration to reach 20%+ of shipments by end-FY25 (vs. 15%+ prev.), with 5-10% ASP premium. 40-60% adoption rate by 2027.
- **Print Resilience**: Double-digit growth in consumer subscriptions, 1M instant paper subscribers, and share gains in high-value print segments.


**【CEO Summary Section】**
- Q1 revenue grew 2% YoY, driven by commercial growth in Personal Systems and key strategic areas like AI PCs. Non-GAAP EPS of $0.74 slightly exceeded guidance.
- Announced acquisition of strategic assets from [Human] to accelerate AI ecosystem development across devices, including AI PCs and smart printers.
- Realigned key growth areas to focus on AI PCs, advanced compute, and workforce solutions, expecting these to grow faster than the core business.
- Committed to reducing structural costs by $1.9 billion annually by FY25 through the 'Future Ready' plan, including supply chain diversification (90% of North American products to be built outside China by FY25).
- Highlighted progress in Windows 11 refresh cycle and AI PC adoption, with Q4 2024 AI PC market growing 25% sequentially and HP gaining share.

**【CFO Financial Commentary】**
- Q1 GAAP net income: $420 million; Non-GAAP EPS: $0.74 (vs. $0.73 midpoint of guidance). 
- Gross margin: 21% (down 120bps YoY due to commodity costs), with improvements expected in H2 from pricing actions and cost reductions.
- Operating expenses: $2.3 billion (up 4% YoY), driven by strategic investments and future-ready savings ($1.9B annualized by FY25).
- Free cash flow: $70 million (Q1), with negative FCF expected in Q2 due to tariff mitigation inventory build-up.
- FY25 guidance: Non-GAAP EPS $3.45-$3.75, driven by PS growth (faster than market), print margin stability, and $190M incremental savings from future-ready plan.

**【Q&A Highlights】**
- **Tariff Mitigation**: 1/3 of revenue subject to China tariffs; 90% of US products to be built outside China by FY25. Current 10% tariff impact included in guidance; additional tariffs would be offset via global supply chain and pricing.
- **AI PC Penetration**: 20%+ of shipments by end-FY25 (vs. 15%+ previously), with 5-10% ASP premium. 40-60% adoption rate expected by 2027.
- **Print Market**: Competitive but stable; HP gained share in high-value A4 and A3 segments. Consumer subscriptions grew double-digit, with 1M instant paper subscribers.
- **Windows 11 Refresh**: Funnel growth indicates accelerating refresh activity; HP's premium AI PCs driving ASP expansion.
- **Supply Chain Resilience**: Post-COVID diversification efforts now paying off; 90%+ of production outside China for tariff-affected products.


HP (HPQ)-27 Feb 25-2025 Q1 Earnings call transcript

HP (HPQ)-26 Nov 24-2024 Q4 Earnings call transcript

- **Revenue Turnaround**: 2% YoY growth after 9 quarters, driven by Commercial PC and hybrid systems.
- **AI Leadership**: Next-gen AI PCs shipping, targeting 50% of shipments by 2027 with GenAI trust features.
- **Cost Efficiency**: Accelerating $1.3B savings by FY24, offsetting print market challenges.
- **Free Cash Flow**: $1.3B in Q3, with $3.1B-$3.6B FY24 guidance reaffirmed.
- **Print Recovery**: Q4 Print margin expected to improve to 16%-19% range with cost actions and seasonal strength.


**【CEO Summary Section】**
- **Revenue Growth**: Returned to year-over-year growth for the first time in 9 quarters (+2%), driven by strong Commercial PC and key growth areas like hybrid systems and video collaboration.
- **AI Strategy**: Accelerating AI PC shipments with next-gen models powered by Qualcomm and AMD, targeting 50% of shipments by 2027. HP AI Studio now includes GenAI trust features for safer AI development.
- **Cost Savings**: Future Ready program to achieve 80% of 3-year $1.6B cost savings target by FY24 end, offsetting market headwinds.
- **Margins**: Personal Systems operating margin at 6.4%, Print margin at 17.3% (below expectations due to pricing pressure and slower print market recovery).
- **Free Cash Flow**: $1.3B in Q3, with $29B returned to shareholders year-to-date.

**【CFO Financial Commentary】**
- **Topline**: Q3 revenue +2% YoY, driven by +5% Personal Systems (Commercial +8%, Consumer -1%). Print revenue -3% YoY due to slower print market recovery.
- **Profitability**: Non-GAAP EPS $0.83 (-$0.03 YoY), impacted by higher OpEx (+$300M YoY) and cost inflation. Free cash flow guidance remains $3.1B-$3.6B.
- **Cost Actions**: Accelerating Future Ready savings to $1.3B cumulative by FY24 end (80% of $1.6B target), focusing on Print business consolidation and supply chain efficiency.
- **Capital Allocation**: $10B share buyback authorization reaffirmed, targeting 100% free cash flow return.

**【Q&A Highlights】**
- **Print Margin Pressures**: Q3 Print margin at 17.3% due to aggressive pricing and China weakness. Q4 expected to improve to 16%-19% range with cost savings and seasonal strength.
- **AI PC Momentum**: Shipments ramping, with next-gen models gaining positive feedback. Expect AI PCs to represent 10%+ of shipments in H2FY24, driving ASPs and premium mix.
- **Commercial Refresh Cycle**: Windows 11 adoption accelerating, with enterprise refreshes still ahead. Q3 gov/edu revenue +6%-7%, supporting long-term growth.
- **Future Ready Impact**: $300M restructuring costs in FY24, but savings expected to offset headwinds and enable reinvestment in growth areas.


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