HP Inc: Q4 2024 Earnings Call - Revenue Surge and Market Share Gains

HP Inc. (HPQ) has delivered a strong performance in the fourth quarter of 2024, with revenue growth and market share gains driving optimism for the future. The company's earnings call highlighted significant progress in its Personal Systems and Print segments, as well as a strategic shift in resources and investment that has paid off in recent quarters.

The company's revenue increased by 1.7% year-over-year (YoY) to $14.1 billion, marking the second consecutive quarter of growth. This impressive performance was driven by steady progress in Personal Systems and Print, with HP President and CEO Enrique Lores attributing the success to the company's focused efforts in these segments.

HPQ's strong performance can be attributed to several strategic initiatives within Personal Systems and Print. In Personal Systems, the company's premium consumer PC portfolio, including the Spectre and Envy lines, has resonated with consumers seeking high-end design and performance features. Additionally, HP's gaming portfolio, led by the Omen brand, has gained traction among enthusiasts and casual gamers alike. In the Print segment, HP has focused on driving growth through its managed print services, which offer customers a comprehensive, cost-effective solution for their printing needs. These services have helped HP secure new contracts and expand its customer base in both enterprise and small-to-medium business segments.



HP's competitors have struggled to match their strategic focus on Personal Systems and Print, leading to market share gains for the company. According to Gartner, HP's market share in the PC segment increased from 21.2% in Q2 2023 to 22.1% in Q2 2024, while Dell's share fell from 17.1% to 16.6% during the same period. Similarly, IDC reports that HP's market share in the printer segment rose from 42.8% in 2023 to 43.5% in 2024, as Canon's share decreased from 41.6% to 40.2% during the same period. This demonstrates the effectiveness of HP's strategic focus in maintaining and enhancing its market position.



Looking ahead, HPQ is well-positioned to capitalize on the commercial opportunity and lead the future of work. The company's solid growth across revenue, non-GAAP net earnings, EPS, and free cash flow positions it strongly for the future. With a 5% increase in its annual dividend, HPQ is poised to continue delivering value to shareholders while maintaining its competitive edge in the market.

In conclusion, HP Inc.'s Q4 2024 earnings call highlights the company's remarkable performance, with revenue growth and market share gains driven by a strategic focus on Personal Systems and Print. As competitors struggle to keep up, HPQ's success underscores the importance of a balanced, diversified investment strategy that considers multiple factors and market trends. Investors should continue to monitor HPQ's progress as it navigates the dynamic technology landscape and delivers value to shareholders.