HP 2025 Q3 Earnings Net Income Surges 19.2%

HP (HPQ) reported its fiscal 2025 Q3 earnings on Aug 28th, 2025, delivering a strong performance across key metrics. Revenue rose 3.1% year-over-year to $13.93 billion, driven by sustained demand in Personal Systems and resilient performance in the Printing segment. The company's net income increased by 19.2% to $763 million, with EPS climbing 24.6% to $0.81, reflecting HP’s continued operational efficiency and margin discipline.

HP (HPQ) reported its fiscal 2025 Q3 earnings on Aug 28th, 2025, delivering a strong performance across key metrics. Revenue rose 3.1% year-over-year to $13.93 billion, driven by sustained demand in Personal Systems and resilient performance in the Printing segment. The company's net income increased by 19.2% to $763 million, with EPS climbing 24.6% to $0.81, reflecting HP’s continued operational efficiency and margin discipline.

Revenue
HP's Q3 revenue was broadly supported by its Personal Systems division, which generated $9.93 billion, with Commercial PS accounting for $7.04 billion and Consumer PS contributing $2.90 billion. The Printing segment reported $3.99 billion in revenue, with Commercial Printing at $1.11 billion and Consumer Printing at $269 million. Additional business segments included Supplies at $2.60 billion, Corporate Investments at $16 million, and a small negative revenue adjustment of $1 million in the Other category. The performance underscored the company's diversified revenue model and its resilience in a dynamic market environment.

Earnings/Net Income
HP’s Q3 performance highlighted its strong profitability, with net income reaching $763 million, up from $640 million in the prior year. Earnings per share surged to $0.81, a 24.6% increase compared to $0.65 in 2024 Q3. The company’s consistent profitability over more than 20 years in the fiscal quarter underscored its operational resilience and effective cost management.

Price Action
HPQ's stock price demonstrated mixed performance in the short term, with a 0.11% decline in the latest trading day, followed by a 6.66% gain for the week and a 10.44% increase month-to-date.

Post-Earnings Price Action Review
A trading strategy of buying HPQ on a revenue beat and holding for 30 days resulted in a 28.11% return, but this underperformed the benchmark return of 79.85%. The strategy's CAGR of 5.19% and a Sharpe ratio of 0.16 indicated a low-risk but modestly performing approach, with a maximum drawdown of 0.00%.

CEO Commentary
Enrique J. Lores, HP's CEO, highlighted the company’s fifth consecutive quarter of growth, driven by robust performance in Personal Systems, AI PC adoption, and services expansion. He emphasized ongoing efforts to reduce trade-related costs through manufacturing diversification and pricing adjustments, noting that nearly all North American products are now produced outside China. Lores expressed confidence in HP’s strategic positioning within premium segments and its commitment to long-term margin improvement.

Guidance
For Q4 2025, HP expects Personal Systems revenue to align with historical seasonality, with operating margins projected between 5% and 7%. Printing revenue is also expected to follow similar seasonality, with operating margins near the top end of the 16% to 19% range. Non-GAAP diluted EPS is anticipated to be between $0.87 and $0.97, while GAAP diluted EPS is forecasted at $0.75 to $0.85. Free cash flow for fiscal 2025 is projected to range between $2.6 billion and $3 billion, including $400 million in restructuring charges. The company remains optimistic about the PC market's mid-single-digit growth in 2025 and beyond, driven by the Windows 11 refresh and AI adoption, while acknowledging softer demand in hybrid systems.

Additional News
Recent news in the technology and business sectors included notable developments across multiple categories. In the realm of M&A activity, several significant deals were announced, including strategic partnerships aimed at enhancing technological capabilities and expanding market reach. C-Level changes also dominated headlines, with high-profile appointments and transitions reshaping leadership structures across industries. Additionally, companies revealed new dividend and buyback initiatives, signaling confidence in their financial stability and long-term growth prospects. These developments underscored the dynamic nature of the corporate landscape, with key players adapting to evolving market conditions and investor expectations.