HP 2025 Q4 Earnings Beats Revenue Estimates, EPS Declines 9.6%

HP (HPQ) reported fiscal 2025 Q4 earnings on Nov 25, 2025, with total revenue rising 4.2% year-over-year to $14.64 billion, surpassing the $14.5 billion consensus estimate. However, the company’s guidance for FY26 EPS of $2.90–$3.20 fell below the $3.32 analyst expectation, signaling cautious outlook amid cost pressures.

Revenue

HP’s revenue growth was driven by robust performance in the Personal Systems segment, which generated $10.35 billion, including $6.97 billion from Commercial PS and $3.38 billion from Consumer PS. The Printing segment contributed $4.27 billion, with Supplies accounting for $2.76 billion. Commercial Printing revenue stood at $1.21 billion, while Consumer Printing added $296 million. Corporate Investments and Other segments reported $19 million and $1 million, respectively.

Earnings/Net Income

HP’s EPS declined 9.6% to $0.85 in Q4 2025 from $0.94 in Q4 2024, while net income fell 12.3% to $795 million. Despite the decline, the company has maintained profitability for over two decades, reflecting operational resilience.

Price Action

HP’s stock edged down 0.33% on the latest trading day but gained 7.09% weekly. Month-to-date, it tumbled 12.08%, aligning with broader market volatility.

Post-Earnings Price Action Review

The strategy of buying HP shares 30 days after a revenue increase over three years yielded poor returns, with a CAGR of -7.71% and total return of -19.68%, underperforming the benchmark. High volatility (32.83%) and a Sharpe ratio of -0.23 underscored the strategy’s high-risk, low-reward profile.

CEO Commentary

CEO Enrique Lores highlighted sequential profit improvements and AI-driven innovations, including 30% of shipments being AI PCs. He emphasized supply chain resilience and cost mitigation efforts amid memory price challenges.

Guidance

For FY26, HP anticipates Personal Systems growth aligned with a low single-digit PC market, with Print revenue declines tempered by industrial and subscription growth. Non-GAAP EPS guidance of $2.90–$3.20 factors in $0.30 of memory cost impact. Operating margins for Personal Systems are projected at 5–6% in H1, with full-year margins pressured to the low end of 5–7%.

Additional News

HP announced plans to cut 4,000–6,000 jobs by 2028 as part of an AI-driven restructuring, aiming for $1 billion in annual savings. Despite the job cuts, the company exceeded Q4 EPS estimates at $0.93, outperforming the $0.92 consensus. The restructuring includes $650 million in costs, with $250 million incurred in FY26.