HP 2025 Q4 Earnings Earnings Decline Despite Revenue Growth

HP (HPQ) reported its fiscal 2025 Q4 earnings on Nov 25, 2025, with revenue rising 4.2% to $14.64 billion but EPS declining 9.6% to $0.85. The company exceeded revenue expectations but provided guidance below analyst forecasts, signaling cautious optimism amid cost pressures.

Revenue

HP’s total revenue increased to $14.64 billion in Q4 2025, driven by robust performance in its Personal Systems segment, which generated $10.35 billion, including $6.97 billion in Commercial PS and $3.38 billion in Consumer PS. The Printing segment contributed $4.27 billion, with Supplies accounting for $2.76 billion, while Commercial Printing and Consumer Printing reported $1.21 billion and $296 million, respectively. Corporate Investments and Other segments added $19 million and $1 million.

Earnings/Net Income

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

Post-Earnings Price Action Review

The strategy of buying HP shares 30 days after earnings releases following three years of revenue growth delivered poor performance, with a CAGR of -7.71% and total return of -19.68%, underperforming the benchmark’s 66.23%. The approach exhibited high volatility (32.83%) and a Sharpe ratio of -0.23, indicating a high-risk, low-reward profile.

CEO Commentary

CEO Enrique Lores highlighted six consecutive quarters of revenue growth, driven by personal systems and AI PCs, while acknowledging print market challenges. Strategic priorities include AI innovation and supply chain resilience, alongside a $1 billion AI-driven productivity initiative over three years.

Guidance

HP guided to FY2026 non-GAAP EPS of $2.90-$3.20, with revenue growth in personal systems and print. Memory cost pressures are expected to impact margins, while free cash flow is projected at $2.8-$3 billion.

Additional News

1. Job Cuts: HP announced plans to reduce 4,000-6,000 global jobs by 2028 to streamline operations and boost AI initiatives, sparking a 5.5% post-announcement stock decline.

2. AI Investments: The company launched AI-driven products, including the AI Station, and aims to save $1 billion through cost transformations.

3. Dividend Increase: HP raised its quarterly dividend to $0.30 per share, reflecting confidence in its financial stability despite market challenges.