HP Expects Strong PC Demand Amid Tariffs, Raises Profit Guidance

HP Inc reported Q3 sales up 3.1% to $13.9bn and expects mid-single digit growth in the current period. Earnings, excluding some items, will be $87-$97 a share, beating analyst expectations. The company's PC sales rose 6% and AI PCs now make up over 25% of its product mix. Tariff resilience has been key to the company's performance.

HP Inc. (HP) reported robust third-quarter (Q3) results, with net revenue up 3.1% to $13.9 billion, surpassing analyst expectations. The company's adjusted earnings per share (EPS) of $0.75, down 10.7% from the prior year, also beat estimates. This performance was driven by a 6% increase in personal systems (PS) sales and strong momentum in key growth areas, such as AI PCs, which now make up over 25% of the product mix.

Enrique Lores, President and CEO of HP Inc., commented on the results, "In Q3, we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas. These results demonstrate our agility and focused execution in the quarter, reinforce the strength of our strategy, and our commitment to be a leader in the future of work."

Karen Parkhill, CFO of HP Inc., added, "Looking forward, we remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption."

HP Inc. also reported a net cash provided by operating activities of $1.7 billion and generated $1.5 billion in free cash flow during the quarter. The company returned $0.4 billion to shareholders through dividends and share repurchases. HP exited the quarter with $2.9 billion in gross cash.

For the fiscal 2025 fourth quarter, HP Inc. expects GAAP diluted net EPS to be in the range of $0.75 to $0.85, and non-GAAP diluted net EPS to be in the range of $0.87 to $0.97. The company anticipates generating free cash flow in the range of $2.6 to $3.0 billion for the full year.

The company's strong performance can be attributed to tariff resilience, which has been key to its ability to maintain profitability amidst global economic uncertainty. HP Inc. continues to focus on its strategic plans, including initiatives related to the future of work and the development of new products and services.

References:
[1] https://www.hp.com/us-en/newsroom/press-releases/2025/hp-inc-reports-fiscal-2025-third-quarter-results.html