HP Surpasses Q3 Revenue Estimates on AI PC Adoption and Windows 11 Upgrade.

HP Inc. has reported Q3 revenue exceeding estimates, driven by the adoption of AI PCs and the Windows 11 upgrade. The company's net sales breakdown consists of 67.6% from computers and operating systems, and 32.4% from printing equipment. Exports account for 64.9% of net sales.

HP Inc. (HPQ) has reported its third-quarter fiscal 2025 results, with net revenue exceeding estimates by 3.3% year-over-year. The company's strong performance was driven by robust growth in its Personal Systems segment, particularly in AI PCs and Windows 11 upgrades [1].

The company's net sales breakdown for the quarter consisted of 67.6% from computers and operating systems, and 32.4% from printing equipment. Exports accounted for 64.9% of net sales, highlighting the company's significant international presence [1].

HP Inc. reported non-GAAP earnings per share (EPS) of 75 cents, down 9.6% from the year-ago quarter's EPS of 83 cents. However, the company's GAAP diluted net EPS was $0.80, up 23.1% from the prior-year period, indicating a strong underlying performance [3].

Key factors contributing to HP Inc.'s Q3 performance include:

- AI PCs: The adoption of AI PCs, driven by recent product launches and increased consumer demand, boosted top-line growth and sequential margin improvement [1].
- Windows 11 Refresh: The Windows 11 upgrade cycle has been a significant driver of demand for HP's Personal Systems, contributing to the company's strong performance in this segment [1].
- Gaming Sales: The growth in gaming experiences and the introduction of new gaming gear, such as the OMEN MAX 16 Gaming Laptop and OMEN 32x Smart Gaming Monitor, have also supported HP Inc.'s Q3 results [1].

However, the company faced challenges in the Printing division, with sales down 4.6% year-over-year due to softened consumer demand in China and the impact of macroeconomic factors [1].

Looking ahead, HP Inc. remains confident in the strength of the PC market opportunity and expects continued momentum from Windows 11 refresh and AI PC adoption. The company's Future Ready Cost Program aims to generate $2 billion in gross annual savings by FY2025, which should help mitigate cost headwinds and support long-term growth [2].

References:
[1] https://finance.yahoo.com/news/hpq-set-report-q3-earnings-143800618.html
[2] https://247wallst.com/investing/2025/08/27/live-hp-inc-hpq-reports-earnings-today-will-shares-decline/
[3] https://www.hp.com/us-en/newsroom/press-releases/2025/hp-inc-reports-fiscal-2025-third-quarter-results.html