HP Inc. (HPQ) Q4 2025 Financial Results Summary

2025-11-26 · Stocks · QuoteReporter

HP Inc. (HPQ) Q4 2025 Financial Results Summary

HP Inc. (NYSE: HPQ) reported its fiscal 2025 full year and fourth quarter results on November 25, 2025.

Key Financial Metrics

• Fiscal 2025 performance:
• GAAP diluted net earnings per share (EPS): $2.65, down 5.7% from $2.81 in the prior year.
• Non-GAAP diluted net EPS: $3.12, down 9.0% from $3.43 in the prior year.
• Net revenue: $55.3 billion, up 3.2% from $53.6 billion in the prior year.
• Net cash provided by operating activities: $3.7 billion.
• Free cash flow: $2.9 billion.

• Total returned to shareholders: $1.9 billion via dividends and stock repurchases.

• Q4 FY2025 performance:

• GAAP diluted net EPS: $0.84, down 9.7% from $0.93 in the prior year.
• Non-GAAP diluted net EPS: $0.93, down 3.1% from $0.96 in the prior year.
• Net revenue: $14.6 billion, up 4.2% from $14.1 billion in the prior year.
• Net cash provided by operating activities: $1.6 billion.
• Free cash flow: $1.5 billion.
• Returned to shareholders in Q4: $0.8 billion through dividends and share repurchases.

Shareholder Returns

• The HP board of directors declared a quarterly cash dividend of $0.30 per share, expected to be paid on January 2, 2026, to stockholders of record on December 11, 2025. This was an increase from the previous $0.2894 per share.

Operational Highlights

• Fiscal 2025 overview:

• Operating Margin:

  • GAAP operating margin: 5.7%, decrease of 1.4 percentage points from 7.1% in the prior year.
  • Non-GAAP operating margin: 7.4%, decrease of 1.1 percentage points from 8.5% in the prior year.

• Q4 FY2025 overview:

• Operating Margin:
  • GAAP operating margin: 6.6%, decrease of 0.5 percentage points from 7.1% in the prior year.
  • Non-GAAP operating margin: 8.0%, decrease of 0.8 percentage points from 8.8% in the prior year.

Segment Breakdown

• Personal Systems:
• Q4 net revenue: $10.4 billion, up 8.0% year-over-year.

• Consumer net revenue: up 10%, Commercial net revenue: up 7%.

• Printing:

• Q4 net revenue: $4.3 billion, down 4% year-over-year (same in constant currency).
• Consumer Printing: down 9%, Commercial Printing: down 4%.

Cash Flow and Capital Management

• HP generated $3.7 billion in net cash provided by operating activities for 2025, maintaining a stable figure compared to the previous year.
• For the fourth quarter, the net cash provided by operating activities was $1.6 billion.
• HP repurchased approximately 29.5 million shares of common stock for $850 million during the fiscal year.
• Adjusted free cash flow: $2.9 billion for the full year.

Future Outlook

• For Q1 FY2026, HP anticipates:
• GAAP diluted net EPS: Between $0.58 – $0.66.

• Non-GAAP diluted net EPS: Between $0.73 – $0.81.

• For FY2026, HP forecasts:

• GAAP diluted net EPS: Between $2.47 – $2.77.
• Non-GAAP diluted net EPS: Between $2.90 – $3.20.
• An expected free cash flow between $2.8 billion and $3.0 billion is also projected.

Company-wide Initiatives

• HP announced a company-wide initiative aimed at enhancing customer satisfaction and promoting product innovation, focusing on artificial intelligence. The initiative is expected to yield approximately $1 billion in gross run rate savings by the end of fiscal 2028, with estimated restructuring costs of $650 million.

In summary, while HP Inc. recorded a modest increase in revenue for the fiscal year 2025, both GAAP and non-GAAP diluted EPS echoed a decline compared to the previous year. The company’s strategic focus on AI and shareholder returns reflects its ongoing commitment to navigate current economic challenges and drive long-term growth.

Here are the extracted tables from the press release:

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Unaudited) In millions, except per share amounts

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited) In millions