# HP Inc. (HPQ) Q3 2025 Financial Results Summary
HP Inc. released its fiscal 2025 third quarter results on August 27, 2025. Here’s a detailed summary of their performance during this period.
## Financial Highlights
– **Net Revenue**:
– $13.9 billion, up **3.1%** compared to Q3 FY24.
– Constant currency growth of **3.3%**.
– **Net Earnings**:
– GAAP net earnings increased to **$763 million**, up **19%** from $640 million in Q3 FY24.
– **Earnings Per Share (EPS)**:
– GAAP diluted net EPS was **$0.80**, reflecting a **23.1%** growth from $0.65 a year ago.
– Non-GAAP diluted net EPS stood at **$0.75**, down **10.7%** from $0.84 in Q3 FY24.
– **Operating Cash Flow**:
– Net cash provided by operating activities: **$1.7 billion**, up **17%** from $1.4 billion in the same quarter of the previous year.
– Free cash flow for the quarter was **$1.5 billion**, a **13%** increase compared to $1.3 billion in Q3 FY24.
– **Return to Shareholders**:
– HP returned a total of **$0.4 billion** to shareholders through dividends and share repurchases.
– A cash dividend of **$0.2894 per share** was declared, costing **$272 million**.
– HP repurchased approximately **5.5 million shares** of common stock for **$150 million**.
## Segment Performance
– **Personal Systems**:
– Revenue reached **$9.9 billion**, up **6%** year over year.
– Operating margin was **5.4%**.
– **Printing**:
– Generated revenue of **$4.0 billion**, a decline of **4%** from the prior year.
– Operating margin maintained at **17.3%**.
## Comparative Metrics
| Metric | Q3 FY25 | Q3 FY24 | Change (% Year-over-Year) |
|---|---|---|---|
| GAAP Net Revenue | $13.9 billion | $13.5 billion | **3.1%** |
| Non-GAAP Diluted EPS | $0.75 | $0.84 | **-10.7%** |
| GAAP Diluted EPS | $0.80 | $0.65 | **23.1%** |
| GAAP Operating Margin | 5.1% | 7.0% | **-1.9 pts** |
| Non-GAAP Operating Margin | 7.1% | 8.2% | **-1.1 pts** |
| Net Cash from Operating | $1.7 billion | $1.4 billion | **17%** |
| Free Cash Flow | $1.5 billion | $1.3 billion | **13%** |
## Financial Dynamics
– The dip in non-GAAP diluted EPS reflects operational adjustments, including restructuring and acquisition-related costs.
– HP reported an increase in accounts receivable, totaling **$5.1 billion**, which remained the same as previous quarter, but inventory saw a decrease from **$8.4 billion** in previous quarter to **$8.4 billion**.
## Outlook
For the fiscal 2025 fourth quarter, HP anticipates:
– **GAAP diluted net EPS** in the range of **$0.75 to $0.85**.
– **Non-GAAP diluted net EPS** expected to be between **$0.87 and $0.97**.
HP projects full-year free cash flow to be between **$2.6 billion to $3.0 billion**, acknowledging impacts from current U.S. trade regulations.
## Conclusion
HP Inc. continues to navigate its operational environment, reporting varied growth metrics across segments. The company’s strategic returns to shareholders reflect a commitment to leveraging its financial position while managing market dynamics and investments in growth areas.
For further details on HP’s financial performance, visit [HP’s Investor Relations website](http://www.hp.com).
### HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
| July 31, 2025 | April 30, 2025 | July 31, 2024 | |
|---|---|---|---|
| Net revenue: | |||
| Products | $13,114 | $12,423 | $12,750 |
| Services | 818 | 797 | 769 |
| Total net revenue | 13,932 | 13,220 | 13,519 |
| Cost of net revenue: | |||
| Products | 10,599 | 10,007 | 10,164 |
| Services | 482 | 474 | 449 |
| Total cost of net revenue | 11,081 | 10,481 | 10,613 |
| Gross profit | 2,851 | 2,739 | 2,906 |
| Research and development | 406 | 401 | 413 |
| Selling, general and administrative | 1,452 | 1,480 | 1,404 |
| Restructuring and other charges | 110 | 122 | 46 |
| Acquisition and divestiture charges | 8 | 17 | 22 |
| Amortization of intangible assets | 159 | 65 | 81 |
| Total operating expenses | 2,135 | 2,085 | 1,966 |
| Earnings from operations | 716 | 654 | 940 |
| Interest and other, net | -92 | -148 | -113 |
| Earnings before taxes | 624 | 506 | 827 |
| Benefit from (provision for) taxes | 139 | -100 | -187 |
| Net earnings | $763 | $406 | $640 |
| Net earnings per share: | |||
| Basic | $0.81 | $0.43 | $0.65 |
| Diluted | $0.80 | $0.42 | $0.65 |
| Cash dividends declared per share | $0.58 | — | $0.55 |
| Weighted-average shares used to compute | |||
| net earnings per share: | |||
| Basic | 947 | 950 | 979 |
| Diluted | 954 | 956 | 990 |
### HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In millions)
| July 31, 2025 | October 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash, cash equivalents and restricted | $2,874 | $3,253 |
| cash | ||
| Accounts receivable, net | 5,123 | 5,117 |
| Inventory | 8,356 | 7,720 |
| Other current assets | 4,221 | 4,670 |
| Total current assets | 20,574 | 20,760 |
| Property, plant and equipment, net | 2,993 | 2,914 |
| Goodwill | 8,714 | 8,627 |
| Other non-current assets | 7,573 | 7,608 |
| Total assets | $39,854 | $39,909 |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
| Current liabilities: | ||
| Notes payable and short-term borrowings | $820 | $1,406 |
| Accounts payable | 16,985 | 16,903 |
| Other current liabilities | 10,059 | 10,378 |
| Total current liabilities | 27,864 | 28,687 |
| Long-term debt | 8,782 | 8,263 |
| Other non-current liabilities | 4,109 | 4,282 |
| Stockholders’ deficit | -901 | -1,323 |
| Total liabilities and stockholders’ | $39,854 | $39,909 |
| deficit |
