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Apr 30

HP Q2 2025 Earnings Report

HP Inc. reported fiscal 2025 second quarter results with a slight increase in net revenue but declines in GAAP and non-GAAP EPS and net earnings.

Key Takeaways

HP Inc. reported fiscal Q2 2025 net revenue of $13.2 billion, up 3.3% year over year. GAAP diluted net EPS was $0.42, down 31%, and non-GAAP diluted net EPS was $0.71, down 13%. Net earnings were $406 million, down 33%.

Net revenue increased by 3.3% year over year to $13.2 billion.

GAAP diluted net EPS decreased by 31% to $0.42.

Non-GAAP diluted net EPS decreased by 13% to $0.71.

Net earnings were $406 million, a 33% decline compared to the prior year period.

Total Revenue
$13.2B
Previous year: $12.8B
+3.3%
EPS
$0.71
Previous year: $0.82
-13.4%
GAAP Operating Margin
4.9%
Previous year: 7.4%
-33.8%
Non-GAAP Operating Margin
7.3%
Previous year: 8.8%
-17.0%
Personal Systems Operating Margin
4.5%
Previous year: 6%
-25.0%
Gross Profit
$2.74B
Previous year: $2.94B
-6.8%
Cash and Equivalents
$2.73B
Previous year: $2.4B
+13.8%
Free Cash Flow
-$95M
Previous year: $481M
-119.8%
Total Assets
$38.8B
Previous year: $37.4B
+3.6%

HP

HP

HP Revenue by Segment

Forward Guidance

For fiscal Q3 2025, HP estimates GAAP diluted net EPS between $0.57 and $0.69 and non-GAAP diluted net EPS between $0.68 and $0.80. For fiscal year 2025, HP estimates GAAP diluted net EPS between $2.32 and $2.62 and non-GAAP diluted net EPS between $3.00 and $3.30. Free cash flow for fiscal 2025 is anticipated to be between $2.6 billion and $3.0 billion.

Positive Outlook

  • Anticipated free cash flow of $2.6 billion to $3.0 billion for fiscal 2025.
  • Expectation to fully offset trade-related costs by Q4 2025.
  • Continued momentum behind future of work strategy.
  • Strong Commercial performance in Personal Systems.
  • Execution of targeted mitigation strategies.

Challenges Ahead

  • Adjusted outlook due to increased macroeconomic uncertainty.
  • Moderated demand reflected in the adjusted outlook.
  • Net impact of trade-related costs impacting results.
  • Third quarter GAAP diluted net EPS outlook is lower than prior year's actuals.
  • Third quarter non-GAAP diluted net EPS outlook is lower than prior year's actuals.

Revenue & Expenses

Visualization of income flow from segment revenue to net income