HP reports increased revenue in Q1 Results

- First quarter GAAP diluted net earnings per share ("EPS") of $0.59, within the previously provided outlook of $0.57 to $0.63 per share 

- First quarter non-GAAP diluted net EPS of $0.74, within the previously provided outlook of $0.70 to $0.76 per share 

- First quarter net revenue of $13.5 billion, up 2.4% from the prior-year period 

- First quarter net cash provided by operating activities of $0.4 billion, free cash flow of $0.1 billion 

- First quarter returned $0.4 billion to shareholders in the form of share repurchases and dividends 

- Estimated $300 million increase in Future Ready plan annualised gross run rate structural cost savings, to $1.9 billion by the end of fiscal year 2025 

- Estimated $150 million increase in restructuring and other charges to approximately $1.2 billion by the end of fiscal year 2025 

 Net Revenue and EPS Results 

HP has announced fiscal 2025 first quarter net revenue of $13.5 billion, up 2.4% (up 3.3% in constant currency) from the prior-year period. 

"We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our leadership in the future of work,” said Enrique Lores, HP President and CEO.  "Our progress was fuelled by a strong commercial mix in Personal Systems and momentum in our key growth areas, including AI PCs. We are focused on taking decisive actions to navigate evolving market conditions in the near-term, while investing in our long-term growth.”

"In Q1 we drove solid progress against our financial commitments for the year and are raising our Future Ready savings target from $1.6 to $1.9 billion dollars by the end of fiscal year 2025,” said Karen Parkhill, HP CFO. "We are holding our outlook and remain focused on disciplined execution as we continue to invest for the future.” 

First quarter GAAP diluted net EPS was $0.59, down from $0.62 in the prior-year period and within the previously provided outlook of $0.57 to $0.63. First quarter non-GAAP diluted net EPS was $0.74, down from $0.81 in the prior-year period and within the previously provided outlook of $0.70 to $0.76. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $139 million, or $0.15 per diluted share, related to restructuring and other charges, acquisition- and divestiture-related charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. 

Asset Management 

HP's net cash provided by operating activities in the first quarter of fiscal 2025 was $0.4 billion. Accounts receivable ended the quarter at $4.2 billion, down 5 days quarter over quarter at 28 days. Inventory ended the quarter at $8.4 billion, up 9 days quarter over quarter to 72 days. Accounts payable ended the quarter at $16.5 billion, up 1 day quarter over quarter to 139 days. 

HP generated $70 million of free cash flow in the first quarter. Free cash flow includes net cash provided by operating activities of $374 million adjusted for net investments in leases from integrated financing of $(2) million and net investments in property, plant, and equipment and purchased intangible assets of $302 million. 

HP’s dividend payment of $0.2894 per share in the first quarter resulted in cash usage of $0.3 billion. HP also utilised $0.1 billion of cash during the quarter to repurchase approximately 2.7 million shares of common stock in the open market. HP ended the quarter with $2.9 billion in gross cash, which includes cash and cash equivalents of $2.9 billion, restricted cash of $14 million, and short-term investments of $3 million included in other current assets. Restricted cash is related to amounts collected on behalf of a third party for trade receivables previously sold. 

 Fiscal 2025 First Quarter Segment Results 

- Personal Systems net revenue was $9.2 billion, up 5% year over year (up 5% in constant currency) with a 5.5% operating margin. Consumer PS net revenue was down 7%, and Commercial PS net revenue was up 10%. Total units were down 3%, with Consumer PS units down 11% and Commercial PS units up 6%. 

- Printing net revenue was $4.3 billion, down 2% year over year (down 1% in constant currency) with a 19.0% operating margin. Consumer Printing net revenue was up 5%, and Commercial Printing net revenue was down 7%. Supplies net revenue was down 1% (flat in constant currency). Total hardware units were up 5%, with Consumer Printing units up 7% and Commercial Printing units flat.