Revenue up as HP releases 2025 Full Year and Q4 Results

HP releases 2025 Full Year and Q4 Results

• Fiscal 2025 GAAP diluted net earnings per share (“EPS”) of $2.65, down 5.7% from the prior-year period

• Fiscal 2025 non-GAAP diluted net EPS of $3.12, down 9.0% from the prior-year period

• Fiscal 2025 net revenue of $55.3 billion, up 3.2% from the prior-year period

• Fiscal 2025 net cash provided by operating activities of $3.7 billion, free cash flow of $2.9 billion

• Fiscal 2025 returned $1.9 billion to shareholders in the form of dividend and share repurchases

• Fourth quarter GAAP diluted net EPS of $0.84, down 9.7% from the prior-year period

• Fourth quarter non-GAAP diluted net EPS of $0.93, down 3.1% from the prior-year period

• Fourth quarter net revenue of $14.6 billion, up 4.2% from the prior-year period

• Fourth quarter net cash provided by operating activities of $1.6 billion, free cash flow of $1.5 billion

• Fourth quarter returned $0.8 billion to shareholders in the form of dividend and share repurchases

• HP Inc. increases quarterly dividend to $0.30 per share

• HP Inc. announces company-wide initiative, estimates gross run rate cost savings of approximately $1 billion by the end of fiscal 2028, and restructuring and other charges of approximately $650 million.

HP Inc.’s fiscal 2025 full-year and fourth quarter financial performance

HP has announced fiscal 2025 net revenue of $55.3 billion, up 3.2% (up 3.7% in constant currency) from the prior-year period.

Fiscal 2025 GAAP diluted net EPS was $2.65, down from $2.81 in the prior year. Fiscal 2025 non-GAAP diluted net EPS was $3.12, down from $3.43 in the prior-year period. Fiscal 2025 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $443 million, or $0.47 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortisation of intangible assets, certain litigation charges (benefits), net, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

Fourth quarter net revenue was $14.6 billion, up 4.2% (up 3.8% in constant currency) from the prior-year period.

Fourth quarter GAAP diluted net EPS was $0.84, down from $0.93 in the prior-year period and within the previously provided outlook of $0.75 to $0.85. Fourth quarter non-GAAP diluted net EPS was $0.93, down from $0.96 in the prior-year period and within the previously provided outlook of $0.87 to $0.97. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $82 million, or $0.09 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortisation of intangible assets, certain litigation charges (benefits), net, tax adjustments, and the related tax impact on these items.

“HP’s strategy to lead the Future of Work continues to deliver strong performance, marked by our sixth consecutive quarter of revenue growth,” said Enrique Lores, President and CEO of HP Inc. “Our FY25 results reinforce the power of our portfolio and the strength of our team in a dynamic environment. As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution. We are committed to driving measurable results – ensuring that our plans translate into long-term value for our shareholders.”

“Our FY25 results reflect solid execution in an evolving environment, where we drove strong profit improvement in the back half of the year and returned $1.9 billion dollars to shareholders,” said Karen Parkhill, CFO, HP Inc. “Looking forward, we are taking decisive actions to mitigate recent cost headwinds and are investing in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction, and boost productivity. We are confident these actions will strengthen our foundation and position us for long-term growth.”

Asset management
HP generated $3.7 billion in net cash provided by operating activities and $2.9 billion of free cash flow in fiscal 2025. Free cash flow includes net cash provided by operating activities of $3.7 billion adjusted for net investments in leases from integrated financing of $131 million and net investments in property, plant, equipment and purchased intangibles of $897 million. HP utilised $850 million of cash during fiscal 2025 to repurchase approximately 29.5 million shares of common stock in the open market. When combined with the $1.1 billion of cash used to pay dividends, HP returned 66% of its free cash flow to shareholders in fiscal 2025.

HP’s net cash provided by operating activities in the fourth quarter of fiscal 2025 was $1.6 billion. Accounts receivable ended the quarter at $5.7 billion, up 2 days quarter over quarter to 35 days. Inventory ended the quarter at $8.5 billion, down 2 days quarter over quarter to 66 days. Accounts payable ended the quarter at $18.1 billion, up 1 day quarter over quarter to 139 days.

HP generated $1.5 billion of free cash flow in the fourth quarter. Free cash flow includes net cash provided by operating activities of $1.6 billion adjusted for net investments in leases from integrated financing of $60 million and net investments in property, plant and equipment of $197 million.

HP’s dividend payment of $0.2894 per share in the fourth quarter resulted in cash usage of $270 million. HP also utilised $500 million of cash during the quarter to repurchase approximately 18.3 million shares of common stock in the open market. HP exited the quarter with $3.7 billion in gross cash, which includes cash and cash equivalents of $3.7 billion, restricted cash of $15 million, cash held for sale of $8 million, and short-term investments of $3 million included in other current assets. Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.

The HP board of directors has declared a quarterly cash dividend of $0.30 per share on the company’s common stock, payable on January 2, 2026 to stockholders of record as of the close of business on December 11, 2025. This is the first dividend of HP’s 2026 fiscal year.

Fiscal 2025 fourth quarter segment results
Personal Systems net revenue was $10.4 billion, up 8% year over year (up 7% in constant currency) with a 5.8% operating margin. Consumer PS net revenue was up 10% and Commercial PS net revenue was up 7%. Total units were up 7% with Consumer PS units up 8% and Commercial PS units up 7%.

Printing net revenue was $4.3 billion, down 4% year over year (down 4% in constant currency) with an 18.9% operating margin. Consumer Printing net revenue was down 9% and Commercial Printing net revenue was down 4%. Supplies net revenue was down 4% (down 3% in constant currency). Total hardware units were down 12%, with both Consumer and Commercial Printing units reflecting similar declines.