1501 Page Mill Road Palo Alto, CA 94304 hp.com Editorial contacts HP Inc. Media Relations MediaRelations@hp.com HP Inc. Investor Relations InvestorRelations@hp.com News Release HP Inc. Reports Fiscal 2025 First Quarter Results PALO ALTO, Calif. – February. 27, 2025 (GLOBE NEWSWIRE) – HP (NYSE: HPQ) HP Inc.'s fiscal 2025 first quarter financial performance | | | Q1 FY25 | | Q1 FY24 | Y/Y | | --- | --- | --- | --- | --- | --- | | GAAP net revenue ($B) | $ | 13.5 | $ | 13.2 | 2.4 % | | GAAP operating margin | ...

Core Insights - HP Inc. reported a fiscal 2025 first quarter net revenue of $13.5 billion, representing a year-over-year increase of 2.4% (3.3% in constant currency) [4][7] - The company's GAAP diluted net earnings per share (EPS) was $0.59, down from $0.62 in the prior-year period, while non-GAAP diluted EPS was $0.74, down from $0.81 [5][7] - HP's operating margin decreased, with GAAP operating margin at 6.3% and non-GAAP operating margin at 7.3%, both lower than the previous year [7][39] Financial Performance - First quarter GAAP net earnings were $0.6 billion, unchanged from the prior year, while non-GAAP net earnings were $0.7 billion, down 13% [2][5] - The company generated $0.4 billion in net cash from operating activities, a significant increase of 209% year-over-year, and free cash flow was $0.1 billion, up 180% [2][8] - HP returned $0.4 billion to shareholders through share repurchases and dividends during the quarter [7] Segment Results - Personal Systems segment net revenue was $9.2 billion, up 5% year-over-year, with commercial PS revenue increasing by 10% while consumer PS revenue decreased by 7% [17] - Printing segment net revenue was $4.3 billion, down 2% year-over-year, with commercial printing revenue declining by 7% [17] - Total segment net revenue decreased by 4% quarter-over-quarter but increased by 2% year-over-year [36] Outlook - For the fiscal 2025 second quarter, HP estimates GAAP diluted EPS to be in the range of $0.62 to $0.72 and non-GAAP diluted EPS to be in the range of $0.75 to $0.85 [11] - For the full fiscal year 2025, HP anticipates GAAP diluted EPS between $2.86 and $3.16 and non-GAAP diluted EPS between $3.45 and $3.75 [12] - The company expects to generate free cash flow in the range of $3.2 to $3.6 billion for the fiscal year [12] Strategic Initiatives - HP is raising its Future Ready savings target from $1.6 billion to $1.9 billion by the end of fiscal year 2025 [5][7] - The company is focusing on building a globally diverse supply chain, with an expectation that over 90% of products sold in North America will be built outside of China by the end of fiscal year 2025 [13]

Core Insights - HPQ Silicon Inc. is advancing its proprietary Fumed Silica Reactor (FSR) process through successful pilot-scale testing, marking a significant step towards commercial production of fumed silica [1][2][4] - The first batch test of the FSR pilot plant has produced material with characteristics consistent with lab-scale production, indicating the process's viability [2][3][5] - The company aims to transition to semi-continuous production, significantly increasing material throughput and targeting the production of at least 200 kg of commercial-grade fumed silica [7] Company Developments - HPQ Silicon's technology provider, PyroGenesis Inc., confirmed successful material production during the first batch test of the FSR pilot plant, with further analysis planned to validate product quality [2][5] - The pilot plant represents a 20-fold scale-up from laboratory conditions, focusing on replicating validated lab-scale operations while assessing performance under real-world conditions [4][5] - The upcoming batch tests will ensure consistent production of high-surface-area fumed silica, with specifications aimed to meet or exceed lab-scale results [6] Industry Context - The fumed silica industry has traditionally relied on fossil-fuel-intensive production methods, and the FSR process aims to revolutionize this by eliminating carbon emissions while maintaining product quality [8] - The transition to semi-continuous production will enhance efficiency and set a new standard for sustainable fumed silica production, aligning with global decarbonization efforts [8]

Core Viewpoint - HP Inc. is expected to report its first-quarter fiscal 2025 results on February 27, with anticipated non-GAAP earnings per share between 70 cents and 76 cents, reflecting a year-over-year decline of 8.6% in earnings, while revenues are projected to improve by 2.25% to $13.48 billion [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for HP's earnings is set at 74 cents, indicating a decline compared to the previous year [2]. - In the last four quarters, HP's earnings surpassed the Zacks Consensus Estimate twice and missed on two occasions, with an average negative surprise of 0.83% [3]. Group 2: Performance Drivers - HP's performance in the first quarter is likely driven by strong momentum in the Personal Systems segment, although this is slightly offset by weakness in the Printing division [4]. - The introduction of AI-based computing devices is expected to have gained traction among consumers, contributing positively to top-line growth [5]. - The growing adoption of gaming experiences and the launch of new gaming products are anticipated to have bolstered HP's sales in the quarter [6]. Group 3: Challenges - Macroeconomic challenges, including high interest rates and inflation, are expected to negatively impact demand for consumer PCs, while enterprises are delaying IT spending due to economic uncertainties [7]. - The Printing division's sales are likely to be affected by reduced consumer demand in China and a competitive pricing environment, despite some growth in big tank printers [8]. Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for HP, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2, indicating a potential for earnings to meet expectations but not exceed them [9].

Company Overview - HP (NYSE: HPQ) is perceived by many investors as a low-growth company primarily involved in the PC and printer business, which are considered to be declining sectors [1]. Analyst Background - Motti Sapir is an economist and financial analyst with over 15 years of experience in financial markets, focusing on market trends, data analysis, and investment strategies [1]. Investment Insights - The goal of Motti Sapir's writing is to help investors understand market dynamics without feeling overwhelmed, emphasizing actionable insights and clear presentation of financial data [1].

Core Insights - Wall Street analysts expect HP (HPQ) to report quarterly earnings of $0.74 per share, reflecting a year-over-year decline of 8.6% [1] - Revenue is anticipated to be $13.48 billion, which represents a 2.3% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - Analysts project 'Net revenue- Personal Systems- Commercial PS' to reach $6.47 billion, indicating a year-over-year increase of 7% [4] - The estimate for 'Net revenue- Personal Systems- Consumer PS' is $2.69 billion, suggesting a decline of 2.8% year over year [4] - The total 'Net revenue- Personal Systems' is expected to be $9.16 billion, reflecting a 3.9% increase year over year [4] Printing Revenue Estimates - 'Net revenue- Printing- Supplies' is forecasted to be $2.79 billion, indicating a year-over-year decline of 2.6% [5] - 'Net revenue- Printing- Commercial Printing' is expected to reach $1.19 billion, reflecting a decrease of 2.7% from the previous year [5] - 'Net revenue- Printing- Consumer Printing' is projected at $269.36 million, suggesting a year-over-year decline of 5.5% [5] - Overall, 'Net revenue- Printing' is expected to be $4.25 billion, indicating a 2.8% decrease year over year [6] Operational Metrics - 'Days in accounts payable' is projected to be 125 days, compared to 116 days in the same quarter last year [6] - 'Days of sales outstanding in accounts receivable' is expected to reach 28.50 days, up from 26 days in the same quarter last year [6] - 'Days of supply in inventory' is estimated at 62 days, compared to 61 days in the previous year [7] - 'Earnings from operations- Printing' is expected to be $792.88 million, down from $872 million in the same quarter last year [7] - 'Earnings from operations- Personal Systems' is projected at $512.74 million, compared to $537 million in the previous year [8] Stock Performance - HP shares have increased by 5.8% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [9] - HPQ holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market in the near term [10]

Acquisition and Company Changes - HP acquired Humane's AI Pin assets for $116 million, significantly less than the $240 million raised in venture capital funding [2] - Humane will discontinue sales of its AI Pins, and after February 28, the devices will lose connectivity to Humane's servers, rendering them non-functional for calls, messaging, and AI queries [2] - Following the acquisition, HP offered job positions to several Humane employees with pay increases between 30% and 70%, while others, particularly those involved with the AI Pin, were laid off [3] Product Developments - Apple announced the iPhone 16e, featuring an A18 processor, Face ID, and USB-C, starting at $599 and shipping on February 28 [4] Industry News - Duolingo's marketing campaign led to the "death" of its owl mascot, aiming to encourage users to engage more with the platform [6] - OpenAI has decided to adopt a neutral stance in ChatGPT, providing multiple perspectives on controversial topics [6] - Uber is suing DoorDash for allegedly stifling competition through intimidation tactics against restaurant owners [6] - Mira Murati, former OpenAI CTO, launched a new AI startup, Thinking Machines Lab, focusing on collaborative multimodal systems [6] - Elon Musk's xAI released Grok 3, claiming it to be a "maximally truth-seeking AI" [6] - Amazon will shut down its Android app store in August to focus on its own devices [6] - A Pew Research Center study revealed negative perceptions of both Elon Musk and Mark Zuckerberg among U.S. adults [6]

PALO ALTO, Calif., Feb. 21, 2025 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) today announced the appointment of Gianluca Pettiti to its Board of Directors. Mr. Pettiti is Executive Vice President and President, Life Sciences, Diagnostics and Applied for Thermo Fisher Scientific Inc., a global life sciences company. His appointment is effective immediately. "We’re excited to welcome Gianluca to the HP Board of Directors," said Chip Bergh, Chair of the HP Board. "He brings invaluable global expertise and a proven ...

Core Insights - Humane, an AI hardware startup, is being partially acquired by HP for $116 million, significantly lower than the $240 million raised in venture capital funding [1] - The acquisition has led to job offers for some employees with pay increases over 30%, while others, particularly those involved with AI Pin devices, faced layoffs [2][3] Company Developments - HP aims to integrate Humane's AI operating system, CosmOS, into its products, including personal computers and printers [5] - The acquisition was anticipated by employees, with prior reports indicating Humane sought over $1 billion for the sale [6] Employee Impact - Employees received mixed news, with some offered positions at HP IQ while others were laid off without prior notice [9] - The total number of layoffs remains unclear, and employees were informed of their job status through emails [9] Product Performance - Humane's AI Pin faced negative reviews and product issues, leading to a price drop from $699 to $499 [11][12] - Following the acquisition announcement, customers were advised to "recycle" their AI Pins, which would soon become non-functional [12] Market Context - The AI Pin's failure contrasts with the success of other AI wearables, such as Meta's Ray Ban AI smart glasses and Rabbit's R1 [14] - Apple's recent release of an AI-featured iPhone suggests a competitive landscape for AI devices, raising questions about the timing of Humane's product [15]

Company Overview - Humane is shutting down and selling its assets to HP for $116 million, including its AI-powered platform Cosmos, technical staff, and over 300 patents [1][3] - The acquisition will form HP's new innovation lab, HP IQ, focusing on AI technology [1][10] Product Performance - The AI wearable, Ai Pin, aimed for sales of 100,000 units but only sold 10,000, leading to its discontinuation [2] - Users reported malfunctions, high prices, and overheating issues, prompting a price cut from $699 to $499 [4][6] Market Insights - The Ai Pin was criticized for lacking practical use compared to smartphones, with early adopters expressing dissatisfaction with its functionality [5][6] - Experts noted that the product failed to identify a compelling use case and did not meet customer needs effectively [7][8] Strategic Implications for HP - HP's acquisition is part of its strategic shift towards experience-driven computing and AI-powered devices [9][12] - The integration of Humane's AI capabilities is expected to enhance HP's product line, including PCs and smart printers [9][10] Future Outlook - The transaction is anticipated to close by the end of the month, positioning HP to compete in the growing market for AI-enabled devices [12]