HP (HPQ) Q2 2025 Earnings Call May 28, 2025 05:00 PM ET Company Participants Orit Keinan-Nahon - Global Head-Investor RelationsEnrique Lores - CEO, President & DirectorKaren Parkhill - Chief Financial OfficerErik Woodring - Managing Director - Equity ResearchMichael Ng - Managing Director - Global Investment ResearchAsiya Merchant - Technology Equity ResearchSamik Chatterjee - Managing Director Conference Call Participants Wamsi Mohan - Senior Equity Research Analyst Operator Good day, everyone, and welcome ...

Financial Data and Key Metrics Changes - The company reported a 5% increase in revenue in constant currency year over year, marking the fourth consecutive quarter of revenue growth [7][21] - Non-GAAP operating profit fell short of expectations due to additional tariff costs, impacting earnings per share by approximately $0.12 [8][21] - Operating margin was 7.3%, impacted by roughly 100 basis points due to unmitigated tariff costs [24][21] Business Line Data and Key Metrics Changes - Personal Systems revenue grew 8% in constant currency, driven by strong commercial performance, with commercial PC revenue increasing by 9% year over year [9][10] - Print revenue declined 3% in constant currency, with growth in Europe offsetting a slowdown in North America and weak demand in China [11][12] - Personal Systems operating margin was 4.5%, below guidance due to higher commodity and tariff costs [26] Market Data and Key Metrics Changes - Revenue growth was seen across all regions, with APJ growing 9%, Americas growing 5%, and EMEA growing 1% in constant currency [23] - The company expects the PC market to grow low single digits for the second half of the year, influenced by macroeconomic uncertainties [18][31] - The print market is expected to decline low single digits for the calendar year, with the second half declining closer to mid single digits [32] Company Strategy and Development Direction - The company is focusing on diversifying its manufacturing locations to mitigate geopolitical risks, with nearly all products sold in North America expected to be built outside of China by June [8][9] - The Future Ready Accelerated Plan aims to deliver at least $2 billion in gross annual run rate structural savings by the end of fiscal year 2025 [18][28] - The company is committed to leveraging AI to enhance productivity and employee satisfaction, with significant investments in AI PC portfolios and workforce solutions [13][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic geopolitical landscape and its impact on operating profit, emphasizing the need for cost management and strategic pricing actions [21][22] - The company remains confident in its ability to navigate market uncertainties and expects to fully mitigate tariff costs by Q4 [30][34] - Future growth is anticipated in both Personal Systems and Print segments, with expectations for sequential improvement in margins [31][32] Other Important Information - Cash flow from operations was approximately $38 million, with free cash flow slightly negative due to timing of payments related to inventory actions [29] - The company returned close to $400 million to shareholders through dividends and share repurchases [30] Q&A Session Summary Question: Expectations for the PC market in the second half of the year - Management noted strong demand in Q2 but adopted a more prudent outlook for the second half due to economic conditions and anticipated price increases [39][40] Question: Size and growth of growth businesses - Growth businesses are expected to grow faster than core businesses, with AIPCs projected to represent over 25% of the PC business by year-end [46][47] Question: Personal Systems margins for the full year - Margins are expected to be in the 5% to 7% range for the full year, likely in the lower half due to Q2 impacts [52][53] Question: AI PCs and their applications - The company is optimistic about AI PCs, with over 100 ISVs supporting applications that leverage their capabilities [59][60] Question: Mitigation actions for tariff impacts - The company has accelerated the shift of factories out of China and implemented price actions across its portfolio to mitigate tariff impacts [69][72]

Q2 FY25 Earnings Announcement May 28, 2025 Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries ("HP") which may differ materially from those expressed orimplied by such forward-looking statements and assumptions. A ...

惠普（HP Inc.）第二财季净营收132.2亿美元，分析师预期131.4亿美元。 惠普（HPQ）美股盘后跌17.10%。 预计全年调整后EPS为3-3.30美元，分析师预期3.50美元，公司原本预计3.45-3.75美元。 ...

智通财经5月29日电，惠普第二财季净营收132.2亿美元，分析师预期131.4亿美元。 ...

Financial Performance - Fiscal 2025 Q2 net revenue was $13.2 billion, an increase of 3.3% year-over-year[4] - GAAP diluted net EPS for Q2 was $0.42, down 31% from $0.61 in the prior year[3] - Non-GAAP diluted net EPS for Q2 was $0.71, down 13% from $0.82 in the prior year[3] - Total net revenue for the three months ended April 30, 2025, was $13,220 million, a decrease of 2.1% from $13,504 million in the previous quarter and an increase of 3.3% from $12,800 million in the same quarter last year[22] - Gross profit for the three months ended April 30, 2025, was $2,739 million, down 10.4% from $2,840 million in the previous quarter and down 9.4% from $3,023 million in the same quarter last year[22] - Net earnings for the three months ended April 30, 2025, were $406 million, a decrease of 28.1% from $565 million in the previous quarter and a decrease of 33.1% from $607 million in the same quarter last year[22] - Basic net earnings per share for the three months ended April 30, 2025, was $0.43, down from $0.60 in the previous quarter and $0.62 in the same quarter last year[22] - Total net revenue for the six months ended April 30, 2025, was $26,724 million, an increase of 2.8% from $25,985 million in the same period last year[24] - Net earnings for the six months ended April 30, 2025, were $971 million, a decrease of 21.0% from $1,229 million in the same period last year[24] Cash Flow and Dividends - Free cash flow for Q2 was $(95) million, a decrease of 120% compared to $0.5 billion in the prior year[7] - HP returned $0.4 billion to shareholders through dividends and share repurchases in Q2[3] - For FY25, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion[11] - Cash dividends declared per share for the six months ended April 30, 2025, was $0.58, compared to $0.55 in the same period last year[24] - Cash dividends paid in the six months ended April 30, 2025, totaled $546 million, slightly up from $544 million in the same period of 2024[35] Segment Performance - Personal Systems segment net revenue was $9.0 billion, up 7% year-over-year, with a 4.5% operating margin[9] - Printing segment net revenue was $4.2 billion, down 4% year-over-year, with a 19.5% operating margin[9] - The Personal Systems segment reported net revenue of $9,024 million for the three months ended April 30, 2025, a 7% increase from $8,426 million year-over-year[37] - The Printing segment's operating margin for the three months ended April 30, 2025, was 19.5%, an increase of 0.5 percentage points compared to the previous quarter[43] - The Consumer Printing segment's net revenue for the three months ended April 30, 2025, was $289 million, unchanged from the previous year[37] Assets and Liabilities - HP's accounts receivable at the end of Q2 was $4.3 billion, with inventory at $8.2 billion[6] - Total current assets as of April 30, 2025, were $19,458 million, a decrease of 6.3% from $20,760 million as of October 31, 2024[31] - Total liabilities and stockholders' deficit as of April 30, 2025, was $38,799 million, a decrease of 2.8% from $39,909 million as of October 31, 2024[31] Research and Development - Research and development expenses for the three months ended April 30, 2025, were $401 million, slightly up from $397 million in the previous quarter but down from $436 million in the same quarter last year[22] Future Outlook - For Q3 FY25, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69[10] - Key growth areas identified by the company include Hybrid Systems and Advanced Compute Solutions, which are expected to grow faster than HP's core business[55] - The company emphasizes the importance of non-GAAP financial measures for evaluating its financial performance and making operational decisions[60]

HP reported second-quarter results that beat analysts' estimates for revenue but missed on earnings and guidance, in part due to President Donald Trump's sweeping tariffs. Shares sank 15% after the report.Here's how the company did versus analysts' estimates compiled by LSEG:Earnings per share: 71 cents, adjusted vs. 80 cents expected.Revenue: $13.22 billion vs. $13.14 billion expected.Revenue for the quarter increased 3.3% from $12.8 billion in the same period last year. HP reported net income of $406 mill ...

PALO ALTO, Calif., May 28, 2025 (GLOBE NEWSWIRE) -- HP (NYSE: HPQ) Second quarter GAAP diluted net earnings per share ("EPS") of $0.42, down 31% from the prior year periodSecond quarter non-GAAP diluted net EPS of $0.71, down 13% from the prior year periodSecond quarter net revenue of $13.2 billion, up 3.3% from the prior-year periodSecond quarter net cash provided by operating activities of $38 million, free cash flow of $(95) millionSecond quarter returned $0.4 billion to shareholders in the form of divid ...

MONTREAL, May 28, 2025 (GLOBE NEWSWIRE) -- HPQ Silicon Inc. ("HPQ" or the "Company") (TSX- V: HPQ, OTCQB: HPQFF, FRA: O08), a technology company driving innovation in advanced materials and critical process development, is pleased to inform shareholders that the leading global fumed silica manufacturer—under the LOI announced on July 9, 2024—has requested to receive samples of the material earlier than initially scheduled. This follows HPQ's May 21, 2025, press release confirming the independent validation ...

惠普(以下简称HP) 成立于帕洛阿尔托的一个车库里，被公认为硅谷的"象征性奠基者"。尽管直到1957年"八叛逆者"抛弃威廉·肖克利，创立仙童半 导体公司几年后，惠普才开始积极研究半导体器件。 但其早期的成功和创新精神激发了一大批电子公司聚集在该地区，使其成为全球科技中心。其中，"惠普之道"也被《基业常青》的作者吉姆·柯林 斯"推崇至极"，它由威廉·雷丁顿·休利特 (William Redington Hewlett，小名比尔·休利特)创立。 而比尔和惠普另一外联创大卫·帕卡德（David Packard）创业时的车库如今已成为加州的"历史地标"。 比尔家族有一个慈善基金会和信托基金会，其中，威廉和弗洛拉·休利特基金会（通常称为休利特基金会）2024年拨款6.31亿美元，近四分之三为 灵活资金。截至2024年12月31日，基金会的资产约为139亿美元。基金会完全独立于惠普、惠普企业 (HPE) 和HPE基金会。 除了基金会之外，比尔还向大学、博物馆、非营利组织以及其他机构捐赠。斯坦福大学是他慈善事业的主要受益者之一。 求学斯坦福 1913年5月20日，比尔出生于密歇根州安娜堡。父亲阿尔比恩·W·休利特是一名医生 ...