HP(US:HPQ)2025-05-28 20:18Financial 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]