Financial Performance - Fiscal 2025 net revenue was $55.3 billion, an increase of 3.2% year-over-year[5] - Fiscal 2025 GAAP diluted net EPS was $2.65, down 5.7% from the prior year[5] - Fourth quarter net revenue reached $14.6 billion, up 4.2% year-over-year[5] - Free cash flow for fiscal 2025 was $2.9 billion, a decrease of 12% from the previous year[5] - Total net revenue for the three months ended October 31, 2025, was $14,639 million, an increase from $13,932 million in the previous quarter and $14,055 million in the same quarter last year[30] - Net earnings for the three months ended October 31, 2025, were $795 million, compared to $763 million in the previous quarter and $906 million in the same quarter last year[30] - The gross profit for the twelve months ended October 31, 2025, was $11,392 million, a decrease from $11,818 million for the twelve months ended October 31, 2024[32] - GAAP net earnings for the twelve months ended October 31, 2025, were $2,529 million, down from $2,775 million for the same period in 2024, representing a decrease of 8.9%[36] - Non-GAAP net earnings for the twelve months ended October 31, 2025, were $2,972 million, compared to $3,388 million in 2024, reflecting a decline of 12.3%[36] - Total net revenue for the twelve months ended October 31, 2025, was $55.295 billion, representing a 3% increase from $53.559 billion in the previous year[48] Segment Performance - Personal Systems segment net revenue was $10.4 billion in Q4, up 8% year-over-year[16] - Printing segment net revenue was $4.3 billion in Q4, down 4% year-over-year[16] - Personal Systems segment revenue for the three months ended October 31, 2025, was $10,353 million, an increase of 8% compared to $9,591 million in the same period last year[45] - Personal Systems segment revenue increased by 6% year-over-year, reaching $38.532 billion, while Supplies segment revenue decreased by 3% to $10.916 billion[48] - Corporate Investments segment reported a net revenue of $62 million, significantly up from $25 million in the previous year[48] Cost Management and Restructuring - HP returned $1.9 billion to shareholders in fiscal 2025 through dividends and share repurchases[5] - The company announced a cost-saving initiative expected to yield approximately $1 billion by the end of fiscal 2028[20] - HP plans to reduce global headcount by approximately 4,000-6,000 employees as part of its restructuring efforts[20] - The company expects to achieve structural cost savings through operational efficiency and digital transformation, with gross reductions in costs anticipated from restructuring plans[26] - The operating margin for GAAP was 5.7% for the twelve months ended October 31, 2025, down from 7.1% in 2024[36] - Total operating expenses for the three months ended October 31, 2025, were $2,003 million, down from $2,135 million in the previous quarter and slightly up from $2,010 million in the same quarter last year[30] Future Outlook - For fiscal 2026, HP estimates GAAP diluted net EPS to be in the range of $2.47 to $2.77[18] - HP's fiscal 2023 plan includes investments to drive growth and improve product mix, while the fiscal 2026 plan focuses on customer satisfaction and product innovation through artificial intelligence[26] - Key Growth Areas identified by the company include Hybrid Systems, Advanced Compute Solutions, AI PCs, Workforce Solutions, and Consumer Subscriptions[62][65] - The company plans to continue focusing on market expansion and new product development in its identified growth areas[62] Financial Metrics and Adjustments - The diluted net earnings per share for the three months ended October 31, 2025, were $0.84, compared to $0.80 in the previous quarter and $0.93 in the same quarter last year[30] - Non-GAAP diluted net earnings per share for the twelve months ended October 31, 2025, was $3.12, down from $3.43 in the previous year[56] - The total segment operating margin for the twelve months ended October 31, 2025, was 9.1%, a decrease of 1.0 percentage points from 10.1% in the previous year[51] - Items like amortization of intangible assets are excluded from non-GAAP operating margin and net earnings, potentially misrepresenting economic effects[69] - Restructuring charges and acquisition costs are also excluded from non-GAAP measures, which can significantly impact GAAP earnings[69] - HP emphasizes the importance of GAAP results while using non-GAAP financial measures as supplemental information[67] - Non-GAAP financial measures provide investors with insights into HP's operational performance and financial condition[68] - HP's gross cash may not fully represent liquidity due to limitations in liquidating certain investments[69]

Store Operations - As of November 1, 2025, the company operates 1,211 stores across 46 states, Washington D.C., and Puerto Rico, having opened 129 new stores during the nine-month period[101] - The company plans to average about 100 net new store openings per year, targeting a total of 500 new stores from Fiscal 2024 through Fiscal 2028[106] - As of November 1, 2025, the company opened 129 new stores, bringing the total store count to 1,211[184] Financial Performance - Net income for the three months ended November 1, 2025, was $104.8 million, up from $90.6 million for the same period in 2024, representing a 15.0% increase[114] - For the nine months ended November 1, 2025, net income increased to $299.8 million from $242.9 million in the prior year, reflecting a 23.4% growth[114] - Adjusted Net Income for the three months ended November 1, 2025, rose to $107.5 million, an increase of $7.6 million compared to the same period last year[121] - Net income for Q3 Fiscal 2025 was $104.8 million, compared to $90.6 million in Q3 Fiscal 2024, primarily due to higher sales and increased gross margin rate[152] - Net sales increased by $562.4 million, or 7.7%, to $7,907.1 million for the nine-month period ended November 1, 2025, driven by 108 net new stores and a 2% increase in comparable store sales[153] Profitability Metrics - Adjusted EBIT increased by $14.6 million to $155.9 million for the three months ended November 1, 2025, and by $67.2 million to $453.1 million for the nine months ended November 1, 2025, compared to the prior year[126] - Adjusted EBITDA rose by $26.4 million to $255.2 million for the three months ended November 1, 2025, and by $97.0 million to $739.0 million for the nine months ended November 1, 2025, driven by higher sales and increased gross margin[126] - Comparable store sales increased by 1% for the three months ended November 1, 2025, and remained stable at 2% for the nine months ended[130] - Gross margin as a percentage of net sales improved to 44.2% during the three months ended November 1, 2025, compared to 43.9% for the same period in 2024[132] Inventory and Cash Flow - Inventory increased to $1,658.4 million as of November 1, 2025, from $1,440.7 million a year earlier, primarily due to an increase in reserve inventory and the opening of 108 new stores[134] - Cash and cash equivalents decreased by $410.6 million during the nine months ended November 1, 2025, compared to a decrease of $67.6 million during the same period in 2024[137] Expenses and Costs - Selling, general and administrative expenses as a percentage of net sales decreased to 35.0% during the three months ended November 1, 2025, from 35.4% in the prior year[142] - Cost of sales as a percentage of net sales decreased to 55.8% during the three months ended November 1, 2025, compared to 56.1% in the same period of 2024[141] - The company incurred $10.9 million in pre-opening costs related to leases acquired through bankruptcy proceedings during the third quarter of Fiscal 2025[143] - Depreciation and amortization expense increased to $99.3 million in Q3 Fiscal 2025 from $87.5 million in Q3 Fiscal 2024, driven by new and non-comparable stores[144] - Impairment charges on long-lived assets were $3.8 million in Q3 Fiscal 2025, up from $3.0 million in Q3 Fiscal 2024, primarily related to one store expected to sell below net carrying value[145] Debt and Financing - The company's total debt obligations include $1,723.3 million under the Term Loan Facility and $297.1 million of 2027 Convertible Notes as of November 1, 2025[185] - The average borrowings during the nine-month period ended November 1, 2025, amounted to $26.9 million at an average interest rate of 5.5%[191] - The company has $947.9 million available under the ABL Line of Credit as of November 1, 2025[191] - The 2027 Convertible Notes bear an interest rate of 1.25% per year and will mature on December 15, 2027[195] - The company entered into a $200.0 million interest rate swap agreement with a fixed interest rate of 3.76% during the second quarter of Fiscal 2025[199] - The company refinanced $933.0 million principal amount of Term B-6 Loans with Term B-7 Loans totaling $1,250.0 million[187] - The company has interest rate swaps hedging $1,100.0 million of variable rate exposure under its Term Loan Facility[200] Risks and Challenges - The company anticipates that ongoing economic uncertainties, including inflation and consumer spending habits, may impact revenues and income[105] - The company faces various risks including general economic conditions, competitive factors, and seasonal fluctuations that could impact net sales and operating income[205] - The company acknowledges potential disruptions in its distribution network and the need to protect information systems against cyber-related attacks[205] - The company emphasizes the importance of adapting to changing consumer preferences and demand to sustain growth plans[205] - The company is subject to various regulatory requirements and must comply with increasingly rigorous privacy and data security regulations[205] - The company notes that past financial performance should not be relied upon as an indication of future performance due to unpredictable factors[206] - The company has not reported any material changes to its market risk disclosures since the last fiscal report[208] - Recent accounting pronouncements have been discussed in the condensed consolidated financial statements, indicating ongoing compliance efforts[207]

Financial Performance - Total net revenue for Q3 FY2026 increased 7% to $791 million from $738.5 million in the same prior-year quarter, with a 5% increase in constant currency[8]. - GAAP net earnings for Q3 FY2026 were $25.6 million, compared to a GAAP net loss of $23.4 million for the same prior-year quarter[5]. - Adjusted net earnings for Q3 FY2026 were $19.0 million, an 8% increase from $17.7 million for the same prior-year quarter, with adjusted diluted EPS increasing 3% to $0.35[7]. - For the nine months ended November 1, 2025, total net revenue increased 7% to $2.21 billion from $2.06 billion in the same prior-year period[16]. - Net revenue for the nine months ended November 1, 2025, was $2.21 billion, up 7.2% from $2.06 billion in the prior year[38]. - Total net revenue for the three months ended November 1, 2025, was $791,427, a 7% increase from $738,518 in the same period last year[47]. Margins and Expenses - GAAP operating margin for Q3 FY2026 decreased to 2.9%, down from 5.7% in the same prior-year quarter, primarily due to higher expenses[9]. - Adjusted operating margin for the nine months ended November 1, 2025 decreased to 1.8%, down from 3.5% in the same prior-year period[20]. - Selling, general and administrative expenses increased to $904.15 million, representing 40.8% of net revenue for the nine months ended November 1, 2025[38]. - Total selling, general and administrative expenses for the three months ended November 1, 2025, were $309,026, an increase of 10.6% from $279,389 in the same period last year[42]. - Corporate overhead increased by 39% to $(50,946) for the three months ended November 1, 2025[47]. Acquisitions and Transactions - The proposed take-private transaction with Authentic Brands Group involves Authentic acquiring 51% of the company's intellectual property, with shareholders receiving $16.75 per share in cash[2]. - The proposed transaction is expected to close in Q4 FY2026, pending regulatory approvals[3]. - The Company completed the acquisition of rag & bone on April 2, 2024, acquiring all operating assets and assuming related liabilities, with a joint venture for intellectual property[24]. - The company incurred $5,607 in proposed transaction costs for the three months ended Nov 1, 2025, compared to no costs in the same period last year[42]. - The company has incurred transaction costs related to the acquisition of rag & bone, which are excluded from adjusted results[60]. Cash Flow and Assets - Free cash flows are calculated as cash flows from operating activities minus purchases of property and equipment, providing insight into cash generation for discretionary items[30]. - Cash and cash equivalents at the end of the period were $155,056, compared to $142,322 at the end of the previous year[53]. - The total assets of the company as of November 1, 2025, amounted to $3,006,496, up from $2,794,661 a year earlier[51]. - Free cash flow for the nine months ended November 1, 2025, was $(103,308), an improvement from $(130,391) in the previous year[55]. Store Operations - As of November 1, 2025, the Company operated 1,058 retail stores directly and an additional 507 stores through partners and distributors across approximately 100 countries[31]. - As of November 1, 2025, the total number of stores operated by the company is 1,565, with 1,058 directly operated and 507 partner-operated stores[57]. - The Americas region has a total of 430 stores, with 414 directly operated and 16 partner-operated[57]. - In Europe and the Middle East, there are 781 total stores, with 587 directly operated and 194 partner-operated[57]. - The Asia and Pacific region has 354 total stores, with 57 directly operated and 297 partner-operated[57]. - The company is undergoing restructuring, including planned exits of certain retail stores in North America and Greater China[60]. Risks and Forward-Looking Statements - Forward-looking statements regarding the Proposed Transaction highlight potential risks, including regulatory approvals and business relationship impacts[32][33]. - The Company is subject to various risks, including changes in tax policy, economic conditions, and cybersecurity threats, which may affect future performance[34]. Earnings and Tax Rates - The effective income tax rate for the three months ended November 1, 2025, was 23.4%, compared to an effective tax rate of (128.9%) in the same period last year[38]. - Adjusted effective income tax rate for the nine months ended November 1, 2025, was 49.3%, compared to 35.7% in the prior year[42]. Other Financial Metrics - Other income for Q3 FY2026 was $21.2 million, compared to other expense of $45.8 million for the same prior-year quarter, primarily due to a net unrealized gain of $17.9 million[13]. - Product sales for the three months ended November 1, 2025, reached $760.32 million, a 7.8% increase from $705.51 million in the same period last year[38]. - Gross profit margin decreased to 41.7% for the nine months ended November 1, 2025, compared to 43.1% in the same period last year[38]. - Earnings from operations decreased by 45% to $23,183 compared to $42,276 in the prior year[47]. - The Americas Wholesale segment experienced a significant growth of 28% in net revenue, reaching $126,147[47]. - The Americas Retail segment reported a 2% decrease in net revenue, totaling $170,037[47].

Financial Performance - Net sales for the three months ended October 31, 2025, were $2,330.1 million, a 3% increase from $2,271.2 million in 2024[117] - Net income for the three months ended October 31, 2025, was $241.3 million, compared to a net loss of $24.5 million in 2024[117] - Adjusted earnings per share for the six months ended October 31, 2025, was $4.00, down from $5.19 in the same period of 2024[173] - The company reported a net income of $241.3 million for the three months ended October 31, 2025, compared to a net loss of $24.5 million in the same period of 2024[173] Cost and Profitability - Gross profit decreased by $16.2 million, or 2%, in the second quarter of 2026, primarily due to higher commodity costs and unfavorable volume/mix[124] - Adjusted gross profit decreased by $89.8 million, or 10%, compared to the prior year second quarter[126] - Operating income increased by $248.8 million, or 147%, in the second quarter of 2026, driven by lapping the $260.8 million pre-tax loss on the Voortman business disposal in the prior year[125] Taxation - The effective income tax rate for the three months ended October 31, 2025, was 24.2%, compared to 136.7% in 2024[131] - The company anticipates a full-year effective income tax rate for 2026 to be approximately 24.2%[131] Sales Performance by Segment - U.S. Retail Coffee segment net sales increased by $144.9 million in the second quarter of 2026, driven by a 27% increase in net price realization[140] - U.S. Retail Frozen Handheld and Spreads segment net sales decreased by $24.1 million in the second quarter of 2026, with volume/mix decreasing net sales by 8 percentage points[142] - U.S. Retail Pet Foods segment net sales decreased by $32.2 million in the second quarter of 2026, with volume/mix decreasing net sales by 8 percentage points[144] - Sweet Baked Snacks segment net sales decreased by $59.4 million in the second quarter of 2026, with a 3% decrease excluding the impact of divestitures[146] - International and Away From Home segment net sales increased by $29.7 million in the second quarter of 2026, with a 10% increase excluding unfavorable foreign currency exchange[148] Cash and Debt Management - Total cash and cash equivalents decreased to $62.8 million at October 31, 2025, compared to $69.9 million at April 30, 2025[150] - As of October 31, 2025, total debt was $7.788 billion, an increase from $7.678 billion as of April 30, 2025[161] - The company has a $2.0 billion unsecured revolving credit facility maturing in March 2030, and as of October 31, 2025, had $748.5 million in short-term borrowings outstanding[161] - Cash used for financing activities in the first six months of 2026 was $231.2 million for dividend payments, compared to $226.5 million in the same period of 2025[154] - Dividend declared per share increased to $2.20 in the first six months of 2026 from $2.16 in the same period of 2025[163] Legal and Regulatory Matters - The company is currently involved in various legal proceedings, including class action lawsuits related to false advertising claims, but does not expect a material adverse effect on its financial position[157] Economic and Market Risks - The company continues to face input cost inflation and anticipates price increases across its business due to broader inflationary pressures[114] - A hypothetical 100 basis-point decrease in interest rates would increase the fair value of the company's long-term debt by $556.1 million as of October 31, 2025[178] - Revenues from customers outside the U.S. represented 4 percent of net sales during the six months ended October 31, 2025, indicating exposure to foreign currency fluctuations[184] - The company does not qualify commodity derivatives for hedge accounting treatment, resulting in immediate recognition of gains and losses in cost of products sold[179] - A hypothetical 10 percent change in market prices related to commodities could result in a potential loss (gain) of fair value, with estimated highs and lows of $113.5 million and $(30.0) million respectively[181] - The foreign currency balance sheet exposures as of October 31, 2025, are not expected to significantly impact future earnings or cash flows[182] - The company utilizes foreign currency derivatives to manage exchange rate fluctuations, with contracts generally having maturities of less than one year[183] Integration and Restructuring Costs - Total divestiture costs related to the Sahale Snacks and Canada condiment businesses amounted to $6.4 million, with $4.3 million in employee-related costs and $2.1 million in other transition and termination costs[132] - The company anticipates incurring approximately $12.0 million in costs to address distribution inefficiencies, with total cumulative costs recognized to date at $8.4 million[133] - Integration costs from the acquisition of Hostess Brands are expected to total approximately $190.0 million, with cumulative costs recognized so far at $186.0 million[134] - The company plans to incur approximately $75.0 million in restructuring costs related to the closure of the Indianapolis manufacturing facility, with cumulative costs recognized at $47.9 million[135] Operational Risks - The company faces risks related to the integration of Hostess Brands' operations, which may affect financial forecasts and market price of common shares[188] - The company is exposed to supply chain risks, including cost inflation in raw materials and labor, which could impact operational efficiency[188] - The company anticipates challenges in achieving cost savings related to restructuring and cost management programs within expected time frames[188] - The company has a concentration risk with key customers and suppliers, which may affect its ability to maintain essential business relationships[188]

Financial Performance - Total net revenues for the three months ended October 24, 2025, were $1,705 million, a 2.8% increase from $1,658 million for the same period in 2024[20] - Net income for the three months ended October 24, 2025, was $305 million, up from $299 million in the same period of 2024, representing a 2.0% increase[22] - NetApp reported net income of $538 million for the six months ended October 24, 2025, compared to $547 million for the same period in the previous year, reflecting a decrease of approximately 1.6%[28] - Total net revenues for the three months ended October 24, 2025, were $1,705 million, compared to $1,658 million for the same period in 2024, reflecting a year-over-year increase of 2.8%[92] - Revenues from the Americas for the three months ended October 24, 2025, were $863 million, slightly up from $862 million in the same period of 2024[95] Profitability - Gross profit for the six months ended October 24, 2025, was $2,325 million, compared to $2,275 million for the same period in 2024, reflecting a 2.2% increase[20] - The gross profit margin for Hybrid Cloud was 71.4% for the three months ended October 24, 2025, slightly down from 71.8% in the same period of 2024[92] - Total gross profit for the six months ended October 24, 2025, was $2,325 million, compared to $2,275 million for the same period in 2024, marking an increase of 2.2%[94] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended October 24, 2025, were $800 million, compared to $446 million for the same period in 2024, indicating a significant increase[25] - Total cash and cash equivalents decreased to $2,072 million as of October 24, 2025, down from $2,742 million as of April 25, 2025, representing a decline of about 24.4%[39] - Cash, cash equivalents, and short-term investments decreased by $832 million to $3.0 billion as of October 24, 2025, primarily due to debt repayment and stock repurchases[155] Assets and Liabilities - Total current assets decreased to $4,654 million as of October 24, 2025, down from $5,851 million as of April 25, 2025, a decline of 20.4%[15] - Total liabilities decreased to $8,644 million as of October 24, 2025, from $9,783 million as of April 25, 2025, a reduction of 11.6%[17] - Total stockholders' equity as of October 24, 2025, was $986 million, a decrease from $1,040 million as of April 25, 2025[17] - The company’s total liabilities decreased to $1,277 million as of October 24, 2025, down from $1,401 million as of April 25, 2025, indicating a decline of approximately 8.8%[43] Stock and Dividends - The company repurchased $550 million of common stock during the six months ended October 24, 2025[25] - The company declared cash dividends of $0.52 per common share during the reporting period[27] - Cash dividends declared were $207 million for the six months ended October 24, 2025, compared to $213 million for the same period in the previous year, a decrease of approximately 2.8%[28] - Dividends declared per share remained at $1.04 for the six months ended October 24, 2025, with total dividend payments allocated to retained earnings amounting to $65 million[75] Expenses - Research and development expenses for the three months ended October 24, 2025, were $251 million, slightly down from $257 million in the same period of 2024[20] - Total operating expenses for Q2 and the first six months of fiscal 2026 were $805 million (47% of net revenues) and $1,592 million (49% of net revenues), reflecting a decrease of two percentage points year-over-year[140] - Sales and marketing expenses decreased by 4% in Q2 and 3% in the first six months of fiscal 2026 compared to the prior year, totaling $465 million and $926 million respectively[142] - General and administrative expenses increased by 16% in Q2 and 14% in the first six months of fiscal 2026, totaling $77 million and $173 million respectively[146] Restructuring and Charges - The company incurred restructuring charges of $25 million during the first six months of fiscal 2026, with a balance of $32 million remaining at the end of the period[80] - Restructuring charges recorded in the second quarter of fiscal 2026 totaled $23 million, contributing to a total of $25 million for the first six months[118] Future Projections - Future amortization expense related to purchased intangible assets is projected to be $31 million, with $9 million for the remainder of fiscal 2026 and $21 million for fiscal 2027[38] - Capital expenditures for the remainder of fiscal 2026 are anticipated to be between $90 million and $140 million[170] Other Financial Metrics - The effective tax rate for the six months ended October 24, 2025, was 22.8%, an increase from 17.0% in the prior year[81] - Interest income for the three months ended October 24, 2025, was $27 million, while interest expense was $(26) million, resulting in total other income of $(6) million[49] - The company has a total of $2.5 billion in Senior Notes, with maturities ranging from June 2027 to March 2035[166] Market and Sales - Hybrid Cloud product revenues for the three months ended October 24, 2025, were $788 million, an increase from $768 million in the same period of 2024, representing a growth of 2.6%[92] - Public Cloud revenues for the three months ended October 24, 2025, were $171 million, up from $168 million in the same period of 2024, indicating a growth of 1.8%[92] - Product revenues for the second quarter of fiscal 2026 were $768 million, a 3% decrease from $788 million in the same period of fiscal 2025[123] - Services revenues for the second quarter of fiscal 2026 were $917 million, reflecting a 3% increase from $890 million in the same period of fiscal 2025[126]

Revenue Performance - Revenue for Q3 FY 2026 was $108.5 million, up 31.2% from $82.7 million in Q3 FY 2025[3] - The company expects Q4 FY 2026 revenue to be between $97.0 million and $103.0 million[3] - The new revenue growth guidance for FY 2026 is projected to be between 36% and 38%, an increase from the previous estimate of 31% to 35%[6] - Ambarella's edge AI revenue has set its sixth consecutive revenue record, indicating strong demand for its products[6] Profitability Metrics - Non-GAAP net profit for Q3 FY 2026 was $11.9 million, or earnings per diluted share of $0.27, compared to $4.6 million, or $0.11 per diluted share in Q3 FY 2025[3] - GAAP net loss for Q3 FY 2026 was $15.1 million, or loss per diluted share of $0.35, an improvement from a loss of $24.1 million, or $0.58 per diluted share in Q3 FY 2025[3] - GAAP diluted net loss per share for Q3 2025 was $(0.35), an improvement from $(0.58) in Q3 2024[20] - Non-GAAP diluted net income per share for Q3 2025 was $0.27, compared to $0.11 in Q3 2024, reflecting a 145.5% increase[20] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q3 FY 2026 was $295.3 million, up from $261.2 million in the prior quarter[5] - Total current assets increased to $383,667,000 as of October 31, 2025, up from $320,551,000 at the end of January 2025, reflecting a 19.7% growth[21] - Cash and cash equivalents rose to $174,057,000, compared to $144,622,000 in January 2025, indicating a 20.3% increase[21] - Accounts receivable increased to $42,227,000 from $29,767,000, a growth of 42%[21] - Inventories rose to $39,159,000, up from $34,428,000, indicating a 13.3% increase[21] Liabilities and Equity - Total liabilities increased to $161,777,000 from $127,556,000, representing a 26.8% rise[21] - Shareholders' equity improved to $590,113,000 as of October 31, 2025, up from $561,412,000, showing a 5.1% increase[21] Operating Expenses - Operating expenses on a non-GAAP basis for Q4 FY 2026 are expected to be between $55.0 million and $58.0 million[3] - Year-to-date free cash flow is 14.8% of revenue, reflecting strong growth and operating efficiency[6] Historical Comparison - GAAP net loss for Q3 2025 was $15,107,000, compared to a loss of $24,071,000 in Q3 2024, representing a 37.5% improvement year-over-year[20] - Non-GAAP net income for Q3 2025 was $11,864,000, significantly higher than $4,459,000 in Q3 2024, marking a 166.5% increase[20]

Drug Development and Clinical Trials - The Company has 18 drug candidates in clinical trials, ranging from Phase 1 to Phase 3, with a robust discovery pipeline capable of generating multiple new clinical candidates each year[19] - REDEMPLO (plozasiran) was approved by the FDA in 2025 to reduce triglycerides in adults with Familial Chylomicronemia Syndrome (FCS), marking the Company's first commercial launch[20] - The Company plans to file a supplemental NDA for severe hypertriglyceridemia (sHTG) in 2026, pending successful completion of Phase 3 studies[20] - ARO-DIMER-PA is a dual functional RNAi molecule targeting PCSK9 and APOC3, representing a significant advancement in RNAi therapeutics[48] - The Company is investigating ARO-MAPT, designed to silence the MAPT gene, in a Phase 1/2a clinical trial for Alzheimer's and tauopathies[57] - ARO-CFB is being developed as a potential treatment for complement-mediated kidney diseases, currently in a Phase 1/2a clinical trial[61] - GSK is conducting Phase 2b clinical trials for GSK-4532990 targeting metabolic-dysfunction associated steatohepatitis (MASH) and alcohol-related liver disease (ALD)[65] - GSK received a worldwide exclusive license for daplusiran/tomligisiran (GSK5637608) to develop a potential therapy for chronic hepatitis B virus infection, with a Phase 2 study currently being initiated[66] - Takeda and the Company co-develop the fazirsiran program for liver disease associated with alpha-1 antitrypsin deficiency, with a 50/50 profit-sharing structure in the U.S.[67] - Fazirsiran aims to reduce the production of the mutant Z-AAT protein to prevent liver injury and fibrosis in patients with alpha-1 antitrypsin deficiency[70] - Amgen is responsible for the clinical development of olpasiran, designed to reduce elevated lipoprotein(a), a risk factor for atherosclerotic cardiovascular disease[73] Regulatory and Compliance - The FDA requires a user fee of approximately $4.682 million for NDA submissions requiring clinical data for fiscal year 2026[106] - The FDA's review process for NDAs typically aims for completion within ten months, with priority reviews targeted at six months[108] - The Company must comply with cGMP requirements to ensure consistent production of its products before the FDA approves an NDA[109] - The FDA may require a REMS plan to mitigate serious risks associated with a drug, which can affect market potential and profitability[110] - The FDA may impose conditions on approved products, including post-approval studies and distribution restrictions, which can materially affect market dynamics[113] - The FDA may not approve any other application to market the same drug for the same indication for seven years, except in very limited circumstances[116] - The FDA's interpretation of orphan drug exclusivity may change, potentially limiting the drugs that can receive such exclusivity[117] - Fast Track Designation allows for priority review and rolling review for drugs addressing serious conditions with unmet medical needs[118] - The FDA may approve a drug under the accelerated approval program if it provides a meaningful advantage over existing therapies and demonstrates an effect on a surrogate endpoint[119] - The Breakthrough Therapy designation provides more intensive guidance and expedited review for drugs showing substantial improvement over existing therapies[120] - Post-approval requirements include ongoing regulation by the FDA, including recordkeeping and reporting of adverse experiences[121] - Drug manufacturers must register with the FDA and are subject to periodic inspections to ensure compliance with cGMP requirements[122] - The FDA may withdraw approval if compliance with regulatory requirements is not maintained or if new problems are discovered post-market[123] Intellectual Property and Licensing - The Company controls approximately 643 issued patents and has around 833 pending patent applications worldwide, covering various RNAi technologies[85] - The Company may need to obtain additional patent licenses prior to commercialization of its candidates due to the complex patent landscape in RNAi and drug delivery[89] - The Company acquired RNAi assets and rights from Novartis, including patents related to RNAi therapeutics and delivery technologies[90] - The acquisition from Roche provided the Company with licenses to patents related to modifications of double-stranded oligonucleotides, enhancing its operational freedom in RNAi-trigger formats[91][92] - The Company holds a worldwide, royalty-bearing, exclusive license under the Alnylam-Novartis License to research, develop, and commercialize 30 undisclosed gene targets[90] Market Exclusivity and Orphan Drug Designation - Orphan drug designation can provide the Company with incentives such as grant funding and tax advantages for drugs intended to treat rare diseases[114] - The company is subject to a 10-year market exclusivity for orphan medicinal products, which can be reduced to six years if criteria are not met[165] - Orphan drug designation provides up to ten years of market exclusivity in the EU, contingent on maintaining the designation at the time of marketing authorization review[163] Manufacturing and Workforce - The Company expanded its footprint with a new manufacturing and laboratory facility in Verona, Wisconsin during Q1 fiscal 2025[208] - The new state-of-the-art GMP manufacturing facility in Verona includes over 251,000 total square feet of laboratories and office space[211] - As of September 30, 2025, the Company employed 711 full-time employees across four facilities in the U.S.[212] - The Company continues to expand its workforce to increase in-house manufacturing capacity and enhance clinical and preclinical research expertise[213] - The Company offers a total compensation package targeting the 50 to 75 percentile of the market, including base salary, cash bonuses, and equity compensation[214] - The Company supports employee development through individualized plans, mentoring, and tuition reimbursement[214] - The Company is committed to fostering an inclusive environment with ongoing programs for awareness and engagement[215] Data Privacy and Security - The company must comply with various data privacy and security laws, including HIPAA and state privacy laws, which impose significant obligations regarding personal information[185] - Failure to comply with data privacy laws can result in substantial civil and criminal penalties, posing financial and reputational risks to the company[188] - The GDPR and UK GDPR impose fines of up to €20 million or 4% of annual global revenues for noncompliance, whichever is greater[191] - The complexity of data protection regulations in the EEA is heightened by varying enforcement and additional national regulations[191] - The transfer of personal data outside the EEA requires appropriate safeguards, such as standard contractual clauses[193] Pricing and Reimbursement - The pricing and reimbursement environment in the EU allows member states to control prices and reimbursement levels, which may affect market access for the company's products[177] - Health technology assessments (HTA) are increasingly influencing pricing and reimbursement decisions in EU member states, focusing on clinical efficacy, safety, and cost-effectiveness[179] - The company may be required to conduct cost-effectiveness studies to obtain favorable pricing and reimbursement conditions in certain EU member states[182] - Orphan pharmaceutical products may be exempted from providing certain clinical and economic data for pricing/reimbursement approval in some EU member states[183] Regulatory Changes in the EU - The UK government enacted the Medicines and Medical Devices Act 2021 to update regulatory frameworks for human medicines and clinical trials, ensuring public health is safeguarded[141] - The centralized procedure for Marketing Authorization (MA) in the EU has a standard evaluation timeframe of 210 days, which can be extended due to additional information requests[152] - New Chemical Entities (NCE) approved in the EU qualify for eight years of data exclusivity and ten years of marketing exclusivity, extendable to eleven years under certain conditions[157] - The European Medicines Agency (EMA) provides scientific advice for drug development, with fees significantly reduced for orphan medicines[149] - The Medical Devices (Amendment) (Great Britain) Regulations 2023 allow CE marked devices to be sold in the UK until 2028 or 2030, depending on the device type[144] - The Medicines and Healthcare products Regulatory Agency (MHRA) plans to implement new 'Pre-Market Regulations' in 2026, extending the sunset period for key EU-derived regulations[144] - The EU Clinical Trials Regulation (CTR) became applicable on January 31, 2022, streamlining the approval process for clinical trials across member states[145] - The current proposal for reforming European pharmaceutical legislation includes shortening data exclusivity from eight to six years, with incentives for developing new antibiotics[161]

Financial Performance - For the three months ended October 31, 2025, revenue was $788.1 million, a 26% increase from $628.0 million in the same period of 2024[121] - GAAP gross profit for the three months ended October 31, 2025, was $603.4 million, with a GAAP gross margin of 77%[139] - Non-GAAP income from operations for the three months ended October 31, 2025, was $171.9 million, resulting in a non-GAAP operating margin of 22%[141] - Annual Recurring Revenue (ARR) as of October 31, 2025, was $3,204 million, up from $2,553 million in 2024, indicating a strong growth in subscription contracts[145] - Free cash flow for the three months ended October 31, 2025, was $413,296 thousand, compared to $291,881 thousand in 2024, reflecting an increase of 42%[144] - The net loss for the three months ended October 31, 2025, was $11.6 million, adjusted for non-cash charges of $297.1 million, which included $188.6 million for stock-based compensation[190] Customer Growth - As of July 31, 2025, the company had over 9,400 customers, up from over 8,650 customers in 2024, representing a growth of approximately 8.6%[125] - The customer base grew by 14% from October 31, 2024, to October 31, 2025, contributing to the revenue increase[166] Operating Expenses - Operating expenses increased to $639,721 thousand in Q3 2025 from $517,160 thousand in Q3 2024, primarily driven by higher sales and marketing expenses[163] - Research and development expenses increased to $200,498 thousand in Q3 2025 from $154,254 thousand in Q3 2024, reflecting ongoing investment in product development[163] - Sales and marketing expenses increased by $67.5 million, or 22%, to $373.6 million, largely due to higher employee-related expenses and marketing costs[169] - General and administrative expenses grew by $8.8 million, or 16%, to $65.7 million, mainly from increased employee-related expenses[172] Cash Flow and Investments - Net cash provided by operating activities for the three months ended October 31, 2025, was $448.3 million, compared to $331.3 million for the same period in 2024, reflecting a year-over-year increase of 35.4%[190][191] - Net cash used in investing activities during the three months ended October 31, 2025, totaled $1,502.2 million, significantly higher than $201.7 million in the same period of 2024, primarily due to $896.4 million in short-term investments and $672.8 million for business acquisitions[192][193] - Net cash provided by financing activities was $3.1 million for the three months ended October 31, 2025, slightly up from $0.9 million in the same period of 2024, mainly from stock option exercises[194] Economic Environment and Future Outlook - The uncertain economic environment is leading to elongated approval processes for transactions, particularly for larger deals[122] - The company expects to continue incurring net losses as it invests in sales, marketing, and research and development[121] - The company expects gross profit to increase in absolute dollars and gross margin to improve slightly over the long term[152] Risk Management - The company has a foreign currency risk management program and uses foreign currency forward contracts to hedge a portion of its forecasted foreign currency-denominated expenses[203][205] - A hypothetical 100 basis point change in interest rates would have changed the fair value of the company's investments in available-for-sale securities by $27.9 million as of October 31, 2025[200] - The effect of a hypothetical 10% change in foreign currency exchange rates would not have a material impact on the company's financial statements for the three months ended October 31, 2025, and 2024[203] Other Financial Metrics - Interest income increased by $3.1 million, or 10%, to $33.2 million, attributed to a higher balance of cash equivalents and short-term investments[173] - Interest expense decreased by $1.0 million, or 32%, to $(2.1) million, primarily due to fair value hedge adjustments[174] - Other expense, net increased by $2.4 million, or 366%, to $(3.0) million, driven by fluctuations in foreign currency transactions[175] - Provision for income taxes decreased by $4.4 million, or 58%, to $3.2 million, mainly due to a tax benefit from the release of a portion of the U.S. valuation allowance[176] - As of October 31, 2025, cash, cash equivalents, and short-term investments totaled $3,321.3 million, supporting working capital and corporate purposes[182] - Deferred revenue amounted to $2,351.3 million, with $1,946.2 million expected to be recognized as revenue in the next 12 months[187] - The company issued $1,725.0 million in 2028 Notes in July 2025, which have a 0.0% interest rate, thus not exposing the company to economic interest rate risk[201][202] - Non-cash charges for the three months ended October 31, 2025, included $188.6 million for stock-based compensation and $48.1 million for amortization of deferred contract acquisition costs[190]

Financial Performance - Arrowhead Pharmaceuticals reported a revenue of $829.448 million for the fiscal year 2025, a significant increase from $3.551 million in 2024[10] - The company achieved an operating income of $98.346 million in 2025, compared to an operating loss of $601.080 million in 2024[10] - Arrowhead's net income attributable to the company was a loss of $1.631 million in 2025, an improvement from a loss of $599.493 million in the previous year[10] - The company has $919.366 million in total cash resources as of September 30, 2025, compared to $680.961 million in 2024[10] - Arrowhead's total assets increased to $1.385 billion in 2025, up from $1.140 billion in 2024[10] Regulatory Approvals and Clinical Trials - The FDA approved REDEMPLO (plozasiran), the first FDA-approved siRNA medicine for familial chylomicronemia syndrome (FCS), which can reduce triglycerides by 80% from baseline[6][11] - The company filed for regulatory clearance to initiate Phase 1/2a clinical trials for ARO-DIMER-PA and ARO-MAPT, targeting atherosclerotic cardiovascular disease and tauopathies, respectively[7] Partnerships and Licensing Agreements - Arrowhead received a $200 million upfront payment from Novartis as part of a global licensing agreement for ARO-SNCA, with potential milestone payments of up to $2 billion[7] - Arrowhead earned $300 million in milestone payments from Sarepta Therapeutics related to the ARO-DM1 clinical study[7] - The company signed an asset purchase agreement with Sanofi, receiving an upfront payment of $130 million and potential milestone payments of up to $265 million for plozasiran in Greater China[8]

Financial Performance - Record Q3 revenue of $27 billion, up 11% year over year, with record Q3 profitability and strong cash generation [2] - Full-year FY26 revenue expected between $111.2 billion and $112.2 billion, representing a 17% increase year over year [6] - Operating income for Q3 was $2.119 billion, up 23% year over year [7] - Total net revenue for the three months ended October 31, 2025, was $27,005 million, representing an 11% increase compared to $24,366 million for the same period in 2024 [21] - Total consolidated net revenue for the three months ended October 31, 2025, was $27,005 million, an increase of 11% compared to $24,366 million for the same period in 2024 [30] - Infrastructure Solutions Group (ISG) net revenue reached $14,107 million, a 24% increase from $11,368 million year-over-year [30] - Client Solutions Group (CSG) total net revenue was $12,478 million, reflecting a 3% increase from $12,131 million in the prior year [30] Earnings and EPS - GAAP diluted EPS expected to be $8.38 at the midpoint, up 31% year over year, and non-GAAP diluted EPS to be $9.92, up 22% [6] - Non-GAAP diluted EPS for Q3 was $2.59, an increase of 17% year over year [7] - Earnings per share attributable to Dell Technologies Inc. increased by 39% to $2.28 for the three months ended October 31, 2025, and by 26% to $5.34 for the nine months ended [46] - Non-GAAP earnings per share attributable to Dell Technologies Inc. is projected to be $3.50 for the three months ending January 30, 2026, and $9.92 for the fiscal year ending January 30, 2026 [53] Cash Flow and Returns - Capital return to shareholders in Q3 amounted to $1.6 billion, with a total of $5.3 billion returned year to date [3] - Free cash flow decreased by 45% to $506 million for the three months ended October 31, 2025, but increased by 122% to $4.602 billion for the nine months ended [50] - Adjusted free cash flow rose by 133% to $1.67 billion for the three months ended October 31, 2025, and by 145% to $6.42 billion for the nine months ended [50] - Cash flow from operations decreased by 25% to $1.172 billion for the three months ended October 31, 2025, while it increased by 65% to $6.511 billion for the nine months ended [50] Orders and Shipments - AI shipment guidance raised to approximately $25 billion, reflecting over 150% year-over-year growth [2] - Record AI server orders of $12.3 billion in Q3, with total orders year to date reaching $30 billion [2] Expenses and Margins - The gross margin for the three months ended October 31, 2025, was 20.7%, down from 22.0% in the same period last year [21] - Research and development expenses increased by 1% to $752 million for the three months ended October 31, 2025 [21] - Non-GAAP gross margin for the three months ended October 31, 2025, was $5,686 million, a 4% increase from $5,490 million in the same quarter of 2024 [38] - Non-GAAP operating income for the three months ended October 31, 2025, was $2,503 million, an 11% increase from $2,252 million year-over-year [38] - Non-GAAP net income for the three months ended October 31, 2025, was $1,762 million, reflecting an 11% increase from $1,583 million in the prior year [38] Assets and Liabilities - Total assets increased to $87,479 million as of October 31, 2025, up from $79,746 million as of January 31, 2025 [23] - Total liabilities rose to $90,099 million as of October 31, 2025, compared to $81,133 million as of January 31, 2025 [23] Interest and Other Expenses - The company reported a 36% decrease in interest and other net expenses, totaling $(178) million for the three months ended October 31, 2025, compared to $(276) million in the same period last year [21]