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HP Inc. Reports Fiscal 2025 First Quarter Results
HPQHP(HPQ) GlobeNewswire·2025-02-27 21:15

Core Insights - HP Inc. reported a fiscal 2025 first quarter net revenue of 13.5billion,representingayear−over−yearincreaseof2.413.5 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 0.62intheprior−yearperiod,whilenon−GAAPdilutedEPSwas0.62 in the prior-year period, while non-GAAP diluted EPS was 0.74, down from 0.81[5][7]−HP′soperatingmargindecreased,withGAAPoperatingmarginat6.30.81 [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 0.7billion,down130.7 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 0.1billion,up1800.1 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 9.2billion,up59.2 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 0.62to0.62 to 0.72 and non-GAAP diluted EPS to be in the range of 0.75to0.75 to 0.85 [11] - For the full fiscal year 2025, HP anticipates GAAP diluted EPS between 2.86and2.86 and 3.16 and non-GAAP diluted EPS between 3.45and3.45 and 3.75 [12] - The company expects to generate free cash flow in the range of 3.2to3.2 to 3.6 billion for the fiscal year [12] Strategic Initiatives - HP is raising its Future Ready savings target from 1.6billionto1.6 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]