HP Inc. Reports Fiscal 2025 Second Quarter Results

Core Insights - HP Inc. reported a net revenue of $13.2 billion for Q2 FY25, reflecting a year-over-year increase of 3.3% (4.5% in constant currency) compared to Q2 FY24 [2][3] - The company's GAAP diluted net earnings per share (EPS) decreased to $0.42, down 31% from $0.61 in the prior-year period, and below the previous outlook of $0.62 to $0.72 [3][6] - Non-GAAP diluted EPS also fell to $0.71, down 13% from $0.82 in the prior-year period, and below the previous outlook of $0.75 to $0.85 [3][6] Financial Performance - GAAP net earnings for Q2 FY25 were $0.4 billion, a decline of 33% from $0.6 billion in Q2 FY24 [1][6] - Non-GAAP net earnings were $0.7 billion, down 17% from $0.8 billion in the prior-year period [1][6] - The GAAP operating margin decreased to 4.9%, down from 7.4% in the prior-year period, while the non-GAAP operating margin fell to 7.3% from 8.8% [1][3] Cash Flow and Shareholder Returns - HP generated $0.0 billion in net cash from operating activities, a significant decrease of 94% from $0.6 billion in Q2 FY24 [1][5] - The company reported a free cash flow of $(0.1) billion, down 120% from $0.5 billion in the prior-year period [1][5] - HP returned $0.4 billion to shareholders through dividends and share repurchases during the quarter [6] Segment Performance - Personal Systems segment net revenue was $9.0 billion, up 7% year-over-year, with a 4.5% operating margin [14] - Printing segment net revenue was $4.2 billion, down 4% year-over-year, with a 19.5% operating margin [14] Outlook - For Q3 FY25, HP estimates GAAP diluted EPS to be in the range of $0.57 to $0.69 and non-GAAP diluted EPS to be in the range of $0.68 to $0.80 [9] - For the full fiscal year 2025, HP anticipates GAAP diluted EPS in the range of $2.32 to $2.62 and non-GAAP diluted EPS in the range of $3.00 to $3.30 [10]