HP(US:HPQ) Zhi Tong Cai Jing·2025-11-25 23:48Core Viewpoint - HP Inc. reported a 4.2% increase in revenue for Q4 FY25, reaching $14.6 billion, slightly above analyst expectations of $14.5 billion. However, the company's earnings guidance for FY26 fell below market expectations, indicating challenges ahead due to rising costs and workforce reductions aimed at enhancing efficiency through AI tools [1][4]. Financial Performance - For FY25, HP's total revenue was $55.3 billion, a 3.2% increase from $53.6 billion in FY24. The Q4 revenue was $14.6 billion, up from $14.1 billion in Q4 FY24, reflecting a 4.2% year-over-year growth [2]. - The GAAP diluted net EPS for Q4 FY25 was $0.84, down 10% from $0.93 in Q4 FY24. The non-GAAP diluted net EPS for the same period was $0.93, a decrease of 3% from $0.96 [2]. - The operating margin for Q4 FY25 was 6.6%, down from 7.1% in Q4 FY24, indicating a decline in profitability [2]. Business Segments - The personal computer segment saw an 8% revenue increase to $10.35 billion, driven by customer upgrades to Windows 11 and interest in AI-enabled computers. Conversely, the printer segment's revenue declined by 4% to $4.27 billion, aligning with expectations [2]. Future Outlook - For FY26, HP expects adjusted earnings per share to be between $2.90 and $3.20, below the analyst consensus of $3.32. For Q1 FY26, the expected adjusted EPS is between $0.73 and $0.81, slightly below the analyst average of $0.78 [4]. - The company plans to implement cost-cutting measures that will result in annual savings of $1 billion by 2028, with a restructuring cost of approximately $650 million, of which $250 million will be incurred in FY26 [4]. Market Response - Following the earnings announcement, HP's stock fell approximately 5% in after-hours trading, contributing to a 25% decline in stock value for the year [7].