HP(US:HPQ) Xi Niu Cai Jing·2025-12-02 02:01Core Viewpoint - HP Inc. reported its financial results for Q4 and the full year of fiscal 2025, showing a net revenue increase but announcing a significant restructuring plan that includes layoffs despite ongoing revenue growth [1][2][3]. Financial Performance - Q4 net revenue reached $14.639 billion, a year-over-year increase of 4.2%, while full-year revenue was $55.295 billion, up 3.2% [2][3]. - The printing segment generated $4.266 billion in Q4, down 4.2% year-over-year, while personal systems revenue was $10.353 billion, up 7.9% [2][3]. - The overall operating profit for HP was $1.169 billion, representing 8.0% of revenue, with a decrease of $71 million compared to the previous year [2]. Business Segment Analysis - The personal systems division, which includes laptops and desktops, was the main growth driver, achieving $10.4 billion in Q4 revenue, an 8% increase year-over-year, with a profit margin of 5.8% [6]. - In contrast, the printing division continued to struggle, with Q4 revenue of $4.3 billion, a 4% decline, and a similar drop in printing supplies revenue [9]. Restructuring and Layoffs - HP announced a restructuring plan that will involve laying off 4,000 to 6,000 employees by fiscal 2028, aiming for annual cost savings of approximately $1 billion [3][9]. - The restructuring is expected to incur about $650 million in costs, with $250 million anticipated in fiscal 2026 [9]. Market Challenges - HP's earnings forecast for fiscal 2026 fell short of Wall Street expectations, with projected non-GAAP diluted earnings per share between $2.90 and $3.20, below the consensus estimate of $3.33 [9]. - In the Chinese market, HP faced significant challenges, including a 23% decline in sales volume, making it the only top five brand to experience a drop [12]. - The competitive landscape in China is tough, with local brands like Lenovo gaining strength and HP's product appeal waning, particularly in the thin and light laptop segment [12].