Core Insights - HP reported $14.64 billion in revenue for the quarter ended October 2025, a year-over-year increase of 4.2% [1] - The EPS for the same period was $0.93, unchanged from a year ago, with a surprise of +2.2% compared to the consensus estimate of $0.91 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $14.97 billion, resulting in a surprise of -2.23% [1] Financial Performance Metrics - HP's shares have returned -12.7% over the past month, underperforming the Zacks S&P 500 composite's -1.2% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Key Operational Metrics - Days in accounts payable: 139 days, slightly above the estimated 137 days [4] - Days of sales outstanding in accounts receivable: 35 days, exceeding the estimated 31.5 days [4] - Days of supply in inventory: 66 days, close to the estimated 67 days [4] Revenue Breakdown - Personal Systems - Commercial PS: $6.97 billion, below the estimated $7.34 billion, with a year-over-year change of +6.9% [4] - Personal Systems - Consumer PS: $3.38 billion, matching the estimated $3.38 billion, with a year-over-year change of +10.2% [4] - Total Personal Systems revenue: $10.35 billion, below the estimated $10.72 billion, with a year-over-year change of +7.9% [4] - Printing - Supplies: $2.76 billion, below the estimated $2.81 billion, with a year-over-year change of -3.6% [4] - Printing - Commercial Printing: $1.21 billion, slightly above the estimated $1.18 billion, with a year-over-year change of -4.2% [4] - Printing - Consumer Printing: $296 million, below the estimated $302.61 million, with a year-over-year change of -8.9% [4] - Total Printing revenue: $4.27 billion, slightly below the estimated $4.29 billion, with a year-over-year change of -4.2% [4] Earnings from Operations - Earnings from operations in Personal Systems: $597 million, below the estimated $632.41 million [4] - Earnings from operations in Corporate Investments: -$34 million, significantly better than the estimated -$156.27 million [4]

Core Insights - HP plans to cut between 4,000 and 6,000 jobs globally by fiscal 2028 to streamline operations and enhance productivity through artificial intelligence [1][2] - The job cuts will affect teams focused on product development, internal operations, and customer support, representing up to 10% of its workforce [2] - The company anticipates $1 billion in gross run rate savings over three years from this initiative [4] Financial Performance - HP's revenue for the fourth quarter was $14.64 billion, surpassing estimates of $14.48 billion [11] - The company expects adjusted profit per share for fiscal 2026 to be between $2.90 and $3.20, which is below analysts' average estimate of $3.33 [9] - For the first quarter, HP expects adjusted profit per share between 73 cents and 81 cents, with the midpoint below estimates of 79 cents [11] Market Trends - Demand for AI-enabled PCs has increased, accounting for over 30% of HP's shipments in the fourth quarter ended October 31 [5][8] - A surge in global memory chip prices due to rising demand from data centers may increase costs and pressure profits for HP and other consumer electronics makers [5][6] - HP is taking measures to mitigate cost increases by qualifying lower-cost suppliers and reducing memory configurations [9]

Earnings Performance - HP reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, with an earnings surprise of +2.20% [1] - The company's revenues for the quarter ended October 2025 were $14.64 billion, missing the Zacks Consensus Estimate by 2.23%, compared to $14.06 billion in the same quarter last year [2] Stock Performance - HP shares have declined approximately 25.3% since the beginning of the year, while the S&P 500 has gained 14% [3] - The current Zacks Rank for HP is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $14.43 billion, and for the current fiscal year, it is $3.15 on revenues of $56.17 billion [7] - The Computer - Micro Computers industry is currently ranked in the bottom 31% of over 250 Zacks industries, which may negatively impact HP's stock performance [8]

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Financial Data and Key Metrics Changes - HP reported a 4% year-over-year revenue growth for Q4, marking the sixth consecutive quarter of revenue growth, driven primarily by gains in personal systems [7][19] - Non-GAAP EPS was reported at $0.93, representing a sequential increase of 24% [22] - For the full year, revenue grew by 3%, with personal systems revenue increasing by 6% and print revenue declining by 4% [11][12] Business Line Data and Key Metrics Changes - Personal systems revenue grew 8% year-over-year, with strong performance in both commercial and consumer segments [9][22] - Print revenue declined 4%, reflecting market softness and delayed purchasing decisions, although consumer subscriptions showed double-digit revenue growth [10][24] - Industrial graphics exceeded $1.8 billion in annual revenue, driven by consistent year-over-year growth [11] Market Data and Key Metrics Changes - EMEA revenue grew 6% and APJ was up 9% in constant currency, while Americas revenue was flat due to demand softness in North America [20] - AI PCs represented over 30% of shipments in Q4, with expectations to increase to 40%-50% in the following year [53][82] Company Strategy and Development Direction - The company is focusing on four pillars for fiscal year 2026: personal systems growth, print market share expansion, workforce solutions recovery, and improved cost structure [15][16][17] - HP aims to embed AI into its operations to accelerate product innovation and improve customer satisfaction, targeting approximately $1 billion in gross run rate savings over three years [17][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising memory costs, which are expected to impact margins in the second half of the fiscal year [14][30] - The company remains confident in its ability to navigate these challenges, leveraging strong supplier relationships and a diversified portfolio [44][80] Other Important Information - HP's future-ready cost plan has delivered $2.2 billion in cumulative gross annualized savings, surpassing the original target [20] - The company announced a quarterly dividend increase to $0.30 per share, reflecting confidence in its long-term outlook [33] Q&A Session Summary Question: Free cash flow guidance despite margin pressures - Management indicated that free cash flow is expected to be flat year-over-year, offset by improvements in working capital and lower CapEx and restructuring costs [38][39] Question: Strategies for navigating memory pricing - Management emphasized the importance of scale and supplier relationships, along with a focus on portfolio management to mitigate the impact of rising memory costs [44][45] Question: Pricing actions across the portfolio - Price increases will be considered on a case-by-case basis, with a selective approach depending on specific situations [49] Question: Windows 11 refresh impact - The conversion to Windows 11 is expected to continue as a tailwind, particularly in SMB and international markets [51][62] Question: Rationale behind cost savings initiative - The initiative is driven by opportunities presented by AI to enhance productivity and customer satisfaction, not solely in response to memory costs [55][57] Question: Customer reception to pricing actions - Pricing actions have been implemented in both consumer and commercial spaces, with mixed reactions observed [87][88]

Financial Data and Key Metrics Changes - HP reported a 4% year-over-year revenue growth in Q4 2025, marking the sixth consecutive quarter of revenue growth, driven primarily by gains in personal systems [6][20] - Non-GAAP EPS was reported at $0.93, representing a sequential increase of 24% and coming above the midpoint of guidance [20] - For the full year, revenue grew by 3%, returning to growth after previous declines [11] Business Line Data and Key Metrics Changes - Personal systems revenue grew 8% year-over-year, with strong performance in both commercial and consumer segments [10][20] - Print revenue declined 4% year-over-year, reflecting market softness and delayed purchasing decisions [10][23] - Key growth areas in personal systems, including AI PCs, saw double-digit revenue growth, with AI PCs now representing over 30% of shipments [10][20] Market Data and Key Metrics Changes - EMEA revenue grew 6% and APJ was up 9% in constant currency, while Americas revenue was flat, indicating regional disparities in performance [19] - The Windows 11 refresh is expected to continue driving demand, with 40% of the installed base still on Windows 10 at the end of Q4 [10][46] Company Strategy and Development Direction - The company is focusing on four pillars for fiscal year 2026: personal systems growth, print market share expansion, workforce solutions recovery, and improved cost structure [15][16][17] - HP is committed to embedding AI into its operations to drive product innovation and improve customer satisfaction, with a target of achieving approximately $1 billion in gross run rate savings over three years [17][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising memory costs, which currently account for 15%-18% of the cost of a typical PC, and outlined strategies to mitigate these impacts [13][14] - The company remains confident in its ability to navigate the challenging trade environment and expects to see stronger revenue in the second half of fiscal year 2026 [25][49] Other Important Information - HP's cumulative gross annualized savings from its future-ready cost plan reached $2.2 billion, surpassing the original target [19] - The company announced a quarterly dividend increase to $0.30 per share, reflecting confidence in its long-term outlook [32] Q&A Session Summary Question: Free cash flow guidance for next year - Management expects free cash flow to be relatively flat year-over-year, offset by improvements in working capital and lower CapEx and restructuring costs [33][34] Question: Strategies to navigate memory pricing - The company plans to use its scale and supplier relationships to manage memory costs, including qualifying lower-cost suppliers and redesigning product configurations [35][36] Question: Pricing actions across the portfolio - Pricing increases will be considered on a case-by-case basis, with a focus on balancing profitability and customer demand [39] Question: Windows 11 refresh impact - The Windows 11 refresh is expected to continue as a tailwind, particularly in SMB and international markets [40][46] Question: Cost savings initiative rationale - The new cost savings initiative is driven by opportunities presented by AI, not solely in response to memory costs [42] Question: Customer reception to pricing actions - Pricing actions have been implemented in both consumer and commercial spaces, with varied impacts on market share [59][60]

HP, Inc. (NYSE:HPQ) shares fell after the company released its fourth-quarter earnings report after Tuesday's closing bell. The company also announced layoffs and issued weak forward guidance. Here's a look at the details in the report. HPQ stock is moving. Watch the price action here.The Details: HP reported quarterly earnings of 93 cents per share, which beat the analyst estimate of 92 cents.Quarterly revenue came in at $14.6 billion, which beat the Street estimate of $14.48 billion, according to data fro ...

Financial Highlights - Q4 FY25 - Net revenue reached $1464 billion, a 4% increase year-over-year in both nominal and constant currency[15] - Non-GAAP diluted net earnings per share were $093, aligning with the outlook of $087 to $097 per share[15] - Free cash flow amounted to $15 billion[15] - $08 billion was returned to shareholders through share repurchases and dividends[15] Financial Highlights - FY25 - Net revenue totaled $553 billion, a 3% increase from the previous year, or 4% in constant currency[16] - Non-GAAP diluted net earnings per share reached $312[16] - Free cash flow was $29 billion[16] - $19 billion was returned to shareholders through dividends and share repurchases[16] Segment Performance - Q4 FY25 - Personal Systems contributed 71% to net revenue, while Printing accounted for 29%[18] - Printing generated 57% of the total non-GAAP operating profit with an 189% operating profit margin, while Personal Systems contributed 43% with a 58% operating profit margin[19] - Printing revenue was $4266 billion, down 42% year-over-year, with an operating profit of $805 million[22] - Personal Systems revenue was $10353 billion, up 79% year-over-year, with an operating profit of $597 million[22] Segment Performance - FY25 - Personal Systems accounted for 70% of net revenue, while Printing represented 30%[20] - Printing generated 60% of the total non-GAAP operating profit with an 187% operating profit margin, while Personal Systems contributed 40% with a 53% operating profit margin[20] - Printing revenue was $16702 billion, down 37% year-over-year, with an operating profit of $3118 billion[23] - Personal Systems revenue was $38532 billion, up 65% year-over-year, with an operating profit of $2054 billion[23] Regional Performance - Q4 FY25 - Americas accounted for 42% of net revenue, EMEA for 34%, and APJ for 24%[19] - Americas net revenue decreased by 06% year-over-year (03% in constant currency), while EMEA and APJ increased by 79% year-over-year (56% and 89% in constant currency, respectively)[19] Regional Performance - FY25 - Americas accounted for 42% of net revenue, EMEA for 34%, and APJ for 24%[20] - Americas net revenue increased by 73% year-over-year (85% in constant currency), EMEA increased by 13% year-over-year (21% in constant currency), and APJ increased by 31% year-over-year (26% in constant currency)[20]

Core Insights - HP announced plans to cut between 4,000 and 6,000 jobs by the end of 2028 as part of its strategy to focus on artificial intelligence [1] - The company estimates that these job cuts will result in approximately $1 billion in savings by 2028 [1] - Following the announcement, HP's stock experienced a decline of over 5% in after-hours trading [1]

Core Viewpoint - HP Inc. announced a significant reduction in workforce, projecting layoffs of 4,000 to 6,000 employees, alongside a lower-than-expected earnings forecast for the upcoming fiscal year, resulting in a 5% drop in share price during extended trading [1][2]. Financial Performance - For the fourth quarter, HP reported adjusted earnings per share of 93 cents on revenue of $14.64 billion, marking a 4% year-over-year increase. This performance slightly exceeded analyst expectations of 92 cents per share and $14.48 billion in revenue [2]. - For the first quarter of fiscal 2026, HP anticipates adjusted net earnings per share between 73 cents and 81 cents, which is below the LSEG consensus of 79 cents. For the entire fiscal 2026, the company projects adjusted earnings per share of $2.90 to $3.20, also falling short of the consensus estimate of $3.33 [3]. Market Context - The layoffs at HP follow a similar round of job cuts in 2022 and are part of a broader trend among technology companies facing challenges due to rising prices and interest rates affecting U.S. consumers [2]. - The company's outlook is influenced by increased costs associated with current U.S. trade-related regulations and necessary mitigations [3].