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]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][26] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with a 5% unit growth and increased average selling prices (ASPs) [28] - Print revenue declined by 4% year over year, or 3% in constant currency, with market-driven hardware declines in both consumer and commercial segments [30] - Strong performance in key growth areas, including double-digit growth in consumer subscriptions and industrial graphics [30][15] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, particularly strong in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with a strategy that includes manufacturing diversification and cost reduction [8][22] - The company is shifting its mix to higher value segments, such as AIPCs and commercial premium, while maintaining discipline in pricing [10][12] - The print market is expected to decline in low single digits in 2025, but the company aims to protect the operating profit contribution of the premium business [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market in 2025, expecting mid-single-digit growth in the second half [21] - The company is adapting to a dynamic environment and has strengthened operational agility to navigate evolving conditions [23] - Management acknowledged continued uncertainty in the global trade environment but remains confident in the ability to respond quickly to changes [23] Other Important Information - The company is on track to achieve $2 billion in annualized gross run rate savings by the end of fiscal year 2025 [8][32] - The company returned over $400 million to shareholders through dividends and share repurchases [33] Q&A Session Summary Question: Impact of tariff-related costs in the quarter - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - Management confirmed that AIPCs carry a higher ASP and margin profile compared to non-AIPCs, with a price increase of 5% to 10% driven by AIPC capabilities [49] Question: Expectations for print pricing and office environment - Management expects aggressive pricing competition to continue, but remains confident in the long-term demand for print as the number of pages printed has not deviated from expectations [78] Question: Capital allocation and leverage - Management indicated that leverage improved to slightly over 2 times, and they anticipate returning 100% of free cash flow to shareholders as leverage continues to improve [80]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Data and Key Metrics Changes - Personal Systems revenue grew by 6% year over year, with a 10% sequential increase [9][28] - Print revenue declined by 3% in constant currency, with a focus on maintaining profitable unit placements [13][30] - Strong growth in advanced compute solutions and digital services within Personal Systems [11][28] Market Data and Key Metrics Changes - Americas and EMEA regions grew by 1% in constant currency, while APJ was up 11% [26] - Strong performance in China contributed to Personal Systems growth [26][29] Company Strategy and Development Direction - The company aims to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Focus on shifting to higher value segments and maintaining cost discipline in response to trade-related costs [8][22] - Continued investment in AI capabilities to drive automation and streamline operations [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market, expecting mid-single-digit growth in the second half of 2025 [21][36] - Anticipated decline in the print market by low single digits in 2025, with a strategy focused on protecting operating profit [21][36] - Management acknowledged ongoing uncertainty in the global trade environment but emphasized operational agility [23] Other Important Information - The company has achieved 100% renewable electricity across U.S. operations, marking progress towards net-zero goals [19] - New AI-powered solutions and innovations were highlighted, including the introduction of HP Dimension and AI capabilities in printing [17][18] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while hardware sales were impacted short-term, the demand for printing remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance and margin dynamics - Management expects sequential revenue growth in line with prior year seasonality, driven by holiday uptick and continued momentum from Windows 11 [50][51] Question: PC market confidence and share growth - Management expressed confidence in sustained demand for PCs, driven by Windows 11 and AIPC adoption, with expectations for continued growth into fiscal year 2026 [60][72] Question: Print margins and pricing environment - Management acknowledged a competitive pricing environment but expects print margins to improve in Q4 due to higher supplies volume and disciplined pricing [61][66]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with strong growth in both commercial and consumer segments [9][28] - Print revenue declined by 3% in constant currency, with key growth areas performing well despite overall market softness [13][30] - Consumer subscriptions in Print saw strong growth, particularly in the all-in plan [15][30] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, with strong performance in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11][12] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with significant investments in AI-powered solutions and digital services [15][20] - The strategy includes shifting to higher value segments and maintaining cost discipline to mitigate trade-related costs [8][22] - The company expects the PC market to grow mid-single digits in the second half of 2025, driven by Windows 11 refresh and AITC adoption [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market and the ability to navigate uncertainties in the global trade environment [23][36] - The company is on track to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Management noted that while the print market is expected to decline, the focus will be on protecting operating profit contributions from premium business [21][22] Other Important Information - The company has achieved 100% renewable electricity across its U.S. operations, marking a significant step toward its net-zero goal [19] - The company is establishing digital hubs in partnership with the YMCA, reaching over 700,000 people worldwide [20] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the Print business - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [44][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin profile compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance - The sequential increase in EPS for Q4 is expected to be driven by improved margins from the ReadyNEXT program and seasonal uptick in demand [50][51] Question: PC market confidence - Management expressed confidence in continued demand for PCs driven by Windows 11 refresh and AIPC adoption, projecting mid-single-digit growth for the second half of 2025 [60][72] Question: Print margins volatility - Management acknowledged the sequential drop in print margins but expects them to recover in Q4 due to higher supplies volumes and disciplined pricing [61][66] Question: Capital allocation and leverage - The company is slightly above a 2x leverage ratio and plans to return 100% of free cash flow to shareholders as leverage improves [81][82]