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]

Core Viewpoint - HP Inc. is expected to report its second-quarter fiscal 2025 results on May 28, with revenue estimates indicating a 4.3% year-over-year improvement to $13.36 billion, while non-GAAP earnings per share are projected to decline by 2.4% to 80 cents [1][2]. Group 1: Revenue and Earnings Estimates - The Zacks Consensus Estimate for HP's revenues is $13.36 billion, reflecting a 4.3% increase from the prior-year quarter [1]. - Non-GAAP earnings per share are expected to be between 75 cents and 85 cents, with a midpoint of 80 cents, indicating a 2.4% decline from the previous year's EPS of 82 cents [2]. Group 2: Performance Drivers - The Personal Systems segment is anticipated to drive overall performance, with sales estimated at $9.19 billion, representing a 9% year-over-year growth [4]. - The introduction of AI-based computing devices is likely to enhance consumer traction and contribute to top-line growth [5]. - Increased adoption of gaming products, including various gaming laptops and accessories, is expected to positively impact sales [6]. Group 3: Challenges and Market Conditions - Macroeconomic factors such as high interest rates and inflation are likely to negatively affect demand for consumer PCs, with enterprises delaying IT spending due to economic uncertainties [7]. - The Printing division is projected to face challenges from reduced consumer demand in China and competitive pricing, with sales expected to decline by 3% to $4.24 billion [8]. Group 4: Earnings Prediction Insights - Current analysis suggests that HPQ may not achieve an earnings beat, as it holds a Zacks Rank of 3 and an Earnings ESP of -1.25% [9].

Core Insights - ASUS and AMD have launched the ASUS Expert P-series Copilot+ PCs, emphasizing their leadership in the commercial AI PC market [1][2] - The new lineup is powered by AMD Ryzen™ AI 300 Series processors, designed to meet the increasing demands of AI workloads [2] Product Overview - The ASUS ExpertBook P3 Series includes 14-inch and 16-inch variants, featuring AMD Ryzen™ AI PRO 7 processors with a total system performance of up to 66 TOPS [3] - The ASUS ExpertCenter P600 Series is the first all-in-one Copilot+ PC, offering up to 50 TOPS of dedicated NPU power and designed for privacy and performance [5] - The ASUS ExpertCenter P700 Series includes mini tower and small-form factor options, also providing up to 50 NPU TOPS of AI computing power [6] Features and Security - All models in the ASUS Expert P-series come with ASUS AI ExpertMeet and ASUS ExpertGuardian for enhanced collaboration and business-grade security [7] - AI ExpertMeet offers AI-powered translation and meeting summaries, ensuring data privacy by keeping information on-device [8] - ExpertGuardian provides comprehensive protection across hardware, software, and firmware, with compliance to NIST SP 800-155 standards [9] Availability - The ASUS ExpertBook P3 and ExpertCenter P700 will be available for purchase in the United States in the second half of 2025, with further availability details to be announced [10]

Core Viewpoint - HP Inc. will hold a live audio webcast to discuss its financial results for the second fiscal quarter ending April 30, 2025, scheduled for May 28, 2025 [1] Company Overview - HP Inc. is a global technology leader operating in over 170 countries, providing a variety of innovative and sustainable solutions in personal computing, printing, 3D printing, hybrid work, and gaming [2]

Core Insights - HP Inc. and the HP Foundation have selected 8 nonprofit organizations in Greece, Indonesia, Nigeria, and Spain for the 2025 Digital Equity Accelerator, providing each with a USD $100,000 grant, HP technology valued at approximately USD $100,000, and six months of virtual training to enhance capacity and promote digital inclusion [2][3][7] - The Digital Equity Accelerator aims to address a $1 trillion-plus digital divide that restricts billions from accessing education and economic opportunities, thereby empowering disconnected adolescents and adults with necessary tools and training for success in a digital world [3][11] Summary by Category Program Overview - The Digital Equity Accelerator is a joint initiative by HP Inc. and the HP Foundation, designed to help nonprofits scale digital equity programs for disconnected communities, ultimately powering the future of work [7][11] - Since its inception, the Accelerator has supported 27 organizations, expanding their reach to over 9 million individuals across various countries [7][10] Selected Nonprofits - The selected organizations include: - **Socialinnov** in Greece, which has trained over 40,000 individuals in digital skills [8] - **The Smile of the Child (TSoC)**, supporting over 2.2 million people with resources and technology [8] - **Solve Education Foundation** in Indonesia, focusing on empowering youth with 21st-century skills through an AI-powered learning platform [8] - **Markoding**, which has empowered over 35,000 women with STEM training and job opportunities [8] - **AlmaNatura Foundation** in Spain, revitalizing rural areas through education and employment initiatives [13] Commitment to Digital Equity - HP's commitment to digital equity includes a goal to accelerate digital equity for 150 million people by 2030, reflecting its dedication to bridging the digital divide and fostering economic inclusion [11]

Core Insights - HP Inc. and the HP Foundation have selected 8 nonprofit organizations from Greece, Indonesia, Nigeria, and Spain for the 2025 Digital Equity Accelerator, providing each with a USD $100,000 grant, HP technology valued at approximately USD $100,000, and six months of virtual training to enhance digital inclusion [2][8]. Group 1: Digital Equity Accelerator Overview - The Digital Equity Accelerator aims to bridge the digital divide, empowering disconnected adolescents and adults with necessary tools and training for success in a digital world [3][8]. - The initiative addresses a significant digital divide valued at over $1 trillion, which restricts billions from accessing education and economic opportunities [3]. - In its first three years, the Accelerator has helped 27 organizations reach over 9 million people [8][12]. Group 2: Nonprofit Organizations Selected - The selected organizations focus on providing digital skills training and education access to underserved communities [8]. - Notable participants include: - She-Code Africa Women Tech Initiative in Nigeria, which has trained over 62,000 individuals in digital skills since 2016 [7][10]. - Socialinnov in Greece, which has equipped over 40,000 people with digital skills [9]. - Solve Education Foundation in Indonesia, which empowers youth with 21st-century skills through an AI-powered learning platform [9]. - AlmaNatura Foundation in Spain, which revitalizes rural areas through education and sustainability projects [15]. Group 3: HP's Commitment to Digital Equity - HP is committed to bridging the digital divide and aims to accelerate digital equity for 150 million people by 2030 [13]. - The Digital Equity Accelerator is a key initiative in achieving this goal, reflecting HP's dedication to equipping youth and adults with critical digital skills [13].

PALO ALTO, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) today announced the pricing of its underwritten public offering of $1 billion aggregate principal amount of senior unsecured notes, consisting of $500 million aggregate principal amount of its 5.400% notes due 2030 (the “2030 notes”) at a public offering price of 99.732% of the principal amount, and $500 million aggregate principal amount of its 6.100% notes due 2035 at a public offering price of 99.778% of the principal amount (the “ ...

Core Insights - HP Inc. announced enhancements to its Amplify partner program, including the introduction of the Amplify SuperPower Booster, which offers an upgraded compensation structure to reward partners for portfolio-wide HP sales [1][2][3] - The HP Amplify AI program is being expanded with new resources and use cases to accelerate AI adoption among partners, including access to AI experts and tailored training modules [5][6][7] - The HP Amplify Impact sustainability program has exceeded its 2025 enrollment targets, with participating partners experiencing a 70% increase in request for proposal (RFP) win rates, leading to a doubling of sustainable sales year over year [11][12][13] Partner Program Enhancements - The Amplify SuperPower Booster will reward commercial, distribution, and retail partners for selling across the entire HP product portfolio, launching on May 1 for commercial partners [2][3] - HP continues to recognize the unique value of specialized partners, ensuring they are rewarded for their expertise in the market [4] AI Program Expansion - The HP Amplify AI program now includes new customer use cases and instant access to AI experts, along with personalized training paths for partner executives [5][6] - HP is committed to leading in AI innovation and partner enablement, providing resources that help businesses unlock the potential of AI technologies [7] Sustainability Achievements - The HP Amplify Impact program has surpassed its goal of enrolling 50% of Amplify partners by 2025, reflecting HP's commitment to sustainability [11] - Participating partners in the Amplify Impact program have seen a twofold increase in sustainable sales, driven by a strategic focus on addressing customer needs while maintaining environmental commitments [12][13] Future Roadmap - HP is developing a two-year roadmap to enhance the HP Partner Portal, aiming to create a more comprehensive digital platform that leverages AI technologies [8][10] - The introduction of a Partner AI Assistant is planned to facilitate faster digital interactions and improve user experiences [10]

Core Insights - HP Inc. announced over 80 new products and services at its annual Amplify Conference, focusing on AI innovations to enhance work experiences and drive growth [2][3] - The company aims to reshape the future of work by integrating AI into its offerings, addressing the need for better work experiences as indicated by its 2024 Work Relationship Index, which shows only 28% of workers have a healthy relationship with work [3] Product Innovations - HP introduced the world's largest portfolio of AI PCs, including new HP EliteBooks, EliteDesks, and OmniBooks, designed to improve productivity and workflows [5][6] - The HP LaserJet Enterprise 8000 Series Printers are the first to offer protection against quantum computer attacks, enhancing security for regulated organizations [5][7] - New AI-powered features in the Workforce Experience Platform (WXP) aim to improve IT and employee experiences, including AI sentiment analysis and fleet management tools [7][8] Gaming and Performance - The OMEN 16 Slim Gaming Laptop features advanced performance capabilities with up to Intel Core™ Ultra 9 285H processors and NVIDIA GeForce RTX™ 5070 Laptop GPU, catering to gamers and creators [9][10] - HyperX Cloud III S Wireless Gaming Headset offers up to 200 hours of battery life in Bluetooth mode, enhancing the gaming experience with superior audio quality [10][28] Connectivity and Collaboration - HP Go service will provide seamless global connectivity for mobile professionals, enabling automatic network switching and 5G deployment [8][22][23] - Poly Camera Pro enhances virtual interactions with AI-powered features for video conferencing, making remote work more engaging [8][7] Market Positioning - HP's focus on AI and security positions it as a leader in the technology sector, addressing the evolving needs of businesses and consumers in a rapidly changing work environment [2][3][5]

Financial Data and Key Metrics Changes - HP Inc. reported a revenue growth of 2% year-over-year for Q1 2025, marking the third consecutive quarter of revenue growth [11][38] - Non-GAAP earnings per share (EPS) was $0.74, slightly above the midpoint of guidance, with operating profit margins for both Print and Personal Systems in line with expectations [12][42] - Gross margin decreased to 21% year-over-year due to increased commodity costs, with expectations for stronger margins in the second half of the year [40][41] Business Line Data and Key Metrics Changes - Personal Systems revenue increased by 5% year-over-year, driven by growth in the commercial segment, which represented over 70% of the PS revenue mix [24][43] - Print revenue declined by 1% in constant currency year-over-year, with strong unit growth in home and consumer subscriptions, achieving a milestone of one million instant paper subscribers [29][46] - Workforce solutions continued to show momentum with year-over-year revenue growth, including new managed print wins [30] Market Data and Key Metrics Changes - Revenue growth was observed across all regions, with APJ growing by 5%, Americas by 3%, and EMEA by 2% in constant currency [40] - The AI PC market experienced a sequential growth rate of 25% in the last calendar quarter, contributing to HP's commercial growth [26] Company Strategy and Development Direction - HP is focusing on leading the future of work by investing in AI and software capabilities, including the acquisition of strategic assets from Humane to enhance its technology ecosystem [14][15] - The company is realigning its key growth areas to prioritize hybrid systems, advanced compute solutions, and AI PCs, while managing gaming as part of its core portfolio [16] - HP aims to deliver $1.9 billion in gross annual run rate structural savings by the end of fiscal year 2025 to mitigate macro and geopolitical uncertainties [35][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, anticipating stronger EPS in the second half of the year driven by seasonal strength in personal systems and the Windows 11 refresh [56][62] - The company is proactively managing geopolitical developments and has built a globally diverse supply chain to ensure manufacturing resiliency [32][34] - Management noted that the current tariff environment has been accounted for in their guidance, with plans to leverage their global supply chain to mitigate impacts [66][68] Other Important Information - HP's cash flow from operations was approximately $375 million, with free cash flow at $70 million, reflecting normal seasonality [51] - The company returned close to $400 million to shareholders through share repurchases and dividends [53] Q&A Session Summary Question: Impact of China tariff on guidance - Management included known impacts of current tariffs in their guidance, primarily affecting the personal systems business, with less than 10% of revenue expected to come from China by the end of FY 2025 [66][67] Question: Drivers of personal systems growth - Key drivers include aging install base, Windows 11 refresh, and penetration of AI PCs, with a focus on profitable premium categories [74][75] Question: Windows end of life and device specifications - Businesses are becoming more competent in refreshing devices, with an acceleration in the Windows 11 refresh observed [78] Question: Customer adoption of AI PCs - Current expectations for AI PC penetration by year-end are around 25%, with projections for 40% to 50% in two years [81] Question: Competitive environment for print in China - The competitive environment remains stable, with HP growing share in the print space, particularly in consumer hardware [121] Question: Inventory growth implications - Increased inventory was a strategic response to tariffs, impacting cash conversion cycles but not the full-year outlook [126][127]