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]

Core Viewpoint - Hangzhou is emerging as a global innovation hub due to its open ecosystem and dynamic energy, attracting entrepreneurs and fostering growth in data intelligence and AI sectors [1][4]. Group 1: Entrepreneurial Journey in Hangzhou - The company has been rooted in Hangzhou since 2005, benefiting from strong governmental support and a nurturing entrepreneurial environment [5][6]. - In 2019, the company went public, with big data-related revenue accounting for 88% of its total revenue, making it one of the highest "data-driven" listed companies in China [6]. - The company has recently launched several AI products, reflecting the high expectations from the capital market [6][7]. Group 2: Data Intelligence and AI Applications - Data intelligence is defined as a vertical field of AI, where input data leads to intelligent outputs, with four levels: data, information, knowledge, and wisdom [9]. - The company has successfully applied data intelligence to solve real-world problems, such as transforming nearly 500 kilometers of roads in Hangzhou into a green wave system, significantly reducing costs [10][11]. - The company has developed a predictive model for stroke prevention, achieving an AUC value of 0.91, indicating its effectiveness in identifying at-risk individuals [12]. Group 3: AI Era and Future Directions - The company is exploring ways to enhance efficiency for public servants using AI, emphasizing that AI should augment human capabilities rather than replace jobs [16]. - A hybrid cloud deployment model has been proposed to make AI accessible to more businesses, allowing shared resources among companies [18]. - The company aims to focus on developing a top-tier AI kernel while leaving the operating system and application layers to other entrepreneurs, fostering a broader ecosystem [19]. Group 4: Entrepreneurial Ecosystem in Hangzhou - Five key elements contribute to Hangzhou's entrepreneurial ecosystem: effective government support, the rise of innovative universities, the clustering of tech companies, active capital markets, and experienced entrepreneurs [21][24]. - The collaborative environment in Hangzhou allows entrepreneurs to thrive, transitioning from data intelligence to the AI era and continuously exploring new possibilities [26].

Core Insights - The event "Everlasting Data Expo 2025 Series Activities - Direct to Data Expo (Hangzhou)" was successfully held, showcasing the exploration and practices of the company in big data and artificial intelligence [1] - The company has positioned itself as a leader in the data intelligence sector, having been the first to appoint a Chief Data Officer in 2013 and listing on the Shenzhen Stock Exchange in 2019 [3] - The company anticipates that 85% of its revenue will come from data-related businesses by 2024, driven by the deep integration of data and artificial intelligence [3] Company Developments - The company launched several new products at last year's Data Expo, including Smart Green Wave, which has been deployed over 1,000 kilometers nationwide, improving traffic speed by over 20% [4] - The core exploration for this year is the "AI Station," a platform connecting application scenarios, diverse data sources, and cloud models, aimed at ensuring security and connectivity [4] - The company is also enhancing the capabilities of quadruped robots by integrating large models into their control systems, allowing for voice command recognition and interaction [5] Future Plans - The company aims to create a "Data Station" to maximize the value of industrial data and public data resources, serving sectors such as healthcare, transportation, and finance [5] - There is a strong expectation for the upcoming 2025 Data Expo, with hopes for increased collaboration and discussion among partners in the artificial intelligence field [5]