Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2025 net revenue of $55.3 billion, up 3.2% (up 3.7% in constant currency) from the prior-year period.
Fiscal 2025 GAAP diluted net EPS was $2.65, down from $2.81 in the prior-year. Fiscal 2025 non-GAAP diluted net EPS was $3.12, down from $3.43 in the prior-year period. Fiscal 2025 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $443 million, or $0.47 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges (benefits), net, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.
Fourth quarter net revenue was $14.6 billion, up 4.2% (up 3.8% in constant currency) from the prior-year period.
Fourth quarter GAAP diluted net EPS was $0.84, down from $0.93 in the prior-year period and within the previously provided outlook of $0.75 to $0.85. Fourth quarter non-GAAP diluted net EPS was $0.93, down from $0.96 in the prior-year period and within the previously provided outlook of $0.87 to $0.97. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $82 million, or $0.09 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges (benefits), net, tax adjustments, and the related tax impact on these items.
“HP’s strategy to lead the Future of Work continues to deliver strong performance, marked by our sixth consecutive quarter of revenue growth,” said Enrique Lores, President and CEO of HP Inc. “Our FY25 results reinforce the power of our portfolio and the strength of our team in a dynamic environment. As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution. We are committed to driving measurable results – ensuring that our plans translate into long-term value for our shareholders.”
“Our FY25 results reflect solid execution in an evolving environment, where we drove strong profit improvement in the back half of the year and returned $1.9 billion dollars to shareholders,” said Karen Parkhill, CFO, HP Inc. “Looking forward, we are taking decisive actions to mitigate recent cost headwinds and are investing in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction, and boost productivity. We are confident these actions will strengthen our foundation and position us for long-term growth.”
Asset management
HP generated $3.7 billion in net cash provided by operating activities and $2.9 billion of free cash flow in fiscal 2025. Free cash flow includes net cash provided by operating activities of $3.7 billion adjusted for net investments in leases from integrated financing of $131 million and net investments in property, plant, equipment and purchased intangibles of $897 million. HP utilized $850 million of cash during fiscal 2025 to repurchase approximately 29.5 million shares of common stock in the open market. When combined with the $1.1 billion of cash used to pay dividends, HP returned 66% of its free cash flow to shareholders in fiscal 2025.
HP’s net cash provided by operating activities in the fourth quarter of fiscal 2025 was $1.6 billion. Accounts receivable ended the quarter at $5.7 billion, up 2 days quarter over quarter to 35 days. Inventory ended the quarter at $8.5 billion, down 2 days quarter over quarter to 66 days. Accounts payable ended the quarter at $18.1 billion, up 1 day quarter over quarter to 139 days.
HP generated $1.5 billion of free cash flow in the fourth quarter. Free cash flow includes net cash provided by operating activities of $1.6 billion adjusted for net investments in leases from integrated financing of $60 million and net investments in property, plant and equipment of $197 million.
HP’s dividend payment of $0.2894 per share in the fourth quarter resulted in cash usage of $270 million. HP also utilized $500 million of cash during the quarter to repurchase approximately 18.3 million shares of common stock in the open market. HP exited the quarter with $3.7 billion in gross cash, which includes cash and cash equivalents of $3.7 billion, restricted cash of $15 million, cash held for sale of $8 million, and short-term investments of $3 million included in other current assets. Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.
The HP board of directors has declared a quarterly cash dividend of $0.30 per share on the company’s common stock, payable on January 2, 2026 to stockholders of record as of the close of business on December 11, 2025. This is the first dividend of HP’s 2026 fiscal year.
Fiscal 2025 fourth quarter segment results
- Personal Systems net revenue was $10.4 billion, up 8% year over year (up 7% in constant currency) with a 5.8% operating margin. Consumer PS net revenue was up 10% and Commercial PS net revenue was up 7%. Total units were up 7% with Consumer PS units up 8% and Commercial PS units up 7%.
- Printing net revenue was $4.3 billion, down 4% year over year (down 4% in constant currency) with an 18.9% operating margin. Consumer Printing net revenue was down 9% and Commercial Printing net revenue was down 4%. Supplies net revenue was down 4% (down 3% in constant currency). Total hardware units were down 12%, with both Consumer and Commercial Printing units reflecting similar declines.
Outlook
For the fiscal 2026 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.58 to $0.66 and non-GAAP diluted net EPS to be in the range of $0.73 to $0.81. Fiscal 2026 first quarter non-GAAP diluted net EPS estimates exclude $0.15 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.
For fiscal 2026, HP estimates GAAP diluted net EPS to be in the range of $2.47 to $2.77 and non-GAAP diluted net EPS to be in the range of $2.90 to $3.20. Fiscal 2026 non-GAAP diluted net EPS estimates exclude $0.43 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2026, HP anticipates generating free cash flow in the range of $2.8 to $3.0 billion. HP’s outlook reflects the added cost driven by the current U.S. trade-related regulations in place, and associated mitigations.
More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at investor.hp.com.
HP’s FY25 Q4 earnings conference call is accessible via audio webcast at www.hp.com/investor/2025Q4Webcast.
Company-wide initiative announced in November 2025
Today, HP Inc. announced a company-wide initiative (“fiscal 2026 plan”) to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement. The company estimates that these actions will result in gross run rate savings of approximately $1 billion by the end of fiscal 2028. The company estimates that it will incur approximately $650 million in labor and non-labor costs related to restructuring and other charges, with approximately $250 million in fiscal 2026. The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2028.
About HP Inc.
HP Inc. (NYSE:HPQ) is a global technology leader redefining the Future of Work. Operating in more than 180 countries, HP delivers innovative and AI-powered devices, software, services and subscriptions that drive business growth and professional fulfillment. For more information, please visit: HP.com.
Use of non-GAAP financial information
To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (“GAAP”) basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS and free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating expense, operating profit, operating margin, other income and expenses, tax rate, net earnings, diluted net EPS, cash provided by operating activities or cash, cash equivalents, and restricted cash prepared in accordance with GAAP.
Forward-looking statements
This document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries which may differ materially from those expressed or implied by such forward-looking statements and assumptions.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the fiscal 2023 plan and the fiscal 2026 plan), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events, including global trade policies, and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief as to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms.
Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to HP’s ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; the use of artificial intelligence; the impact of macroeconomic and geopolitical trends, changes and events, including global trade policies, the ongoing military conflict in Ukraine, continued instability in the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, changes in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP’s international operations and the effects of business disruption events, including those resulting from climate change; the need to manage (and reliance on) third-party suppliers, including with respect to supply constraints and component shortages, and the need to manage HP’s global, multi-tier distribution network and potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; the competitive pressures faced by HP’s businesses; the impact of third-party claims of IP infringement; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; successfully competing and maintaining the value proposition of HP’s products, including supplies and services; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products or our uneven sales cycle; the hiring and retention of key employees; the results of our restructuring plans (including the fiscal 2023 plan and the fiscal 2026 plan), including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of our restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; disruptions in operations from system security risks, data protection breaches, or cyberattacks; HP’s ability to maintain its credit rating, satisfy its debt obligations and complete any contemplated share repurchases, other capital return programs or other strategic transactions; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; integration and other risks associated with business combination and investment transactions; our aspirations related to environmental and societal matters; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; the effectiveness of our internal control over financial reporting; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and HP’s other filings with the Securities and Exchange Commission (“SEC”). HP’s fiscal 2023 plan included HP’s efforts to take advantage of future growth opportunities, including but not limited to, investments to drive growth, investments in our people, improving product mix, driving structural cost savings and other productivity measures. HP’s fiscal 2026 plan includes HP’s efforts to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement, and cost savings associated with the fiscal 2026 plan represent gross reductions in costs from these restructuring plans. Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term. These structural cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP’s expectations on the longer-term sustainability of such structural cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP’s evolving business models, future investment decisions, market environment and technology landscape.
As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ending October 31, 2025 and October 31, 2026, Quarterly Report on Form 10-Q for the fiscal quarter ending January 31, 2026 and HP’s other filings with the SEC. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements.
HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted. The content of HP’s website is not incorporated by reference into this document or in any other report or document HP files with the SEC, and any references to HP’s website are intended to be inactive textual references only.
Available in PDF format — including all tables
