HP Inc. Q4 FY2025 earnings call

• HP delivered sixth consecutive quarter of revenue growth, up 4% year over year. • Drove sequential profit improvement, invested in supply chain resilience. • Executed future of work strategy, launched AI-powered devices and innovations. • Announced leadership transitions. • Surpassed future-ready cost plan savings target. • Raised quarterly dividend to $0.30 per share.

Personal Systems: Revenue up 8% year over year, driven by increased ASPs and 7% unit growth, with key growth areas like AIPCs doubling revenue year over year. Print: Revenue declined 4% due to market softness, but key growth areas like consumer subscriptions had double-digit growth and industrial graphics exceeded $1.8 billion in annual revenue. Workhorse Solutions had double-digit growth with key wins in industries.

• FY 2026 non-GAAP diluted net earnings per share expected to be in range of $2.9 to $3.2; GAAP in range of $2.47 to $2.77. • Q1 non-GAAP diluted net earnings per share expected in range of $0.73 to $0.81; GAAP in range of $0.58 to $0.66. • FY 2026 free cash flow expected between $2.8 billion to $3 billion. • Personal Systems expects revenue market to be up low single-digit with Windows 11 refresh, AIPCs, and pricing as catalysts. • Print expects to grow slightly faster than industry projections with actions to gain share in Big Tank and office. • Workforce solutions focused on growing recovering revenue by expanding software, security, and services businesses.

• Rising memory costs with accelerated rate in recent weeks, impacting second half of fiscal year. • Market softness in print affecting revenue. • Trade-related costs taking a few quarters to be absorbed impacting operating profits.

Q: About free cash flow guide for next year despite margin pressures from memory pricing, what offsets headwinds?

A: Improvements in working capital due to growing PS business, CapEx and restructuring costs down slightly.

Q: How to navigate memory cycle with price elasticity in weaker consumer market?

A: Use scale, qualify additional suppliers, de-scale in certain cases, use workforce experience platform for optimum configuration, manage portfolio to shift demand.

Q: Thoughts on seasonality for next year?

A: Revenue stronger in second half due to normal seasonality and pricing against tariffs and rising costs.

Q: Expansion on growing base of services, subscriptions, and software?

A: Coming across the board with growth in consumer subscriptions, workforce solutions PC as a Service, and software businesses.

Q: On memory impact on EPS and mix?

A: Gross impact of memory cost is bigger than $0.30 quantified, high confidence in mitigations, and actions to mitigate memory cycle.