{"id":65037,"date":"2025-05-29T11:15:31","date_gmt":"2025-05-29T18:15:31","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=65037"},"modified":"2025-05-29T11:15:33","modified_gmt":"2025-05-29T18:15:33","slug":"hp-inc-reports-fiscal-2025-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2025\/05\/hp-inc-reports-fiscal-2025-second-quarter-results\/","title":{"rendered":"HP Inc. Reports Fiscal 2025 Second Quarter Results"},"content":{"rendered":"\n<p><em>Palo Alto, CA (May 28, 2025)<\/em> \u2014 HP (NYSE: HPQ) released its second quarter fiscal 2025 results this week. Second quarter GAAP diluted net earnings per share (EPS) of $0.42, down 31% from the prior year period. The second quarter non-GAAP diluted net EPS of $0.71 was down 13% from the prior year period.<\/p>\n\n\n\n<p>HP recorded Q2 net revenue of $13.2 billion, up 3.3% from the prior-year period. The second quarter saw $0.4 billion returned to shareholders in the form of dividend and share repurchases.<\/p>\n\n\n\n<p>\u201cIn Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,\u201d said Enrique Lores, president and CEO, HP Inc. \u201cWhile results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.\u201d<\/p>\n\n\n\n<p>\u201cIn light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,\u201d said Karen Parkhill, CFO, HP Inc. \u201cWe are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.\u201d<\/p>\n\n\n\n<p>Second quarter GAAP diluted net EPS was $0.42, down from $0.61 in the prior-year period and below the previously provided outlook of $0.62 to $0.72. Second quarter non-GAAP diluted net EPS was $0.71, down from $0.82 in the prior-year period and below the previously provided outlook of $0.75 to $0.85. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $272 million, or $0.29 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.<\/p>\n\n\n\n<p><strong>Asset management<\/strong><\/p>\n\n\n\n<p>HP&#8217;s net cash provided by operating activities in the second quarter of fiscal 2025 was $38 million. Accounts receivable ended the quarter at $4.3 billion, up 2 days quarter over quarter to 30 days. Inventory ended the quarter at $8.2 billion, down 2 days quarter over quarter to 70 days. Accounts payable ended the quarter at $15.2 billion, down 9 days quarter over quarter to 130 days.<\/p>\n\n\n\n<p>HP generated $(95) million of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $38 million adjusted for net investments in leases from integrated financing of $50 million and net investments in property, plant, equipment and purchased intangible of $183 million.<\/p>\n\n\n\n<p>HP\u2019s dividend payment of $0.2894 per share in the second quarter resulted in cash usage of $273 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 3.0 million shares of common stock in the open market. HP exited the quarter with $2.7 billion in gross cash, which includes cash and cash equivalents of $2.7 billion, restricted cash of $33 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.<\/p>\n\n\n\n<p><strong>Fiscal 2025 second quarter segment results<\/strong><\/p>\n\n\n\n<ul><li>Personal Systems net revenue was $9.0 billion, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%.<\/li><li>Printing net revenue was $4.2 billion, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%.<\/li><\/ul>\n\n\n\n<p><strong>Outlook<\/strong><\/p>\n\n\n\n<p>For the fiscal 2025 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69 and non-GAAP diluted net EPS to be in the range of $0.68 to $0.80. Fiscal 2025 third quarter non-GAAP diluted net EPS estimates exclude $0.11 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.<\/p>\n\n\n\n<p>For fiscal 2025, HP estimates GAAP diluted net EPS to be in the range of $2.32 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.00 to $3.30. Fiscal 2025 non-GAAP diluted net EPS estimates exclude $0.68 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2025, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion. HP\u2019s outlook reflects the added cost driven by the current U.S. tariffs in place, and associated mitigations.<\/p>\n\n\n\n<p>More information on HP&#8217;s earnings, including additional financial analysis and an earnings overview presentation, is available on HP&#8217;s Investor Relations <a href=\"http:\/\/investor.hp.com\">website<\/a>. <\/p>\n\n\n\n<p>HP&#8217;s FY25 Q2 earnings conference call is accessible via <a href=\"http:\/\/www.hp.com\/investor\/2025Q2Webcast\">audio webcast<\/a>. <\/p>\n\n\n\n<p>###<\/p>\n\n\n\n<p><strong>About HP Inc.<\/strong><br><a href=\"http:\/\/www.hp.com\">HP Inc.<\/a> (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and more. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Palo Alto, CA (May 28, 2025) \u2014 HP (NYSE: HPQ) released its second quarter fiscal 2025 results this week. Second quarter GAAP diluted net earnings per share (EPS) of $0.42, down 31% from the prior year period. The second quarter non-GAAP diluted net EPS of $0.71 was down 13% from the prior year period. HP recorded Q2 net revenue of $13.2 billion, up 3.3% from the prior-year period. The second quarter saw $0.4 billion returned to shareholders in the form of dividend and share repurchases. \u201cIn Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,\u201d said Enrique Lores, president and CEO, HP Inc. \u201cWhile results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.\u201d \u201cIn light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,\u201d said Karen Parkhill, CFO, HP Inc. \u201cWe are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.\u201d Second quarter GAAP diluted net EPS was $0.42, down from $0.61 in the prior-year period and below the previously provided outlook of $0.62 to $0.72. Second quarter non-GAAP diluted net EPS was $0.71, down from $0.82 in the prior-year period and below the previously provided outlook of $0.75 to $0.85. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $272 million, or $0.29 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. Asset management HP&#8217;s net cash provided by operating activities in the second quarter of fiscal 2025 was $38 million. Accounts receivable ended the quarter at $4.3 billion, up 2 days quarter over quarter to 30 days. Inventory ended the quarter at $8.2 billion, down 2 days quarter over quarter to 70 days. Accounts payable ended the quarter at $15.2 billion, down 9 days quarter over quarter to 130 days. HP generated $(95) million of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $38 million adjusted for net investments in leases from integrated financing of $50 million and net investments in property, plant, equipment and purchased intangible of $183 million. HP\u2019s dividend payment of $0.2894 per share in the second quarter resulted in cash usage of $273 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 3.0 million shares of common stock in the open market. HP exited the quarter with $2.7 billion in gross cash, which includes cash and cash equivalents of $2.7 billion, restricted cash of $33 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. Fiscal 2025 second quarter segment results Personal Systems net revenue was $9.0 billion, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%. Printing net revenue was $4.2 billion, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%. Outlook For the fiscal 2025 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69 and non-GAAP diluted net EPS to be in the range of $0.68 to $0.80. Fiscal 2025 third quarter non-GAAP diluted net EPS estimates exclude $0.11 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2025, HP estimates GAAP diluted net EPS to be in the range of $2.32 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.00 to $3.30. Fiscal 2025 non-GAAP diluted net EPS estimates exclude $0.68 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2025, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion. HP\u2019s outlook reflects the added cost driven by the current U.S. tariffs in place, and associated mitigations. More information on HP&#8217;s earnings, including additional financial analysis and an earnings overview presentation, is available on HP&#8217;s Investor Relations website. HP&#8217;s FY25 Q2 earnings conference call is accessible via audio webcast. ### About HP Inc.HP Inc. (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and more.<\/p>\n","protected":false},"author":66,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[86],"tags":[203],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65037"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=65037"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65037\/revisions"}],"predecessor-version":[{"id":65038,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65037\/revisions\/65038"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=65037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=65037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=65037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}