Have you looked into how HP (HPQ) performed internationally during the quarter ending January 2025? Considering the widespread global presence of this personal computer and printer maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. F ...

Q1 2025 Earnings Announcement February 27, 2025 Forward-looking Statements This presentation 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 ("HP") which may differ materially from those expressed orimplied by such forward-looking statements and assumptio ...

HP Inc. (HPQ) shares fell 3.9% during Thursday’s extended trading session after the personal computer (PC) maker reported lower-than-expected bottom-line results for first-quarter fiscal 2025 and issued a profit outlook for the second quarter that fell short of the Zacks Consensus Estimate.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.HP reported first-quarter non-GAAP earnings of 74 cents per share, missing the consensus mark by a penny. The bottom-line result declined 9% from th ...

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]

Financial Performance - For the quarter ended January 2025, HP reported revenue of $13.5 billion, reflecting a 2.4% increase year-over-year [1] - EPS for the quarter was $0.74, down from $0.81 in the same quarter last year [1] - The reported revenue matched the Zacks Consensus Estimate of $13.5 billion, resulting in a surprise of -0.01% [1] - The company experienced an EPS surprise of -1.33%, with the consensus EPS estimate being $0.75 [1] Key Metrics - Days in accounts payable increased to 139 days, compared to the average estimate of 125 days [4] - Days of sales outstanding in accounts receivable remained stable at 28 days, aligning with the average estimate of 28.5 days [4] - Days of supply in inventory rose to 72 days, exceeding the average estimate of 62 days [4] Segment Performance - Net revenue for Personal Systems - Commercial PS was $6.65 billion, matching the average estimate and showing a 9.9% increase year-over-year [4] - Net revenue for Personal Systems - Consumer PS was $2.58 billion, consistent with estimates but down 6.7% from the previous year [4] - Total net revenue for Personal Systems was $9.22 billion, slightly below the average estimate of $9.23 billion, representing a 4.7% year-over-year increase [4] - Net revenue from Printing - Supplies was $2.83 billion, slightly above the average estimate, but down 1.3% year-over-year [4] - Net revenue from Printing - Commercial Printing was $1.14 billion, below the average estimate and down 6.8% year-over-year [4] - Net revenue from Printing - Consumer Printing was $299 million, exceeding estimates and up 4.9% year-over-year [4] - Total net revenue from Printing was $4.27 billion, matching estimates but down 2.4% year-over-year [4] Operational Earnings - Earnings from operations in Printing were $810 million, surpassing the average estimate of $796.53 million [4] - Earnings from operations in Personal Systems were $507 million, below the average estimate of $528.38 million [4] Stock Performance - HP shares returned +3.7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -2.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

HP (HPQ) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this personal computer and printer maker would post earnings of $0.94 per share when it actually produced earnings of $0.93, delivering a surprise of -1.06%.Over the last four quarters ...

Financial Position - As of January 31, 2025, HP's cash and cash equivalents were $2.88 billion, a decrease from $3.24 billion on October 31, 2024[205]. - Total debt as of January 31, 2025, was $9.69 billion, slightly up from $9.67 billion on October 31, 2024[205]. - As of January 31, 2025, the company has approximately $1.1 billion in recorded liabilities related to uncertain tax positions[225]. - The weighted-average interest rate on HP's debt remained stable at 4.5% as of January 31, 2025[218]. Cash Flow and Operating Activities - Net cash provided by operating activities for the three months ended January 31, 2025, was $374 million, an increase of $253 million compared to $121 million in the same period of fiscal year 2024[206]. - The cash conversion cycle improved to (39) days as of January 31, 2025, from (42) days on October 31, 2024, reflecting a favorable cash conversion cycle[208]. - Net cash used in investing activities increased to $300 million for the three months ended January 31, 2025, compared to $228 million in the same period of fiscal year 2024[213]. Shareholder Returns - During the three months ended January 31, 2025, HP returned $400 million to shareholders, including $300 million in cash dividends and $100 million in share repurchases[216]. - HP had approximately $9.2 billion remaining under share repurchase authorizations as of January 31, 2025[216]. Future Financial Commitments - HP anticipates making contributions of approximately $28 million to non-U.S. pension plans and $23 million to U.S. non-qualified pension plan participants for the remainder of fiscal year 2025[223]. - The company expects to make future cash payments of approximately $400 million in fiscal year 2025 as part of its approved restructuring plans[224]. Risk Management and Partnerships - The company has not engaged in transactions that create material relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements[226]. - The company utilizes third-party arrangements for cash and liquidity management, providing liquidity to partners for working capital needs[227]. - There has been no material change in the company's exposure to market risk since October 31, 2024[229].

Group 1 - HP reported fiscal first-quarter sales of $13.5 billion, a 2.4% year-over-year increase, exceeding analyst estimates [1] - Adjusted earnings per share (EPS) decreased to 74 cents from 81 cents a year ago, aligning with expectations [1] - For the second quarter, HP projected adjusted EPS between 75 cents and 85 cents, with analysts anticipating 84 cents at the higher end of the range [1] Group 2 - The company's outlook reflects expectations of higher costs due to U.S. tariff increases on China and associated mitigations [2] - HP aims to diversify its supply chain, expecting over 90% of products sold in the U.S. to be manufactured outside of China by the end of 2025 [2] Group 3 - HP recently reached a $116 million deal to acquire AI technology and personnel from Humane, which will contribute to a new AI innovation lab called HP IQ [3] - Following the earnings report, HP shares fell nearly 4% in extended trading, although they have increased approximately 17% over the past year [3]

1501 Page Mill Road Palo Alto, CA 94304 hp.com Editorial contacts HP Inc. Media Relations MediaRelations@hp.com HP Inc. Investor Relations InvestorRelations@hp.com News Release HP Inc. Reports Fiscal 2025 First Quarter Results PALO ALTO, Calif. – February. 27, 2025 (GLOBE NEWSWIRE) – HP (NYSE: HPQ) HP Inc.'s fiscal 2025 first quarter financial performance | | | Q1 FY25 | | Q1 FY24 | Y/Y | | --- | --- | --- | --- | --- | --- | | GAAP net revenue ($B) | $ | 13.5 | $ | 13.2 | 2.4 % | | GAAP operating margin | ...

Core Insights - HP Inc. reported a fiscal 2025 first quarter net revenue of $13.5 billion, representing a year-over-year increase of 2.4% (3.3% in constant currency) [4][7] - The company's GAAP diluted net earnings per share (EPS) was $0.59, down from $0.62 in the prior-year period, while non-GAAP diluted EPS was $0.74, down from $0.81 [5][7] - HP's operating margin decreased, with GAAP operating margin at 6.3% and non-GAAP operating margin at 7.3%, both lower than the previous year [7][39] Financial Performance - First quarter GAAP net earnings were $0.6 billion, unchanged from the prior year, while non-GAAP net earnings were $0.7 billion, down 13% [2][5] - The company generated $0.4 billion in net cash from operating activities, a significant increase of 209% year-over-year, and free cash flow was $0.1 billion, up 180% [2][8] - HP returned $0.4 billion to shareholders through share repurchases and dividends during the quarter [7] Segment Results - Personal Systems segment net revenue was $9.2 billion, up 5% year-over-year, with commercial PS revenue increasing by 10% while consumer PS revenue decreased by 7% [17] - Printing segment net revenue was $4.3 billion, down 2% year-over-year, with commercial printing revenue declining by 7% [17] - Total segment net revenue decreased by 4% quarter-over-quarter but increased by 2% year-over-year [36] Outlook - For the fiscal 2025 second quarter, HP estimates GAAP diluted EPS to be in the range of $0.62 to $0.72 and non-GAAP diluted EPS to be in the range of $0.75 to $0.85 [11] - For the full fiscal year 2025, HP anticipates GAAP diluted EPS between $2.86 and $3.16 and non-GAAP diluted EPS between $3.45 and $3.75 [12] - The company expects to generate free cash flow in the range of $3.2 to $3.6 billion for the fiscal year [12] Strategic Initiatives - HP is raising its Future Ready savings target from $1.6 billion to $1.9 billion by the end of fiscal year 2025 [5][7] - The company is focusing on building a globally diverse supply chain, with an expectation that over 90% of products sold in North America will be built outside of China by the end of fiscal year 2025 [13]