Financial Data and Key Metrics Changes - Revenue increased by 2% year-over-year for the second consecutive quarter, with non-GAAP EPS growing 3% to 0.93[11][12][31]−Grossmarginremainedflatyear−over−yearat21.41.2 billion [32][33] - Free cash flow for the fiscal year was 3.3billion,withnearly1001.16 per share, marking the ninth consecutive annual increase [47] - The company is committed to returning approximately 100% of free cash flow to shareholders, contingent on maintaining a gross leverage ratio under 2x EBITDA [29][46] Q&A Session All Questions and Answers Question: First quarter EPS guidance - Management noted that Q1 EPS is typically lower due to seasonal volume declines and the timing of stock compensation expenses [50][51] Question: Future Ready transformation plan and free cash flow - Management indicated that free cash flow is expected to grow in line with earnings, with continued improvements in working capital [52][53] Question: Print operating margins - Management expects to maintain print operating margins in the upper half of the 16% to 19% range, focusing on profitability and share gains [56][57] Question: Competitive pressures and market share expectations - Management aims to grow share in profitable categories, emphasizing a conservative approach to setting expectations [59][60] Question: AI PC units and implications for ASPs and margins - AI PCs are expected to drive improvements in average selling prices, with a significant impact anticipated in the coming years [62][63] Question: Supply chain positioning amid potential tariffs - Management expressed confidence in their supply chain resilience and ability to adapt to geopolitical changes [64][66] Question: Print market dynamics - Management expects consumer print to decline while contractual office segments may perform better, focusing on profitable growth opportunities [98]
