HP Inc. Reports Fiscal 2025 Third Quarter Results

HP Inc. and its subsidiaries report fiscal 2025 third quarter net revenue of $13.9 billion, up 3.1% (up 3.3% in constant currency) from the prior-year period. The third quarter returned $0.4 billion to shareholders in the form of dividend and share repurchases.

Third quarter net cash provided by operating activities was $1.7 billion, with free cash flow of $1.5 billion.

Third quarter GAAP diluted net earnings per share (EPS) was $0.80, up 23.1% from the prior year period. Third quarter non-GAAP diluted net EPS was $0.75, down 10.7% from the prior year period

“In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas,” says Enrique Lores, President and CEO of HP Inc. “These results demonstrate our agility and focused execution in the quarter, reinforce the strength of our strategy, and our commitment to be a leader in the future of work.”

“Looking forward, we remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption,” adds Karen Parkhill, CFO, HP Inc. “We believe that the actions we are taking are the right ones to enable us to respond swiftly to near term market dynamics, while continuing to invest for long-term profitable growth.”

Third quarter GAAP diluted net EPS was $0.80, up from $0.65 in the prior-year period and above the previously provided outlook of $0.57 to $0.69. Third quarter non-GAAP diluted net EPS was $0.75, down from $0.84 in the prior-year period and within the previously provided outlook of $0.68 to $0.80.

HP’s net cash provided by operating activities in the third quarter of fiscal 2025 was $1.7 billion. HP generated $1.5 billion of free cash flow in the third quarter.

HP’s dividend payment of $0.2894 per share in the third quarter resulted in cash usage of $272 million. HP also utilized $150 million of cash during the quarter to repurchase approximately 5.5 million shares of common stock in the open market.

Fiscal 2025 third quarter segment results include:

• Personal Systems net revenue was $9.9 billion, up 6% year over year (up 6% in constant currency) with a 5.4% operating margin. Consumer PS net revenue was up 8% and Commercial PS net revenue was up 5%. Total units were up 5% with Consumer PS units up 8% and Commercial PS units up 3%.

• Printing net revenue was $4 billion, down 4% year over year (down 3% in constant currency) with a 17.3% operating margin. Consumer Printing net revenue was down 8% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 4% (down 3% in constant currency). Total hardware units were down 9%, with Consumer Printing units down 8% and Commercial Printing units down 12%.