HP Inc ( (HPQ) ) has released its Q2 earnings. Here is a breakdown of the information HP Inc presented to its investors.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
HP Inc., a global technology leader, operates in the personal computing and printing sectors, providing innovative solutions across over 170 countries. In its fiscal 2025 second quarter, HP Inc. reported a mixed financial performance with a 3.3% increase in net revenue to $13.2 billion, driven by strong commercial performance in Personal Systems, despite facing challenges from a dynamic regulatory environment. However, the company experienced a decline in earnings, with GAAP diluted net earnings per share falling to $0.42, a 31% decrease from the previous year.
Key financial metrics revealed a decrease in operating margins, with GAAP operating margin dropping to 4.9% from 7.4% the previous year, and non-GAAP operating margin falling to 7.3% from 8.8%. The company’s net cash provided by operating activities was significantly lower at $38 million, and it reported a negative free cash flow of $95 million. Despite these challenges, HP returned $0.4 billion to shareholders through dividends and share repurchases.
Segment-wise, Personal Systems saw a 7% revenue increase, bolstered by a 9% rise in Commercial PS net revenue, while Printing revenue declined by 4%. The company continues to focus on expanding its manufacturing footprint and reducing costs to build a foundation for sustainable growth.
Looking ahead, HP Inc. has adjusted its outlook to reflect moderated demand and trade-related costs, with expectations to offset these costs by the fourth quarter. The company remains committed to executing targeted strategies to navigate macroeconomic uncertainties and drive long-term growth.