HP Inc ( (HPQ) ) has released its Q1 earnings. Here is a breakdown of the information HP Inc presented to its investors.
HP Inc., a global technology leader, provides innovative solutions in personal computing, printing, and related services across more than 170 countries. In its fiscal 2025 first quarter earnings report, HP Inc. announced a net revenue increase to $13.5 billion, marking a 2.4% rise from the previous year, alongside a GAAP diluted net EPS of $0.59, which aligns with the company’s forecast. The company highlighted its strategic focus on growth areas such as AI PCs and a strong performance in its commercial business segment.
Key financial metrics from the report include a GAAP operating margin of 6.3%, a slight decrease from the previous year, and a non-GAAP diluted net EPS of $0.74. HP’s Personal Systems segment saw a 5% revenue increase, driven by a 10% rise in commercial net revenue, while the Printing segment experienced a 2% revenue decline. The company also reported a significant increase in net cash provided by operating activities, reaching $0.4 billion, and returned $0.4 billion to shareholders through dividends and share repurchases.
HP’s Future Ready plan is set to deliver $1.9 billion in annualized gross run rate structural cost savings by the end of fiscal year 2025, an increase from the previous target. The company remains committed to addressing market conditions and investing in long-term growth, as stated by CEO Enrique Lores. Additionally, HP is working towards reducing its reliance on manufacturing in China, aiming for over 90% of products sold in North America to be built outside of China by the end of fiscal year 2025.
Looking ahead, HP maintains its fiscal 2025 outlook, projecting GAAP diluted net EPS between $2.86 and $3.16, and non-GAAP diluted net EPS between $3.45 and $3.75. The company anticipates generating free cash flow in the range of $3.2 to $3.6 billion, reflecting its strategic initiatives and cost management efforts.