HP Inc's Q4 2025 earnings call highlighted a sixth consecutive quarter of revenue growth, up 4% year over year, driven primarily by gains in personal systems. CEO Enrique Lores emphasized HP's strategic advancements, including the launch of the AI station powered by NVIDIA. HP also introduced a new 49-inch ultra-wide monitor with AI noise reduction, underscoring its commitment to innovation. The company faced challenges with increased memory costs, which it plans to mitigate through strategic supplier relationships and product pricing adjustments. CFO Karen Parkhill noted that HP's Free Cash Flow for the fiscal year was $2.9 billion, consistent with expectations. The company exceeded its Future Ready cost-saving targets with $2.2 billion in annualized savings. Looking ahead, HP expects non-GAAP EPS for FY26 to be between $2.90 and $3.20, factoring in projected memory cost increases. HP also announced a workforce reduction plan of 4,000 to 6,000 positions over the next three years to ensure future cost efficiency. Analysts were particularly interested in the company's strategy to handle increased memory costs and its free cash flow outlook. HP's management expressed confidence in mitigating these challenges, aided by strong supplier relationships and an emphasis on innovative technology in AI and personal systems. The company's positive outlook was bolstered by a raised quarterly dividend, reflecting strong board confidence in HP's long-term growth prospects.
HP delivered its sixth consecutive quarter of revenue growth, up 4% year over year, driven by gains in personal systems.
HP's AI station can run up to 200 billion parameter models, enhancing AI compute capabilities at the edge.
HP's customer base now includes 10 new clients from the world's 200 largest companies, showing sales team strength.
HP's Free Cash Flow for FY25 was $2.9 billion, consistent with outlook.
HP plans workforce reductions of 4,000 to 6,000 as part of savings initiatives over the next three years.
HP raised its quarterly dividend to 30 cents per share, marking the 10th consecutive annual increase.
Revenue
4% year over year
up 4% YoY
Non-GAAP EPS
93 cents
+24% sequential increase
Free Cash Flow
$2.9 billion
consistent with our outlook
Operating Margin
8%
down year over year, improving sequentially
Print Operating Margin
18.9%
in line with guidance