HP Inc. (HPQ) Stock: Strong Revenue Growth Despite Decline in Earnings

Table of Contents

TLDR

HP posts 3.2% revenue growth, but EPS declines in fiscal 2025.
HP’s Personal Systems drive revenue up 8%, but Printing struggles.
HP’s fiscal 2025 shows solid cash flow despite EPS drop.
HP faces tough printing market but thrives with personal systems.
HP forecasts cautious 2026 outlook with slight EPS decline.

HP Inc. (HPQ) stock price is at $24.32 down by 0.25% during regular trading hours.

HP Inc., HPQ

HP Inc. reported its fiscal 2025 performance, showing mixed result. The company saw a 3.2% year-over-year increase in revenue, reaching $55.3 billion. However, despite strong revenue growth, earnings per share (EPS) experienced a decline. GAAP diluted EPS for the year was $2.65, down 5.7% compared to the previous year. Similarly, non-GAAP diluted EPS also dropped 9.0%, reaching $3.12. Despite these declines, HP generated solid cash flow and continued returning capital to shareholders.

Revenue Growth Powered by Personal Systems Segment

HP’s revenue growth was largely driven by its Personal Systems segment, which posted a strong performance. Net revenue for the segment was $10.4 billion, reflecting an 8% year-over-year increase. Both consumer and commercial personal systems contributed to the growth, with units up by 7%. The solid performance of this segment helped offset declines in other areas of the business. Personal Systems showed resilience amid a challenging market environment. The increase in net revenue for this division highlights HP’s ongoing focus on driving innovation in this space.

Printing Segment Faces Decline Amid Tough Market Conditions

In contrast to the growth in Personal Systems, the Printing segment faced challenges during the year. Net revenue for Printing was $4.3 billion, down 4% year-over-year. Both consumer and commercial printing units saw significant declines, with total hardware units down 12%. The decline in Printing sales is largely attributed to a tough market and lower demand for hardware. Despite these challenges, HP’s focus on innovation within this sector continues. The company remains committed to improving its Printing portfolio, even as it faces these headwinds.

HP’s Outlook for Fiscal 2026 Indicates Cautious Optimism

HP expects to generate $2.8 to $3.0 billion in free cash flow during fiscal 2026. The company also forecasts a slight decline in EPS, with GAAP diluted EPS anticipated between $2.47 and $2.77. HP has implemented strategies to mitigate recent challenges, including cost-saving initiatives and investments in AI-driven product innovation. With these efforts, HP aims to drive long-term value despite the pressures of U.S. trade-related regulations. As the company continues to adapt, its focus remains on delivering consistent results and shareholder value in the coming year.