HP Reports Q4 Revenue of $14.44 B, EPS Tops Estimates but Shares Fall
HP posted Q4 CY2025 revenue of $14.44 billion, up 6.9% year-on-year and 3.2% above forecasts, with non-GAAP EPS of $0.81 beating by 5.3% while operating margin slipped to 5.3%. Shares fell after management reiterated full-year non-GAAP EPS guidance of $3.05 midpoint and cited ongoing industry headwinds.
1. Q4 CY2025 Financial Performance
HP delivered Q4 revenue of $14.44 billion, marking 6.9% year-on-year growth and a 3.2% beat over consensus. Non-GAAP EPS reached $0.81, 5.3% above analysts’ estimates, while operating margin declined to 5.3% from 6.3% in the prior-year period.
2. Segment Trends
Commercial Personal Systems sales climbed 8.0% year-on-year, driven by strong demand for AI-enabled PCs, whereas Commercial Printing revenue fell 3.3%. Free cash flow margin held at 1%, in line with the prior year, despite margin pressures in hardware.
3. Full-Year Guidance and Outlook
Management reiterated full-year non-GAAP EPS guidance of $3.05 at the midpoint, maintaining its Future of Work strategy targets. Leadership noted continued headwinds from component cost inflation and trade regulation impacts.
4. Market Reaction
Shares declined on the news, as investors weighed the margin contraction and external pressures against the solid top- and bottom-line beats, reflecting concern over profitability sustainability.