HP Inc. Sees Growth in Revenue and Earnings for Q3 2025
HP Inc. Sees Growth in Revenue and Earnings for Q3 2025
HP Inc. has recently shared its financial results for the third quarter of fiscal 2025, and there's plenty to unpack. With a notable increase in both revenue and earnings, the company is clearly on a positive trajectory.
Financial Performance Overview
In the third quarter, HP Inc. reported a GAAP diluted earnings per share (EPS) of $0.80. This marks an impressive 23.1% increase compared to the same quarter last year. However, on a non-GAAP basis, the diluted EPS stood at $0.75, which shows a decline of 10.7% from the previous year.
Revenue Growth
The company announced net revenue of $13.9 billion, reflecting a 3.1% growth from the prior-year quarter. This revenue boost affirms HP's strong performance in various segments.
Cash Flow and Shareholder Returns
HP's operational efficiency also shined through with net cash provided by operating activities totaling $1.7 billion and free cash flow of $1.5 billion. Additionally, the company returned $0.4 billion to its shareholders, which included dividends and share repurchases. This commitment to returning value to shareholders showcases HP's financial health and strategic focus.
Segment Performance Insights
Personal Systems
The Personal Systems segment reported net revenue of $9.9 billion, an increase of 6% year-over-year, significantly buoyed by a rise in unit sales. This segment also achieved a solid operating margin of 5.4%. Consumer units grew by 8%, while commercial units saw a 5% increase.
Printing Segment
Conversely, the printing segment recorded net revenues of $4.0 billion, which was a decline of 4% year-over-year. The operating margin for this segment stood at 17.3%. Challenges in the printing market continue, with supply revenue decreasing, leading to a notable drop in total hardware units sold.
Moving Forward
Looking ahead, HP remains optimistic about its performance. Executives mentioned a focus on innovation and adaptation to industry trends, particularly through advancements in AI and the PC market. Management is preparing for continued momentum from the Windows 11 refresh and incremental AI PC adoption.
Conclusion
HP Inc. continues to demonstrate resilience and adaptability in the technology sector. With solid financial results in Q3 of 2025, the company appears well-positioned to tackle future challenges and capitalize on emerging opportunities.
Frequently Asked Questions
What was HP Inc.'s earnings per share for Q3 2025?
HP Inc. reported a GAAP diluted EPS of $0.80 for the third quarter of fiscal 2025.
How much revenue did HP Inc. generate in this quarter?
HP Inc. generated a net revenue of $13.9 billion in Q3 of fiscal 2025.
What drove HP's revenue growth this quarter?
The growth was primarily driven by an increase in the Personal Systems segment, which reported a 6% year-over-year increase in net revenue.
How much cash flow did HP Inc. provide from operating activities?
HP Inc. reported net cash provided by operating activities of $1.7 billion for the third quarter of 2025.
What is the outlook for HP Inc. for the next quarter?
HP anticipates continued momentum in the PC market and expects GAAP diluted net EPS for Q4 2025 to range between $0.75 to $0.85.
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