HP reports printing revenue down in the second quarter
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HP Inc. and its subsidiaries announced fiscal 2025 second quarter net revenue of $13.2 billion, up 3.3% (up 4.5% in constant currency) from the prior-year period. Second quarter GAAP diluted net earnings per share of $0.42, down 31% from the prior year period and Second quarter non-GAAP diluted net EPS of $0.71, down 13% from the prior year period.
“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” said Enrique Lores, President and CEO, HP Inc. “While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.”
“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” said Karen Parkhill, CFO, HP Inc. “We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”
Fiscal 2025 second quarter segment results
- Personal Systems net revenue was $9.0 billion, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%.
- Printing net revenue was $4.2 billion, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%.
| HP Inc.’s fiscal 2025 second quarter financial performance | |||||||||||
| Q2 FY25 | Q2 FY24 | Y/Y | |||||||||
| GAAP net revenue ($B) | $ | 13.2 | $ | 12.8 | 3.3 | % | |||||
| GAAP operating margin | 4.9 | % | 7.4 | % | (2.5 | )pts | |||||
| GAAP net earnings ($B) | $ | 0.4 | $ | 0.6 | (33 | )% | |||||
| GAAP diluted net EPS | $ | 0.42 | $ | 0.61 | (31 | )% | |||||
| Non-GAAP operating margin | 7.3 | % | 8.8 | % | (1.5 | )pts | |||||
| Non-GAAP net earnings ($B) | $ | 0.7 | $ | 0.8 | (17 | )% | |||||
| Non-GAAP diluted net EPS | $ | 0.71 | $ | 0.82 | (13 | )% | |||||
| Net cash provided by operating activities ($B) | $ | 0.0 | $ | 0.6 | (94 | )% | |||||
| Free cash flow ($B) | $ | (0.1 | ) | $ | 0.5 | (120 | )% | ||||
| Notes to table | |||||||||||
| Information about HP Inc.’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below. | |||||||||||