01—Abstract
Summary
Summary of the 10-K filed December 10, 2025. Cited figures are marked; the original filing is the authoritative source.
HP Inc. reported fiscal 2025 (year ended October 31, 2025) total net revenue of $55.30 billiona, up 3.2% from $53.56 billion in fiscal 2024.
Growth came mainly from Personal Systems, where net revenue rose 6.5% to $38.53 billionb on a 4.3% increase in unit volume tied to the Windows PC operating system refresh. Printing net revenue fell 3.7% to $16.70 billion. Profitability weakened: gross margin declined 1.5 percentage points to 20.6% of net revenue, earnings from operations fell to $3.17 billion from $3.82 billion, and net earnings were $2.53 billion, or $2.65 per diluted share, versus $2.81 a year earlier.
The company attributed the margin decline mainly to higher commodity and tariff costs, which pricing and other actions did not fully offset. Cash generation and capital returns remained substantial. Net cash provided by operating activities was $3.70 billionc, and HP returned $1.9 billion to shareholders through $1.1 billion of dividends and $0.8 billion of share repurchases.
Approximately $8.4 billiond remained under repurchase authorizations at year end. Total debt was $9.67 billion, with $3.69 billion of cash and cash equivalents. The company disclosed that its previously reported material weakness in internal controls was remediated as of October 31, 2025.
Looking forward, the Board approved a Fiscal 2026 Plan on November 25, 2025, aimed at customer satisfaction, product innovation and productivity through AI adoption. The plan is expected to run through fiscal 2028 and includes a reduction of approximately 4,000 to 6,000 employees and pre-tax charges of approximately $650 million. The filing also flags ongoing risks from tariffs, memory and storage cost inflation, supply constraints, and declining demand for printing products.
02—Key points
Key Highlights
- Total net revenue rose 3.2% to $55.30 billion in fiscal 2025, with Personal Systems up 6.5% to $38.53 billion and Printing down 3.7% to $16.70 billion.
- Gross margin fell 1.5 percentage points to 20.6% of net revenue, driven mainly by higher commodity and tariff costs and mix shifts toward Personal Systems.
- Earnings from operations declined to $3.17 billion from $3.82 billion, and net earnings were $2.53 billion, or $2.65 per diluted share, compared with $2.81 in fiscal 2024.
- Operating cash flow was $3.70 billion, and HP returned $1.9 billion to shareholders through $1.1 billion in dividends and $0.8 billion in share repurchases.
- About $8.4 billion remained under share repurchase authorizations as of October 31, 2025, and total debt was $9.67 billion.
- The Fiscal 2026 Plan, approved November 25, 2025, targets 4,000 to 6,000 headcount reductions and approximately $650 million in pre-tax charges through fiscal 2028.
- Approximately 65% of net revenue came from outside the United States, and TD Synnex Corp accounted for 12% of fiscal 2025 net revenue.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, HP kept $0.05.
- Revenue$55.30B100.0%
- Cost of revenue−$43.90B79.4%
- Gross profit$11.39B20.6%
- Operating costs−$8.22B14.9%
- Operating income$3.17B5.7%
- Interest, other & tax−$645.0M1.2%
- Net income$2.53B4.6%
Where FY2025 revenue went
$55.30B- Cost of revenue: $43.90B, 79% of revenue
- Net income: $2.53B, 4.6% of revenue
- R&D: $1.60B, 2.9% of revenue
- SG&A: $5.82B, 11% of revenue
- Other operating costs: $795.0M, 1.4% of revenue
- Interest, other & tax: $645.0M, 1.2% of revenue
Kept 4.6% as net incomeNet income $2.53B · 4.6%Other operating costs $795.0M · 1.4%Interest, other & tax $645.0M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed December 10, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $55.30B$53.56B | +3.2% |
| Cost of Revenue | $43.90B$41.74B | +5.2% |
| Gross Profit | $11.39B$11.82B | −3.6% |
| R&D Expenses | $1.60B$1.64B | −2.3% |
| SG&A Expenses | $5.82B$5.66B | +2.9% |
| Operating Expenses | $8.22B$8.00B | +2.7% |
| Operating Income | $3.17B$3.82B | −16.9% |
| Interest Expense | $430.00M$452.00M | −4.9% |
| Net Income | $2.53B$2.77B | −8.9% |
| EPS (Basic) | $2.67$2.83 | −5.7% |
| EPS (Diluted) | $2.65$2.81 | −5.7% |
| Shares Outstanding (Basic) | 946.00M979.00M | −3.4% |
| Shares Outstanding (Diluted) | 953.00M989.00M | −3.6% |
05—Questions
Frequently Asked Questions
How did HP's revenue and profitability change in fiscal 2025?
Net revenue increased 3.2% to $55.30 billion, but profitability declined. Gross margin fell 1.5 percentage points to 20.6%, earnings from operations dropped to $3.17 billion from $3.82 billion, and diluted EPS was $2.65 versus $2.81. The filing attributes the margin decline mainly to higher commodity and tariff costs, which pricing and other actions did not fully mitigate.
Which segments drove results?
Personal Systems was the growth driver, with net revenue up 6.5% to $38.53 billion on a 4.3% increase in unit volume, partly from the Windows PC operating system refresh. Its earnings from operations were $2.05 billion, or 5.3% of net revenue. Printing net revenue fell 3.7% to $16.70 billion, with Supplies down 2.2% and printer unit volume down 4.2%, but Printing still earned $3.12 billion from operations.
What is HP doing to address its cost structure?
The Fiscal 2023 Plan ran through fiscal 2025 and is substantially complete. The new Fiscal 2026 Plan, approved November 25, 2025, is expected to reduce global headcount by approximately 4,000 to 6,000 employees and to incur pre-tax charges of approximately $650 million, with about $400 million related to labor costs. The plan runs through fiscal 2028.
How much cash did HP return to shareholders, and what capacity remains?
HP returned $1.9 billion in fiscal 2025, consisting of $1.1 billion in cash dividends and $0.8 billion in share repurchases. About $8.4 billion remained under repurchase authorizations as of October 31, 2025. The filing notes that dividends are at the Board's discretion and that repurchases are not guaranteed.
What are the main risks flagged in the filing?
Key risks include tariffs and other trade restrictions, memory and storage cost inflation, supply constraints and reliance on single-source suppliers, declining demand for printing products, competitive pricing pressure, foreign currency fluctuations, cybersecurity threats, and credit rating downgrades that could raise borrowing costs. The filing also discloses ongoing patent and other litigation, including Wi-Fi 6 patent cases in the U.S. and Germany.
06—Continue