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HP Quarterly Report for Q2 Ended Apr 30, 2025

Filing Date
Filed May 29, 2025
Period End
April 30, 2025
Security
HPQ
One revenue dollarkept$0.03
In the record · 2016–202610-K1310-Q338-K140

HPQ filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 140 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · May ’18May ’18
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Restructuring8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 10-Q filed May 29, 2025. Cited figures are marked; the original filing is the authoritative source.

HP Inc. reported net revenue of $13.22 billiona for the three months ended April 30, 2025, up from $12.80 billion a year earlier, while net earnings fell to $406 million from $607 million.

For the six months, net revenue was $26.72 billionb versus $25.99 billion and net earnings were $971 million versus $1.23 billion. Gross margin declined to 20.7% of net revenue in the quarter from 23.6%, which the company attributes primarily to higher commodity and tariff costs, mix shifts toward Personal Systems and unfavorable currency impacts, partially offset by disciplined pricing actions. Personal Systems net revenue grew 7.1% in the quarter, driven by a 6.3% increase in PC unit volume led by Commercial PS, while Printing net revenue fell 4.3%, with Supplies down 4.9%.

Printing and Personal Systems earnings from operations were $814 millionc and $409 million, respectively, in the quarter. Cash flow from operations was $412 million for the six months, down from $702 million, and the company returned $0.7 billion to shareholders through dividends and buybacks. Total debt rose to $10.74 billion from $9.67 billion after a $1.0 billion senior notes issuance in April 2025.

The filing states that HP's disclosure controls were not effective as of April 30, 2025 because a previously reported material weakness in IT general controls had not been remediated. Stockholders' deficit was $1.28 billiond at period end. The Fiscal 2023 Plan was amended in February 2025 to increase expected workforce reductions, with an additional $150 million of restructuring charges anticipated.

02—Key points

Key Highlights

  1. Net revenue rose to $13.22 billion in the quarter from $12.80 billion, with growth driven by Commercial PS units and support services.
  2. Net earnings declined to $406 million from $607 million, and diluted EPS was $0.42 versus $0.61 a year earlier.
  3. Gross margin fell to 20.7% from 23.6%, reflecting higher commodity and tariff costs and unfavorable currency impacts.
  4. Management reports the previously identified IT general controls material weakness has not been remediated, and disclosure controls were concluded not effective.
  5. Total debt increased to $10.74 billion, including $1.0 billion of senior unsecured notes issued in April 2025.
  6. Operating cash flow for the six months was $412 million versus $702 million in the prior year period.
  7. The Fiscal 2023 Plan was amended in February 2025, with an additional $150 million of restructuring charges expected for workforce reductions.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in Q2 FY2025, HP kept $0.03.

  1. Revenue$13.22B100.0%
  2. Cost of revenue−$10.48B79.3%
  3. Gross profit$2.74B20.7%
  4. Operating costs−$2.08B15.8%
  5. Operating income$654.0M4.9%
  6. Interest, other & tax−$248.0M1.9%
  7. Net income$406.0M3.1%
Computed from 10-QQ2 FY2025filed May 29, 2025Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

04—Financials

Financial Highlights

Figures from 10-QQ2 FY2025filed May 29, 2025
Revenue$13.22B20.7% Gross MarginNet Income$406.00M3.1% Net MarginEPS (Diluted)$0.42Total Assets$38.80BCash & Equivalents$2.70BFree Cash Flow$38.00M

Financial Statements

Q2 FY2025 against Q2 FY2024

Line itemQ2 FY2025Q2 FY2024Change
Revenue$13.22B$12.80B+3.3%
Cost of Revenue$10.48B$9.78B+7.2%
Gross Profit$2.74B$3.02B−9.4%
R&D Expenses$401.00M$436.00M−8.0%
SG&A Expenses$1.48B$1.46B+1.2%
Operating Expenses$2.08B$2.07B+0.7%
Operating Income$654.00M$952.00M−31.3%
Interest Expense$114.00M$122.00M−6.6%
Net Income$406.00M$607.00M−33.1%
EPS (Basic)$0.43$0.62−30.6%
EPS (Diluted)$0.42$0.61−31.1%
Shares Outstanding (Basic)950.00M984.00M−3.5%
Shares Outstanding (Diluted)956.00M990.00M−3.4%

05—Questions

Frequently Asked Questions

  1. How did HP's revenue and profitability perform this quarter?

    Net revenue for the three months ended April 30, 2025 was $13.22 billion, up from $12.80 billion. Earnings from operations were $654 million versus $952 million, and net earnings were $406 million versus $607 million, with the decline attributed mainly to lower gross margin.

  2. What drove the decline in gross margin?

    The company attributes the decline to higher commodity and tariff costs, mix shifts toward Personal Systems and unfavorable currency impacts, partially offset by disciplined pricing actions.

  3. Which segments drove results?

    Personal Systems net revenue increased 7.1% to $9.02 billion, led by a 6.3% increase in PC unit volume. Printing net revenue decreased 4.3% to $4.18 billion, with Supplies down 4.9%.

  4. Has HP's material weakness been resolved?

    No. The filing states the material weakness related to IT general controls was not remediated as of April 30, 2025, and disclosure controls were concluded not effective. Management is designing appropriate IT general controls for the affected software.

  5. How is HP managing its debt and shareholder returns?

    HP issued $1.0 billion of senior unsecured notes in April 2025 and had $9.1 billion remaining under its share repurchase authorization. During the six months, it returned $0.7 billion to shareholders, consisting of $0.5 billion in dividends and $0.2 billion in share repurchases.

06—Continue

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