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HP 8-K Report, Financial Results (May 28, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 28, 2025
Period End
May 28, 2025
Security
HPQ
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 8-K filed May 28, 2025. Cited figures are marked; the original filing is the authoritative source.

HP Inc. reported fiscal 2025 second-quarter net revenue of $13.2 billiona, up 3.3% (up 4.5% in constant currency) from the prior-year period.

GAAP diluted net EPS was $0.42b, down 31% from $0.61, and non-GAAP diluted net EPS was $0.71, down 13% from $0.82. Both EPS figures came in below the previously provided outlook ranges of $0.62 to $0.72 (GAAP) and $0.75 to $0.85 (non-GAAP). Non-GAAP results exclude $272 million, or $0.29 per diluted share, in after-tax adjustments, including $103 million of certain litigation charges tied to Standard Essential Patent (SEP) litigation.

Personal Systems revenue rose 7% year over year to $9.0 billionc, led by Commercial PS growth of 9%, while Printing revenue fell 4% to $4.2 billion. Cash generation weakened sharply. Net cash provided by operating activities was $38 million, and free cash flow was $(95) million.

Accounts payable fell to $15.2 billiond from $16.9 billion at October 31, 2024, and long-term debt rose to $9.29 billion from $8.26 billion. HP paid $273 million in dividends and repurchased $100 million of stock during the quarter, and ended with $2.7 billion in gross cash. Management cited increased macroeconomic uncertainty and trade-related costs, and lowered its outlook.

For fiscal 2025, HP now estimates GAAP diluted net EPS of $2.32 to $2.62, non-GAAP diluted net EPS of $3.00 to $3.30, and free cash flow of $2.6 to $3.0 billion. For the third quarter, it estimates GAAP diluted net EPS of $0.57 to $0.69 and non-GAAP diluted net EPS of $0.68 to $0.80. Management expects to fully offset trade-related costs by the fourth quarter, assuming current conditions persist.

02—Key points

Key Highlights

  1. Q2 FY25 net revenue of $13.2 billion, up 3.3% year over year (up 4.5% in constant currency); Personal Systems up 7% to $9.0 billion, Printing down 4% to $4.2 billion.
  2. GAAP diluted net EPS of $0.42 (down 31%) and non-GAAP diluted net EPS of $0.71 (down 13%), both below the previously provided outlook ranges.
  3. Operating cash flow was only $38 million and free cash flow was $(95) million, reflecting a $1.3 billion decline in accounts payable during the quarter.
  4. $103 million in certain litigation charges related to SEP litigation were excluded from non-GAAP results, contributing $0.11 per diluted share to the GAAP-to-non-GAAP gap.
  5. Capital returns totaled $0.4 billion in the quarter: $273 million in dividends and $100 million for repurchasing about 3.0 million shares.
  6. Fiscal 2025 outlook: GAAP diluted EPS of $2.32 to $2.62, non-GAAP diluted EPS of $3.00 to $3.30, and free cash flow of $2.6 to $3.0 billion.
  7. Management cites moderated demand and trade-related costs, expects to fully offset those costs by Q4 if current conditions hold, and says it is accelerating manufacturing footprint expansion and cost reductions.

03—Questions

Frequently Asked Questions

  1. Why did HP's second-quarter earnings fall short of its previous outlook?

    GAAP diluted net EPS of $0.42 was below the previously provided outlook of $0.62 to $0.72, and non-GAAP diluted net EPS of $0.71 was below the outlook of $0.75 to $0.85. Management attributed the results to a dynamic regulatory environment and, in the outlook discussion, to increased macroeconomic uncertainty, moderated demand, and the net impact of trade-related costs.

  2. How weak was HP's cash generation in the quarter?

    Net cash provided by operating activities was $38 million, compared with $581 million in the prior-year quarter, and free cash flow was $(95) million. The filing attributes much of the change to a $1,302 million decrease in accounts payable within operating assets and liabilities, partly offset by lower accounts receivable and inventory.

  3. What does HP expect for fiscal 2025 and the third quarter?

    For fiscal 2025, HP estimates GAAP diluted net EPS of $2.32 to $2.62, non-GAAP diluted net EPS of $3.00 to $3.30, and free cash flow of $2.6 to $3.0 billion. For Q3, it estimates GAAP diluted net EPS of $0.57 to $0.69 and non-GAAP diluted net EPS of $0.68 to $0.80. The outlook reflects costs from current U.S. tariffs and associated mitigations.

  4. What drove the difference between GAAP and non-GAAP earnings?

    Non-GAAP results exclude $272 million, or $0.29 per diluted share, in after-tax adjustments. The largest items were restructuring and other charges of $122 million, certain litigation charges of $103 million related to SEP litigation, and amortization of intangible assets of $65 million, along with smaller acquisition and divestiture charges and tax adjustments.

04—Continue

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