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Why HP (HPQ) International Revenue Trends Deserve Your Attention

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Have you evaluated the performance of HP's (HPQ - Free Report) international operations during the quarter that concluded in July 2025? Considering the extensive worldwide presence of this personal computer and printer maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

Upon examining HPQ's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $13.93 billion, marking an increase of 3.1% from the year-ago quarter. We will next turn our attention to dissecting HPQ's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in HPQ's International Revenues

During the quarter, Europe, Middle East and Africa contributed $4.5 billion in revenue, making up 32.3% of the total revenue. When compared to the consensus estimate of $4.59 billion, this meant a surprise of -2%. Looking back, Europe, Middle East and Africa contributed $4.36 billion, or 33%, in the previous quarter, and $4.42 billion, or 32.7%, in the same quarter of the previous year.

Asia-Pacific and Japan generated $3.32 billion in revenues for the company in the last quarter, constituting 23.9% of the total. This represented a surprise of +3.79% compared to the $3.2 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific and Japan accounted for $3.04 billion (23%), and in the year-ago quarter, it contributed $3.01 billion (22.3%) to the total revenue.

Anticipated Revenues in Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that HP will post revenues of $14.46 billion, which reflects an increase of 2.9% the same quarter in the previous year. The revenue contributions are expected to be 32.1% from Europe, Middle East and Africa ($4.64 billion), and 24.1% from Asia-Pacific and Japan ($3.48 billion).

Analysts expect the company to report a total annual revenue of $54.9 billion for the full year, marking an increase of 2.5% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia-Pacific and Japan are projected to be 33.2% ($18.21 billion), and 23.9% ($13.09 billion) of the total revenue, in that order.

Wrapping Up

Relying on international markets for revenues, HP faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

HP, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of HP's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 16.7%, against an upturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts HP among its entities, has appreciated by 1.8%. Over the past three months, the company's shares have seen an increase of 13.3% versus the S&P 500's 9.7% increase. The sector overall has witnessed an increase of 14.8% over the same period.


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