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HPQ's Q4 earnings beat estimates while revenues rose 4.2% year over year.
Personal Systems revenues grew 8% on stronger commercial and consumer PC demand.
Printing revenues fell 4% as Supplies and Commercial Printing weakened.
HP Inc. (HPQ - Free Report) reported fourth-quarter fiscal 2025 earnings of 93 cents per share, which beat the Zacks Consensus Estimate by 2.2%. The company reported earnings of 96 cents per share a year ago. These figures are adjusted for non-recurring items.
HP’s earnings surpassed the Zacks Consensus Estimates in two of the trailing four quarters, while matching the same on one occasion and missing the same on one, the average negative surprise being 2.6%.
HPQ posted revenues of $14.64 billion for the fourth quarter of fiscal 2025, which increased 4.2% year over year but missed the Zacks Consensus Estimate by 2.2%. This compares with $14.05 billion of revenues reported in the year-ago quarter.
HPQ’s Q4 Top-Line Details
Personal Systems (PS) revenues (71% of net revenues) came in at $10.4 billion, up 8% year over year (7% in constant currency). Growth was driven by strength in both commercial and consumer PC divisions. Moreover, the company expects the Windows 11 refresh cycle to be a major tailwind for 2026.
HP’s total PC units rose 7%, with Consumer PS shipments up 8% and Commercial PS shipments up 7%. On the revenue side, Consumer PS grew 10%, while Commercial PS grew 7%.
The Printing business (29% of net revenues) generated $4.27 billion, down 4% year over year (down 4.1% in constant currency). Weakness in Supplies and Commercial Printing contributed to the decline. Consumer Printing revenues fell 9%, Commercial Printing declined 4%, and Supplies revenues decreased 4% (3% in CC). Total hardware units were down 12%, with both Consumer and Commercial units declining.
By geography, HP posted revenue growth in all regions. On a constant currency basis, the Americas rose 1.1%, EMEA was up 1.1%, and Asia Pacific & Japan grew 11% year over year.
By geography, HP posted broad-based growth in constant currency in EMEA and Asia Pacific & Japan. EMEA and Asia Pacific & Japan grew 6% and 9% in CC, respectively, while Americas declined 0.3% year over year in CC.
Operating Results
Segment-wise, Personal Systems’ non-GAAP operating margin was 5.8%, down 40 basis points year over year. The Printing division’s non-GAAP operating margin came in at 18.9%, down 70 basis points year over year. HP’s overall non-GAAP operating margin was 8.0%, contracting 80 basis points from the prior-year quarter.
Balance Sheet and Cash Flow
HP ended the fiscal fourth quarter with $3.7 billion in cash and cash equivalents and $15 million in restricted cash, up from the prior quarter’s $2.9 billion and $3 million in cash and cash equivalents and restricted cash.
During the quarter, HP generated $1.6 billion of cash from operating activities and delivered $1.5 billion in free cash flow. During the quarter, the company returned $0.8 billion to shareholders through dividends and share repurchases.
The Zacks Consensus Estimate for Silicon Laboratories’ full-year 2025 earnings has been revised upward by 28.6% to 9 cents per share over the past seven days and suggests a year-over-year increase of 152.3%. Silicon Laboratories shares have declined 0.5% year to date.
The Zacks Consensus Estimate for Semtech’s fiscal 2026 earnings is pegged at $1.66 per share, unchanged over the past 60 days, indicating an 88.6% year-over-year increase. Semtech shares have soared 15.8% year to date.
The Zacks Consensus Estimate for MACOM Technology Solutions’ fiscal 2026 earnings has been revised upward by 3.2% to $4.16 per share over the past seven days, suggesting a year-over-year increase of 19.9%. MACOM Technology Solutions shares have surged 27.7% year to date.
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HPQ's Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
HP Inc. (HPQ - Free Report) reported fourth-quarter fiscal 2025 earnings of 93 cents per share, which beat the Zacks Consensus Estimate by 2.2%. The company reported earnings of 96 cents per share a year ago. These figures are adjusted for non-recurring items.
HP’s earnings surpassed the Zacks Consensus Estimates in two of the trailing four quarters, while matching the same on one occasion and missing the same on one, the average negative surprise being 2.6%.
HPQ posted revenues of $14.64 billion for the fourth quarter of fiscal 2025, which increased 4.2% year over year but missed the Zacks Consensus Estimate by 2.2%. This compares with $14.05 billion of revenues reported in the year-ago quarter.
HPQ’s Q4 Top-Line Details
Personal Systems (PS) revenues (71% of net revenues) came in at $10.4 billion, up 8% year over year (7% in constant currency). Growth was driven by strength in both commercial and consumer PC divisions. Moreover, the company expects the Windows 11 refresh cycle to be a major tailwind for 2026.
HP Inc. Price, Consensus and EPS Surprise
HP Inc. price-consensus-eps-surprise-chart | HP Inc. Quote
HP’s total PC units rose 7%, with Consumer PS shipments up 8% and Commercial PS shipments up 7%. On the revenue side, Consumer PS grew 10%, while Commercial PS grew 7%.
The Printing business (29% of net revenues) generated $4.27 billion, down 4% year over year (down 4.1% in constant currency). Weakness in Supplies and Commercial Printing contributed to the decline. Consumer Printing revenues fell 9%, Commercial Printing declined 4%, and Supplies revenues decreased 4% (3% in CC). Total hardware units were down 12%, with both Consumer and Commercial units declining.
By geography, HP posted revenue growth in all regions. On a constant currency basis, the Americas rose 1.1%, EMEA was up 1.1%, and Asia Pacific & Japan grew 11% year over year.
By geography, HP posted broad-based growth in constant currency in EMEA and Asia Pacific & Japan. EMEA and Asia Pacific & Japan grew 6% and 9% in CC, respectively, while Americas declined 0.3% year over year in CC.
Operating Results
Segment-wise, Personal Systems’ non-GAAP operating margin was 5.8%, down 40 basis points year over year. The Printing division’s non-GAAP operating margin came in at 18.9%, down 70 basis points year over year. HP’s overall non-GAAP operating margin was 8.0%, contracting 80 basis points from the prior-year quarter.
Balance Sheet and Cash Flow
HP ended the fiscal fourth quarter with $3.7 billion in cash and cash equivalents and $15 million in restricted cash, up from the prior quarter’s $2.9 billion and $3 million in cash and cash equivalents and restricted cash.
During the quarter, HP generated $1.6 billion of cash from operating activities and delivered $1.5 billion in free cash flow. During the quarter, the company returned $0.8 billion to shareholders through dividends and share repurchases.
Zacks Rank and Stocks to Consider
HPQ currently carries a Zacks Rank #4 (Sell).
Silicon Laboratories (SLAB - Free Report) , Semtech (SMTC - Free Report) and MACOM Technology Solutions (MTSI - Free Report) are some better-ranked stocks that investors can consider from the broader Zacks Semiconductor - Analog and Mixed industry. Silicon Laboratories, Semtech and MACOM Technology Solutions carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Silicon Laboratories’ full-year 2025 earnings has been revised upward by 28.6% to 9 cents per share over the past seven days and suggests a year-over-year increase of 152.3%. Silicon Laboratories shares have declined 0.5% year to date.
The Zacks Consensus Estimate for Semtech’s fiscal 2026 earnings is pegged at $1.66 per share, unchanged over the past 60 days, indicating an 88.6% year-over-year increase. Semtech shares have soared 15.8% year to date.
The Zacks Consensus Estimate for MACOM Technology Solutions’ fiscal 2026 earnings has been revised upward by 3.2% to $4.16 per share over the past seven days, suggesting a year-over-year increase of 19.9%. MACOM Technology Solutions shares have surged 27.7% year to date.