HP has announced fiscal 2025 second quarter net revenue of $13.2bn, up 3.3% (up 4.5% in constant currency) from the prior-year period.
Entirely fitting that the Road Ahead' was being printed on HP's stand at PacPrint as its Q2 results were being released
Enrique Lores, President and CEO, HP Inc. says: “In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy.”
Analysing the Q2 results by market segment, Personal Systems net revenue was $9bn, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%.
However, Printing net revenue was $4.2bn, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%.
Lores continues: “While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These actions strengthened our foundation and position us to deliver long-term sustainable growth.”
Q2 Report highlights
- GAAP diluted net earnings per share ("EPS") of $0.42, down 31% from the prior year period
- Non-GAAP diluted net EPS of $0.71, down 13% from the prior year period
- Net revenue of $13.2 billion, up 3.3% from the prior-year period
- Net cash provided by operating activities of $38 million, free cash flow of $(95) million
- Returned $0.4 billion to shareholders in the form of dividend and share repurchases
Karen Parkhill, CFO, HP Inc. adds: “In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs.”
“We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”
