Live: HP Inc. (HPQ) Reports Earnings Today – Will Shares Decline?

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Live Coverage Has Ended

Final Reaction

4:35 pm

Not a blowout, but a credible stabilization quarter that supports HP’s pivot toward AI PCs and strengthens investor confidence into FY26.

HP is showing it can weather tariff shocks and ride the AI PC cycle to steady growth and FCF generation.

• Bullish: AI PCs delivering ASP uplift, Q4 EPS outlook raised, cash flow execution.
• Bearish: Printing remains a structural drag, margins still compressed vs. last year.
• Neutral: EPS flat YoY on a non-GAAP basis; growth modest relative to broader tech peers.

 

What Changed This Quarter

4:32 pm

• PC strength returned: Fifth straight quarter of revenue growth, driven by AI PC mix and Win11 refresh.

• Tariff headwinds easing: Supply chain shifts nearly complete; CFO sees full mitigation by Q4.

• Printing still lagging: Supplies and hardware units remain in decline, partially offset by high margins.

• Cash flow improved: FCF rose double digits, giving HP flexibility to fund buybacks and dividends.

Key Operating Highlights

4:29 pm

KPI	Q3 FY25	YoY	Note
Personal Systems Revenue	$9.9B	+6%	Consumer +8%, Commercial +5%
Printing Revenue	$4.0B	–4%	Supplies –4%, Commercial –3%
PS Units	+5%	Up	AI PCs ~25% of mix
Printing Margin	17.3%	Flat	High end of target range
Free Cash Flow	$1.5B	+13%	Strong working capital execution

Guidance Update

4:25 pm

Stock now up 2.88% after-hours.

Metric	Guidance	Consensus	Change
Q4 FY25 GAAP EPS	$0.75–$0.85	$0.77	Raised range
Q4 FY25 Non-GAAP EPS	$0.87–$0.97	$0.88	Raised
FY25 Free Cash Flow	$2.6B–$3.0B	~$2.7B est.	Raised

More on the top line numbers

4:19 pm

Metric	Reported	Consensus	Beat/Miss
Revenue	$13.9B (+3% YoY)	$13.71B	Beat
EPS (Non-GAAP)	$0.75 (–11% YoY)	$0.75	Inline
EPS (GAAP)	$0.80 (+23% YoY)	$0.70 est.	Beat
Free Cash Flow	$1.5B (+13% YoY)	N/A	—

A solid top-line beat and strong cash generation outweighed soft EPS optics. With AI PCs now ~25% of mix and tariff mitigation progressing, the +4.8% move reflects relief that HP is regaining stability after several difficult quarters.

Management Commentary

4:19 pm

CEO Enrique Lores: “In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas.”

CFO Karen Parkhill: “We remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption.”

Management framed the quarter as proof of execution discipline — AI PC adoption is now fueling ASP uplift, while tariff-related costs are being successfully offset ahead of Q4.

HP Numbers Are In, Stock up 4.7%

4:15 pm

Revenue was $13.90 billion, above the $13.71 billion consensus estimate. EPS was $0.75, in line with the $0.75 consensus estimate.

HP Inc. reported a 3.1% increase in revenue year-over-year, driven by growth in Personal Systems and key growth areas. The company achieved a GAAP diluted EPS of $0.80, up from $0.65 in the prior-year period. Free cash flow was $1.5 billion, and the company returned $0.4 billion to shareholders through dividends and share repurchases.

HP remains optimistic about the PC market, expecting continued momentum from Windows 11 refresh and AI PC adoption. The company anticipates GAAP EPS for Q4 2025 to be between $0.75 and $0.85, and non-GAAP EPS to range from $0.87 to $0.97.

EPS	0.75 Beat	Est. EPS	0.75
Revenue	$13.90B Beat	Est. Revenue	$13.71B

How HP Stock Performed After Recent Earnings

3:00 pm

Quarter	EPS Surprise	1-Day Move	7-Day Move	14-Day Move
Q2 2025	–11.3%	–8.26%	–7.40%	–8.81%
Q1 2025	0.0%	–6.82%	–9.50%	–12.46%
Q4 2024	0.0%	–11.36%	–7.40%	–11.83%
Q3 2024	–3.9%	+2.00%	–1.67%	–0.12%

HP Inc. (NYSE: HPQ) eports fiscal Q3 2025 earnings after the close. The PC and printer maker has been caught in the crosscurrents of AI PC demand tailwinds and tariff-driven cost headwinds. In Q2, HP delivered revenue of $13.22 billion (+3% YoY) but EPS of just $0.71, missing estimates by 11% due to tariffs. With shares down sharply after recent earnings calls, investors will be watching closely to see if cost mitigations and the AI PC cycle can turn the tide.

What to Expect When HP Reports Tonight

Wall Street consensus for fiscal Q3 2025:

• Revenue: $13.71 billion
• EPS (Normalized): $0.75
• FY 2025 Revenue: $54.73 billion
• FY 2025 EPS: $3.12
• FY 2026 Revenue: $55.54 billion
• FY 2026 EPS: $3.37

That implies +1.4% YoY sales growth this quarter, but EPS falling nearly –10% YoY. 

Key Areas to Watch

1. Tariff Mitigation & Supply Chain Shift- HP accelerated moving nearly all North America product manufacturing outside of China by June 2025. CEO Enrique Lores said cost impacts will be fully mitigated by Q4.

2. AI PCs as Growth Engine- AI PCs now ~25% of HP’s PC mix, expected to hit 50% within three years. Management emphasized ASP uplift of 10–20% and strong ISV support.

3. Future Ready Cost Program- Targeting $2B in gross annual savings by FY2025 through supply chain redesign, automation, and IT simplification. CFO Parkhill said Q3/Q4 margins should benefit as these savings ramp.

4. Commercial PC & Windows 11 Refresh- Commercial unit growth +11% in Q2; Win11 and AI refresh cycles remain key to H2 demand, despite management moderating PC growth expectations to low single digits.

5. Print Margins & Industrial Growth- Print revenue down –3% YoY, but margins at the high end of 16–19% range. New industrial graphics portfolio launched at drupa has seen strong adoption.

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