Slide 1: Q1 2025 Earnings Announcement
Q1 2025 Earnings Announcement February 27, 2025
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information HP has included non-GAAP financial measures in this presentation to supplement HP’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis. Definitions of these non-GAAP financial measures and reconciliations of
Slide 4: Q1 FY25 Highlights
Q1 FY25 Highlights • Net revenue of $13.5 billion, up 2% from the prior-year period and up 3% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.74, within the previously provided outlook of $0.70 to $0.76 per share • GAAP diluted net earnings per share of $0.59, within the previ
Slide 5: Q1 FY25 Results Overview
Q1 FY25 Results Overview Growth Growth CC1 Non-GAAP Non-GAAP Non-GAAP Non-GAAP $ in millions Net revenue y/y % y/y % OP $3 OP % of rev3 OP $ y/y3 OP % of rev y/y3 Printing $4,269 (2.4)% (0.9)% $810 19.0% $(62) (0.9) pts Personal $9,224 4.7% 5.3% $507 5.5% $(30) (0.6) pts Systems Corporate Investment
Slide 6: Q1 FY25 Mix by Segment and Region
Q1 FY25 Mix by Segment and Region Net revenue Non-GAAP operating profit2 Net revenue By key segment and business unit1 By key segment3 By region Personal Systems Printing Commercial Supplies 49% 21% $1.3 billion AMERICAS EMEA APJ 41% 35% 24% $13.5 Printing Commercial Printing 19.0% US: 33% 9% 62% of
Slide 7: Revenue & Non-GAAP Diluted Net EPS Performance
Revenue & Non-GAAP Diluted Net EPS Performance Revenue (Billions) y/y growth (%) Non-GAAP diluted net EPS 2 y/y growth (%) 1 2 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenue using monthly exchange r
Slide 8: Regional Revenue Trends
Regional Revenue Trends Billions % growth Billions % growth Americas United (including U.S.) States Billions % growth Billions % growth Asia EMEA Pacific y/y revenue growth % y/y revenue growth in constant currency %1 1. Adjusted to exclude the effect of foreign currency exchange fluctuations calcul
Slide 9: Personal Systems Q1 FY25
Personal Systems Q1 FY25 Revenue up 5% y/y driven by higher commercial volume, increased ASPs and Key Growth Areas. Commercial PS revenue mix over 70%. Revenue Operating profit OP rate at 5.5% down 0.6 pts y/y, reflecting higher commodity costs and additional strategic $9.2 $507 5% y/y investments,
Slide 10: Printing Q1 FY25
Printing Q1 FY25 Revenue down 2% y/y. Positives driven by Consumer hardware, fueled by Big Tank, offset by competitive pricing environment in Commercial. Revenue Operating profit OP rate of 19.0%, down 0.9pts y/y driven by $4.3 competitive pricing and mix, offset in part by cost $810 2% y/y reductio
Slide 11: Leading the Future of Work
Leading the Future of Work Innovating Capturing Building Best-in- Seeking Accelerating AI-powered Commercial class Solutions Consumer digital capabilities growth organization growth transformation Sustainable Impact Talent & Culture
Slide 12: Key growth areas
Key growth areas Collectively grew revenue sequentially high single digit AI PC Consumer Subscriptions Remarkable momentum with sequential revenue Consumer Subscription revenue grew double- growth. HP has continued to gain share in this digit year over year. Achieved the milestone of market propelle
Slide 13: Q1'25 Sustainable Impact
Q1’25 Sustainable Impact Climate Action Human Rights Digital Equity and Philanthropy • Ranked #3 within the industry on • Ranked #1 on 3BL Media’s 100 Best • In 2024, HP reached nearly 20 million Corporate Knights 2025 Global 100, Corporate Citizens of 2024 people through digital equity programs 10t
Slide 14: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 Net Cash (Debt) $ Billions 1Q24 2Q24 3Q24 4Q24 1Q25 Gross cash2 2.4 2.5 2.9 3.3 2.9 Gross debt3 9.8 9.7 9.7 9.7 9.8 Net cash (debt)1,4 (7.4) (7.2) (6.8) (6.5) (6.9) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, c
Slide 15: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions Shareholder Return 1 Shares repurchased 62.7 million 2.7 million 16.7 million 2.7 million Dividend per share $1.1024 $0.2894 $0.2756 $0.2894 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in lea
Slide 16: Outlook
Outlook Q2 FY25 net EPS guidance GAAP diluted net EPS $0.62 – $0.72 Non-GAAP diluted net EPS1 $0.75 – $0.85 FY25 net EPS guidance GAAP diluted net EPS $2.86 – $3.16 Non-GAAP diluted net EPS1 $3.45 – $3.75 FY25 Free Cash Flow Guidance Free Cash Flow2 $3.2 – $3.6 billion 1. Second Quarter and fiscal 2
Slide 17: Non-GAAP Financial Information
Non-GAAP Financial Information 1 $ in millions, except per share amounts Q1 FY25 Q4 FY24 Q1 FY24 % of Revenue % of Revenue % of Revenue Revenue $13,504 $14,055 $13,185 Cost of revenue 10,664 79.0% 11,054 78.6% 10,297 78.1% Total OpEx 1,856 13.7% 1,801 12.9% 1,782 13.5% Operating profit $984 7.3% $1,
Slide 18: Q1'25 GAAP to Non-GAAP Bridge
Q1'25 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $13,504 $13,504 Cost of
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Slide 20: Supplemental Slides
Supplemental Slides @
Slide 21: Growth Areas Definition and Updates
Growth Areas Definition and Updates Strategic Growth Areas represent HP’s businesses which management expects to collectively grow at a rate faster than HP’s core businesses with accretive margins in the longer term. HP’s Strategic Growth Areas are comprised of: Hybrid Systems Video conferencing sol
Slide 22: Inventory & Accounts Receivable
Inventory & Accounts Receivable INVENTORY ACCOUNTS RECEIVABLE $ Billions Percentage of Revenue1 $ Billions Percentage of Revenue1 1. % of revenue calculations based on trailing 4-quarter net revenue 22
Slide 23: PP&E & Accounts Payable
PP&E & Accounts Payable PP&E ACCOUNTS PAYABLE $ Billions Percentage of Revenue1 $ Billions 1. % of revenue calculations based on trailing 4-quarter net revenue 23
Slide 24: Working Capital Metrics
Working Capital Metrics In Days 1 1. Cash conversion cycle = Days receivables + Days inventory – Days payable 24
Slide 25: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ in millions 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net cash provided by $636 $976 $1,975 $3,571 $121 $581 $1,424 $1,623 $3,749 $374 operating activities Net investment in property, plant, equipment and (130) (137) (134) (593) (158) (119) (162) (153) (592) (
Slide 26: FY24 GAAP to Non-GAAP Bridge
FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Debt Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture extinguishment adjustments retirement related Non-GAAP share amounts charges benefit (credits) / charges Reven
Slide 27: Q4 FY24 GAAP to Non-GAAP Bridge
Q4 FY24 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Debt Non-operating tax rate and per Amortization of Restructuring and divestiture extinguishment Tax retirement GAAP intangible assets other charges adjustments related (credits) / Non-GAAP share amounts charges costs charges Reve
Slide 28: Q3 FY24 GAAP to Non-GAAP Bridge
Q3 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $13,519 $13,519 Cost o
Slide 29: Q2 FY24 GAAP to Non-GAAP Bridge
Q2 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $12,800 $12,800 Cost o
Slide 30: Q1 FY24 GAAP to Non-GAAP Bridge
Q1 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $13,185 $13,185 Cost o
Slide 31: FY23 GAAP to Non-GAAP Bridge
FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition and Debt Non-operating rate and per share GAAP intangible assets and other divestiture Extinguishment Tax adjustments retirement related Non-GAAP amounts charges charges benefit (credits) / charges Reven
Slide 32: Q4 FY23 GAAP to Non-GAAP Bridge
Q4 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition and Non-operating and per share amounts GAAP intangible assets other charges divestiture charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $13,817 $13,817 Cost o
Slide 33: Q3 FY23 GAAP to Non-GAAP Bridge
Q3 FY23 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Debt Non-operating tax rate and per Amortization of Restructuring and divestiture extinguishment Tax retirement GAAP intangible assets other charges adjustments related (credits) / Non-GAAP share amounts charges benefit charges Re
Slide 34: Q2 FY23 GAAP to Non-GAAP Bridge
Q2 FY23 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $12,907 $12,907 Cost o
Slide 35: Q1 FY23 GAAP to Non-GAAP Bridge
Q1 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring and Acquisition and Debt Tax Non-operating rate and per share GAAP intangible assets other charges divestiture extinguishment adjustments retirement related Non-GAAP amounts charges costs (credits) / charges Reve