Hp Inc. · NYSE:HPQ
Hp — Q2 2025 Earnings Presentation
35 slides from Hp's earnings presentation, May 28, 2025
Slide 1: Q2 FY25 Earnings Announcement
Q2 FY25 Earnings Announcement May 28, 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: Highlights
Net revenue of $13.2B, up 3% from the prior-year period and up 5% in constant currency1 Q2FY25 Non-GAAP diluted net earnings per share2 of $0.71, below the previously provided outlook of $0.75 to $0.85 per share Highlights GAAP diluted net earnings per share of $0.42, below the previously provided o
Slide 5: Q2 FY25 Mix by Segment and Region
Q2 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 51% 21% $1.2 billion AMERICAS EMEA APJ Printing 19.5% 44% 33% 23% $13.2 Printing Commercial 67% of total OP m
Slide 6: Q2 FY25 Results Overview
Q2 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 $4,181 (4.3)% (2.6)% $814 19.5% $(15) 0.5 pts Personal $9,024 7.1% 8.1% $409 4.5% $(99) (1.5) pts Systems Corporate Investments
Slide 7: Revenue & Non-GAAP Diluted Net EPS
Revenue & Non-GAAP Diluted Net EPS 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 rates from th
Slide 8: Regional Revenue Trend
Regional Revenue Trend 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 calcula
Slide 9: Personal Systems Q2 FY25
Personal Systems Q2 FY25 Revenue Operating profit $9.0 $409 7% y/y Revenue up 7% y/y driven by higher commercial volume, increased ASPs and 4.5% momentum in Key Growth Areas. Commercial 8% y/y CC 1 of revenue PS revenue grew 9% reflecting refresh activity billion million related to Windows 11. OP ra
Slide 10: Printing Q2 FY25
Printing Q2 FY25 Revenue Operating profit $4.2 $814 (4)% y/y Consumer hardware unit growth, fueled by Big 1 19.5% Tank. Commercial focused on profitable long- (3)% y/y CC of revenue term unit growth and gaining share in A4 and billion million A3. Revenue breakdown Revenue and OP % trend OP rate of 1
Slide 11: Leading the Future of Work
Leading the Future of Work Innovating Capturing Building Seeking Accelerating AI-powered Commercial Best-in-class Consumer Digital Capabilities Growth Solutions Growth Transformation Organization Sustainable Impact Talent & Culture 11
Slide 12: Key Growth Areas
Key Growth Areas Collectively grew revenue sequentially low single digit AI PC Consumer Subscriptions Maintaining strong momentum with consecutive Consumer Subscription revenue and revenue increases. Expanding market share driven subscribers grew y/y. HP's All-In plan named by the Windows 11 refresh
Slide 13: Q2 FY25 Sustainable Impact
Q2 FY25 Sustainable Impact Recognized as an industry leader in Sustainability 2025 Ecovadis Platinum for the Recognized by Know The Chain as ICT 2025 World’s Most Ethical Companies by fifteenth consecutive year leader, ranked fourth out of 45 companies Ethisphere for the sixth consecutive year Accel
Slide 14: Select Cash & Debt Balances
Select Cash & Debt Balances Billions 1 Net Cash (Debt) $ Billions 2Q24 3Q24 4Q24 1Q25 2Q25 Gross cash2 2.5 2.9 3.3 2.9 2.7 Gross debt3 9.7 9.7 9.7 9.8 10.8 Net cash (debt)1,4 (7.2) (6.8) (6.5) (6.9) (8.1) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, ca
Slide 15: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return Millions Cash Flow Millions Shareholder Return 1 Shares repurchased 20.2 million 5.7 million 3.5 million 3.0 million Dividend per share $0.5512 $0.5788 0.2756 $0.2894 1. Free cash flow = Net cash provided by (used in) operating activities adjusted for net investment in
Slide 16: Outlook
Outlook Prior Revised Key Assumptions FY25 net EPS guidance FY25 net EPS guidance Moderated growth in PC Market - low single digit unit GAAP diluted net EPS $2.86 - $3.16 GAAP diluted net EPS $2.32-$2.62 growth y/y (CY25) Non-GAAP diluted net EPS1 $3.45 - $3.75 Non-GAAP diluted net EPS1 $3.00-$3.3
Slide 17: Current Tariffs included in Outlook
Current Tariffs included in Outlook Tariffs Mitigation Efforts Country PS Print Rebalancing supply chain Compute1 Other All and manufacturing China 20%-45% 20-30% 30%+ footprint Mexico* 0% 0% 0% Asia - ex China 0% 10% 10% Expense Management EMEA 0% 10% 10% LATAM 0% 10% 10% Product Pricing * Me
Slide 18: Non-GAAP Financial Information
Non-GAAP Financial Information 1 $ in millions, except per share amounts Q2 FY25 Q1 FY25 Q2 FY24 % of Revenue % of Revenue % of Revenue Revenue $13,220 $13,504 $12,800 Cost of revenue 10,481 79.3% 10,664 79.0% 9,777 76.4% Total OpEx 1,778 13.4% 1,856 13.7% 1,898 14.8% Operating profit $961 7.3% $984
Slide 19: Q2 FY25 GAAP to Non-GAAP Bridge
Q2 FY25 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Non-operating tax rate and per Amortization of Restructuring and divestiture Certain litigation retirement related Tax share amounts GAAP intangible assets other charges charges charges (credits) / charges adjustments Non-GAAP Rev
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Slide 21: Supplemental Slides
Supplemental Slides a. Ay ja
Slide 22: Inventory & Accounts Receivable
Inventory & Accounts Receivable Inventory Accounts Receivable In Billions Percentage of Revenue1 In 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 In Billions Percentage of Revenue1 In 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 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 YTD25 Net cash provided by/ (used in) $121 $581 $1,424 $1,623 $3,749 $374 $38 $412 operating activities Net investment in property, plant, equipment and purchased (158) (119) (162) (153) (592) (302) (183) (485) intangible
Slide 26: Q1 FY25 GAAP to Non-GAAP Bridge
Q1 FY25 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Non-operating tax rate and per Amortization of Restructuring and divestiture retirement related Tax share amounts GAAP intangible assets other charges charges (credits) / charges adjustments Non-GAAP Revenue $13,504 $13,504 Cost o
Slide 27: FY24 GAAP to Non-GAAP Bridge
FY24 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition Certain Debt retirement tax rate and per of intangible and other and divestiture litigation extinguishment related (credits) Tax share amounts GAAP assets charges charges charges costs / charges a
Slide 28: Q4 FY24 GAAP to Non-GAAP Bridge
Q4 FY24 GAAP to Non-GAAP Bridge A description of HP’s use of non-GAAP information is provided on slide 3 under “Use of non-GAAP financial information” 28
Slide 29: Q3 FY24 GAAP to Non-GAAP Bridge
Q3 FY24 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition and retirement tax rate and per of intangible and other divestiture Certain litigation related (credits) / Tax share amounts GAAP assets charges charges charges charges adjustments Non-GAAP Rev
Slide 30: Q2 FY24 GAAP to Non-GAAP Bridge
Q2 FY24 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture retirement related Tax share amounts GAAP of intangible assets charges charges (credits) / charges adjustments Non-GAAP Revenue $12,800 $12,800 Cost o
Slide 31: Q1 FY24 GAAP to Non-GAAP Bridge
Q1 FY24 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture retirement related Tax share amounts GAAP of intangible assets charges charges (credits) / charges adjustments Non-GAAP Revenue $13,185 $13,185 Cost o
Slide 32: FY23 GAAP to Non-GAAP Bridge
FY23 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture Debt extinguishment retirement related Tax share amounts GAAP of intangible assets charges charges benefit (credits) / charges adjustments Non-GAAP Reven
Slide 33: Q4 FY23 GAAP to Non-GAAP Bridge
Q4 FY23 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture retirement related Tax share amounts GAAP of intangible assets charges charges (credits) / charges adjustments Non-GAAP Revenue $13,817 $13,817 Cost o
Slide 34: Q3 FY23 GAAP to Non-GAAP Bridge
Q3 FY23 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture Debt extinguishment retirement related Tax share amounts GAAP of intangible assets charges charges benefit (credits) / charges adjustments Non-GAAP Re
Slide 35: Q2 FY23 GAAP to Non-GAAP Bridge
Q2 FY23 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition and Non-operating tax rate and per Amortization and other divestiture retirement related Tax share amounts GAAP of intangible assets charges charges (credits) / charges adjustments Non-GAAP Revenue $12,907 $12,907 Cost o