HP Inc. (HPQ) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

market than it was during the last memory cycle. Over a third of the PS gross profit comes from services and peripherals. We expect to mitigate the impact of these cost headwinds in the first half of our fiscal year with our inventory on hand and a set of actions across our portfolio and basket of commodities. For the second half of the year, we expect personal system margins to be impacted. Therefore, we are taking a prudent approach to our guide while implementing aggressive actions to mitigate this. They include qualifying lower-cost suppliers and redesigning the portfolio for reduced memory configurations, accelerating our AI-enabled transformation to drive further cost savings, and raising prices in close partnerships with our channel and direct customers. From a supply perspective, we are in a good position due to our strong relationships and long-term contracts with key suppliers. Moving to fiscal year 26, our plan is built on four pillars. First, in personal systems, we expect the revenue market to be up low single digit with Windows 11 refresh, AI PCs, and pricing as catalyst. We also expect to see a positive impact from the growth of premium devices, including workstations, and an increase of attached rate from services and peripherals. Our goal is to perform better than market. Second, in print, We expect to grow slightly faster than industry projections of low single digit market decline. We intend to take share by doubling down on big tanks. We are increasing our marketing investments, driving new product and solution introductions, and expanding globally our successful all-in subscription offering. We also intend to grow share in office with new products and solutions designed for SMB and enterprise customers, reinforcing HP's leadership in manageabilit...