HP (HPQ) Q4 earnings report 2025
HP Inc. Enrique Lores, President and Chief Executive Officer, speaks at the COMPUTEX forum in Taipei, Taiwan, on June 3, 2024.
Anne Wang | Reuters
PC and printer manufacturer HP Inc. He said Tuesday he would reduce staffing to 4,000 to 6,000 people. The company also released a lower-than-expected earnings forecast for the new fiscal year.
The company’s shares fell 5% in extended trading.
Here’s how HP performed against LSEG consensus estimates:
- EPS: 93 cents corrected, 92 cents expected
- Revenues: $14.64 billion, expected $14.48 billion
HP’s revenue rose 4% year-over-year in the quarter ending Oct. 31, according to a report. expression. Net income of $795 million, or 84 cents per share, was up from $763 million, or 80 cents per share, in the same quarter a year ago.
For HP’s fiscal 2026 first quarter, the company is calling for 73 cents to 81 cents in adjusted net earnings per share, while the LSEG consensus was 79 cents. HP forecasts adjusted earnings per share of $2.90 to $3.20 for full fiscal 2026; This is below the LSEG consensus of $3.33.
“HP’s outlook reflects additional costs resulting from existing U.S. trade regulations and related mitigations,” the company said in a statement.
The company’s personal systems unit, which includes desktops and laptops, contributed $10.35 billion in revenue, up 8% above StreetAccount’s $10.15 billion consensus.
HP said it expects to complete the headcount reduction by the end of fiscal 2028. The restructuring will result in savings of at least $1 billion in annual gross operating rate by the end of fiscal 2028, the company said. HP said it expects to pay approximately $650 million in expenses, $250 million of which will occur in fiscal 2026.
The company, whose number of employees was 58,000 as of December, announced a round of layoffs of a similar size in 2022. Many other tech companies have also announced layoffs in recent months as U.S. consumers face higher prices and interest rates.
“Memory costs are currently 15 to 18% of the cost of a typical computer, and while an increase was expected, that rate has accelerated over the last few weeks,” HP CEO Enrique Lores said on a conference call with analysts.
As of Tuesday’s close, HP shares were down 25% for the year, while the S&P 500 index was up 15% in the same period.
Executives will discuss the results with analysts in a conference call starting at 5 p.m. ET.
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