HP Inc. has unveiled its fiscal year 2023 financial results, marking a revenue of $53.7 billion, representing a 15 percent decrease compared to the previous year. The fourth quarter saw revenue totaling $13.8 billion, down 6 percent from the same period in the prior year.
Enrique Lores, President and CEO of HP, in its earnings report, said: “2023 was a year of steady progress. We executed well in a tough market and innovated in our key growth areas to finish the year with good momentum.” He further highlighted the significance of the company’s “Future Ready” plan, positioning HP to capitalize on lucrative opportunities within its portfolio for long-term sustainable growth.
According to Canalys’ latest data, the worldwide PC market achieved shipment of 65.6 million units in Q3 2023, down 7 percent year-on-year, and up 8 percent compared to Q2 2023. Shipments of notebooks dropped 6 percent annually to 52.1 million units, while desktop shipments were down 8 percent to 13.5 million units, Canalys said in its research report.
Canalys says HP has shipped 13.51 million units of PCs — including desktop PCs and notebooks — during Q3 2023.
HP revenue
Breaking down the fourth-quarter segment results for fiscal 2023, the Personal Systems net revenue amounted to $9.4 billion, an 8 percent decline with a 6.7 percent operating margin. Consumer PS net revenue experienced a 1 percent decrease while Commercial PS net revenue decreased by 11 percent. However, total units remained steady, with a 9 percent increase in Consumer PS units and a 6 percent decline in Commercial PS units.
On the Printing front, net revenue reached $4.4 billion, marking a 3 percent decrease with an 18.9 percent operating margin. The Consumer Printing net revenue saw a significant decline of 21 percent, while Commercial Printing net revenue dropped by 4 percent. Total hardware units experienced a notable decrease of 19 percent, with Consumer Printing units down by 18 percent and Commercial Printing units down by 24 percent.
Marie Myers, HP’s CFO, highlighted the positive aspects of the fourth quarter, citing it as a period of “solid sequential growth and strong free cash flow.” Myers emphasized the company’s forward trajectory, stating, “We are entering FY24 with a relentless focus on driving profitable growth, reducing our structural costs and returning 100 percent of our free cash flow to shareholders.”
It’s important to note that HP has opted not to provide a revenue outlook for the upcoming period.
The company’s strategic emphasis on adapting to market challenges while maintaining innovation and focusing on long-term growth signals a deliberate approach to navigating the evolving landscape within the technology sector.
Baburajan Kizhakedath
