HP announced its fiscal 2025 second-quarter results highlighting a mixed performance, marked by solid top-line growth but profitability pressures.
HP reported revenue of $13.2 billion, a 3.3 percent year-over-year increase, driven largely by strength in its Commercial Personal Systems (PS) business, which saw a 9 percent jump in revenue and an 11 percent increase in unit shipments.
The recent Canalys report prepared by its Principal Analyst Ishan Dutt indicated that HP shipped 12.761 million desktops and notebook PC during January-March 2025 grabbing 20.3 percent share in the global PC market.
HP did not reveal revenue performance from the sale of AI-powered notebooks. HP said PS revenue grew on Windows 11 refresh, AI PC and share gains in Workstations.
HP generated Personal Systems revenue of $9 billion (up 7 percent).
HP generated Printing revenue of $4.2 billion (down 4 percent).
This momentum in Commercial PS suggests strong demand for enterprise-grade devices and solutions, likely reflecting corporate investment in hybrid work infrastructure, a key pillar of HP’s “future of work” strategy. Consumer PS also showed modest gains, with revenue up 2 percent, though unit shipments dipped 2 percent, indicating some softness in consumer demand.
Printing, traditionally HP’s cash cow, continues to face challenges, with net revenue down 4 percent year-over-year. Commercial Printing declined 3 percent, and Consumer Printing fell by the same margin, while Supplies revenue dropped 5 percent.
The printing segment’s operating margin remained healthy at 19.5 percent, but the top-line contraction signals ongoing headwinds as the market shifts away from traditional print solutions. Notably, hardware units were up slightly, with a 3 percent increase in Consumer Printing offsetting a 2 percent decline in Commercial Printing, hinting at some resilience in the consumer segment, albeit from a lower base.
HP’s profitability took a hit this quarter, with diluted net EPS falling to $0.42, down from $0.61 a year ago. The gap between GAAP and non-GAAP earnings reflects significant restructuring and other charges, including those tied to cost-cutting efforts, regulatory adjustments, and the ongoing rebalancing of HP’s operational footprint.
HP CEO Enrique Lores highlighted the company’s proactive steps to expand manufacturing capacity and reduce costs in response to regulatory pressures — moves that may insulate the business from future volatility but come with near-term financial drag.
CFO Karen Parkhill’s comments signal caution, as HP adjusted its outlook to account for softer demand and trade-related costs, underscoring the macroeconomic uncertainty facing the company. However, HP appears confident in its mitigation strategies, aiming to offset these challenges by the fourth quarter.
InfotechLead.com News Desk
