HP Inc. has announced its financial results for the third quarter of fiscal 2025, delivering steady performance marked by higher revenue and strong cash generation. The company reported net revenue of $13.9 billion, an increase of 3.1% year-over-year, representing its fifth consecutive quarter of revenue growth.
HP’s profitability also showed resilience. The company posted a GAAP diluted net earnings per share (EPS) of $0.80, up 23.1% from the same period last year, surpassing its earlier outlook of $0.57 to $0.69. Meanwhile, non-GAAP diluted net EPS came in at $0.75, which was lower by 10.7% compared to the prior year but still within the guidance range of $0.68 to $0.80. Net cash provided by operating activities during the quarter reached $1.7 billion, while free cash flow stood at $1.5 billion.
HP President and CEO Enrique Lores said the results underline the company’s ability to execute effectively and adapt to shifting market conditions. “In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas. These results demonstrate our agility and focused execution, reinforcing the strength of our strategy and our commitment to be a leader in the future of work,” he noted.
The Personal Systems division was the main driver of growth, recording net revenue of $9.9 billion, an increase of 6%compared to the prior year. This segment delivered an operating margin of 5.4%, supported by an 8% rise in consumer sales and a 5% increase in commercial sales. Overall unit shipments improved by 5%, with consumer units rising 8%and commercial units up 3%.
In contrast, the Printing segment faced a challenging quarter. Net revenue declined to $4.0 billion, a decrease of 4%year-over-year, although it maintained a healthy operating margin of 17.3%. Consumer printing revenue dropped 8%, while commercial printing revenue was down 3%. Supplies revenue also fell by 4%, and total hardware units slipped by 9%, reflecting weaker demand in both consumer and commercial printing.
HP demonstrated solid cash and asset management in the quarter. Accounts receivable totaled $5.1 billion, while inventory ended at $8.4 billion. Accounts payable stood at $17.0 billion, highlighting operational discipline.
The company returned $272 million to shareholders through dividend payments and an additional $150 million through the repurchase of approximately 5.5 million shares. By the end of the quarter, HP reported $2.9 billion in gross cash, ensuring a strong liquidity position.
Looking ahead to the fourth quarter of fiscal 2025, HP expects GAAP diluted net EPS to range between $0.75 and $0.85, while non-GAAP diluted net EPS is projected to be in the range of $0.87 to $0.97. For the full fiscal year, the company anticipates generating free cash flow of between $2.6 billion and $3.0 billion.
HP’s Chief Financial Officer Karen Parkhill expressed confidence in the future, citing the upcoming Windows 11 refresh and growing adoption of AI-powered PCs as key market drivers.
“We remain confident in the strength of the PC market opportunity, and the actions we are taking will enable us to respond to near-term market dynamics while continuing to invest for long-term profitable growth,” she said.
Overall, HP’s third quarter results highlight the company’s ability to grow its Personal Systems business while managing headwinds in printing. Strong cash flow generation and consistent shareholder returns reinforce its financial stability, while forward-looking investments in PCs and AI adoption position the company for sustainable growth. More details, including the full earnings release and presentation, are available on HP’s Investor Relations website.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
