Analyst(s): Futurum Research
Publication Date: November 26, 2025
HP Inc.’s Q4 FY 2025 results showed steady revenue growth driven by Personal Systems and premium mix, offset by softer Printing and inflationary inputs. Management outlined an AI-enabled transformation and cost program intended to streamline operations and bolster product innovation through FY 2028.
What is Covered in this Article:
- HP’s Q4 FY 2025 financial results
- AI PCs and Windows 11 refresh tailwinds
- Print subscriptions and industrial graphics momentum
- AI-enabled cost program and operational shifts
- Guidance and Final Thoughts
The News: HP Inc. (NYSE: HPQ) reported Q4 FY 2025 revenue of $14.6 billion, up 4.2% year-on-year (YoY), above consensus of $14.5 billion. Personal Systems revenue was $10.4 billion, up 8% YoY, and Printing revenue was $4.3 billion, down 4% YoY. Non-GAAP operating margin was 8.0%, down 0.8 points YoY. Non-GAAP net earnings were $0.9 billion, down 6% YoY, and non-GAAP diluted EPS was $0.93, down 3.1% YoY.
“HP’s strategy to lead the Future of Work continues to deliver strong performance, marked by our sixth consecutive quarter of revenue growth,” said Enrique Lores, President and CEO of HP Inc. “As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution. We are committed to driving measurable results – ensuring that our plans translate into long-term value for our shareholders.”
HP Q4 FY 2025 Earnings Rise on PC Strength; FY 2026 EPS Soft
Analyst Take: HP delivered its sixth consecutive quarter of revenue growth with Personal Systems outperformance and sustained premium mix, aided by AI PCs and the Windows 11 refresh. The company is prioritizing margin resiliency amid rising memory costs through pricing discipline, supplier diversification, and portfolio reconfiguration. Printing remained soft but showed momentum in subscriptions and industrial graphics, reinforcing a pivot toward higher-value, recurring, and solution-led offers. Management’s AI-enabled transformation targets operational streamlining, product velocity, and productivity at scale, embedding telemetry and automation across workflows.
Personal Systems: AI PCs, Windows 11 Refresh, and Margin Discipline
Personal Systems (PS) grew 8% YoY, supported by commercial and consumer strength, premium devices, and workstation demand. Management noted approximately 40% of the installed base remains on Windows 10, positioning the Windows 11 refresh as a continued tailwind into FY 2026. AI PCs represented more than 30% of shipments, with data science workstations contributing to double-digit growth in advanced compute solutions. Q4 PS operating margin was 5.8%, reflecting pricing discipline and supply-chain actions gaining traction in the back half. To buffer memory inflation (currently 15%–18% of typical PC cost), HP plans supplier qualification, price adjustments, and optimized memory configurations based on customer need. This combination keeps PS positioned to outperform unit TAM with a richer revenue and margin mix.
Print and Subscriptions: Rational Placement, Big Tank, and Industrial Graphics
Printing declined 4% YoY, with unit softness across regions and delayed refresh decisions, while Supplies revenue performed as expected with share gains. Consumer subscriptions are just under $1.0 billion in annual revenue, and all-in plan subscribers grew double-digit sequentially. Industrial graphics surpassed $1.8 billion in annual revenue after nine consecutive quarters of YoY growth, and 3D printing delivered double-digit growth with traction in drones and robotics. Strategy continues to emphasize profitable hardware placement, lifetime value, and solution-led offerings for SMB and enterprise. Management plans to double down on big tanks, expand subscriptions globally, and reinforce leadership in manageability, security, and AI for office. This portfolio approach aims to stabilize Print via recurring models and higher-value categories.
AI-Enabled Transformation: Operating Model, Savings, and Internal Adoption
HP launched a company-wide AI-enabled transformation targeting approximately $1.0 billion in gross run-rate savings by FY 2028, with workforce reductions of 4,000–6,000. The program includes roughly $650 million in restructuring charges, with approximately $250 million in FY 2026, and about $300 million of gross savings expected by the end of FY 2026. The Workforce Experience Platform applies telemetry from 48 million endpoints to manage 2.4 million connected devices and remediate more than 12 million IT issues monthly. Internal AI PC deployments with curated applications have improved team productivity by 16%, reinforcing “customer zero” adoption. Prior transformation delivered $2.2 billion gross savings on $1.2 billion of restructuring, a 1.8x savings-to-charge ratio, suggesting execution discipline. Embedding AI across development, support, and operations is intended to lift innovation throughput and structural productivity.
Guidance and Final Thoughts
For FY 2026, HP guides non-GAAP diluted EPS to $2.90–$3.20 (consensus: $3.32), with an estimated $0.30 EPS impact from projected memory cost increases, net of mitigation. Q1 FY 2026 non-GAAP diluted EPS is guided to $0.73–$0.81, and free cash flow is expected at $2.8–$3.0 billion for the year. Management expects PS operating rate at the low end of the 5%–7% long-term range for FY 2026, and Print operating margin in the upper half of the 16%–19% range. Strategic priorities include expanding premium PS categories and services/peripherals attach, accelerating subscription-led Print, and executing the AI-enabled cost program. HP also raised its quarterly dividend to $0.30 per share, underscoring capital return consistency alongside transformation.
See the full press release on HP Inc.’s Q4 FY 2025 financial results on the company website.
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