HP Q4 adjusted EPS beats expectations

Overview

• HP fiscal 2025 revenue grows 3.2% yr/yr, while GAAP EPS declines 5.7%

• Q4 adjusted EPS beats analyst expectations, despite a 3.1% decline yr/yr

• HP announces $1 bln cost-saving initiative, with restructuring charges of $650 mln

Outlook

• HP estimates fiscal 2026 GAAP EPS between $2.47 and $2.77

• HP expects fiscal 2026 non-GAAP EPS between $2.90 and $3.20

• HP anticipates fiscal 2026 free cash flow of $2.8 to $3.0 bln

Result Drivers

• PERSONAL SYSTEMS GROWTH - Personal Systems net revenue rose 8% yr/yr, driven by 10% growth in Consumer PS and 7% in Commercial PS

• PRINTING REVENUE DECLINE - Printing net revenue fell 4% yr/yr, impacted by declines in both Consumer and Commercial Printing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy."

• Wall Street's median 12-month price target for HP Inc is $28.00, about 12.9% above its November 24 closing price of $24.38

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX2HPP4N

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