HP has adjusted its profit expectations for fiscal year 2025, citing challenges in the PC market and ongoing global economic volatility. Shares in the company dropped nearly 15% following the announcement.
The US-based technology firm now anticipates non-GAAP diluted net earnings per share (EPS) to range between $3.00 and $3.30 for fiscal 2025, a decrease from its previous estimate of $3.45 to $3.75 per share. This new forecast also falls short of analysts’ projections that anticipated a full-year profit of $3.49 per share, Reuters reported, compiling data from LSEG.
HP attributes the revised outlook primarily to the financial impact of existing US tariffs, alongside efforts to mitigate these costs. However, HP aims to offset these additional costs by the fourth quarter of the fiscal year.
“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” said HP’s chief financial officer, Karen Parkhill. “We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”
Regulatory environment also impacts HP Q2 results
In its fiscal 2025 second quarter, which concluded on 30 April 2025, HP reported net revenue of $13.2bn. The figure slightly surpassed analysts’ average estimate of $13.14bn and marked a 3.3% increase from the $12.8bn reported in the same period last year. Despite the revenue increase, HP’s second quarter non-GAAP diluted net EPS was $0.71, representing a 13% decline from the previous year and falling below the company’s earlier guidance of $0.75 to $0.85. Second quarter GAAP diluted net EPS of $0.42 also fell by 31% from $0.61 reported in Q2 FY2024.
The company’s Personal Systems division reported net revenue of $9bn during Q2, reflecting a 7% year-over-year increase. Consumer Personal Systems net revenue rose by 2%, while Commercial Personal Systems net revenue grew by 9%.
Conversely, HP’s Printing division experienced a 4% decline in net revenue to $4.2bn. Both Consumer and Commercial Printing net revenue decreased by 3%.
“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” said HP president and CEO Enrique Lores. “While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.”
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