Q2 2025 HP Inc Earnings Call Transcript
Key Points
- HP Inc (HPQ) delivered revenue growth for the fourth consecutive quarter, with a 5% increase in constant currency year-over-year.
- The Personal Systems segment saw an 8% revenue growth in constant currency, driven by strong commercial performance and demand for AI PCs.
- HP Inc (HPQ) is accelerating its manufacturing footprint diversification, with plans to have nearly all products sold in North America built outside of China by June.
- The company introduced over 80 new products and services at the global AMPLIFY conference, receiving positive feedback from partners and customers.
- HP Inc (HPQ) is on track to achieve at least $2 billion in gross annual run rate structural savings by the end of fiscal year 2025, exceeding previous goals.
- HP Inc (HPQ)'s non-GAAP operating profit fell short of expectations due to additional tariff costs that could not be fully mitigated in the quarter.
- Print segment revenue declined 3% in constant currency, impacted by a slowdown in North America and weak demand in China.
- The company faced a net impact of approximately 100 basis points on non-GAAP operating profit due to tariff-related issues.
- HP Inc (HPQ) moderated its guidance for the second half of the year due to macroeconomic uncertainties and potential impacts from trade policies.
- Free cash flow guidance was revised downwards, reflecting the impact of tariff-related costs and lower-than-expected working capital improvements.
Good day, everyone, and welcome to the second quarter 2025 HP Inc earnings conference call. My name is Tina, and I will be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the call over to Orit Keinan-Nahon, Head of Investor Relations. Please go ahead.
Good afternoon, everyone, and welcome to HP's second quarter '25 earnings conference call. With me today are Enrique Lores, HP's President and Chief Executive Officer; and Karen Parkhill, HP's Chief Financial Officer.
Before handing the call over to Enrique, let me remind you that this call is a webcast, and a replay will be available on our website shortly after the call for approximately one year. We posted the earnings release and accompanying slide presentation on our Investor Relations web page at investor.hp.com.
As always, elements of this presentation are forward-looking and are based on our best view
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