HP Inc
LSE:0J2E
HP Inc
HP Inc., a stalwart in the realm of personal computing and printing, traces its origin to the legendary Hewlett-Packard Company. Its journey began as a widely diversified technology enterprise, but in 2015, a strategic bifurcation gave birth to HP Inc. and Hewlett Packard Enterprise. HP Inc., based in Palo Alto, California, took the mantle of personal systems and printing, carving out a niche as a leader in these sectors. The company's business model centers around the production and sale of a wide array of personal computers and printers, targeting both consumers and enterprises. Its portfolio includes laptops, desktops, and workstations that cater to a broad spectrum of users, from everyday consumers to high-end professionals.
Central to HP Inc.'s success is its ability to continuously innovate while operating at scale. The company thrives on a dual-income model, generating revenue not just through selling hardware but also through a stream of recurring income from supplies like ink and toner. This supplies segment, often viewed as the razor-and-blades model, contributes to steady cash flow. The firm's ingrained focus on sustainability and design also adds a competitive edge, as evidenced by its efforts in innovating eco-friendly products and solutions. Moreover, HP Inc. strategically expands its market footprint via acquisitions and strategic partnerships, ensuring that it remains at the forefront of the ever-evolving technology landscape. This adaptability is what keeps HP Inc. not only surviving but thriving in the competitive tech arena.
HP Inc., a stalwart in the realm of personal computing and printing, traces its origin to the legendary Hewlett-Packard Company. Its journey began as a widely diversified technology enterprise, but in 2015, a strategic bifurcation gave birth to HP Inc. and Hewlett Packard Enterprise. HP Inc., based in Palo Alto, California, took the mantle of personal systems and printing, carving out a niche as a leader in these sectors. The company's business model centers around the production and sale of a wide array of personal computers and printers, targeting both consumers and enterprises. Its portfolio includes laptops, desktops, and workstations that cater to a broad spectrum of users, from everyday consumers to high-end professionals.
Central to HP Inc.'s success is its ability to continuously innovate while operating at scale. The company thrives on a dual-income model, generating revenue not just through selling hardware but also through a stream of recurring income from supplies like ink and toner. This supplies segment, often viewed as the razor-and-blades model, contributes to steady cash flow. The firm's ingrained focus on sustainability and design also adds a competitive edge, as evidenced by its efforts in innovating eco-friendly products and solutions. Moreover, HP Inc. strategically expands its market footprint via acquisitions and strategic partnerships, ensuring that it remains at the forefront of the ever-evolving technology landscape. This adaptability is what keeps HP Inc. not only surviving but thriving in the competitive tech arena.
Revenue Growth: HP delivered its sixth consecutive quarter of year-over-year revenue growth, up 4% in Q4, driven mainly by strong Personal Systems performance.
EPS and Margins: Non-GAAP EPS came in slightly above the midpoint of guidance, and operating margin improved sequentially but was down year-over-year due to higher trade-related costs.
Market Drivers: Personal Systems revenue rose 8% year-over-year, supported by Windows 11 refresh and rising demand for AI PCs, which now make up over 30% of shipments.
Print Segment: Print revenue declined 4% amid ongoing market softness, though consumer subscriptions and industrial graphics posted double-digit growth.
Cost Savings Initiative: HP launched a new AI-driven efficiency program targeting $1 billion in gross run rate savings over 3 years, with a planned workforce reduction of 4,000 to 6,000 employees.
Memory Cost Headwind: Soaring memory prices are expected to hit margins in the second half of FY26, with a $0.30 EPS impact included in the outlook.
FY26 Guidance: FY26 non-GAAP EPS is expected between $2.90 and $3.20, and free cash flow is guided to $2.8–$3 billion, with the company taking a conservative approach due to inflationary pressures.
Dividend Increase: HP raised its quarterly dividend to $0.30 per share, marking the tenth annual increase since 2015.
