HP Inc (NYSE:HPQ) shares climbed 2.8% in after-hours trading Wednesday after the company topped Wall Street expectations for fiscal third-quarter earnings and revenue. A stronger-than-anticipated outlook for the final quarter of fiscal 2025, driven by traction in the Personal Systems segment and AI PC adoption, helped reinforce investor optimism.
Non-GAAP diluted earnings per share came in at $0.75, a penny above the consensus estimate of $0.74. Revenue for the quarter was $13.93 billion, surpassing analyst forecasts of $13.68 billion and marking a 3.1% year-over-year increase.
Personal Systems saw net revenue rise 6% year-over-year to $9.9 billion, with Consumer and Commercial units gaining 8% and 5% respectively. Total PC unit shipments increased by 5%, while the segment’s operating margin held at 5.4%, reflecting steady profitability amid cost pressures.
Printing revenue declined 4% to $4.0 billion, with consumer and commercial printing each softening and supplies also down 4%. However, the division maintained robust profitability with a 17.3% operating margin, highlighting the resilience of HP’s high-margin printing segment.
“In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas,” said Enrique Lores, President and CEO of HP Inc. “These results demonstrate our agility and focused execution in the quarter, reinforce the strength of our strategy, and our commitment to be a leader in the future of work.”
The company guided fiscal fourth-quarter non-GAAP EPS to a range of $0.87 to $0.97, bounding past the $0.91 consensus midpoint. HP also reaffirmed expectations for full-year free cash flow between $2.6 billion and $3.0 billion, despite added costs tied to U.S. trade regulations and global supply chain adjustments.
“Looking forward, we remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption,” said CFO Karen Parkhill. Results from Q3 showed a shift toward newer AI-enabled models, supporting HP’s strategic investment in future-ready computing platforms.
Investor sentiment appeared buoyed by resilience in the PC segment and operational discipline amid macroeconomic and regulatory challenges. With improved DSI and rising free cash flow, HP appears well-positioned to navigate volatility while advancing its push into AI PCs and modern commercial computing.
Source :
https://www.investing.com/news/earnings/hp-stock-rises-after-earnings-beat-and-upbeat-outlook-signals-ai-pc-momentum-4213336
