HP Inc. and its subsidiaries (“HP”) announced fiscal 2025 first quarter net revenue of $13.5 billion, up 2.4% (up 3.3% in constant currency) from the prior-year period.

"We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work,” said Enrique Lores, HP President and CEO. “Our progress was fueled by a strong commercial business in Personal Systems and momentum in our key growth areas, including AI PCs. We are focused on taking decisive action to address evolving market conditions in the near-term, while investing in our long-term growth.”

“In Q1 we drove solid progress against our financial commitments for the year and are raising our Future Ready savings target from $1.6 to $1.9 billion dollars by the end of fiscal year 2025,” said Karen Parkhill, HP CFO. “We are holding our outlook for the year and remain focused on disciplined execution as we continue to invest for the future.”

HP generated net cash from operating activities in the first quarter of fiscal 2025 of $400 million. HP generated $70 million in free cash flow in the first quarter. Segment Results for the first Quarter of Fiscal 2025:

Personal systems net revenue was $9.2 billion, up 5% year-over-year (+ 5% on a constant currency basis), and operating margin was 5.5%. Consumer PS net revenue declined 7 percent, while commercial PS net revenue increased 10 percent. Total shipments fell 1 percent, with consumer PS shipments down 11 percent and commercial PS shipments up 6 percent.

Printing net revenue was $4.3 billion, down 2% year-over-year (down 1% in constant currency), and operating margin was 19.0%. Consumer printing net revenue was up 5%, while commercial printing net revenue was down 7%. Consumables net revenue decreased 1% (flat in constant currency). Total hardware shipments were up 5%, with consumer printing shipments up 7% and commercial printing shipments flat. In fiscal 2025, HP expects to generate free cash flow between $3.2 billion and $3.6 billion.

HP's outlook reflects the additional costs of the current US tariff increases on China and related mitigation measures. The company has made significant progress in building a globally diversified supply chain and expects that by the end of fiscal 2025, more than 90 percent of HP's products sold in North America will be manufactured outside of China. China will continue to be an important manufacturing hub for the rest of the world.