"Wall Street consensus for fiscal Q3 2025: Revenue: $13.71 billion EPS (Normalized): $0.75 FY 2025 Revenue: $54.73 billion FY 2025 EPS: $3.12 FY 2026 Revenue: $55.54 billion FY 2026 EPS: $3.37 That implies +1.4% YoY sales growth this quarter, but EPS falling nearly -10% YoY. Tariff Mitigation & Supply Chain Shift- HP accelerated moving nearly all North America product manufacturing outside of China by June 2025. CEO Enrique Lores said cost impacts will be fully mitigated by Q4."
"AI PCs as Growth Engine- AI PCs now ~25% of HP's PC mix, expected to hit 50% within three years. Management emphasized ASP uplift of 10-20% and strong ISV support. Future Ready Cost Program- Targeting $2B in gross annual savings by FY2025 through supply chain redesign, automation, and IT simplification. CFO Parkhill said Q3/Q4 margins should benefit as these savings ramp."
Consensus expects fiscal Q3 revenue of $13.71 billion (+1.4% YoY) and normalized EPS of $0.75 (down nearly 10% YoY). Tariff-related cost pressures caused an EPS miss in Q2 despite revenue growth, prompting accelerated manufacturing shifts out of China for North America and promises of full tariff mitigation by Q4. AI PCs constitute about 25% of HP's PC mix and are forecast to reach 50% within three years, delivering 10-20% ASP uplift and ISV support. The Future Ready Cost Program targets $2 billion in gross annual savings by FY2025 to improve margins.
Read at 24/7 Wall St.
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