HP (HPQ) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue was $14.1B, up 2% year-over-year, with both personal systems and print segments contributing positively.

• FY24 net revenue was $53.6B, down 0.3% year-over-year, with non-GAAP diluted EPS of $3.38 and GAAP EPS of $2.81, both above or within guidance.

• Free cash flow for FY24 was $3.3B, with nearly 100% returned to shareholders; $3.2B was returned via share repurchases and dividends.

• Key growth areas, including AI PCs, hybrid systems, and services, outpaced the rest of the portfolio and now represent about 20% of total revenue.

• Strategic focus is on AI-powered innovation, commercial market leadership, and operational efficiency.

Financial highlights

• Q4 net revenue up 2% nominally and in constant currency; Americas and EMEA up 2%, APJ up 3%.

• Q4 non-GAAP operating profit was $1.2B (8.5% margin); FY24 non-GAAP operating profit was $4.52B (8.4% margin).

• Q4 non-GAAP net earnings were $900M; FY24 non-GAAP net earnings were $3.34B.

• FY24 free cash flow was $3.3B, within guidance.

• Q4 gross cash was $3.3B, gross debt $9.7B, net debt $(6.5)B.

Outlook and guidance

• FY25 non-GAAP diluted EPS expected between $3.45–$3.75; GAAP EPS between $3.06–$3.36.

• Q1 FY25 non-GAAP EPS expected at $0.70–$0.76; GAAP EPS at $0.57–$0.63.

• FY25 free cash flow projected at $3.2–$3.6B.

• Annual dividend raised by 5% for FY25.

• AI PCs anticipated to reach 25% of PC shipments in FY25, with further ASP and margin benefits.