HP Lowers FY25 EPS Outlook Amid Tariff Pressures

HP Inc. reported fiscal 2025 Q2 results with revenue up 3.3% year-over-year to $13.2 billion, but adjusted EPS fell to $0.71, missing expectations and declining 13% from last year. CEO Enrique Lores cited increased U.S. tariffs as a key factor in reduced profitability, noting that the company is accelerating supply chain shifts out of China to mitigate costs. The Personal Systems segment grew 7% to $9 billion despite margin compression, while Printing revenue declined 4% but remained profitable. HP cut its full-year adjusted EPS guidance to $3.00–$3.30, down from a prior $3.45–$3.75, due to persistent macroeconomic and trade-related uncertainties. Shares dropped between 8% and 15% in after-hours trading and have lagged the broader market in 2025. Management expects supply chain changes and price increases to help offset tariff impacts by year-end, but warns that PC market recovery and evolving trade policies remain key risks.