HP Reports 3% Revenue Growth, Margin Decline in Q3 FY2025

HP Inc. reported its third-quarter 2025 financial results, revealing a 3% year-over-year revenue increase driven by strong performance in personal systems, which grew 6% year-over-year and 10% sequentially. Print hardware demand in the office segment was slightly softer than expected, especially in North America and parts of Europe, leading to a 4% decline in print revenue. Gross margin declined to 20.5% due to a higher mix from personal systems, increased trade-related costs, and currency impacts, alongside a more aggressive pricing environment in the print business. HP's AI PC shipments accounted for over 25% of the personal systems mix, ahead of target, and the company maintained guidance for a 5-10% price increase driven by these units. Non-GAAP operating margin was 7.1%, down year-over-year but within guidance, with personal systems operating margin at 5.4%. Meanwhile, Hewlett Packard Enterprise is expected to announce its Q3 2025 results after market close on September 3, with analysts anticipating earnings of $0.44 per share and revenue of $8.774 billion.