HP
HP's revenue rose 3.2% to $55.3 billion in fiscal 2025. Its operating margin was 5.7%, down from 7.1% a year earlier. Free cash flow was $2.8 billion, down 11.3%. It paid out $1.9 billion in dividends and buybacks, 69% of free cash flow. The diluted share count fell 3.6%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What HP does
HP makes personal computers and printers, and sells the ink, toner and services that go with them. Its products include business and home laptops and desktops, workstations, gaming PCs, displays, office and home printers, large-format and industrial printing presses, and 3D printers. It sells to consumers, small businesses, large companies and public bodies in more than 170 countries, mostly through retailers, resellers and distributors.
HP reports three segments. Personal Systems covers PCs and related services. Printing covers printer hardware and supplies, the cartridges and other materials customers buy again and again. Corporate Investments holds early-stage projects. One distributor, TD Synnex, accounted for 12% of net revenue in fiscal 2025, the year ended October 31, 2025, and about 65% came from outside the United States. HP names Apple, Dell, Lenovo, Acer, ASUSTeK and Microsoft among its PC rivals, and Canon, Epson, Brother, Ricoh and Xerox among its printer rivals. It also competes with sellers of cheaper non-HP ink and toner.
HP has about 55,000 employees and uses outside manufacturers around the world to build many of its products. In November 2025 its board approved a restructuring plan, running through fiscal 2028, that aims to use artificial intelligence more widely; HP expects it to cut about 4,000 to 6,000 jobs.
Its biggest risks, as it describes them
- Failing to keep developing and selling new products, including AI-capable PCs, as the industry changes.
- Its heavy reliance on outside suppliers and manufacturers, and supply chain problems.
- Strong competition, including from partners that also sell their own products and from cheaper non-HP supplies.
- Weak economic conditions that reduce demand for its PCs and printers.
- Its restructuring plans may not bring the savings HP expects and could disrupt its business.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2016 to 2025, earnings per share grew 7.1% a year and net income 0.1% a year, as buybacks cut the share count by 45%.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value HP yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from HP's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from HP's fiscal 2025 free cash flow of $2.8B, net cash of −$6.0B at October 31, 2025 and 953 million diluted shares, from its filings. The scenarios are fitted to HP: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -4.2% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Technology Hardware, Storage & Peripherals), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $34.09
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from HP's earnings per share of $2.61 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 22.1×, the middle of HP's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $34.09
- Value at this multiple, against the last close
- —
- HP's P/E at the last close
- 13.1×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| Hewlett Packard EnterpriseHPE | $58.72 | $1.93 | 30.4× |
| Dell TechnologiesDELL | $467.09 | $17.20 | 27.2× |
| SandiskSNDK | $1,255.58 | $73.76 | 17.0× |
| HPHPQ | $34.09 | $2.61 | 13.1× |
| SupermicroSMCI | $32.69 | $3.26 | 10.0× |
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 4.3 | 3.1 | 3.1 | 3.2 | 3.7 |
| Debt incl. finance leases | 7.6 | 11.2 | 9.6 | 9.7 | 9.7 |
| Net debt (negative means net cash) | 3.3 | 8.0 | 6.5 | 6.5 | 6.0 |
| Net debt to EBITDA | 0.5x | 1.5x | 1.5x | 1.4x | 1.5x |
| Debt to equity | — | — | — | — | — |
| Interest coverage | 21.1x | 12.7x | 6.3x | 8.4x | 7.4x |
| Current ratio | 0.8x | 0.8x | 0.7x | 0.7x | 0.8x |
| Quick ratio | 0.5x | 0.5x | 0.5x | 0.5x | 0.5x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought HP shares on the open market, and 5 insiders sold $6.4 million, $4.8 million of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 2, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 31,572 | $32.12 | $1.0 million | Form 4 |
| Aug 7, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 21,048 | $29.98 | $631,019 | Form 4 |
| Aug 4, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 10,524 | $27.98 | $294,462 | Form 4 |
| Aug 3, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 10,524 | $27.88 | $293,409 | Form 4 |
| Jul 28, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 10,524 | $27.98 | $294,462 | Form 4 |
| Jun 12, 2026 | David P. McQuarrieChief Commercial Officer | Sold plan | 10,524 | $24.68 | $259,732 | Form 4 |
| Mar 11, 2026 | Mary Anne CitrinoDirector | Sold | 45,172 | $18.47 | $834,327 | Form 4 |
| Dec 26, 2025 | Ketan M PatelPresident, Personal Systems | Sold | 33,321 | $23.19 | $772,714 | Form 4 |
| Dec 9, 2025 | Anneliese OlsonPres Imaging Prtng & Solutions | Sold plan | 16,726 | $24.83 | $415,307 | Form 4 |
| Dec 5, 2025 | Enrique LoresPresident and CEO, Director | Sold plan | 41,922 | $26.01 | $1.1 million | Form 4 |
| Oct 29, 2025 | Anneliese OlsonPres Imaging Prtng & Solutions | Sold plan | 18,154 | $27.88 | $506,134 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Fail |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Pass | Pass | Pass |
| Current ratio rose | Fail | Fail | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | Pass | Pass | Fail |
| Revenue rose relative to assets | Fail | Pass | Fail |
| F-score | 7 of 9 | 7 of 9 | 6 of 9 |
| Accruals ratio | −0.8% | −2.5% | −2.9% |
Compare
Put HP side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| HP | FY25 | 3.2% | 5.7% | 5.1% | 55.3% | 1.5x | 6 | |
| Supermicro | FY26 | 77.8% | 7.1% | −17.9% | — | — | — | Compare |
| Hewlett Packard Enterprise | FY25 | 13.8% | −1.3% | 1.8% | −0.9% | 9.0x | 4 | Compare |
| Dell Technologies | FY26 | 18.8% | 7.2% | 7.5% | 36.0% | 1.8x | 7 | Compare |
| Sandisk | FY26 | 175.3% | 61.2% | 56.8% | 105.9% | −0.4x | 7 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 48.2 | 52.1 | 58.5 | 58.8 | 56.6 | 63.5 | 62.9 | 53.7 | 53.6 | 55.3 |
| Revenue growth | −6.3% | 7.9% | 12.3% | 0.5% | −3.6% | 12.0% | −0.9% | −14.6% | −0.3% | 3.2% |
| Gross profit | 9.0 | 9.6 | 10.7 | 11.2 | 10.4 | 13.4 | 12.3 | 11.5 | 11.8 | 11.4 |
| Research and development | 1.2 | 1.2 | 1.4 | 1.5 | 1.5 | 1.8 | 1.7 | 1.6 | 1.6 | 1.6 |
| Operating income | 3.5 | 3.4 | 3.8 | 3.9 | 3.4 | 5.4 | 4.6 | 3.5 | 3.8 | 3.2 |
| Net income | 2.5 | 2.5 | 5.3 | 3.2 | 2.8 | 6.5 | 3.1 | 3.3 | 2.8 | 2.5 |
| Diluted EPS (US$) | 1.43 | 1.48 | 3.26 | 2.07 | 1.98 | 5.36 | 2.98 | 3.26 | 2.81 | 2.65 |
| Diluted shares (millions) | 1,743 | 1,702 | 1,634 | 1,524 | 1,420 | 1,220 | 1,050 | 1,000 | 989 | 953 |
| Cash flow | ||||||||||
| Cash from operations | 3.3 | 3.7 | 4.5 | 4.7 | 4.3 | 6.4 | 4.5 | 3.6 | 3.7 | 3.7 |
| Capital expenditure | 0.4 | 0.4 | 0.5 | 0.7 | 0.6 | 0.6 | 0.8 | 0.6 | 0.6 | 0.9 |
| Free cash flow | 2.8 | 3.3 | 4.0 | 4.0 | 3.7 | 5.8 | 3.7 | 3.0 | 3.2 | 2.8 |
| Dividends paid | 0.9 | 0.9 | 0.9 | 1.0 | 1.0 | 0.9 | 1.0 | 1.0 | 1.1 | 1.1 |
| Share buybacks | 1.2 | 1.4 | 2.6 | 2.4 | 3.1 | 6.2 | 4.3 | 0.1 | 2.1 | 0.8 |
| Acquisitions | 0.0 | 0.0 | 1.0 | 0.5 | 0.0 | 0.9 | 2.8 | 0.0 | 0.1 | 0.1 |
| Stock-based compensation | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.5 | 0.5 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 6.3 | 8.1 | 5.9 | 4.5 | 5.1 | 4.3 | 3.1 | 3.1 | 3.2 | 3.7 |
| Debt incl. finance leases | 6.8 | 7.8 | 6.0 | 5.2 | 6.3 | 7.6 | 11.2 | 9.6 | 9.7 | 9.7 |
| Total assets | 29.0 | 32.9 | 34.6 | 33.5 | 34.7 | 38.6 | 38.5 | 37.0 | 39.9 | 41.8 |
| Total liabilities | 32.9 | 36.3 | 35.3 | 34.7 | 37.0 | 40.2 | 41.5 | 38.1 | 41.2 | 42.1 |
| Shareholders' equity | −3.9 | −3.4 | −0.6 | −1.2 | −2.3 | −1.6 | −3.0 | −1.1 | −1.3 | −0.3 |
| Margins and ratios | ||||||||||
| Gross margin | 18.6% | 18.4% | 18.2% | 19.0% | 18.4% | 21.1% | 19.5% | 21.4% | 22.1% | 20.6% |
| Operating margin | 7.4% | 6.5% | 6.5% | 6.6% | 6.1% | 8.4% | 7.2% | 6.4% | 7.1% | 5.7% |
| Net margin | 5.2% | 4.8% | 9.1% | 5.4% | 5.0% | 10.3% | 5.0% | 6.1% | 5.2% | 4.6% |
| Free cash flow margin | 5.8% | 6.3% | 6.8% | 6.8% | 6.6% | 9.2% | 5.9% | 5.5% | 5.9% | 5.1% |
| Return on capital | 31.2% | — | — | — | — | — | — | 66.1% | 60.8% | 55.3% |
| Return on equity | 20.9% | — | — | — | — | — | — | — | — | — |
| Return on assets | 3.7% | 8.2% | 15.8% | 9.3% | 8.3% | 17.9% | 8.1% | 8.6% | 7.2% | 6.2% |
| Net debt to EBITDA | 0.1x | −0.1x | 0.0x | 0.1x | 0.3x | 0.5x | 1.5x | 1.5x | 1.4x | 1.5x |