HPQ HP INC

Overview and Growth

Fiscal 2025 results for HP INC combined $55.30B of revenue with net income of $2.53B and an operating cash inflow of $3.70B. The $55.30B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 3.2% from $53.56B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $2.65, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS decreased by 5.7% from $2.81 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 1.32x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $11.39B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 20.6% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $3.17B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 5.7% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $2.53B for the fiscal year. Net margin was 4.6%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $2.67B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 4.8%, relating income before taxes directly to revenue. The company recognized $139.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 5.2% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

The company held $41.77B of assets against $42.12B of liabilities and -$346.00M of equity, revealing how the asset base was financed. With total equity at -$346.00M, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. Current assets were $22.45B against $29.26B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 0.77x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Reported cash and equivalents were $3.69B, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 12.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $9.67B of total debt at period end, which frames its leverage and debt-service burden. Relative to total assets, debt measured 23.1%, showing how much of the asset base was matched by borrowing. Liabilities represented 100.8% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 8.8%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $3.70B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.46x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $897.00M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 24.3% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $2.80B, leaving a positive amount after capital expenditures. Free cash flow represented 5.1% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 6.7%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Oct 31, 2025. Analysis generated Oct 21, 2026.