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This update comes as part of HP’s broader fiscal 2025 and fourth-quarter results, which outline a multi-year restructuring plan alongside steady revenue growth and renewed investments in AI-driven innovation.
HP has announced plans to reduce its global headcount by approximately 4,000 to 6,000 employees over the next three years as part of its restructuring initiative aimed at achieving US$1bn in annual cost savings by fiscal 2028.
Announcing this in the release of its fiscal 2025 results, HP added that it will be rolling out measures in fiscal 2026 to enhance customer satisfaction, accelerate product innovation, and improve productivity through broader AI adoption. Citing HP CEO Enrique Lores' sharing in a media briefing call, CNN reported that the upcoming job cuts will affect teams involved in product development, internal operations, and customer support.
The company estimates it will incur about US$650mn in labour and non-labour restructuring and related charges, with approximately US$250mn expected in fiscal 2026. These actions are scheduled for completion by the end of fiscal 2028.
Summary of HP’s fiscal 2025 results and fiscal 2026 outlook
Alongside this restructuring roadmap, HP reported fiscal 2025 net revenue of US$55.3bn, a 3.2% year-on-year increase in comparison to the previous year (3.7% in constant currency). GAAP diluted net EPS declined to US$2.65 (from US$2.81), while non-GAAP diluted net EPS fell to US$3.12 (from US$3.43).
Fiscal 2025 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of US$443mn, or $0.47 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortisation of intangible assets, certain litigation charges (benefits), net, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.
For the fourth quarter, HP's net revenue was US$14.6bn, up 4.2% year-on-year (up from 3.8% in constant currency). GAAP diluted net EPS was US$0.84 and non-GAAP diluted net EPS was US$0.93.
Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of US$82mn, or US$0.09 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortisation of intangible assets, certain litigation charges (benefits), net, tax adjustments, and the related tax impact on these items.
Asset management
From a cash-flow perspective, HP generated US$3.7bn in operating cash flow and US$2.9bn in free cash flow for fiscal 2025, returning 66% of its free cash flow to shareholders through dividends and share repurchases.
In the fourth quarter alone, free cash flow reached US$1.5bn. Free cash flow includes net cash provided by operating activities of US$1.6bn adjusted for net investments in leases from integrated financing of US$60mn and net investments in property, plant and equipment of US$197mn.
The HP board of directors has declared a quarterly cash dividend of US$0.30 per share, payable on 2 January 2026 to shareholders of record as of the close of business on 11 December 2025. This marks the first dividend distribution for HP’s 2026 fiscal year.
In segment performance, personal systems net revenue rose 8% year-on-year to US$10.4bn in the fourth quarter, while printing net revenue declined 4% to US$4.3bn. Looking ahead, HP expects fiscal 2026 GAAP diluted EPS of US$2.47–US$2.77 and non-GAAP diluted EPS of US$2.90–US$3.20, with projected free cash flow of US$2.8bn – US$3.0bn.
For the fiscal 2026 first quarter, the company noted that its outlook reflects additional costs tied to current U.S. trade-related regulations and ongoing mitigation efforts.
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