HP warns on tariffs as printing revenue slips
February 28, 2025
HP Inc. has posted mixed first-quarter results, with printing sales sliding and restructuring costs mounting.
HP Inc. reported a 2.4% rise in first-quarter revenue to $13.5 billion (€12.5 billion), boosted by strong demand for AI-powered PCs. However, the US technology giant warned that tariffs could dent future earnings, while its printing division continued to decline.
The Personal Systems segment, which includes PCs, grew 5 per cent year-on-year to $9.2 billion (€8.5 billion), as commercial sales offset weaker consumer demand. HP’s bet on AI-powered computers paid off, with sales in that category rising 25%.
However, the Printing segment saw a 2% drop in revenue to $4.3 billion (€4 billion), weighed down by soft demand and structural pressures in the market. Printing remains one of HP’s most profitable units, with an operating margin of 19%, but the company faces persistent challenges as consumers and businesses shift away from traditional printing.
HP also expanded its cost-cutting drive, announcing up to 2,000 additional job cuts as part of its ‘Future Now’ restructuring plan. The move, which brings total job losses to 9,000 since 2022.
“We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work,” said Enrique Lores, HP President and CEO. “Our progress was fuelled by a strong commercial business in Personal Systems and momentum in our key growth areas, including AI PCs. We are focused on taking decisive action to address evolving market conditions in the near-term, while investing in our long-term growth.”
“In Q1 we drove solid progress against our financial commitments for the year and are raising our Future Ready savings target from $1.6 (€1.5 billion) to $1.9 billion (€1.8 billion) dollars by the end of fiscal year 2025,” said Karen Parkhill, HP CFO. “We are holding our outlook for the year and remain focused on disciplined execution as we continue to invest for the future.”
Looking ahead, HP warned that tariffs on technology imports could weigh on second-quarter earnings, leading to lower-than-expected results. The company did not specify the potential financial impact but said it was monitoring the situation closely.
Categories : City News
Tags : Business Earnings Financials HP Inc OEM Printing Tariffs
