HP’s Q3 2025 performance signals growing AI PC momentum
September 6, 2025
Artificial Intelligence, Future of work, Article, Trends
Image credit: HJBC / Shutterstock.com
- Group Revenue: $13.9 billion, up 3% year-on-year
- Net Income: $763 million, up 19% year-on-year
- Personal Systems Revenue: up 6% year-on-year (to $9.9 billion)
- Printing Revenue: down 4% year-on-year (to $4.0 billion)
- Printing Supplies Revenue: down 4% year-on-year
- Printing Commercial Hardware Revenue: down 3% year-on-year
- Printing consumer Hardware Revenue: down 8% year-on-year
HP earnings are up, but print earnings are down
HP announced robust quarterly results, meeting overall market consensus expectations. Net revenue across all categories was up 3% year-on-year to almost $14 billion. GAAP net earnings grew by 19% since the third quarter of 2024. However, the Printing group saw revenue drop by 4% to $4 billion. HP is working hard to maintain its position in a mature market, but it faces declining demand for hardware and supplies in the print market. This was offset by the Personal Systems group, which grew its revenue by 6% to almost $10 billion. This was driven in part by robust organic demand for both consumer and business devices. HP reports that AI PCs now account for 25% of the Personal Systems product mix, a milestone HP hit a quarter ahead of schedule.
A future-focused go-to-market strategy
Early in the Q3 earnings call, CEO Enrique Lores mentioned HP’s ‘Future of Work’ strategic vision. Taking in everything from AI PCs to Workforce Services and Advanced Compute Solutions, the vision underlies HP’s plan to tap into the renewed momentum in the ongoing digital, data-driven transformation of work.
Commercial sales by the Personal Systems group alone account for 51% of the company’s net revenue. Commercial print sales contribute an additional 8% to the B2B total.
By Q3 of this year, AI PCs were a quarter of the Personal Systems product mix. These devices are optimised for use with Microsoft Copilot and feature their own neural processing unit (NPU), a chip specifically designed to run local AIs. According to Lores, demand for this type of PC has seen the segment grow by double digits from the previous quarter. Along with the ongoing Windows 11 refresh in the business market, this is a key factor behind the relatively buoyant performance of the Personal Systems group this quarter.
Certainly, HP seems to be doing everything it can to support the growth of the AI PC segment and related AI and future-facing professional products and services. The company reports that it is working closely with key software vendors – including Microsoft, Adobe, and Zoom – to enable them to develop software that takes advantage of the AI PCs’ abilities.
At the same time, HP has been developing and promoting its HP Workforce Experience Platform (WXP), an AI-powered IT management system. This has now been launched in 40 countries, with plans to expand to 30 more countries in the coming months. Other AI initiatives include the containerisation platform HP AI Studio, as well as the HP OmniBook Ultra Flip and HP EliteBook X, the company’s award-winning AI PC notebooks.
AI and printing
There are also clear signs that HP’s AI-driven strategy has reached its Printing group. If HP is serious about making its Future of Work vision a key part of its growth strategy, its most profitable business unit must, by necessity, be a key part of that strategy.
AI innovations in its Industrial Printing group include HP Nio, an AI assistant that helps operators improve equipment efficiency, operator productivity, and problem resolution through real-time insights and data analytics.
Lores also referenced HP Build Workspace, an AI tool that helps large-format printer users, such as those in architecture, engineering, and construction, turn raster images into vector images. According to Lores, this can reduce drafting time by up to 80%.
In September 2024, HP launched its Print AI platform. This uses AI to eliminate common print setup difficulties, helping home and small business users get the best print results from their photos and documents.
At a device level, AI and machine learning are starting to be integrated with HP devices. Notably, HP Scan AI uses artificial intelligence to automatically classify and route documents, extract data, and reduce human error, turning the printer into an intelligent “on-ramp” for digital workflows. The same intelligence is also applied to security features, where AI models can detect and prevent potential threats on the device itself.
Looking to the future
Overall, HP has performed impressively, delivering year-on-year growth in revenue and net earnings. Both the Print and Personal Systems groups returned healthy operating profits. The company has successfully relocated its North American market production out of China, helping it avoid the worst potential tariff-related impacts on profitability. Thanks to its cost-saving measures, some of which are enabled by the internal application of AI to company processes, HP is on track to cut $2 billion in costs this year.
The rapid growth of the AI PC category, along with other AI-related initiatives in the Personal Systems group, speaks of a successful adaptation to a rapidly evolving technology market. The efficiencies HP has achieved internally also compellingly demonstrate the benefits AI can deliver to business workflow and process optimisation. The question is, when will HP apply this innovation, at scale, to its broader print portfolio?
Learn more about HP’s Future Workplace strategy, covering quantum print security and Scan AI, in Quocirca’s In Focus interview with HP
