HP Inc. stock research
FY2025 Q2
HP (HPQ) Gross Margin — Quarter Ended Apr 30, 2025
Revenue exceeded cost of revenue, producing a gross profit. The resulting gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Apr 30, 2025 · FY2025 Q2
Revenue exceeded cost of revenue, producing a gross profit. The resulting gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier.
- The ratio of cost of revenue to revenue increased, which compressed gross profit as a share of revenue. A concrete item to monitor is the proportion of cost of revenue within total revenue.
- Compared with the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared with the same quarter a year ago, revenue was higher, but cost of revenue was higher by a greater proportion, leading to a lower gross profit and a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.7%
Gross profit
$2.7B
Revenue
$13.2B
Cost of revenue
$10.5B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 31, 2024 | $13.5B | $2.9B | $10.6B | 21.5% |
| Oct 31, 2024 | $14.1B | $3.0B | $11.1B | 21.4% |
| Jan 31, 2025 | $13.5B | $2.8B | $10.7B | 21.0% |
| Apr 30, 2025 | $13.2B | $2.7B | $10.5B | 20.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
-0.3 pts
Year-over-year change
Apr 30, 2024
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The ratio of cost of revenue to revenue increased, which compressed gross profit as a share of revenue. A concrete item to monitor is the proportion of cost of revenue within total revenue.
Compared with the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared with the same quarter a year ago, revenue was higher, but cost of revenue was higher by a greater proportion, leading to a lower gross profit and a weakened gross margin.
Monitor the trend of cost of revenue as a share of revenue in upcoming quarters.