HP Inc. stock research
FY2025 Q3
HP (HPQ) Gross Margin — Quarter Ended Jul 31, 2025
Revenue increased relative to both the prior quarter and the same quarter one year earlier. Gross profit was slightly higher than the prior quarter but unchanged from a year ago, while cost of revenue rose more than revenue, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2025 Q3
Revenue increased relative to both the prior quarter and the same quarter one year earlier. Gross profit was slightly higher than the prior quarter but unchanged from a year ago, while cost of revenue rose more than revenue, resulting in a lower gross margin.
- The increase in cost of revenue outpaced the growth in revenue, compressing gross margin.
- Compared to the prior quarter, gross margin weakened. Relative to the same quarter one year earlier, gross margin was also weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.5%
Gross profit
$2.9B
Revenue
$13.9B
Cost of revenue
$11.1B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Jul 31, 2025 | $13.9B | $2.9B | $11.1B | 20.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
-0.3 pts
Year-over-year change
Jul 31, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue outpaced the growth in revenue, compressing gross margin.
Compared to the prior quarter, gross margin weakened. Relative to the same quarter one year earlier, gross margin was also weaker.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters.