HP Inc. stock research
FY2025 Q4
HP (HPQ) Gross Margin — Quarter Ended Oct 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable year over year and slightly improved sequentially. Cost of revenue rose more than proportionally, leading to a gross margin that weakened versus both comparison periods.
Gross margin takeaway
Quarter ended Oct 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable year over year and slightly improved sequentially. Cost of revenue rose more than proportionally, leading to a gross margin that weakened versus both comparison periods.
- Gross profit increased from the prior quarter but was unchanged from a year ago, while total revenue grew, causing the margin to narrow. Cost of revenue was higher than both prior periods, outpacing revenue growth and compressing the margin.
- Gross margin was lower than the immediately preceding quarter and declined more notably compared to the same quarter last year. The change reflects a larger proportional increase in cost of revenue relative to revenue in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.2%
Gross profit
$3.0B
Revenue
$14.6B
Cost of revenue
$11.7B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Oct 31, 2025 | $14.6B | $3.0B | $11.7B | 20.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2025
-0.2 pts
Year-over-year change
Oct 31, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased from the prior quarter but was unchanged from a year ago, while total revenue grew, causing the margin to narrow. Cost of revenue was higher than both prior periods, outpacing revenue growth and compressing the margin.
Gross margin was lower than the immediately preceding quarter and declined more notably compared to the same quarter last year. The change reflects a larger proportional increase in cost of revenue relative to revenue in both comparisons.
Monitor whether cost of revenue continues to rise at a faster rate than revenue, as this pattern has directly pressured gross margin in the current quarter.