HP Inc.’s second-quarter numbers read like a tale of two lines: revenue climbed to $13.22 billion, up 3.3 % year over year, yet adjusted EPS slid to $0.71—beneath the company’s own outlook and Wall Street’s consensus Q2-25-HP-Inc-Earnings-P…. The stock dropped more than 12 % in after-hours trading as investors recalibrated risk.

Macro Backdrop: Trade Policy Versus Upgrade Cycle

Fresh U.S. tariffs of 20-30 % on China-sourced printing components collided with a Windows 11 refresh wave that lifted commercial demand. While most PC SKUs are currently exempt, management warned that any reversal could shave two percentage points off operating margin Q2-25-HP-Inc-Earnings-P….

Revenue Gains, Margin Pain

Personal Systems delivered $9.02 billion in sales—up 7.1 %—but segment margin compressed to 4.5 % as commodity and freight costs surged Q2-25-HP-Inc-Earnings-P…. Printing revenue fell 4.3 % to $4.18 billion, yet held a healthy 19.5 % margin thanks to disciplined pricing and enterprise mix Q2-25-HP-Inc-Earnings-P….