HP Inc. (NYSE: $HPQ) reported its first-quarter earnings for 2025, revealing a revenue of $13.5 billion, which exceeded analysts' expectations of $13.37 billion and marked a 2.4% increase year-over-year. The company reported a non-GAAP diluted earnings per share (EPS) of $0.74, aligning with estimates, while its GAAP diluted EPS was $0.59, within the previously provided outlook of $0.57 to $0.63. However, HP's profit outlook for the current quarter fell short of expectations, primarily due to rising component costs and tariffs on goods from China. This disappointing guidance contributed to a decline in HP's stock, which fell approximately 4% in pre-market trading following the earnings announcement. The personal systems segment showed strength, with a 5% increase in revenue and a 10% rise in commercial personal systems, driven by growing demand for artificial intelligence-capable systems.