HP Inc.
HPQ Technology Computer Hardware
HP Inc.’s revenue for fiscal 2025 (year ended October 2025) was $55.3 billion, up 3.24% from fiscal 2024. In the quarter to July 2026, revenue grew 12.5%, EPS fell 11.1%, free cash flow grew 7.05% and total debt fell 10.4%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for twenty-five consecutive years.
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HP Inc. (HPQ) Altman Z-score
HP Inc.'s Altman Z-score for fiscal 2025 is 1.68, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.68 | (0.15) |
| FY2024 | 1.83 | (0.04) |
| FY2023 | 1.87 | (0.20) |
| FY2022 | 2.07 | (0.27) |
| FY2021 | 2.34 | 0.24 |
| FY2020 | 2.10 | (0.27) |
| FY2019 | 2.38 | (0.19) |
| FY2018 | 2.57 | 0.15 |
| FY2017 | 2.42 | 0.07 |
| FY2016 | 2.34 | 1.04 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.16) | — | −0.20 | |
| Retained earnings / total assets | (0.05) | — | −0.07 | |
| EBIT / total assets | 0.08 | — | 0.25 | |
| Market value of equity / total liabilities | 0.62 | — | 0.37 | |
| Sales / total assets | 1.32 | — | 1.32 | |
| Altman Z-score | Distress zone | 1.68 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.72 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| QBTS D-Wave Quantum Inc. compare | 78.6× |
| RGTI Rigetti Computing, Inc. compare | 33.0× |
| WDC Western Digital Corporation compare | 29.6× |
| STX Seagate Technology Holdings PLC compare | 18.2× |
| LOGI Logitech International S.A. compare | 8.6× |
| P Everpure, Inc. compare | 5.1× |
| SMCI Super Micro Computer, Inc. compare | 3.4× |
| IONQ IonQ, Inc. compare | 2.6× |
| HPQ HP Inc. | 1.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on HPQ
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement