“I’m very proud with the progress the team was able to make,” HP CEO Enrique Lores says. “It’s a very significant improvement. We basically pulled all of our plans ahead by six months. And when we were saying by the end of the year, we are saying now by June. Not only 90 percent, but almost all products sold in North America. So it’s a very significant improvement.”
HP Inc. is increasing its manufacturing footprint in the U.S. with plans to make sure “nearly all products sold in North America” are made outside China by the end of June, CEO Enrique Lores said ahead of the company’s earnings call on Wednesday.
Earlier this year, Palo Alto, Calif.-based HP announced that 90 percent of North American products would be made outside of China with a deadline of October. Lores said HP increased the speed of its move away from China-based manufacturers for North American products in the wake of U.S. trade negotiations.
“We saw the new tariffs being put into place. We accelerated the plans that we had. I have to say I’m very proud with the progress the team was able to make,” he said responding to a question from CRN during a media pre-briefing before the company’s Q2 2025 earnings call Wednesday. “It’s a very significant improvement. We basically pulled all of our plans ahead by six months. And when we were saying by the end of the year, we are saying now by June. Not only 90 percent, but almost all products sold in North America. So it’s a very significant improvement.”
HP has expanded manufacturing in Vietnam, Thailand, Mexico, India and the U.S. Asked about the U.S. expansion, Lores told CRN that it amounted to a “small change.”
“At this point, it’s a relatively small change. We are mostly focused on federal customers, and what we have done is we have expanded from desktops into notebooks again, targeting the federal business for the majority of it,” he said.
Against that unpredictable environment that included the on-again, off-again tariffs and a relocation of its North American supply chain, HP Inc.’s revenue was up three percent last quarter, Lores said. HP reported fiscal 2025 second quarter net revenue of $13.2 billion.
“Our Q2 was impacted by higher-than-expected tariffs that we were not able to fully mitigate in the quarter,” he said on the call.
Sales of the company’s personal systems, which includes its lineup of PCs and AI PCs, improved 7.1 percent on sales of $9.02 billion. The company saw increased commercial volume and momentum in key growth areas with commercial sales, which represent 75 percent of its PC sales, up 9 percent. The company saw wins with PCs in health care, financial services and retail. Meanwhile, the Windows 10 end of life is driving an expected refresh.
“We are delivering our most impactful innovation yet,” Lores said. “We launched one of the most comprehensive AI PC portfolios in the industry, bringing AI benefits to the mainstream.”
Tariffs ate some of the company’s PC wins with operating revenue coming in 1.5 percent lower year over year to $409 million. HP is also seeing wins with consumers with sales in that segment up 2 percent year on year.
Meanwhile, HP Inc.’s print sales for the quarter – which includes its print devices as well as supplies — were $4.18 billion, down 4.3 percent year over year. However, its operating profit in the segment was up a half-percent, reaching $814 million, or 19.5 percent of revenue.
“Print remains an engine of profitability. Consumer subscriptions and industrial print are bright spots as we are seeing high adoption of our new product and service introductions,” Lores said on the call.
Consumer print hardware grew one percent year over year, while the print commercial business focused on profitable, long-term growth in A4 and A3 size devices, the company said.
The company’s lineup of LaserJet Enterprise devices led the way in security, as the first printers in the world to guard against quantum computer attacks, the company said.
HP shares were down 15 percent to $23.10 in after-hours trading Wednesday.
