Steven Milunovich's questions to HP Inc (HPQ) leadership • Q1 2025
Question
Steven from TD Cowen questioned if the strong U.S. dollar and competitor pricing power create a long-term structural disadvantage for the print business. He also asked for clarification on the Q2 inventory build and negative free cash flow forecast.
Answer
CEO Enrique Lores stated the print competitive environment is stable and not expected to change, noting that HP still grew market share. CFO Karen Parkhill clarified that the negative Q2 free cash flow is a timing issue related to paying for inventory built in Q1 as a tariff mitigation strategy, which impacts the cash conversion cycle, not a signal of further inventory growth.