HP Inc. (HPQ)
HP Inc. makes personal computers, printers, and related supplies for consumers and businesses worldwide.
HPQ vs IBM: how the two businesses compare
- Bigger business: IBM, with $67.5B of yearly revenue, about 1.2× HPQ's $55.3B.
- More profitable: IBM keeps 16 cents of each sales dollar as profit, against 5 cents at HPQ.
- More cash from each sale: IBM turns 20 cents of each sales dollar into operating cash flow, against 7 cents at HPQ.
From each company's latest annual SEC filing. Fiscal years can end on different dates.
International Business Machines (IBM) is the larger business by reported revenue: $67.5B in its fiscal year ended Dec 2025, about 1.2× HPQ's $55.3B (fiscal year ended Oct 2025). HPQ's net margin was 4.6% and IBM's 15.7%. Both file with the SEC under the same industry code, SIC 3570 (Computer & office Equipment).
Figures come from each company's own SEC filings. This page compares the businesses; it is not a price target or a verdict.
- Information Technology
- Computer & office Equipment
- Same classification
- Different
- HPQ October 31 · IBM December 31
- Feb 24, 2026
HPQ vs IBM: quick comparison
| Company fact | HPQ | IBM |
|---|---|---|
| Company | HP Inc. | International Business Machines Corporation |
| Exchange | NYSE | NYSE |
| Headquarters | — | Armonk, New York |
| Founded | — | 1911 |
| SEC industry | Computer & office Equipment | Computer & office Equipment |
| Fiscal year-end | October 31 | December 31 |
| Latest annual filing | 10-K · 2025-12-10 | 10-K · 2026-02-24 |
HPQ vs IBM: audited financials
- Scale: IBM's $67.5B of revenue is about 1.2× HPQ's $55.3B.
- Net margin: IBM kept 15.7% of revenue as net income versus 4.6% at HPQ.
- Cash conversion: operating cash flow equalled HPQ 6.7% of revenue, or 1.46× net income; IBM 19.5% of revenue, or 1.25× net income. A ratio well above 1× usually reflects non-cash charges or working-capital release; well below 1× can reflect working-capital build or non-cash gains.
- Periods: the fiscal years end about 2 months apart (2025-10-31 for HPQ, 2025-12-31 for IBM), so each figure reflects somewhat different demand and cost conditions.
| Metric | HPQ | IBM |
|---|---|---|
| Revenue | $55.3B2024-11-01 to 2025-10-31 · SEC filing | $67.5B2025-01-01 to 2025-12-31 · SEC filing |
| Net income | $2.5B2024-11-01 to 2025-10-31 · SEC filing | $10.6B2025-01-01 to 2025-12-31 · SEC filing |
| Operating cash flow | $3.7B2024-11-01 to 2025-10-31 · SEC filing | $13.2B2025-01-01 to 2025-12-31 · SEC filing |
| Diluted EPS | $2.652024-11-01 to 2025-10-31 · SEC filing | $11.172025-01-01 to 2025-12-31 · SEC filing |
| Net margin | 4.6%2024-11-01 to 2025-10-31 · SEC filing | 15.7%2025-01-01 to 2025-12-31 · SEC filing |
HPQ: FY ending 2025-10-31 · IBM: FY ending 2025-12-31. Figures as tagged in each issuer's SEC XBRL filing; fiscal calendars may not align.
Where HPQ and IBM overlap, and where they don't
Overlap
- Same SEC industry: both report under SIC 3570, Computer & office Equipment.
Differences
- Offset fiscal calendars: HPQ's year ends October 31 and IBM's December 31, about 2 months apart.
- Only HPQ maps to Tariffs & trade.
- Only IBM maps to Artificial intelligence.
- Profitability: net margin of 4.6% for HPQ versus 15.7% for IBM.
Overlap is drawn from SEC classifications and Yield Theory research themes. It is not evidence that the companies sell to the same customers or compete product for product.
International Business Machines Corporation (IBM)
IBM provides hybrid-cloud software, consulting, and mainframe systems to large enterprises and governments. Its Red Hat and watsonx platforms anchor a strategy built around open hybrid cloud and enterprise AI.
What moves each company
Company-specific drivers maintained by Yield Theory. Use them to decide which filing deserves deeper work; they are not predictions.
What moves HPQ
We have not yet published a company-specific driver list for HPQ. The primary source is Item 1 (Business) and Item 1A (Risk Factors) of its 10-K filed 2025-12-10.
What moves IBM
- Software growth across Hybrid Cloud (Red Hat), Automation, Data, and Transaction Processing
- Consulting signings, backlog, and book-to-bill
- The IBM z17 mainframe cycle within Infrastructure
- Acquisition integration, including HashiCorp and the pending Confluent deal
The investment question
You now know IBM reports about 1.2× HPQ's revenue, and IBM keeps more of each dollar as net income. Those are the facts. The investment question is what each share price already assumes about the computer & office equipment cycle, including “Software growth across Hybrid Cloud (Red Hat), Automation, Data, and Transaction Processing” at IBM, and which evidence in the next filings would prove that assumption wrong.
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Read the full researchSEC filing comparison and disclosure evidence
Start with primary filings because fiscal calendars and accounting presentation can make superficially similar quarters incomparable. HPQ's fiscal year ends October 31, while IBM's ends December 31. Normalize the reporting periods before comparing growth, margins, capital intensity, or guidance.
The current verified House and Senate snapshot contains 3 matched transaction rows for HPQ and 52 matched transaction rows for IBM. These delayed, range-based disclosures can identify a filing to inspect; they do not establish motive, conviction, or a real-time trading signal.
HPQ primary filings
IBM primary filings
What this comparison cannot tell you
This page does not contain licensed live prices, a valuation model, earnings estimates, portfolio constraints, or a forecast of future returns. SEC classifications can be broad, company descriptions can lag strategic change, and the latest annual filing may predate a material acquisition or divestiture. Read subsequent quarterly and current reports before making a decision.
A stronger business is not automatically the better stock. Starting valuation, expectations, capital structure, cyclicality, dilution, and the probability of each thesis determine the investment outcome. Use this comparison to frame the work, then verify the numbers in the linked filings and current company disclosures.
HPQ vs IBM FAQs
Are HPQ and IBM direct competitors?
HP and International Business Machines share the SEC industry classification “Computer & office Equipment.” That makes the operating comparison relevant, but it does not prove that every product, customer, or revenue stream competes directly.
Is HPQ or IBM the bigger company by revenue?
International Business Machines (IBM) is the larger business by reported revenue: $67.5B in its fiscal year ended Dec 2025, about 1.2× HPQ's $55.3B (fiscal year ended Oct 2025). HPQ's net margin was 4.6% and IBM's 15.7%. Both file with the SEC under the same industry code, SIC 3570 (Computer & office Equipment). Each figure is the annual amount tagged in the company's own SEC XBRL filing; market value depends on live prices, which this page does not publish.
Which is better, HPQ or IBM?
There is no context-free winner. Compare the operating exposures, filing evidence, valuation, balance sheet, and risks against the specific thesis you are testing. This page deliberately does not turn a static profile into a buy or sell recommendation.
Does this HPQ vs IBM comparison include live prices?
No. Yield Theory does not republish unlicensed real-time market data. The financial figures on this page are the audited annual numbers HP Inc. and International Business Machines Corporation tagged in their SEC XBRL filings. Use a regulated broker or licensed quote provider for current prices and valuation multiples.
Where does the company information come from?
Company classifications, fiscal year-ends, and filing links come from the SEC EDGAR submissions API snapshot refreshed 2026-11-09. Business summaries and research themes are maintained by Yield Theory.
Data snapshot: SEC EDGAR submissions API, refreshed 2026-11-09. Independent educational research; not investment advice.
Which business differences matter to the investment thesis?
HPQ vs IBM compares reported results. The reports below show how we connect operating evidence to an investment thesis, its assumptions, catalysts, and risks. $39/month or $249/year.
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