Good afternoon and welcome to the HP annual meeting of stockholders. I would now like to turn the meeting over to Chip Bergh, Chair of HP's Board of Directors. Please go ahead, sir.
Thank you, Operator, and good afternoon, everyone. I'm Chip Bergh, Chair of the Board of HP. We're glad you could join us for HP's 2025 annual meeting of stockholders. I will now call the meeting to order. I'm joined here by Enrique Lores, HP's President and CEO and a member of the board, and Rick Hansen, HP's Corporate Secretary. My fellow members of the board, the director nominees, HP's executive officers, and representatives from our registered public accounting firm, Ernst & Young, are also attending today's meeting. Today's meeting is being held virtually via a live audio cast. We believe in engaging with our stockholders and maximizing their ability to meaningfully engage with us. Virtual meetings are one of the many ways we engage with our stockholders. Today's session enables our stockholders to participate in the meeting regardless of their location around the world.
Not only can you listen to the meeting, you can also submit questions and vote your shares online before the polls close. In just a few moments, I'll turn the meeting over to Rick to conduct the business of the meeting. Enrique will then discuss HP's performance and the company's strategic priorities and progress. Enrique and I will conclude the meeting with a question-and-answer session. Before then, just a few comments from me on behalf of the Board of Directors. During fiscal 2024, HP delivered steady progress against our strategic priorities while operating in a dynamic external environment. This performance reinforced your board's confidence in our executive team's ability to continue executing on the initiatives we have set forth. With expertise in personal systems, print, and services, we believe HP is well positioned to capitalize on the opportunities ahead and be a leader in the future of work.
Your board understands that overseeing and providing strategic advice to the management team are among our most important duties. This is why we continue to prioritize assembling a board with the right set of perspective, skills, and proven experience to create long-term stockholder value and drive long-term sustainable growth. Since our last meeting, we've added three new directors to the board with a deep set of skills critical to HP's strategy, including global business, technology, and AI. We're excited for the contributions they will provide. Before I turn it over to Rick, I also want to acknowledge and thank two directors who will be stepping down from the board following this shareholder meeting. We thank Aida Alvarez for nine-plus years of service and Dob Bennett for over 12 years. Thank you both. We will miss you. I will now turn the meeting over to Rick.
Thank you, Chip. The conduct of today's meeting will be governed by HP's bylaws and the meeting rules that have been made available to stockholders on the meeting website. To ensure that the business of the meeting proceeds in an orderly fashion, we ask that all participants please observe the meeting rules. The meeting will proceed as follows. I will briefly cover the various meeting requirements. We'll then take up the three items of business to be voted on in today's meeting. Following the presentation of the items of business, Enrique Lores, HP's President and CEO, will provide a brief business update. I will then announce the preliminary voting results. Finally, we've allocated some time at the end of the meeting for Chip and Enrique to respond to written questions that have been submitted by stockholders using the meeting website.
As a reminder, you may submit questions at any time during today's meeting. Some of our comments and responses to your questions during today's meeting may include forward-looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties. The risks, uncertainties, and assumptions that could affect these forward-looking statements include risks that are described or updated in HP's SEC reports, including our annual report on Form 10-K for our most recently completed fiscal year. In addition, certain information presented during this meeting may include references to amounts that are expressed on a non-GAAP basis. A reconciliation of these non-GAAP amounts to GAAP and other information related to these non-GAAP measures is also available on our investor relations website at investor.hp.com.
HP's agents have certified that a notice of the meeting was provided on February 24, 2025, to all stockholders of record as of the record date for the meeting. I have received a copy of that certification, and I therefore declare that legal notice of the meeting has been duly given. Janice Castillo from Broadridge Financial Solutions has been appointed to serve as our inspector of election for this meeting and is participating in today's meeting. Janice has taken and signed an oath as inspector of election. Janice has informed me that a majority of the company's outstanding shares held as of the record date, which was February 20, 2025, for this meeting are represented at this meeting. A quorum is therefore established, and we may proceed with the business of the meeting. There are three items of business on today's agenda.
In accordance with HP's bylaws, these are the only proposals to be voted upon at this meeting. On behalf of the Board of Directors, I move these items for vote and open the polls for voting on these items. Please remember that you may vote your shares online at any time during this meeting before the polls are closed. You must submit your electronic ballot in order for your votes to be counted. The inspector of election will not accept votes submitted after the closing of the polls. The polls will remain open until I announce their closure later in the meeting. The first item of business is a vote to elect each of the 13 nominees for election to the Board of Directors.
The 13 nominees who have been nominated to serve are Chip Bergh, Bruce Broussard, Stacy Brown- Philpott, Stephanie Burns, Mary Anne Citrino, Rick Clemmer, Fama Francisco, Enrique Lores, David Meline, Jami Miscik, Gianluca Pettiti, Kim Rucker, and Songyee Yoon. Biographies for and related information about these nominees are available in the proxy statement. Your Board of Directors recommends that stockholders vote for each of the director nominees. The second item of business is the ratification of the appointment of Ernst & Young, LLP, as HP's independent registered public accounting firm for fiscal year 2025. For the reasons described in the proxy statement, your Board of Directors recommends that stockholders vote for this item of business. The third item of business is an advisory vote on HP's named executive officer compensation.
For the reasons described in the proxy statement, your Board of Directors recommends that stockholders vote for this item of business. This concludes the presentation of the items of business to be considered at today's meeting. In just a moment, Enrique will share a brief business update. Before we hear from Enrique, I want to remind you that the polls will remain open, and you may still vote if you have not already done so. If you previously voted by proxy and do not wish to change your vote, your vote will be cast as you previously instructed, and no further action is needed.
If you are a record holder and wish to change your vote, you did not send in a proxy and wish to cast your vote now, or you have not already cast your vote using our electronic voting system, you may cast your vote by electronic ballot now or at any time until the polls close by clicking the voting button on the meeting website. Immediately following Enrique's remarks, I will close the polls and provide a preliminary report of vote results, and we will proceed to the question-and-answer session. Now, over to you, Enrique.
Thank you for joining today's call. On behalf of the entire HP team, I want to express my appreciation for your continued support and trust. It has been a year of meaningful progress and innovation for the company. I will focus on three key areas during the call today. First, our fiscal year 2024 performance. Next, I will discuss our evolved strategy to shape the future of work and how HP is well positioned to leverage the power of AI. Lastly, I will address how we are navigating a complex and evolving external environment. During fiscal year 2024, we continue to drive steady progress with our future-ready strategy. Our efforts have been instrumental in enabling us to capture new opportunities and strengthen HP's competitive advantage. Despite some external challenges, we executed well and delivered solid results. Revenue was $53.6 billion, flat year over year.
Our key growth areas again performed well, growing faster than the rest of the portfolio and accounting for approximately 20% of our total company revenue for the year. Non-GAAP net earnings per share grew 3% to $3.38. For the year, we returned close to $3.2 billion to shareholders, nearly 100% of our free cash flow, in line with our long-term commitment. During the first two years of our future-ready plan, we have made excellent progress across process efficiency, automation, portfolio optimization, and operational excellence. This has given us line of sight to additional opportunities aligned to our future of work strategy. We now plan to deliver $1.9 billion in gross annual run rate structural savings by the end of fiscal year 2025. Throughout the fiscal year, our innovation engine continued to drive forward. We made strategic investments focused on growth opportunities, including enhancing our AI capabilities.
In personal systems, we launched our AI PC portfolio, leading the charge in a category creation moment. In print, our HP All-In Subscription plan offering was designed with consumer convenience in mind and has recently expanded to include Smart Tanks. With the introduction of our Workforce Experience Platform, we have revolutionized how companies improve productivity and collaboration. While we faced a slow market recovery in the first half, our rebound in the second half fueled momentum for fiscal year 2025 and our ambitions to lead the future of work. We know expectations of employers and employees are evolving, and there is a clear opportunity to meet these changing needs. We intend to capture it. Employers are seeking productivity and innovation that drives growth, while employees want fulfillment in the work they do. Through smart technology, we believe we can bridge this gap.
The proliferation of AI and flexible work further underscores the need for new solutions and experiences. HP is well positioned to redefine how work gets done and help businesses and people everywhere achieve growth and fulfillment. The future of work opportunity is significant, and we are seizing this moment to drive game-changing innovation in the market. To achieve success, we are focused on five key areas. First, we are investing and innovating in new AI-powered capabilities. The technology and innovation organization formed late last year will play a leading role in ensuring we are innovating at scale and speed to build a powerful AI stack. Second, we are aggressively pursuing and capturing growth opportunities in commercial. There are tremendous opportunities in this space. By accelerating the shift to contractual, focusing on solutions, and bringing our valuable assets together, we can deliver significant outcomes for HP customers.
Third, our best-in-class solutions organization will continue to build on our strong foundation by delivering exceptional customer experiences, driving growth and double-digit profitability. Fourth, while our focus is on the commercial space, we know work happens everywhere and in different contexts. That's why we are prioritizing profitable growth opportunities in premium consumer and gaming. In doing so, we will be better positioned to fuel our growth engine. Lastly, to drive all our efforts, we are accelerating the digital transformation. Across the company, we are optimizing our processes and leveraging the power of AI to enhance efficiency and collaboration. Further, to reflect the shift of our investment focus on the future of work, we are realigning our key growth areas. In addition to hybrid systems, workforce solutions, consumer subscriptions, industrial graphics, and 3D, we are now including AI PCs and advanced compute solutions such as workstations and retail solutions.
We have also aligned our sales force to growth opportunities, allowing us to expand our reach and drive even greater success for HP. Across all our innovations, our commitment to security and sustainability will never change. We will continue to safeguard our technologies and integrate robust measures to protect our customers. Our dedication builds on HP's long-standing history to prioritize responsible business practices. I am particularly proud of our recent achievement, securing the number two spot on the 2025 America's Most JUST Companies list. We are confident in our strategy and determined to be the company at the center of driving the change that enables businesses and people everywhere to thrive in the era of AI. We are entering HP's next chapter against the backdrop of an increasingly complex global landscape. The world is evolving at an unprecedented pace, transitioning from globalization to regionalization.
While this is a major shift, we are well prepared to navigate it with a team highly experienced in managing policy changes. For the last several years, HP has taken proactive measures to build a more resilient and adaptive supply chain to ensure stability and long-term growth. We have increased capacity at sites in Southeast Asia and North America. We have also expanded domestic manufacturing in key emerging markets, including Brazil, India, Saudi Arabia, and Indonesia. By the end of fiscal year 2025, more than 90% of North America products will be built outside of China. By diversifying production and strengthening regional supply networks, we can respond more effectively to disruptions while supporting local economies. The combination of our flexible supply chain network, cost improvements, and pricing actions as needed will enable us to weather any additional tariffs in the future.
As we move forward, we remain committed to our vision for the future of work. We are confident in our ability to navigate the complexities of the global environment and continue delivering value to our shareholders. On behalf of the entire HP board and management team, I want to thank you again for your investment. I look forward to sharing our progress as we continue executing our plan to drive profitable long-term growth and value creation.
Thank you, Enrique. At this time, we will close the polls for voting, and I will share a preliminary report of the vote results. Final vote results will be made available via a current report on Form 8-K that we will file with the SEC within the prescribed period following today's meeting. The following vote results are based on the preliminary results provided to us today by our inspector of election. All votes are subject to final count and certification by the inspector. Regarding Proposal 1, based on the preliminary vote results, I declare that all 13 director nominees are elected to serve for the next year and to hold office until their successors are duly elected and qualified. Of the shares voted, an average of 99% voted for each director nominee.
Regarding Proposal 2, based on the preliminary vote results, I declare that the appointment of Ernst & Young as HP's independent registered public accounting firm for the fiscal year 2025 is ratified. Of the shares voted, approximately 94% voted for this proposal. Regarding Proposal 3, based on the preliminary vote results, I declare that the advisory vote to approve the company's named executive officer compensation is approved. Of the shares voted, approximately 94% voted for this proposal. This concludes the formal business of the meeting and we will now move to the question-and-answer portion of our agenda. We had only a handful of questions submitted by stockholders this year in advance of today's meeting, and we will address at least three of them here. The first question relates to the recent news on tariffs, and I'll go to Enrique for this.
Enrique, how is HP adapting its supply chain diversification efforts in response to the latest wave of U.S. tariffs?
Thank you, Rick. This is obviously an important issue. In this fluid environment, we continue to focus on what we can control and are committed to working to mitigate any adverse impacts on our business, customers, and partners, and executing on our vision to lead the future of work. We have teams in place that have been proactively managing multiple planning scenarios, working to mitigate the impact of current tariffs to the extent possible by leveraging the flexibility of our global supply chain network, along with cost improvements and pricing actions as needed. Over the past few years, we have taken proactive measures to ensure manufacturing resiliency. We have built a globally diverse supply chain, and we are continuing to expand our footprint across multiple countries and regions to meet growing customer demand and bolster multi-source production. We will leverage this flexibility to optimize results.
For example, as I mentioned in my earlier remarks, by the end of fiscal year 2025, more than 90% of North America products will be built outside of China. In addition, we announced in our Q1 earnings call that we have increased our future-ready cumulative gross run rate savings by $300 million by the end of fiscal year 2025, which will be a key lever to help offset macro and political uncertainty.
Thank you, Enrique. Back to you for our second question, which relates to HP's growth plans. What is HP's strategy to grow profitability?
Consistent with our strategy to lead the future of work, we are prioritizing investments in our key growth areas of AI PCs, advanced compute solutions, hybrid systems, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Collectively, we expect these areas to grow faster than our core, with margins that are accretive over time. Also, as we have said many times, we are not focused on gaining shares for shares' sake, and we will continue our efforts to shift our mix to more premium categories, including in consumer. Finally, we will remain focused on executing with operational excellence and strong cost discipline.
Thank you, Enrique. Chip, I'll direct our final question to you, which relates to HP's sustainability strategy. As you know, HP has a long history of sustainable practices, like when HP recycled single-use bottles to make products. What is HP doing right now to promote sustainable practices and protect our environment?
Thanks, Rick. As you said, sustainability is an integral part of how we do business and operate, not just another program. As Enrique mentioned in his earlier remarks, we're proud of the fact that HP recently jumped to the number two spot on America's Most JUST Companies list, which underscores our commitment to sustainability. With regard to the specific question, one of the ways in which our commitment to sustainability is demonstrated is in how we design our products and sell to our customers. For example, in the most recent published data, which is 2023, 60% of total revenue was sustainable revenue, as reported in accordance with Corporate Knights' Sustainable Economy Taxonomy. In addition, more than 95% of home and office printers, laptops, notebooks, displays, and workstations shipped to customers in 2023 included recycled materials.
Finally, from 2020 through 2023, we continue to offer more EPEAT Gold and Silver registered personal systems products globally than any other PC vendor. EPEAT is widely recognized as the world's premier eco-label for electronics and is a competitive differentiator for us with many of our customers. Sustainability will continue to be a critical component of our strategy because it is not only good for the environment, it is good for business.
Thank you, Enrique and Chip, and thank you to all of our stockholders who submitted questions today. This now concludes the question-and-answer portion of the meeting. I will now turn the meeting back over to Chip to conclude the proceedings of our meeting today.
Thanks, Rick. It is now 2:26 P.M. Pacific Time, and I declare that the business of today's meeting is concluded. Thank you all very much for joining us this afternoon. We appreciate your interest and your continued confidence in HP.
The meeting has now concluded. Thank you for attending today's presentation. You may now.