HP reports second-quarter revenue is up 9%, but printing revenues are flat
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HP Inc. reports second-quarter net revenue of $14.4 billion, up 9.0% from the prior year period, and GAAP diluted net earnings per share (“EPS”) of $0.49, up 16.7% from the prior year period.
“During the second quarter, we continued executing our future of work strategy through intelligent devices, edge AI, and connected experiences while navigating rising commodity costs,” said Bruce Broussard, Interim CEO, HP Inc. “We introduced innovations across AI PCs, Z workstations, AI-powered print, and HP IQ that simplify work and improve productivity. These reflect our progress in building intelligent devices and services that capture the value of AI at the edge and support long-term growth.”“We delivered strong second-quarter results, with 9% revenue growth and even stronger earnings and free cash flow,” said Karen Parkhill, CFO, HP Inc. “With two solid quarters behind us, we are executing with discipline in a dynamic environment and are strengthening our outlook for the fiscal year to reflect this.”
Second quarter GAAP diluted net EPS was $0.49, up from $0.42 in the prior-year period and below the previously provided outlook of $0.52 to $0.58. Second quarter non-GAAP diluted net EPS was $0.86, up from $0.71 in the prior-year period and above the previously provided outlook of $0.70 to $0.76. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude certain adjustments. Refer to “Adjustments to GAAP Net earnings” section in the below tables.
Fiscal 2026 second quarter segment results
- Personal Systems net revenue was $10.2 billion, up 13% year over year (up 10% in constant currency) with a 5.2% operating margin. Consumer PS net revenue was up 10% and Commercial PS net revenue was up 14%. Total units were down 7% with Consumer PS units down 8% and Commercial PS units down 7%.
- Printing net revenue was $4.2 billion, flat year over year (down 2% in constant currency) with an 18.3% operating margin. Consumer Printing net revenue was down 10% and Commercial Printing net revenue was flat. Supplies net revenue was up 1% (flat in constant currency). Total hardware units were down 7%, with Consumer Printing units down 8% and Commercial Printing units down 4%.
| HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) |
|||||||||||
| Three months ended | |||||||||||
| April 30, 2026 | January 31, 2026 | April 30, 2025 | |||||||||
| Net revenue: | |||||||||||
| Products | $ | 13,563 | $ | 13,598 | $ | 12,423 | |||||
| Services | 845 | 840 | 797 | ||||||||
| Total net revenue | 14,408 | 14,438 | 13,220 | ||||||||
| Cost of net revenue: | |||||||||||
| Products | 10,918 | 11,138 | 10,007 | ||||||||
| Services | 474 | 465 | 474 | ||||||||
| Total cost of net revenue | 11,392 | 11,603 | 10,481 | ||||||||
| Gross profit | 3,016 | 2,835 | 2,739 | ||||||||
| Research and development | 432 | 392 | 401 | ||||||||
| Selling, general and administrative | 1,514 | 1,504 | 1,480 | ||||||||
| Restructuring and other charges | 365 | 126 | 122 | ||||||||
| Acquisition and divestiture charges (credits), net | 4 | (2 | ) | 17 | |||||||
| Amortization of intangible assets | 89 | 56 | 65 | ||||||||
| Total operating expenses | 2,404 | 2,076 | 2,085 | ||||||||
| Earnings from operations | 612 | 759 | 654 | ||||||||
| Interest and other, net | (119 | ) | (88 | ) | (148 | ) | |||||
| Earnings before taxes | 493 | 671 | 506 | ||||||||
| Provision for taxes | (43 | ) | (126 | ) | (100 | ) | |||||
| Net earnings | $ | 450 | $ | 545 | $ | 406 | |||||
| Net earnings per share: | |||||||||||
| Basic | $ | 0.49 | $ | 0.59 | $ | 0.43 | |||||
| Diluted | $ | 0.49 | $ | 0.58 | $ | 0.42 | |||||
| Cash dividends declared per share | $ | — | $ | 0.60 | $ | — | |||||
| Weighted-average shares used to compute net earnings per share: | |||||||||||
| Basic | 922 | 926 | 950 | ||||||||
| Diluted | 925 | 932 | 956 | ||||||||
| HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) |
|||||||
| Six months ended | |||||||
| April 30, 2026 | April 30, 2025 | ||||||
| Net revenue: | |||||||
| Products | $ | 27,161 | $ | 25,118 | |||
| Services | 1,685 | 1,606 | |||||
| Total net revenue | 28,846 | 26,724 | |||||
| Cost of net revenue: | |||||||
| Products | 22,056 | 20,201 | |||||
| Services | 939 | 944 | |||||
| Total cost of net revenue | 22,995 | 21,145 | |||||
| Gross profit | 5,851 | 5,579 | |||||
| Research and development | 824 | 798 | |||||
| Selling, general and administrative | 3,018 | 2,939 | |||||
| Restructuring and other charges | 491 | 192 | |||||
| Acquisition and divestiture charges, net | 2 | 23 | |||||
| Amortization of intangible assets | 145 | 128 | |||||
| Total operating expenses | 4,480 | 4,080 | |||||
| Earnings from operations | 1,371 | 1,499 | |||||
| Interest and other, net | (207 | ) | (289 | ) | |||
| Earnings before taxes | 1,164 | 1,210 | |||||
| Provision for taxes | (169 | ) | (239 | ) | |||
| Net earnings | $ | 995 | $ | 971 | |||
| Net earnings per share: | |||||||
| Basic | $ | 1.08 | $ | 1.02 | |||
| Diluted | $ | 1.07 | $ | 1.02 | |||
| Cash dividends declared per share | $ | 0.60 | $ | 0.58 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 924 | 949 | |||||
| Diluted | 928 | 956 | |||||
| HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) |
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| Three months ended | |||||||||||||||||||||||
| April 30, 2026 | January 31, 2026 | April 30, 2025 | |||||||||||||||||||||
| Amounts | Diluted net earnings per share |
Amounts | Diluted net earnings per share |
Amounts | Diluted net earnings per share |
||||||||||||||||||
| GAAP net earnings | $ | 450 | $ | 0.49 | $ | 545 | $ | 0.58 | $ | 406 | $ | 0.42 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 365 | 0.39 | 126 | 0.14 | 122 | 0.13 | |||||||||||||||||
| Acquisition and divestiture charges (credits), net | 4 | — | (2 | ) | — | 17 | 0.01 | ||||||||||||||||
| Amortization of intangible assets | 89 | 0.10 | 56 | 0.06 | 65 | 0.07 | |||||||||||||||||
| Certain litigation charges, net | 5 | 0.01 | 56 | 0.06 | 103 | 0.11 | |||||||||||||||||
| Non-operating retirement-related credits | (13 | ) | (0.01 | ) | (11 | ) | (0.02 | ) | (6 | ) | (0.01 | ) | |||||||||||
| Tax adjustments(a) | (108 | ) | (0.12 | ) | (17 | ) | (0.01 | ) | (29 | ) | (0.02 | ) | |||||||||||
| Non-GAAP net earnings | $ | 792 | $ | 0.86 | $ | 753 | $ | 0.81 | $ | 678 | $ | 0.71 | |||||||||||
| GAAP earnings from operations | $ | 612 | $ | 759 | $ | 654 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 365 | 126 | 122 | ||||||||||||||||||||
| Acquisition and divestiture charges (credits), net | 4 | (2 | ) | 17 | |||||||||||||||||||
| Amortization of intangible assets | 89 | 56 | 65 | ||||||||||||||||||||
| Certain litigation charges, net | 5 | 56 | 103 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,075 | $ | 995 | $ | 961 | |||||||||||||||||
| GAAP operating margin | 4.2 | % | 5.3 | % | 4.9 | % | |||||||||||||||||
| Non-GAAP adjustments | 3.3 | % | 1.6 | % | 2.4 | % | |||||||||||||||||
| Non-GAAP operating margin | 7.5 | % | 6.9 | % | 7.3 | % | |||||||||||||||||
| (a) Includes tax impact on non-GAAP adjustments. | |||||||||||||||||||||||
| HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) |
|||||||||||||||
| Six months ended | |||||||||||||||
| April 30, 2026 | April 30, 2025 | ||||||||||||||
| Amounts | Diluted net earnings per share |
Amounts | Diluted net earnings per share |
||||||||||||
| GAAP net earnings | $ | 995 | $ | 1.07 | $ | 971 | $ | 1.02 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring and other charges | 491 | 0.53 | 192 | 0.20 | |||||||||||
| Acquisition and divestiture charges, net | 2 | — | 23 | 0.03 | |||||||||||
| Amortization of intangible assets | 145 | 0.16 | 128 | 0.13 | |||||||||||
| Certain litigation charges, net | 61 | 0.07 | 103 | 0.11 | |||||||||||
| Non-operating retirement-related credits | (24 | ) | (0.03 | ) | (11 | ) | (0.01 | ) | |||||||
| Tax adjustments(a) | (125 | ) | (0.14 | ) | (24 | ) | (0.03 | ) | |||||||
| Non-GAAP net earnings | $ | 1,545 | $ | 1.66 | $ | 1,382 | $ | 1.45 | |||||||
| GAAP earnings from operations | $ | 1,371 | $ | 1,499 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring and other charges | 491 | 192 | |||||||||||||
| Acquisition and divestiture charges, net | 2 | 23 | |||||||||||||
| Amortization of intangible assets | 145 | 128 | |||||||||||||
| Certain litigation charges, net | 61 | 103 | |||||||||||||
| Non-GAAP earnings from operations | $ | 2,070 | $ | 1,945 | |||||||||||
| GAAP operating margin | 4.8 | % | 5.6 | % | |||||||||||
| Non-GAAP adjustments | 2.4 | % | 1.7 | % | |||||||||||
| Non-GAAP operating margin | 7.2 | % | 7.3 | % | |||||||||||
| (a) Includes tax impact on non-GAAP adjustments. | |||||||||||||||
| HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) |
|||||||
| As of | |||||||
| April 30, 2026 | October 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash, cash equivalents and restricted cash | $ | 3,703 | $ | 3,705 | |||
| Accounts receivable, net | 6,125 | 5,692 | |||||
| Inventory | 9,203 | 8,512 | |||||
| Other current assets | 4,953 | 4,544 | |||||
| Total current assets | 23,984 | 22,453 | |||||
| Property, plant and equipment, net | 3,079 | 3,049 | |||||
| Goodwill | 8,730 | 8,706 | |||||
| Other non-current assets | 7,143 | 7,561 | |||||
| Total assets | $ | 42,936 | $ | 41,769 | |||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
| Current liabilities: | |||||||
| Notes payable and short-term borrowings | $ | 810 | $ | 845 | |||
| Accounts payable | 19,173 | 18,051 | |||||
| Other current liabilities | 10,223 | 10,362 | |||||
| Total current liabilities | 30,206 | 29,258 | |||||
| Long-term debt | 8,856 | 8,821 | |||||
| Other non-current liabilities | 4,018 | 4,036 | |||||
| Stockholders’ deficit | (144 | ) | (346 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 42,936 | $ | 41,769 | |||
| HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
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| Three months ended | |||||||
| April 30, 2026 | April 30, 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 450 | $ | 406 | |||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
| Depreciation, amortization and impairment | 264 | 205 | |||||
| Stock-based compensation expense | 112 | 140 | |||||
| Restructuring and other charges | 365 | 122 | |||||
| Deferred taxes on earnings | (29 | ) | (60 | ) | |||
| Other, net | (9 | ) | 37 | ||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | (830 | ) | (115 | ) | |||
| Inventory | (475 | ) | 279 | ||||
| Accounts payable | 929 | (1,302 | ) | ||||
| Net investment in leases from integrated financing | (24 | ) | (50 | ) | |||
| Taxes on earnings | (241 | ) | (133 | ) | |||
| Restructuring and other | (92 | ) | (75 | ) | |||
| Other assets and liabilities | 506 | 584 | |||||
| Net cash provided by operating activities | 926 | 38 | |||||
| Cash flows from investing activities: | |||||||
| Net investments in property, plant, equipment and purchased intangibles | (170 | ) | (183 | ) | |||
| Purchases of available-for-sale securities and other investments | (14 | ) | (3 | ) | |||
| Maturities and sales of available-for-sale securities and other investments | 6 | 9 | |||||
| Collateral returned (posted) for derivative instruments | 174 | (540 | ) | ||||
| Payment made in connection with business acquisition, net of cash acquired | (10 | ) | (116 | ) | |||
| Net cash used in investing activities | (14 | ) | (833 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from debt, net of issuance costs | 102 | 1,076 | |||||
| Payment of debt | (81 | ) | (52 | ) | |||
| Stock-based award activities and others | (10 | ) | (26 | ) | |||
| Repurchase of common stock | (100 | ) | (100 | ) | |||
| Cash dividends paid | (274 | ) | (273 | ) | |||
| Settlement of cash flow hedges | — | 6 | |||||
| Net cash (used in) provided by financing activities | (363 | ) | 631 | ||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 549 | (164 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 3,154 | 2,894 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,703 | $ | 2,730 | |||
| HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
|||||||
| Six months ended | |||||||
| April 30, 2026 | April 30, 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 995 | $ | 971 | |||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
| Depreciation, amortization and impairment | 478 | 402 | |||||
| Stock-based compensation expense | 294 | 332 | |||||
| Restructuring and other charges | 491 | 192 | |||||
| Deferred taxes on earnings | (68 | ) | (83 | ) | |||
| Other, net | 22 | 72 | |||||
| Changes in operating assets and liabilities, net of acquisition and divestiture: | |||||||
| Accounts receivable | (466 | ) | 851 | ||||
| Inventory | (735 | ) | (472 | ) | |||
| Accounts payable | 1,137 | (1,699 | ) | ||||
| Net investment in leases from integrated financing | (49 | ) | (48 | ) | |||
| Taxes on earnings | (269 | ) | (121 | ) | |||
| Restructuring and other | (191 | ) | (149 | ) | |||
| Other assets and liabilities | (330 | ) | 164 | ||||
| Net cash provided by operating activities | 1,309 | 412 | |||||
| Cash flows from investing activities: | |||||||
| Net investments in property, plant, equipment and purchased intangibles | (403 | ) | (485 | ) | |||
| Purchases of available-for-sale securities and other investments | (19 | ) | (6 | ) | |||
| Maturities and sales of available-for-sale securities and other investments | 25 | 14 | |||||
| Collateral returned (posted) for derivative instruments | 98 | (540 | ) | ||||
| Payment made in connection with business acquisition, net of cash acquired | (10 | ) | (116 | ) | |||
| Proceeds from business divestiture, net | 26 | — | |||||
| Net cash used in investing activities | (283 | ) | (1,133 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from debt, net of issuance costs | 191 | 1,158 | |||||
| Payment of debt | (168 | ) | (102 | ) | |||
| Stock-based award activities and others | (83 | ) | (118 | ) | |||
| Repurchase of common stock | (425 | ) | (200 | ) | |||
| Cash dividends paid | (551 | ) | (546 | ) | |||
| Settlement of cash flow hedges | — | 6 | |||||
| Net cash (used in) provided by financing activities | (1,036 | ) | 198 | ||||
| Decrease in cash, cash equivalents and restricted cash | (10 | ) | (523 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 3,713 | 3,253 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,703 | $ | 2,730 | |||
| HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) |
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| Three months ended | Change (%) | ||||||||||||||||
| April 30, 2026 | January 31, 2026 | April 30, 2025 | Q/Q | Y/Y | |||||||||||||
| Net revenue:(a) | |||||||||||||||||
| Commercial PS | $ | 7,743 | $ | 7,253 | $ | 6,786 | 7 | % | 14 | % | |||||||
| Consumer PS | 2,470 | 2,998 | 2,238 | (18)% | 10 | % | |||||||||||
| Personal Systems | 10,213 | 10,251 | 9,024 | — | % | 13 | % | ||||||||||
| Supplies | 2,754 | 2,799 | 2,728 | (2)% | 1 | % | |||||||||||
| Commercial Printing | 1,168 | 1,105 | 1,167 | 6 | % | — | % | ||||||||||
| Consumer Printing | 273 | 283 | 302 | (4)% | (10)% | ||||||||||||
| Printing | 4,195 | 4,187 | 4,197 | — | % | — | % | ||||||||||
| Corporate Investments(b) | — | — | — | NM | NM | ||||||||||||
| Total segment net revenue | 14,408 | 14,438 | 13,221 | — | % | 9 | % | ||||||||||
| Other(b) | — | — | (1 | ) | NM | NM | |||||||||||
| Total net revenue | $ | 14,408 | $ | 14,438 | $ | 13,220 | — | % | 9 | % | |||||||
| Earnings before taxes:(a) | |||||||||||||||||
| Personal Systems | $ | 530 | $ | 511 | $ | 409 | |||||||||||
| Printing | 767 | 765 | 804 | ||||||||||||||
| Corporate Investments | (29 | ) | (24 | ) | (27 | ) | |||||||||||
| Total segment earnings from operations | 1,268 | 1,252 | 1,186 | ||||||||||||||
| Corporate and unallocated cost and other | (81 | ) | (75 | ) | (85 | ) | |||||||||||
| Stock-based compensation expense | (112 | ) | (182 | ) | (140 | ) | |||||||||||
| Restructuring and other charges | (365 | ) | (126 | ) | (122 | ) | |||||||||||
| Acquisition and divestiture (charges) credits, net | (4 | ) | 2 | (17 | ) | ||||||||||||
| Amortization of intangible assets | (89 | ) | (56 | ) | (65 | ) | |||||||||||
| Certain litigation charges, net | (5 | ) | (56 | ) | (103 | ) | |||||||||||
| Interest and other, net | (119 | ) | (88 | ) | (148 | ) | |||||||||||
| Total earnings before taxes | $ | 493 | $ | 671 | $ | 506 | |||||||||||
| (a) Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to reflect the transition of the Print-as-a-Service business from Corporate Investments to Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. | |||||||||||||||||
| (b) “NM” represents not meaningful either because the amount is too small or large to be meaningful for comparative purposes. | |||||||||||||||||
| HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) |
|||||||||
| Six months ended | Change (%) | ||||||||
| April 30, 2026 | April 30, 2025 | Y/Y | |||||||
| Net revenue:(a) | |||||||||
| Commercial PS | $ | 14,996 | $ | 13,431 | 12% | ||||
| Consumer PS | 5,468 | 4,817 | 14% | ||||||
| Personal Systems | 20,464 | 18,248 | 12% | ||||||
| Supplies | 5,553 | 5,557 | —% | ||||||
| Commercial Printing | 2,273 | 2,311 | (2)% | ||||||
| Consumer Printing | 556 | 609 | (9)% | ||||||
| Printing | 8,382 | 8,477 | (1)% | ||||||
| Corporate Investments(b) | — | — | NM | ||||||
| Total segment net revenue | 28,846 | 26,725 | 8% | ||||||
| Other(b) | — | (1 | ) | NM | |||||
| Total net revenue | $ | 28,846 | $ | 26,724 | 8% | ||||
| Earnings before taxes:(a) | |||||||||
| Personal Systems | $ | 1,041 | $ | 916 | |||||
| Printing | 1,532 | 1,605 | |||||||
| Corporate Investments | (53 | ) | (45 | ) | |||||
| Total segment earnings from operations | 2,520 | 2,476 | |||||||
| Corporate and unallocated cost and other | (156 | ) | (199 | ) | |||||
| Stock-based compensation expense | (294 | ) | (332 | ) | |||||
| Restructuring and other charges | (491 | ) | (192 | ) | |||||
| Acquisition and divestiture charges, net | (2 | ) | (23 | ) | |||||
| Amortization of intangible assets | (145 | ) | (128 | ) | |||||
| Certain litigation charges, net | (61 | ) | (103 | ) | |||||
| Interest and other, net | (207 | ) | (289 | ) | |||||
| Total earnings before taxes | $ | 1,164 | $ | 1,210 | |||||
| (a) Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to reflect the transition of the Print-as-a-Service business from Corporate Investments to Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. | |||||||||
| (b) “NM” represents not meaningful either because the amount is too small or large to be meaningful for comparative purposes. | |||||||||
| HP INC. AND SUBSIDIARIES SEGMENT OPERATING MARGIN SUMMARY (Unaudited) |
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| Three months ended | Change (pts) | |||||||||||
| April 30, 2026 | January 31, 2026 | April 30, 2025 | Q/Q | Y/Y | ||||||||
| Segment operating margin: | ||||||||||||
| Personal Systems | 5.2 | % | 5.0 | % | 4.5 | % | 0.2 pts | 0.7 pts | ||||
| Printing(a) | 18.3 | % | 18.3 | % | 19.2 | % | — pts | (0.9)pts | ||||
| Corporate Investments(b) | NM | NM | NM | NM | NM | |||||||
| Total segment | 8.8 | % | 8.7 | % | 9.0 | % | 0.1 pts | (0.2)pts | ||||
| Six months ended | Change (pts) | ||||||
| April 30, 2026 | April 30, 2025 | Y/Y | |||||
| Segment operating margin: | |||||||
| Personal Systems | 5.1 | % | 5.0 | % | 0.1 pts | ||
| Printing(a) | 18.3 | % | 18.9 | % | (0.6)pts | ||
| Corporate Investments(b) | NM | NM | NM | ||||
| Total segment | 8.7 | % | 9.3 | % | (0.6)pts | ||
| (a) Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to reflect the transition of the Print-as-a-Service business from Corporate Investments to Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. | |||||||
| (b) “NM” represents not meaningful either because the amount is too small or large to be meaningful for comparative purposes. | |||||||
| HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) |
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| Three months ended | ||||||||
| April 30, 2026 | January 31, 2026 | April 30, 2025 | ||||||
| Numerator: | ||||||||
| GAAP net earnings | $ | 450 | $ | 545 | $ | 406 | ||
| Non-GAAP net earnings | $ | 792 | $ | 753 | $ | 678 | ||
| Denominator: | ||||||||
| Weighted-average shares used to compute basic net earnings per share | 922 | 926 | 950 | |||||
| Dilutive effect of employee stock plans(a) | 3 | 6 | 6 | |||||
| Weighted-average shares used to compute diluted net earnings per share | 925 | 932 | 956 | |||||
| GAAP diluted net earnings per share | $ | 0.49 | $ | 0.58 | $ | 0.42 | ||
| Non-GAAP diluted net earnings per share | $ | 0.86 | $ | 0.81 | $ | 0.71 | ||
| (a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards. | ||||||||
| HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) |
|||||
| Six months ended | |||||
| April 30, 2026 | April 30, 2025 | ||||
| Numerator: | |||||
| GAAP net earnings | $ | 995 | $ | 971 | |
| Non-GAAP net earnings | $ | 1,545 | $ | 1,382 | |
| Denominator: | |||||
| Weighted-average shares used to compute basic net earnings per share | 924 | 949 | |||
| Dilutive effect of employee stock plans(a) | 4 | 7 | |||
| Weighted-average shares used to compute diluted net earnings per share | 928 | 956 | |||
| GAAP diluted net earnings per share | $ | 1.07 | $ | 1.02 | |
| Non-GAAP diluted net earnings per share | $ | 1.66 | $ | 1.45 | |
| (a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards. | |||||
Use of non-GAAP financial measures
To supplement HP’s condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt). HP also provides forecasts of non-GAAP diluted net EPS and free cash flow.
These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables above or elsewhere in the materials accompanying this news release. HP encourages investors to review those reconciliations carefully.
Use and economic substance of non-GAAP financial measures
Net revenue on a constant currency basis excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period. Non-GAAP operating margin is defined to exclude the effects of any amounts relating to restructuring and other charges, acquisition and divestiture (credits) charges, net, amortization of intangible assets and certain litigation (benefits) charges, net. Non-GAAP net earnings and non-GAAP diluted net EPS consist of net earnings or diluted net EPS excluding those same charges, non-operating retirement-related (credits) charges, debt extinguishment (benefits) costs, tax adjustments and the amount of additional taxes or tax benefits associated with each non-GAAP item.
HP’s management uses these non-GAAP financial measures to evaluate HP’s historical and prospective financial performance, enhance period-to-period comparability, and assess HP’s performance relative to its competitors. HP’s management excludes the items mentioned above because they do not believe they are reflective of ongoing operating performance.
HP believes that providing non-GAAP financial measures in addition to the related GAAP financial measures provide investors with greater insight to the information used by HP’s management in its financial and operational decision making and allows investors to see HP’s results “through the eyes” of management. HP further believes that providing this information better enables HP’s investors to understand HP’s operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance and financial condition. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP’s operating performance with the performance of other companies in HP’s industry that supplement their GAAP results with non-GAAP financia
