Second quarter GAAP diluted net earnings per share ("EPS") of $0.49, up 16.7% from the prior year period
Second quarter non-GAAP diluted net EPS of $0.86, up 21.1% from the prior year period
Second quarter net revenue of $14.4 billion, up 9.0% from the prior year period
Second quarter net cash provided by operating activities of $0.9 billion, free cash flow of $0.8 billion
Second quarter returned $374 million to shareholders in the form of dividends and share repurchases
HP Inc.'s fiscal 2026 second quarter financial performance
Q2 FY26
Q2 FY25
Y/Y
GAAP net revenue ($B)
$
14.4
$
13.2
9.0
%
GAAP operating margin
4.2
%
4.9
%
(0.7) pts
GAAP net earnings ($B)
$
0.45
$
0.41
11
%
GAAP diluted net EPS
$
0.49
$
0.42
17
%
Non-GAAP operating margin
7.5
%
7.3
%
0.2 pts
Non-GAAP net earnings ($B)
$
0.79
$
0.68
17
%
Non-GAAP diluted net EPS
$
0.86
$
0.71
21
%
Net cash provided by operating activities ($B)1
$
0.9
$
0.0
NM
Free cash flow ($B)1
$
0.8
$
(0.1
)
NM
Notes to tableInformation about HP Inc.'s use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
1. "NM" represents not meaningful either because the amount is too small or large to be meaningful for comparative purposes.
Net revenue and EPS resultsHP Inc. and its subsidiaries ("HP") announced fiscal 2026 second quarter net revenue of $14.4 billion, up 9.0% (up 6.3% in constant currency) 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.
Asset managementHP's net cash provided by operating activities in the second quarter of fiscal 2026 was $0.9 billion. Accounts receivable ended the quarter at $6.1 billion, up 5 days quarter over quarter to 38 days. Inventory ended the quarter at $9.2 billion, up 5 days quarter over quarter to 73 days. Accounts payable ended the quarter at $19.2 billion, up 10 days quarter over quarter to 151 days.
HP generated $0.8 billion of free cash flow in the second quarter of fiscal 2026. Free cash flow includes net cash provided by operating activities of $0.9 billion adjusted for net investment in leases from integrated financing of $24 million and net investments in property, plant, equipment and purchased intangibles of $170 million.
HP's dividend payment of $0.30 per share in the second quarter resulted in cash usage of $274 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 5.2 million shares of common stock in the open market. HP exited the quarter with $3.7 billion in gross cash, which includes cash and cash equivalents of $3.7 billion and short-term investments of $3 million included in other current assets.
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%.
OutlookFor the fiscal 2026 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.47 to $0.63 and non-GAAP diluted net EPS to be in the range of $0.61 to $0.71. Fiscal 2026 third quarter non-GAAP diluted net EPS estimates exclude $0.08 to $0.14 per diluted share, primarily related to restructuring and other charges, certain litigation charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.
For fiscal 2026, HP is updating its estimate of GAAP diluted net EPS to be in the range of $2.15 to $2.45 and updating its estimate of non-GAAP diluted net EPS to be in the range of $2.90 to $3.10. Fiscal 2026 non-GAAP diluted net EPS estimates exclude $0.65 to $0.75 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, certain litigation (benefits) charges, net, tax adjustments, and the related tax impact on these items.
For fiscal 2026, HP anticipates generating free cash flow in the range of $2.8 to $3.0 billion.
More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at https://investor.hp.com.
HP's FY26 Q2 earnings conference call is accessible via audio webcast at www.hp.com/investor/2026Q2Webcast.
About HP Inc.HP Inc. (NYSE:HPQ) is a global technology leader redefining the Future of Work. Operating in more than 180 countries, HP delivers innovative and AI-powered devices, software, services and subscriptions that drive business growth and professional fulfillment. For more information, please visit https://www.hp.com.
Forward-looking statementsThis document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries which may differ materially from those expressed or implied by such forward-looking statements and assumptions.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the fiscal 2026 plan), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events, including global trade policies, and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief as to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as "future," "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will," "would," "could," "can," "may," and similar terms.
Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to HP's ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; the use of artificial intelligence; the impact of macroeconomic and geopolitical trends, changes and events, including global trade policies, the ongoing military conflict in Ukraine, continued instability in the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, changes in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP's international operations and the effects of business disruption events, including those resulting from climate change; the need to manage (and reliance on) third-party suppliers, including with respect to increasing memory and storage costs, supply constraints and component shortages, and the need to manage HP's global, multi-tier distribution network and potential misuse of pricing programs by HP's channel partners, adapt to new or changing marketplaces and effectively deliver HP's services; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; the competitive pressures faced by HP's businesses; the impact of third-party claims of IP infringement; successfully innovating, developing and executing HP's go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; successfully competing and maintaining the value proposition of HP's products, including supplies and services; challenges to HP's ability to accurately forecast inventories, demand and pricing, which may be due to HP's multi-tiered channel, sales of HP's products to unauthorized resellers or unauthorized resale of HP's products or our uneven sales cycle; the hiring and retention of key employees, changes in our management team and execution of succession plans; the results of our restructuring plans (including the fiscal 2026 plan), including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of our restructuring plans; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; disruptions in operations from system security risks, data protection breaches, or cyberattacks; HP's ability to maintain its credit rating, satisfy its debt obligations and complete any contemplated share repurchases, other capital return programs or other strategic transactions; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; integration and other risks associated with business combination and investment transactions; our aspirations related to environmental and societal matters; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; the effectiveness of our internal control over financial reporting; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2025 and HP's other filings with the Securities and Exchange Commission ("SEC"). HP's fiscal 2026 plan includes HP's efforts to drive customer satisfaction, product innovation, and productivity primarily through artificial intelligence adoption and enablement, and the resulting efficiencies, including those that enable a reduction in workforce. Anticipated cost savings associated with the fiscal 2026 plan represent expected gross reductions in costs from these measures. These cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP's expectations on the longer-term sustainability of such cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP's evolving business models, future investment decisions, market environment and technology landscape.
As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP's Annual Report on Form 10-K for the fiscal year ending October 31, 2026, HP's Quarterly Report on Form 10-Q for the fiscal quarter ending July 31, 2026 and HP's other filings with the SEC. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements.
HP's Investor Relations website at https://investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted. The content of HP's website is not incorporated by reference into this document or in any other report or document HP files with the SEC, and any references to HP's website are intended to be inactive textual references only.
HP INC. AND SUBSIDIARIESCONDENSED 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 SUBSIDIARIESCONDENSED 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 SUBSIDIARIESADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE(Unaudited)(In millions, except per share amounts)
Three months ended
April 30, 2026
January 31, 2026
April 30, 2025
Amounts
Dilutednet earningsper share
Amounts
Dilutednet earningsper share
Amounts
Dilutednet earningsper 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
