Editorial contacts EXHIBIT 99.1
1501 Page Mill Road Palo Alto, CA 94304 hp.com Editorial contacts EXHIBIT 99.1 HP Inc. Media Relations MediaRelations@hp.com HP Inc. Investor Relations InvestorRelations@hp.com News Release HP Inc. Reports Fiscal 2026 Third Quarter Results
PALO ALTO, Calif. – August 26, 2026 (GLOBE NEWSWIRE) – HP (NYSE: HPQ) •Raising fiscal year 2026 earnings per share ("EPS") and free cash flow outlook ────────────────────────────────────────────────────────────────────────────── •Third quarter GAAP diluted net EPS of $0.71, inclusive of an $0.11 favorable impact from tariff refunds, and down 11.3% year over year due in part to one-time tax and litigation benefits in the prior year period •Third quarter non-GAAP diluted net EPS of $0.83, inclusive of an $0.11 favorable impact from tariff refunds, and up 10.7% from the prior year period •Third quarter net revenue of $15.7 billion, up 12.5% from the prior year period •Third quarter net cash provided by operating activities of $1.7 billion, free cash flow of $1.6 billion •Third quarter returned $0.6 billion to shareholders in the form of share repurchases and dividends
Information about HP Inc.'s use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
HP Inc. and its subsidiaries (“HP”) announced fiscal 2026 third quarter net revenue of $15.7 billion, up 12.5% (up 10.9% in constant currency) from the prior-year period.
“In the third quarter we increased both total sales and share in premium products and continued to attract new customers with innovations in WXP, Print, workstations and AI PCs. Our ongoing strategy to address environmental constraints led to meaningful improvements in memory supply and higher fulfillment rates,” said Bruce Broussard, Interim CEO, HP Inc. “The strong foundation we are building as a trusted edge platform positions us well to lead as AI evolves and allows us to help customers improve their AI economics, security, latency and governance.”
“We delivered another strong quarter, with record third quarter revenue, EPS above the top of our guidance range, and are raising our guidance for FY26,” said Karen Parkhill, CFO, HP Inc. “With three solid quarters behind us, we've demonstrated our ability to navigate through a challenging cost environment and are building on that momentum to further mitigate near-term cost pressures while continuing to invest for long-term profitable growth.”
Third quarter GAAP diluted net EPS was $0.71, down from $0.80 in the prior-year period and above the previously provided outlook of $0.47 to $0.63. Third quarter non-GAAP diluted net EPS was $0.83, up from $0.75 in the prior-year period and above the previously provided outlook of $0.61 to $0.71. Both GAAP and non-GAAP diluted net EPS included an $0.11 favorable impact from tariff refunds. Third 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.
HP's net cash provided by operating activities in the third quarter of fiscal 2026 was $1.7 billion. Accounts receivable ended the quarter at $7.2 billion, up 3 days quarter over quarter to 41 days. Inventory ended the quarter at $10.3 billion, flat quarter over quarter at 73 days. Accounts payable ended the quarter at $21.4 billion, flat quarter over quarter at 151 days.
HP generated $1.6 billion of free cash flow in the third quarter of fiscal 2026. Free cash flow includes net cash provided by operating activities of $1.7 billion adjusted for net investment in leases from integrated financing of $20 million and net investments in property, plant, equipment and purchased intangibles of $187 million.
HP’s dividend payment of $0.30 per share in the third quarter resulted in cash usage of $274 million. HP also utilized $300 million of cash during the quarter to repurchase approximately 12.2 million shares of common stock in the open market. HP exited the quarter with $4.2 billion in gross cash, which includes cash and cash equivalents of $4.2 billion and short-term investments of $3 million included in other current assets.
• Personal Systems net revenue was $11.8 billion, up 18% year over year (up 17% in constant currency) with a 4.6% operating margin. Consumer PS net revenue was up 10% and Commercial PS net revenue was up 22%. Total units were down 16% with Consumer PS units down 19% and Commercial PS units down 14%.
• Printing net revenue was $3.9 billion, down 2% year over year (down 4% in constant currency) with an 18.1% operating margin. Consumer Printing net revenue was down 2% and Commercial Printing net revenue was down 1%. Supplies net revenue was down 3% (down 4% in constant currency). Total hardware units were down 7%, with Consumer Printing units down 9% and Commercial Printing units down 2%.
For the fiscal 2026 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.74 to $0.84 and non-GAAP diluted net EPS to be in the range of $0.69 to $0.79, with both including an $0.08 favorable impact from estimated tariff refunds. Fiscal 2026 fourth quarter non-GAAP diluted net EPS estimates exclude $(0.05) per diluted share, primarily related to restructuring and other charges, certain litigation (benefits) charges, net, 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 raising its estimate of GAAP diluted net EPS to be in the range of $2.52 to $2.62 and raising its estimate of non-GAAP diluted net EPS to be in the range of $3.19 to $3.29, with both including a $0.19 favorable impact from estimated tariff refunds. Fiscal 2026 non-GAAP diluted net EPS estimates exclude $0.67 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 is also raising its estimate of free cash flow to be in the range of $3.0 to $3.2 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 Q3 earnings conference call is accessible via audio webcast at www.hp.com/investor/2026Q3Webcast .
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 .
This 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 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 SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)
HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)
Nine months ended July 31, 2026 July 31, 2025 ────────────────────────────────────────────────────────────────────────────── Net revenue: Products $ 41,986 $ 38,232 Services 2,537 2,424 Total net revenue 44,523 40,656 Cost of net revenue: Products 34,312 30,800 Services 1,415 1,426 Total cost of net 35,727 32,226 revenue Gross profit 8,796 8,430 Research and 1,213 1,204 development Selling, general and 4,555 4,391 administrative Restructuring and 539 302 other charges Acquisition and divestiture charges, 6 31 net Amortization of 220 287 intangible assets Total operating 6,533 6,215 expenses Earnings from 2,263 2,215 operations Interest and other, -301 -381 net Earnings before 1,962 1,834 taxes Provision for taxes -306 -100 Net earnings $ 1,656 $ 1,734 Net earnings per share: Basic $ 1.80 $ 1.83 Diluted $ 1.79 $ 1.82 Cash dividends $ 1.20 $ 1.16 declared per share Weighted-average shares used to compute net earnings per share: Basic 922 948 Diluted 927 955
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)
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)
HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions)
As of July 31, 2026 October 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash, cash equivalents and restricted $ 4,169 $ 3,705 cash Accounts receivable, net 7,168 5,692 Inventory 10,322 8,512 Other current assets 5,087 4,544 Total current assets 26,746 22,453 Property, plant and 3,110 3,049 equipment, net Goodwill 8,726 8,706 Other non-current assets 7,119 7,561 Total assets $ 45,701 $ 41,769 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Notes payable and short-term $ 1,292 $ 845 borrowings Accounts payable 21,383 18,051 Other current liabilities 11,288 10,362 Total current liabilities 33,963 29,258 Long-term debt 7,868 8,821 Other non-current liabilities 3,962 4,036 Stockholders' deficit -92 -346 Total liabilities and stockholders' $ 45,701 $ 41,769 deficit
HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
Three months ended July 31, 2026 July 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net earnings $ 661 $ 763 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation, amortization and 244 306 impairment Stock-based compensation 95 100 expense Restructuring and 48 110 other charges Deferred taxes on -42 16 earnings Other, net 104 31 Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable -1,065 -797 Inventory -1,167 -199 Accounts payable 2,186 1,793 Net investment in leases from -20 -23 integrated financing Taxes on earnings 85 -239 Restructuring and -65 -89 other Other assets and 671 -111 liabilities Net cash provided by operating 1,735 1,661 activities Cash flows from investing activities: Net investments in property, plant, equipment and -187 -215 purchased intangibles Purchases of available-for-sale -2 -17 securities and other investments Maturities and sales of available-for-sale 7 55 securities and other investments Collateral returned for derivative — 197 instruments Net cash (used in) provided by -182 20 investing activities Cash flows from financing activities: Proceeds from debt, net of issuance 100 90 costs Payment of debt -602 -1,210 Stock-based award activities and -11 5 others Repurchase of -300 -150 common stock Cash dividends paid -274 -272 Net cash used in financing -1,087 -1,537 activities Increase in cash, cash equivalents 466 144 and restricted cash Cash, cash equivalents and restricted 3,703 2,730 cash at beginning of period Cash, cash equivalents and restricted $ 4,169 $ 2,874 cash at end of period
HP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
Nine months ended July 31, 2026 July 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net earnings $ 1,656 $ 1,734 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation, amortization and 722 708 impairment Stock-based 389 432 compensation expense Restructuring and 539 302 other charges Deferred taxes on -110 -67 earnings Other, net 126 103 Changes in operating assets and liabilities, net of acquisition and divestiture:
Accounts receivable -1,531 54 Inventory -1,902 -671 Accounts payable 3,323 94 Net investment in leases from -69 -71 integrated financing Taxes on earnings -184 -360 Restructuring and -256 -238 other Other assets and 341 53 liabilities Net cash provided by operating 3,044 2,073 activities Cash flows from investing activities: Net investments in property, plant, equipment and -590 -700 purchased intangibles Purchases of available-for-sale -21 -23 securities and other investments Maturities and sales of available-for-sale 32 69 securities and other investments Collateral returned (posted) for 98 -343 derivative instruments Payment made in connection with business -10 -116 acquisition, net of cash acquired Proceeds from business 26 — divestiture, net Net cash used in -465 -1,113 investing activities Cash flows from financing activities: Proceeds from debt, net of issuance 291 1,248 costs Payment of debt -770 -1,312 Stock-based award activities and -94 -113 others Repurchase of common -725 -350 stock Cash dividends paid -825 -818 Settlement of cash — 6 flow hedges Net cash used in -2,123 -1,339 financing activities Increase (decrease) in cash, cash 456 -379 equivalents and restricted cash Cash, cash equivalents and restricted 3,713 3,253 cash at beginning of period(a) Cash, cash equivalents and restricted $ 4,169 $ 2,874 cash at end of period
(a) Includes cash held for sale of $8 million recorded within Other current assets as of October 31, 2025.
HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)
(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.
(c) Three months ended July 31, 2025 includes a gain from a single litigation matter that does not relate to HP's ongoing business operations.
HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)
(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.
(c) Nine months ended July 31, 2025 includes a gain from a single litigation matter that does not relate to HP's ongoing business operations.
(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)
Three months July 31, April 30, July 31, ended 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Numerator: GAAP net $ 661 $ 450 $ 763 earnings Non-GAAP net $ 772 $ 792 $ 713 earnings Denominat… Weighted-… shares used to compute 919 922 947 basic net earnings per share Dilutive effect of employee 8 3 7 stock plans(a) Weighted-… shares used to compute 927 925 954 diluted net earnings per share GAAP diluted net $ 0.71 $ 0.49 $ 0.80 earnings per share Non-GAAP diluted net $ 0.83 $ 0.86 $ 0.75 earnings per share
(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)
Nine months ended July 31, 2026 July 31, 2025 ────────────────────────────────────────────────────────────────────────────── Numerator: GAAP net earnings $ 1,656 $ 1,734 Non-GAAP net $ 2,317 $ 2,095 earnings Denominator: Weighted-average shares used to compute 922 948 basic net earnings per share Dilutive effect of employee stock 5 7 plans(a) Weighted-average shares used to compute 927 955 diluted net earnings per share GAAP diluted net $ 1.79 $ 1.82 earnings per share Non-GAAP diluted net $ 2.50 $ 2.19 earnings per share
(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.
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 expenses, 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.
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 financial measures that may be calculated in a similar manner.
HP excludes each of those items mentioned above, which are described in further detail below:
• Restructuring and other charges are (i) costs associated with a formal restructuring plan and are primarily related to employee separation from service and early retirement costs and related benefits, costs of real estate consolidation and other non-labor charges; and (ii) other charges, which are distinct from ongoing operational costs and primarily include: third party professional services and other non-recurring costs, including costs relating to artificial intelligence adoption and enablement and information technology rationalization efforts. Effective second quarter of fiscal 2026, other charges also include CEO transition costs, which comprises of executive hiring and retention costs.
• Charges/ (credits) related to its acquisitions and divestitures are gains or losses on divestitures, direct expenses such as third-party professional and legal fees, integration and divestiture-related costs, as well as non-cash adjustments to the fair value of certain acquired assets such as inventory and certain compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units towards acquisitions. These (credits)/ charges related to acquisitions and divestitures are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP's acquisitions or divestitures.
• Charges relating to the amortization of intangible assets are included in HP’s GAAP earnings, operating margin, net earnings and diluted net EPS. Such charges are significantly impacted by the timing and magnitude of HP’s acquisitions and any related impairment charges.
• HP recorded certain litigation (benefits) charges, net, that include (1) amounts relating to settlement of backward-looking claims that arise from certain existing or threatened Standard Essential Patent (“SEP”) litigation that is distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business and (2) a gain from a single litigation matter that does not relate to HP's ongoing business operations for the three and nine months ended July 31, 2025.
• Debt extinguishment (benefits) costs include certain (gain)/ loss related to the repurchase of certain of HP’s outstanding U.S. dollar global notes or termination of commitments under revolving credit facilities. This (gain)/loss resulting from debt redemption transactions are partially or more than offset by costs such as bond repurchase premiums, bank fees, unpaid accrued interests, etc.
• Non-operating retirement-related (credits) charges include certain market- related factors such as interest cost, expected return on plan assets, amortized actuarial gains or losses, associated with HP’s defined benefit pension and post-retirement benefit plans. The market-driven retirement-related adjustments are primarily due to the changes in the value of pension plan assets and liabilities which are tied to financial market performance. Non-operating retirement-related (credits) charges also include certain plan curtailments, settlements and special termination benefits related to HP’s defined benefit pension and post-retirement benefit plans.
• Recorded tax adjustments include tax expenses and benefits from internal reorganizations, realizability of certain deferred tax assets, various tax rate and regulatory changes, and tax settlements across various jurisdictions. The non-GAAP tax rate is designed to reflect the tax effects of HP’s ongoing operations.
Free cash flow is a non-GAAP measure that is defined as cash flow from operating activities adjusted for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangibles. Gross cash is a non-GAAP measure defined as cash, cash equivalents and restricted cash plus short-term investments. Management uses free cash flow and gross cash to assess the amount of cash available for liquidity, including for investment in the business, share repurchases, and other purposes, and to evaluate HP’s historical and expected liquidity. HP believes gross cash provides a useful view of liquidity because it includes certain liquid assets not included in cash, cash equivalents and restricted cash. HP believes free cash flow provides a useful view of liquidity and capital resources because it adjusts operating cash flow for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangibles. Net cash (debt) is defined as gross cash less gross debt, adjusted for the effects of unamortized premium/ discounts on debt issuance, debt issuance costs, and unrealized gains/ losses on interest rate swaps.
These non-GAAP financial measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP, and may differ from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. HP believes non-GAAP measures have inherent limitations in that they do not reflect all of the amounts associated with HP’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate HP’s results of operations in conjunction with the corresponding GAAP measures. HP may continue to incur expenses similar to the non-GAAP adjustments described above in future periods.
In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than HP, limiting the usefulness of those measures for comparative purposes.
HP accounts for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally.
Full text with the tables
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Editorial contacts EXHIBIT 99.1
HP Inc. Media Relations
MediaRelations@hp.com
HP Inc. Investor Relations
InvestorRelations@hp.com
News Release
HP Inc. Reports Fiscal 2026 Third Quarter Results
PALO ALTO, Calif. – August 26, 2026 (GLOBE NEWSWIRE) – HP (NYSE: HPQ)
•Raising fiscal year 2026 earnings per share ("EPS") and free cash flow
outlook
──────────────────────────────────────────────────────────────────────────────
•Third quarter GAAP diluted net EPS of $0.71,
inclusive of an $0.11 favorable impact from tariff
refunds, and down 11.3% year over year due in part
to one-time tax and litigation benefits in the
prior year period
•Third quarter non-GAAP diluted net EPS of $0.83,
inclusive of an $0.11 favorable impact from tariff
refunds, and up 10.7% from the prior year period
•Third quarter net revenue of $15.7 billion, up
12.5% from the prior year period
•Third quarter net cash provided by operating
activities of $1.7 billion, free cash flow of $1.6
billion
•Third quarter returned $0.6 billion to
shareholders in the form of share repurchases and
dividends
HP Inc.'s fiscal
2026 third
quarter
financial
performance Q3 FY26 Q3 FY25 Y/Y
──────────────────────────────────────────────────────────────────────────────
GAAP net revenue $ 15.7 $ 13.9 12.5 %
($B)
GAAP operating 5.7 % 5.1 % 0.6 pts
margin
GAAP net $ 0.66 $ 0.76 (13 %)
earnings ($B)
GAAP diluted net $ 0.71 $ 0.80 (11 %)
EPS
Non-GAAP 6.5 % 7.1 % (0.6) pts
operating margin
Non-GAAP net $ 0.77 $ 0.71 8 %
earnings ($B)
Non-GAAP diluted $ 0.83 $ 0.75 11 %
net EPS
Net cash
provided by $ 1.74 $ 1.66 4 %
operating
activities ($B)
Free cash flow $ 1.57 $ 1.47 7 %
($B)
Notes to table
Information about HP Inc.'s use of non-GAAP financial information is provided
under "Use of non-GAAP financial information" below.
Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2026 third quarter net
revenue of $15.7 billion, up 12.5% (up 10.9% in constant currency) from the
prior-year period.
“In the third quarter we increased both total sales and share in premium
products and continued to attract new customers with innovations in WXP, Print,
workstations and AI PCs. Our ongoing strategy to address environmental
constraints led to meaningful improvements in memory supply and higher
fulfillment rates,” said Bruce Broussard, Interim CEO, HP Inc. “The strong
foundation we are building as a trusted edge platform positions us well to lead
as AI evolves and allows us to help customers improve their AI economics,
security, latency and governance.”
“We delivered another strong quarter, with record third quarter revenue, EPS
above the top of our guidance range, and are raising our guidance for FY26,”
said Karen Parkhill, CFO, HP Inc. “With three solid quarters behind us, we've
demonstrated our ability to navigate through a challenging cost environment and
are building on that momentum to further mitigate near-term cost pressures while
continuing to invest for long-term profitable growth.”
Third quarter GAAP diluted net EPS was $0.71, down from $0.80 in the prior-year
period and above the previously provided outlook of $0.47 to $0.63. Third
quarter non-GAAP diluted net EPS was $0.83, up from $0.75 in the prior-year
period and above the previously provided outlook of $0.61 to $0.71. Both GAAP
and non-GAAP diluted net EPS included an $0.11 favorable impact from tariff
refunds. Third 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 management
HP's net cash provided by operating activities in the third quarter of fiscal
2026 was $1.7 billion. Accounts receivable ended the quarter at $7.2 billion, up
3 days quarter over quarter to 41 days. Inventory ended the quarter at $10.3
billion, flat quarter over quarter at 73 days. Accounts payable ended the
quarter at $21.4 billion, flat quarter over quarter at 151 days.
HP generated $1.6 billion of free cash flow in the third quarter of fiscal 2026.
Free cash flow includes net cash provided by operating activities of $1.7
billion adjusted for net investment in leases from integrated financing of $20
million and net investments in property, plant, equipment and purchased
intangibles of $187 million.
HP’s dividend payment of $0.30 per share in the third quarter resulted in cash
usage of $274 million. HP also utilized $300 million of cash during the quarter
to repurchase approximately 12.2 million shares of common stock in the open
market. HP exited the quarter with $4.2 billion in gross cash, which includes
cash and cash equivalents of $4.2 billion and short-term investments of $3
million included in other current assets.
Fiscal 2026 third quarter segment results
• Personal Systems net revenue was $11.8 billion, up 18% year over year (up 17%
in constant currency) with a 4.6% operating margin. Consumer PS net revenue was
up 10% and Commercial PS net revenue was up 22%. Total units were down 16% with
Consumer PS units down 19% and Commercial PS units down 14%.
• Printing net revenue was $3.9 billion, down 2% year over year (down 4% in
constant currency) with an 18.1% operating margin. Consumer Printing net revenue
was down 2% and Commercial Printing net revenue was down 1%. Supplies net
revenue was down 3% (down 4% in constant currency). Total hardware units were
down 7%, with Consumer Printing units down 9% and Commercial Printing units down
2%.
Outlook
For the fiscal 2026 fourth quarter, HP estimates GAAP diluted net EPS to be in
the range of $0.74 to $0.84 and non-GAAP diluted net EPS to be in the range of
$0.69 to $0.79, with both including an $0.08 favorable impact from estimated
tariff refunds. Fiscal 2026 fourth quarter non-GAAP diluted net EPS estimates
exclude $(0.05) per diluted share, primarily related to restructuring and other
charges, certain litigation (benefits) charges, net, 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 raising its estimate of GAAP diluted net EPS to be in the
range of $2.52 to $2.62 and raising its estimate of non-GAAP diluted net EPS to
be in the range of $3.19 to $3.29, with both including a $0.19 favorable impact
from estimated tariff refunds. Fiscal 2026 non-GAAP diluted net EPS estimates
exclude $0.67 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 is also raising its estimate of free cash flow to be in the
range of $3.0 to $3.2 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 Q3 earnings conference call is accessible via audio webcast at
www.hp.com/investor/2026Q3Webcast .
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 statements
This 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 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 SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
Three
months July 31, April 30, July 31,
ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
revenue:
Products $ 14,825 $ 13,563 $ 13,114
Services 852 845 818
Total net 15,677 14,408 13,932
revenue
Cost of
net
revenue:
Products 12,256 10,918 10,599
Services 476 474 482
Total cost
of net 12,732 11,392 11,081
revenue
Gross 2,945 3,016 2,851
profit
Research
and 389 432 406
developme…
Selling,
general 1,537 1,514 1,452
and
administr…
Restructu…
and other 48 365 110
charges
Acquisiti…
and
divestitu… 4 4 8
charges,
net
Amortizat…
of 75 89 159
intangible
assets
Total
operating 2,053 2,404 2,135
expenses
Earnings
from 892 612 716
operations
Interest
and other, -94 -119 -92
net
Earnings
before 798 493 624
taxes
(Provision
for) -137 -43 139
benefits
from taxes
Net $ 661 $ 450 $ 763
earnings
Net
earnings
per share:
Basic $ 0.72 $ 0.49 $ 0.81
Diluted $ 0.71 $ 0.49 $ 0.80
Cash
dividends $ 0.60 $ — $ 0.58
declared
per share
Weighted-…
shares
used to
compute
net
earnings
per share:
Basic 919 922 947
Diluted 927 925 954
HP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
Nine months ended July 31, 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Net revenue:
Products $ 41,986 $ 38,232
Services 2,537 2,424
Total net revenue 44,523 40,656
Cost of net revenue:
Products 34,312 30,800
Services 1,415 1,426
Total cost of net 35,727 32,226
revenue
Gross profit 8,796 8,430
Research and 1,213 1,204
development
Selling, general and 4,555 4,391
administrative
Restructuring and 539 302
other charges
Acquisition and
divestiture charges, 6 31
net
Amortization of 220 287
intangible assets
Total operating 6,533 6,215
expenses
Earnings from 2,263 2,215
operations
Interest and other, -301 -381
net
Earnings before 1,962 1,834
taxes
Provision for taxes -306 -100
Net earnings $ 1,656 $ 1,734
Net earnings per
share:
Basic $ 1.80 $ 1.83
Diluted $ 1.79 $ 1.82
Cash dividends $ 1.20 $ 1.16
declared per share
Weighted-average
shares used to
compute
net earnings per
share:
Basic 922 948
Diluted 927 955
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)
T…
m…
e…
J… A… J…
3… 3… 3…
2… 2… 2…
──────────────────────────────────────────────────────────────────────────────
D… D… Di…
n… n… net
A… e… A… e… A… ea…
p… p… per
s… s… sh…
…
… $ 6… $ 0… $ 4… $ 0.… $ 7… $ 0…
…
…
…
…
… 48 0… 3… 0.… 1… 0…
…
…
…
…
… 4 0… 4 — 8 —
…
…
…
… 75 0… 89 0.… 1… 0…
…
…
…
…
… 2 — 5 0.… -… -…
…
…
…
… -7 -… -… -0… -2 —
…
… -… -… -… -0… -… -…
…
…
… $ 7… $ 0… $ 7… $ 0.… $ 7… $ 0…
…
…
… $ 8… $ 6… $ 7…
…
…
…
…
…
… 48 3… 1…
…
…
…
…
… 4 4 8
…
…
…
… 75 89 1…
…
…
…
… 2 5 2
…
…
…
… $ 1… $ 1… $ 9…
…
…
…
… 5… % 4… % 5.1 %
…
… 0… % 3… % 2.0 %
…
…
… 6… % 7… % 7.1 %
…
(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)
Nine
mont…
ended
July July
31, 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Dilu… Dilu…
net net
Amou… earn… Amou… earn…
per per
share share
GAAP
net $ 1,656 $ 1.79 $ 1,7… $ 1.82
ear…
Non…
adj…
Res…
and 539 0.58 302 0.32
oth…
cha…
Acq…
and
div… 6 0.01 31 0.02
cha…
net
Amo…
of 220 0.24 287 0.30
int…
ass…
Cer…
lit… 63 0.07 53 0.06
cha…
net
Non…
ret… -31 -0.04 -13 -0.…
cre…
Tax -136 -0.15 -299 -0.…
adj…
Non…
net $ 2,317 $ 2.50 $ 2,0… $ 2.19
ear…
GAAP
ear… $ 2,263 $ 2,2…
from
ope…
Non…
adj…
Res…
and 539 302
oth…
cha…
Acq…
and
div… 6 31
cha…
net
Amo…
of 220 287
int…
ass…
Cer…
lit… 63 105
cha…
net
Non…
ear… $ 3,091 $ 2,9…
from
ope…
GAAP
ope… 5.1 % 5.4 %
mar…
Non… 1.8 % 1.8 %
adj…
Non…
ope… 6.9 % 7.2 %
mar…
(a) Includes tax impact on non-GAAP adjustments.
HP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
As of July 31, 2026 October 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash, cash equivalents and
restricted $ 4,169 $ 3,705
cash
Accounts receivable, net 7,168 5,692
Inventory 10,322 8,512
Other current assets 5,087 4,544
Total current assets 26,746 22,453
Property, plant and 3,110 3,049
equipment, net
Goodwill 8,726 8,706
Other non-current assets 7,119 7,561
Total assets $ 45,701 $ 41,769
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Notes payable and short-term $ 1,292 $ 845
borrowings
Accounts payable 21,383 18,051
Other current liabilities 11,288 10,362
Total current liabilities 33,963 29,258
Long-term debt 7,868 8,821
Other non-current liabilities 3,962 4,036
Stockholders' deficit -92 -346
Total liabilities and
stockholders' $ 45,701 $ 41,769
deficit
HP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Three months ended July 31, 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities:
Net earnings $ 661 $ 763
Adjustments to
reconcile net
earnings to
net cash provided
by operating
activities:
Depreciation,
amortization and 244 306
impairment
Stock-based
compensation 95 100
expense
Restructuring and 48 110
other charges
Deferred taxes on -42 16
earnings
Other, net 104 31
Changes in
operating assets
and
liabilities, net of
acquisitions:
Accounts receivable -1,065 -797
Inventory -1,167 -199
Accounts payable 2,186 1,793
Net investment in
leases from -20 -23
integrated
financing
Taxes on earnings 85 -239
Restructuring and -65 -89
other
Other assets and 671 -111
liabilities
Net cash provided
by operating 1,735 1,661
activities
Cash flows from
investing
activities:
Net investments in
property, plant,
equipment and -187 -215
purchased
intangibles
Purchases of
available-for-sale -2 -17
securities and
other investments
Maturities and
sales of
available-for-sale 7 55
securities and
other
investments
Collateral returned
for derivative — 197
instruments
Net cash (used in)
provided by -182 20
investing
activities
Cash flows from
financing
activities:
Proceeds from debt,
net of issuance 100 90
costs
Payment of debt -602 -1,210
Stock-based award
activities and -11 5
others
Repurchase of -300 -150
common stock
Cash dividends paid -274 -272
Net cash used in
financing -1,087 -1,537
activities
Increase in cash,
cash equivalents 466 144
and
restricted cash
Cash, cash
equivalents and
restricted 3,703 2,730
cash at beginning
of period
Cash, cash
equivalents and
restricted $ 4,169 $ 2,874
cash at end of
period
HP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Nine months ended July 31, 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities:
Net earnings $ 1,656 $ 1,734
Adjustments to
reconcile net
earnings to
net cash provided by
operating
activities:
Depreciation,
amortization and 722 708
impairment
Stock-based 389 432
compensation expense
Restructuring and 539 302
other charges
Deferred taxes on -110 -67
earnings
Other, net 126 103
Changes in operating
assets and
liabilities, net of
acquisition and
divestiture:
Accounts receivable -1,531 54
Inventory -1,902 -671
Accounts payable 3,323 94
Net investment in
leases from -69 -71
integrated
financing
Taxes on earnings -184 -360
Restructuring and -256 -238
other
Other assets and 341 53
liabilities
Net cash provided by
operating 3,044 2,073
activities
Cash flows from
investing
activities:
Net investments in
property, plant,
equipment and -590 -700
purchased
intangibles
Purchases of
available-for-sale -21 -23
securities and other
investments
Maturities and sales
of
available-for-sale 32 69
securities and other
investments
Collateral returned
(posted) for 98 -343
derivative
instruments
Payment made in
connection with
business -10 -116
acquisition, net of
cash acquired
Proceeds from
business 26 —
divestiture, net
Net cash used in -465 -1,113
investing activities
Cash flows from
financing
activities:
Proceeds from debt,
net of issuance 291 1,248
costs
Payment of debt -770 -1,312
Stock-based award
activities and -94 -113
others
Repurchase of common -725 -350
stock
Cash dividends paid -825 -818
Settlement of cash — 6
flow hedges
Net cash used in -2,123 -1,339
financing activities
Increase (decrease)
in cash, cash 456 -379
equivalents and
restricted cash
Cash, cash
equivalents and
restricted 3,713 3,253
cash at beginning of
period(a)
Cash, cash
equivalents and
restricted $ 4,169 $ 2,874
cash at end of
period
(a) Includes cash held for sale of $8 million recorded within Other current
assets as of October 31, 2025.
HP INC. AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Three July April July
mont… 31, 30, 31, Chan…
ended 2026 2026 2025 (%) Q/Q Y/Y
──────────────────────────────────────────────────────────────────────────────
Net
rev…
Com… $ 8,579 $ 7,743 $ 7,036 11 % 22 %
PS
Con… 3,188 2,470 2,895 29 % 10 %
PS
Per… 11,7… 10,2… 9,931 15 % 18 %
Sys…
Sup… 2,536 2,754 2,609 -8 % -3 %
Com… 1,101 1,168 1,113 -6 % -1 %
Pri…
Con… 275 273 280 1 % -2 %
Pri…
Pri… 3,912 4,195 4,002 -7 % -2 %
Cor… — — — NM NM
Inv…
Tot…
seg… 15,6… 14,4… 13,933 9 % 13 %
net
rev…
Oth… -2 — -1 NM NM
Tot…
net $ 15,6… $ 14,4… $ 13,932 9 % 13 %
rev…
Ear…
bef…
tax…
Per… $ 537 $ 530 $ 541
Sys…
Pri… 709 767 681
Cor… -28 -29 -24
Inv…
Tot…
seg…
ear… 1,218 1,268 1,198
from
ope…
Cor…
and
una… -102 -81 -103
cost
and
oth…
Sto…
com… -95 -112 -100
exp…
Res…
and -48 -365 -110
oth…
cha…
Acq…
and
div… -4 -4 -8
cha…
net
Amo…
of -75 -89 -159
int…
ass…
Cer…
lit… -2 -5 -2
cha…
net
Int…
and -94 -119 -92
oth…
net…
Tot…
ear… $ 798 $ 493 $ 624
bef…
tax…
(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.
(c) Three months ended July 31, 2025 includes a gain from a single litigation
matter that does not relate to HP's ongoing business operations.
HP INC. AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Nine
months July 31, July 31,
ended 2026 2025 Change (%) Y/Y
──────────────────────────────────────────────────────────────────────────────
Net
revenue:…
Commerci… $ 23,575 $ 20,467 15 %
PS
Consumer 8,656 7,712 12 %
PS
Personal 32,231 28,179 14 %
Systems
Supplies 8,089 8,166 -1 %
Commerci… 3,374 3,424 -1 %
Printing
Consumer 831 889 -7 %
Printing
Printing 12,294 12,479 -1 %
Corporate — — NM
Investme…
Total
segment 44,525 40,658 10 %
net
revenue
Other(b) -2 -2 NM
Total net $ 44,523 $ 40,656 10 %
revenue
Earnings
before
taxes:(a)
Personal $ 1,578 $ 1,457
Systems
Printing 2,241 2,286
Corporate -81 -69
Investme…
Total
segment
earnings 3,738 3,674
from
operatio…
Corporate
and
unalloca… -258 -302
cost and
other
Stock-ba…
compensa… -389 -432
expense
Restruct…
and other -539 -302
charges
Acquisit…
and
divestit… -6 -31
charges,
net
Amortiza…
of -220 -287
intangib…
assets
Certain
litigati… -63 -105
charges,
net
Interest
and -301 -381
other,
net(c)
Total
earnings $ 1,962 $ 1,834
before
taxes
(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.
(c) Nine months ended July 31, 2025 includes a gain from a single litigation
matter that does not relate to HP's ongoing business operations.
HP INC. AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY
(Unaudited)
Th… Ju… Ap… Ju…
mo… 31, 30, 31, Ch…
en… 20… 20… 20… (p… Q/Q Y/Y
──────────────────────────────────────────────────────────────────────────────
S…
o…
m…
P… 4.6 % 5.2 % 5.4 % -0.6 pts -0… pts
S…
P… 18… % 18… % 17… % -0.2 pts 1.1 pts
C… NM NM NM NM NM
I…
T… 7.8 % 8.8 % 8.6 % -1.0 pts -0… pts
s…
Nine
months July 31, July 31, Change
ended 2026 2025 (pts) Y/Y
──────────────────────────────────────────────────────────────────────────────
Segment
operat…
margin:
Person… 4.9 % 5.2 % -0.3 pts
Systems
Printi… 18.2 % 18.3 % -0.1 pts
Corpor… NM NM NM
Invest…
Total 8.4 % 9.0 % -0.6 pts
segment
(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)
Three
months July 31, April 30, July 31,
ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Numerator:
GAAP net $ 661 $ 450 $ 763
earnings
Non-GAAP
net $ 772 $ 792 $ 713
earnings
Denominat…
Weighted-…
shares
used to
compute 919 922 947
basic net
earnings
per share
Dilutive
effect of
employee 8 3 7
stock
plans(a)
Weighted-…
shares
used to
compute 927 925 954
diluted
net
earnings
per share
GAAP
diluted
net $ 0.71 $ 0.49 $ 0.80
earnings
per share
Non-GAAP
diluted
net $ 0.83 $ 0.86 $ 0.75
earnings
per share
(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)
Nine months ended July 31, 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Numerator:
GAAP net earnings $ 1,656 $ 1,734
Non-GAAP net $ 2,317 $ 2,095
earnings
Denominator:
Weighted-average
shares used to
compute 922 948
basic net earnings
per share
Dilutive effect of
employee stock 5 7
plans(a)
Weighted-average
shares used to
compute 927 955
diluted net earnings
per share
GAAP diluted net $ 1.79 $ 1.82
earnings per share
Non-GAAP diluted net $ 2.50 $ 2.19
earnings per share
(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
expenses, 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 financial measures
that may be calculated in a similar manner.
HP excludes each of those items mentioned above, which are described in further
detail below:
• Restructuring and other charges are (i) costs associated with a formal
restructuring plan and are primarily related to employee separation from service
and early retirement costs and related benefits, costs of real estate
consolidation and other non-labor charges; and (ii) other charges, which are
distinct from ongoing operational costs and primarily include: third party
professional services and other non-recurring costs, including costs relating to
artificial intelligence adoption and enablement and information technology
rationalization efforts. Effective second quarter of fiscal 2026, other charges
also include CEO transition costs, which comprises of executive hiring and
retention costs.
• Charges/ (credits) related to its acquisitions and divestitures are gains or
losses on divestitures, direct expenses such as third-party professional and
legal fees, integration and divestiture-related costs, as well as non-cash
adjustments to the fair value of certain acquired assets such as inventory and
certain compensation charges related to cash settlement of restricted stock
units and performance-based restricted stock units towards acquisitions. These
(credits)/ charges related to acquisitions and divestitures are inconsistent in
amount and frequency and are significantly impacted by the timing and nature of
HP's acquisitions or divestitures.
• Charges relating to the amortization of intangible assets are included in HP’s
GAAP earnings, operating margin, net earnings and diluted net EPS. Such charges
are significantly impacted by the timing and magnitude of HP’s acquisitions and
any related impairment charges.
• HP recorded certain litigation (benefits) charges, net, that include (1)
amounts relating to settlement of backward-looking claims that arise from
certain existing or threatened Standard Essential Patent (“SEP”) litigation that
is distinctive and substantial when compared to other intellectual property
litigation that HP incurs
in the ordinary course of business and (2) a gain from a single litigation
matter that does not relate to HP's ongoing business operations for the three
and nine months ended July 31, 2025.
• Debt extinguishment (benefits) costs include certain (gain)/ loss related to
the repurchase of certain of HP’s outstanding U.S. dollar global notes or
termination of commitments under revolving credit facilities. This (gain)/loss
resulting from debt redemption transactions are partially or more than offset by
costs such as bond repurchase premiums, bank fees, unpaid accrued interests,
etc.
• Non-operating retirement-related (credits) charges include certain market-
related factors such as interest cost, expected return on plan assets, amortized
actuarial gains or losses, associated with HP’s defined benefit pension and
post-retirement benefit plans. The market-driven retirement-related adjustments
are primarily due to the changes in the value of pension plan assets and
liabilities which are tied to financial market performance. Non-operating
retirement-related (credits) charges also include certain plan curtailments,
settlements and special termination benefits related to HP’s defined benefit
pension and post-retirement benefit plans.
• Recorded tax adjustments include tax expenses and benefits from internal
reorganizations, realizability of certain deferred tax assets, various tax rate
and regulatory changes, and tax settlements across various jurisdictions. The
non-GAAP tax rate is designed to reflect the tax effects of HP’s ongoing
operations.
Free cash flow is a non-GAAP measure that is defined as cash flow from operating
activities adjusted for net investment in leases from integrated financing and
net investments in property, plant, equipment and purchased intangibles. Gross
cash is a non-GAAP measure defined as cash, cash equivalents and restricted cash
plus short-term investments. Management uses free cash flow and gross cash to
assess the amount of cash available for liquidity, including for investment in
the business, share repurchases, and other purposes, and to evaluate HP’s
historical and expected liquidity. HP believes gross cash provides a useful view
of liquidity because it includes certain liquid assets not included in cash,
cash equivalents and restricted cash. HP believes free cash flow provides a
useful view of liquidity and capital resources because it adjusts operating cash
flow for net investment in leases from integrated financing and net investments
in property, plant, equipment and purchased intangibles. Net cash (debt) is
defined as gross cash less gross debt, adjusted for the effects of unamortized
premium/ discounts on debt issuance, debt issuance costs, and unrealized gains/
losses on interest rate swaps.
Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures are not in accordance with, or an alternative
for, measures prepared in accordance with GAAP, and may differ from non-GAAP
measures used by other companies. In addition, these non-GAAP measures are not
based on any comprehensive set of accounting rules or principles. HP believes
non-GAAP measures have inherent limitations in that they do not reflect all of
the amounts associated with HP’s results of operations as determined in
accordance with GAAP and that these measures should only be used to evaluate
HP’s results of operations in conjunction with the corresponding GAAP measures.
HP may continue to incur expenses similar to the non-GAAP adjustments described
above in future periods.
In addition, other companies, including companies in our industry, may calculate
non-GAAP financial measures differently than HP, limiting the usefulness of
those measures for comparative purposes.
Compensation for limitations associated with use of non-GAAP financial measures
HP accounts for the limitations on its use of non-GAAP financial measures by
relying primarily on its GAAP results and using non-GAAP financial measures only
supplementally.