Core Insights - HP reported revenue of $13.93 billion for the quarter ended July 2025, a year-over-year increase of 3.1%, with EPS of $0.75 compared to $0.83 a year ago, falling short of the Zacks Consensus Estimate of $13.96 billion by -0.19% [1] Financial Performance - The stock has returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change, and currently holds a Zacks Rank 3 (Hold) [3] Key Metrics - Days in accounts payable: 138 days, above the average estimate of 133 days - Days of sales outstanding in accounts receivable: 33 days, slightly above the average estimate of 32 days - Days of supply in inventory: 68 days, in line with the average estimate of 69 days [4] Personal Systems Revenue - Net revenue from Commercial Personal Systems: $7.04 billion, below the average estimate of $7.11 billion, representing a +5.4% change year-over-year - Net revenue from Consumer Personal Systems: $2.9 billion, slightly above the average estimate of $2.89 billion, with a +7.5% year-over-year change - Total Net revenue from Personal Systems: $9.93 billion, below the average estimate of $10 billion, with a +6% year-over-year change [4] Printing Revenue - Net revenue from Printing Supplies: $2.6 billion, above the average estimate of $2.58 billion, but a -3.7% change year-over-year - Net revenue from Commercial Printing: $1.11 billion, slightly above the average estimate of $1.1 billion, with a -3% year-over-year change - Net revenue from Consumer Printing: $269 million, below the average estimate of $275.02 million, representing an -8.2% year-over-year change - Total Net revenue from Printing: $3.99 billion, above the average estimate of $3.95 billion, with a -3.8% year-over-year change [4] Earnings from Operations - Earnings from operations in Personal Systems: $541 million, above the average estimate of $529.65 million - Earnings from operations in Corporate Investments: -$32 million, significantly better than the average estimate of -$124.78 million [4]

Financial Performance - HP reported quarterly earnings of $0.75 per share, matching the Zacks Consensus Estimate, but down from $0.83 per share a year ago [1] - Revenues for the quarter ended July 2025 were $13.93 billion, missing the Zacks Consensus Estimate by 0.19%, and up from $13.52 billion year-over-year [2] - The company has not surpassed consensus EPS or revenue estimates over the last four quarters [2][3] Stock Performance - HP shares have declined approximately 17.2% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $14.1 billion, and for the current fiscal year, it is $3.09 on revenues of $54.76 billion [7] - The outlook for the Computer - Micro Computers industry is positive, ranking in the top 20% of over 250 Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8] Industry Comparison - Dell Technologies, a competitor in the same industry, is expected to report quarterly earnings of $2.31 per share, reflecting a year-over-year increase of 22.2% [9] - Dell's anticipated revenues are $29.32 billion, representing a 17.2% increase from the previous year [10]

[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with HP's forward-looking statements, which are based on current expectations - The report contains forward-looking statements based on current expectations and assumptions, which involve risks and uncertainties that could materially affect HP's business and results of operations[7](index=7&type=chunk) - Key risks include HP's ability to execute strategic plans, develop new products (especially AI-related), manage macroeconomic and geopolitical trends, handle supply chain issues, and navigate competitive pressures[7](index=7&type=chunk) [Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This part presents HP Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis for the interim periods [Item 1. Financial Statements and Supplementary Data](index=4&type=section&id=Item%201.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents HP Inc.'s unaudited condensed consolidated financial statements for the three and nine months ended July 31, 2025 and 2024, including statements of earnings, comprehensive income, balance sheets, cash flows, and stockholders' deficit. It also includes detailed notes providing context and breakdowns for various financial accounts and activities [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This statement provides a summary of HP's revenues, expenses, and net earnings for the three and nine months ended July 31, 2025 and 2024 | Metric (in millions, except per share) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total net revenue | $13,932 | $13,519 | $40,656 | $39,504 | | Gross profit | $2,851 | $2,906 | $8,430 | $8,817 | | Earnings from operations | $716 | $940 | $2,215 | $2,827 | | Net earnings | $763 | $640 | $1,734 | $1,869 | | Diluted Net earnings per share | $0.80 | $0.65 | $1.82 | $1.88 | - **Net revenue** increased by **3.1%** for the three months ended July 31, 2025, and by **2.9%** for the nine months ended July 31, 2025, compared to the prior-year periods[12](index=12&type=chunk) - **Net earnings** increased by **19.2%** for the three months ended July 31, 2025, but decreased by **7.2%** for the nine months ended July 31, 2025, compared to the prior-year periods[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement details HP's net earnings and other comprehensive income or loss components for the three and nine months ended July 31, 2025 and 2024 | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net earnings | $763 | $640 | $1,734 | $1,869 | | Other comprehensive income (loss), net of taxes | $202 | $(83) | $(207) | $(192) | | Comprehensive income | $965 | $557 | $1,527 | $1,677 | - **Other comprehensive income (loss), net of taxes**, significantly improved from a loss of **$(83) million** in Q3 2024 to an income of **$202 million** in Q3 2025, primarily due to changes in unrealized components of cash flow hedges[16](index=16&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents HP's financial position, including assets, liabilities, and stockholders' deficit, as of July 31, 2025, and October 31, 2024 | Metric (in millions) | As of July 31, 2025 | As of October 31, 2024 | | :------------------- | :------------------ | :--------------------- | | Total current assets | $20,574 | $20,760 | | Total assets | $39,854 | $39,909 | | Total current liabilities | $27,864 | $28,687 | | Long-term debt | $8,782 | $8,263 | | Total stockholders' deficit | $(901) | $(1,323) | - **Total assets** remained relatively stable, decreasing slightly from **$39,909 million** to **$39,854 million**[19](index=19&type=chunk) - **Total stockholders' deficit** improved from **$(1,323) million** to **$(901) million**, indicating a reduction in the deficit[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes HP's cash inflows and outflows from operating, investing, and financing activities for the nine months ended July 31, 2025 and 2024 | Metric (in millions) | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $2,073 | $2,126 | | Net cash used in investing activities | $(1,113) | $(514) | | Net cash used in financing activities | $(1,339) | $(1,966) | | Decrease in cash, cash equivalents and restricted cash | $(379) | $(354) | - **Net cash provided by operating activities** slightly decreased by **$53 million** YoY for the nine months ended July 31, 2025[22](index=22&type=chunk) - **Net cash used in investing activities** significantly increased by **$599 million** YoY, primarily due to higher investment in property, plant, equipment, and collateral posted for derivative instruments[22](index=22&type=chunk)[218](index=218&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficit](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficit) This statement outlines changes in HP's stockholders' deficit, including share repurchases and comprehensive income, for the nine months ended July 31, 2025 and 2024 | Metric (in millions, except shares in thousands) | Balance as of Oct 31, 2024 | Balance as of July 31, 2025 | | :--------------------------------------------- | :------------------------- | :-------------------------- | | Number of Shares | 938,989 | 938,765 | | Total Stockholders' Deficit | $(1,323) | $(901) | - The **Total Stockholders' Deficit** improved from **$(1,323) million** as of October 31, 2024, to **$(901) million** as of July 31, 2025[25](index=25&type=chunk) - **Share repurchases** during the nine months ended July 31, 2025, totaled **$0.4 billion**, compared to **$1.2 billion** in the prior-year period, contributing to changes in the deficit[25](index=25&type=chunk)[122](index=122&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to HP's unaudited condensed consolidated financial statements, offering context for reported figures [Note 1: Basis of Presentation](index=11&type=section&id=Note%201%3A%20Basis%20of%20Presentation) This note describes the accounting principles and new pronouncements adopted or pending adoption for HP's financial statements - HP's Condensed Consolidated Financial Statements are prepared in conformity with U.S. GAAP and are unaudited, reflecting normal adjustments for interim periods[30](index=30&type=chunk) - HP adopted new FASB guidance on supplier finance programs in Q1 fiscal year 2024, with rollforward information to be adopted in fiscal year 2025[34](index=34&type=chunk) - New FASB guidance on disaggregation of expense categories, income tax disclosures, and segment disclosure requirements are pending adoption in future fiscal years[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Note 2: Segment Information](index=12&type=section&id=Note%202%3A%20Segment%20Information) This note details HP's operating segments, including Personal Systems, Printing, and Corporate Investments, and their respective net revenues - HP operates through three reportable segments: **Personal Systems**, **Printing**, and **Corporate Investments**[39](index=39&type=chunk) - **Personal Systems** includes Commercial PS (desktops, notebooks, workstations, AI PCs) and Consumer PS (gaming, learning, multimedia devices)[40](index=40&type=chunk)[43](index=43&type=chunk) - **Printing** includes Office Printing Solutions, Home Printing Solutions, Graphics Solutions, 3D Printing & Personalization, and Supplies[41](index=41&type=chunk)[43](index=43&type=chunk) | Segment (in millions) | Three months ended July 31, 2025 Net Revenue | Three months ended July 31, 2024 Net Revenue | Nine months ended July 31, 2025 Net Revenue | Nine months ended July 31, 2024 Net Revenue | | :-------------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Personal Systems | $9,931 | $9,369 | $28,179 | $26,604 | | Printing | $3,986 | $4,143 | $12,436 | $12,886 | | Corporate Investments | $16 | $7 | $43 | $14 | | Total segment net revenue | $13,933 | $13,519 | $40,658 | $39,504 | [Note 3: Restructuring and Other Charges](index=14&type=section&id=Note%203%3A%20Restructuring%20and%20Other%20Charges) This note outlines the charges and accruals related to HP's Fiscal 2023 Plan, including workforce reductions and associated costs - HP's **Fiscal 2023 Plan** (Future Ready Plan), approved in November 2022, aims for digital transformation, portfolio optimization, and operational efficiency through fiscal 2025[49](index=49&type=chunk) - The plan was amended in February 2025 to increase expected workforce reductions by **1,000-2,000 employees**, incurring an additional **$150 million** in charges[50](index=50&type=chunk) | Metric (in millions) | Accrued balance as of Oct 31, 2024 | Charges (9 months ended July 31, 2025) | Cash payments (9 months ended July 31, 2025) | Accrued balance as of July 31, 2025 | | :------------------- | :--------------------------------- | :------------------------------------- | :------------------------------------------- | :---------------------------------- | | Fiscal 2023 Plan | $131 | $252 | $(188) | $177 | [Note 4: Taxes on Earnings](index=16&type=section&id=Note%204%3A%20Taxes%20on%20Earnings) This note explains HP's effective tax rates and the factors influencing income tax benefits and provisions for the reporting periods | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Effective tax rate | (22.3)% | 22.6% | 5.5% | 22.7% | - The **Effective tax rate** for the three and nine months ended July 31, 2025, was significantly impacted by decreases in unrecognized tax benefits[54](index=54&type=chunk) - HP recorded **$281 million** and **$315 million** in net income tax benefits for the three and nine months ended July 31, 2025, respectively, primarily from changes in uncertain tax positions and restructuring charges[55](index=55&type=chunk) [Note 5: Supplementary Financial Information](index=17&type=section&id=Note%205%3A%20Supplementary%20Financial%20Information) This note provides additional financial details, including cash, inventory, regional revenue, and supplier finance program obligations | Metric (in millions) | As of July 31, 2025 | As of October 31, 2024 | | :------------------- | :------------------ | :--------------------- | | Cash and cash equivalents | $2,871 | $3,238 |\n| Restricted cash | $3 | $15 |\n| Inventory | $8,356 | $7,720 |\n| Total net revenue by region (9 months ended July 31, 2025) |\n| Americas | $17,419 | |\n| Europe, Middle East and Africa | $13,649 | |\n| Asia-Pacific and Japan | $9,588 | | - HP's **contract liabilities** increased from **$2.9 billion** to **$3.1 billion** for the nine months ended July 31, 2025, driven by sales of fixed-price support and maintenance services[73](index=73&type=chunk)[74](index=74&type=chunk) - **Obligations outstanding under supplier finance programs** increased from **$7.8 billion** to **$8.6 billion**, with **$0.5 billion** owed to participating financial institutions as of July 31, 2025[75](index=75&type=chunk) [Note 6: Fair Value](index=21&type=section&id=Note%206%3A%20Fair%20Value) This note describes HP's fair value measurements for assets and liabilities, categorized by input observability levels - HP classifies assets and liabilities measured at fair value into a three-level hierarchy based on input observability: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[79](index=79&type=chunk)[80](index=80&type=chunk) | Metric (in millions) | As of July 31, 2025 Total Fair Value | As of October 31, 2024 Total Fair Value | | :------------------- | :----------------------------------- | :------------------------------------ | | Total assets measured at fair value | $2,439 | $2,760 | | Total liabilities measured at fair value | $377 | $182 | - The **fair value of HP's short- and long-term debt** was **$9.5 billion** as of July 31, 2025, compared to its **carrying amount** of **$9.6 billion**[85](index=85&type=chunk) [Note 7: Financial Instruments](index=23&type=section&id=Note%207%3A%20Financial%20Instruments) This note details HP's use of derivative instruments to manage financial risks and their impact on fair value and comprehensive income - HP uses derivative instruments (forward contracts, interest rate swaps, etc.) to manage foreign currency and interest rate risks, designating them as fair value hedges, cash flow hedges, or other derivatives[92](index=92&type=chunk) | Metric (in millions) | As of July 31, 2025 Fair Value | As of October 31, 2024 Fair Value | | :------------------- | :----------------------------- | :-------------------------------- | | Total cash equivalents | $2,171 | $2,344 | | Total available-for-sale investments | $134 | $187 | | Total derivatives assets | $134 | $229 | | Total derivatives liabilities | $377 | $182 | - HP expects to reclassify an estimated **accumulated other comprehensive loss** of **$162 million**, net of taxes, to earnings within the next twelve months from cash flow hedges[109](index=109&type=chunk) [Note 8: Borrowings](index=28&type=section&id=Note%208%3A%20Borrowings) This note provides information on HP's debt structure, including short-term and long-term borrowings, interest rates, and credit facilities | Metric (in millions) | As of July 31, 2025 | As of October 31, 2024 | | :------------------- | :------------------ | :--------------------- | | Notes payable and short-term borrowings | $820 | $1,406 | | Long-term debt | $8,782 | $8,263 | | Weighted-average interest rate | 4.6% | 4.5% | - In April 2025, HP issued **$1.0 billion** in senior unsecured notes (**5.40%** due April 2030 and **6.10%** due April 2035) for general corporate purposes, including repaying Global Notes due June 2025[114](index=114&type=chunk) - HP maintains a **$6.0 billion** U.S. commercial paper program and a **$5.0 billion** 5-year sustainability-linked senior unsecured revolving credit facility, with **$1.1 billion** in additional uncommitted lines of credit[117](index=117&type=chunk)[118](index=118&type=chunk)[120](index=120&type=chunk) [Note 9: Stockholders' Deficit](index=30&type=section&id=Note%209%3A%20Stockholders%27%20Deficit) This note details changes in HP's stockholders' deficit, including share repurchases and accumulated other comprehensive loss - HP repurchased **5.5 million shares** for **$0.2 billion** during the three months ended July 31, 2025, and **11.4 million shares** for **$0.4 billion** during the nine months ended July 31, 2025[122](index=122&type=chunk) - As of July 31, 2025, HP had approximately **$8.9 billion** remaining under its share repurchase authorization[123](index=123&type=chunk) | Metric (in millions) | As of July 31, 2025 | As of July 31, 2024 | | :------------------- | :------------------ | :------------------ | | Accumulated other comprehensive loss | $(641) | $(415) | [Note 10: Earnings Per Share](index=32&type=section&id=Note%2010%3A%20Earnings%20Per%20Share) This note presents HP's basic and diluted earnings per share calculations and weighted-average shares outstanding | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Basic Net EPS | $0.81 | $0.65 | $1.83 | $1.90 | | Diluted Net EPS | $0.80 | $0.65 | $1.82 | $1.88 | | Weighted-average shares (basic, in millions) | 947 | 979 | 948 | 986 | | Weighted-average shares (diluted, in millions) | 954 | 990 | 955 | 994 | - **Diluted EPS** increased by **$0.15** (**23.1%**) for the three months ended July 31, 2025, but decreased by **$0.06** (**3.2%**) for the nine months ended July 31, 2025, compared to the prior-year periods[127](index=127&type=chunk) [Note 11: Litigation and Contingencies](index=32&type=section&id=Note%2011%3A%20Litigation%20and%20Contingencies) This note describes HP's involvement in various legal proceedings, claims, and investigations, including potential financial impacts - HP is involved in various lawsuits, claims, investigations, and proceedings, including IP, commercial, securities, employment, and environmental matters[128](index=128&type=chunk) - Key ongoing litigation includes copyright levies in Europe, India Directorate of Revenue Intelligence proceedings (seeking **~$370M** plus penalties/interest), Media Content Protection LLC patent litigation, and a securities class action (York County) which recently reached a proposed settlement[129](index=129&type=chunk)[132](index=132&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) - Autonomy-related legal proceedings resulted in a July 2025 ruling that the Lynch estate owed approximately **740 million pounds** in damages, with HP and Hewlett Packard Enterprise sharing equally in any recovery[141](index=141&type=chunk) [Note 12: Guarantees, Indemnifications and Warranties](index=36&type=section&id=Note%2012%3A%20Guarantees%2C%20Indemnifications%20and%20Warranties) This note outlines HP's contractual guarantees, indemnification arrangements, and product warranty liabilities - HP issues performance guarantees and enters into contractual indemnification arrangements in the ordinary course of business, including for intellectual property infringement claims[145](index=145&type=chunk)[147](index=147&type=chunk) - HP accrues estimated product warranty costs at revenue recognition, with aggregate **product warranty liabilities** at **$462 million** as of July 31, 2025[149](index=149&type=chunk)[151](index=151&type=chunk) - HP and Hewlett Packard Enterprise have cross-indemnities for liabilities allocated pursuant to their separation and distribution agreement[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on HP's financial condition and results of operations, highlighting key performance drivers, strategic focus areas, macroeconomic challenges, and the progress of the Future Ready Plan. It also details segment-specific performance and liquidity management [OVERVIEW](index=37&type=section&id=OVERVIEW) This section provides an overview of HP's business strategy, product offerings, and the macroeconomic and competitive factors influencing its performance - HP delivers innovative and sustainable devices, services, and subscriptions across Personal Systems, Printing, and Corporate Investments segments, focusing on AI PCs, advanced compute solutions, hybrid systems, and subscription-based models[154](index=154&type=chunk)[155](index=155&type=chunk) - The company faces challenges from the macroeconomic environment (geopolitical conflicts, exchange rate volatility, inflation, tariffs), competitive pressures, and evolving go-to-market strategies[157](index=157&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk) - HP's **Future Ready Plan** (Fiscal 2023 Plan) is on track to achieve overall program savings through digital transformation, portfolio optimization, and operational efficiency, including headcount reductions[164](index=164&type=chunk)[165](index=165&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=39&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section confirms that there have been no significant changes to HP's critical accounting estimates since the last annual report - Management believes there have been no significant changes to the critical accounting estimates disclosed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[167](index=167&type=chunk) [ACCOUNTING PRONOUNCEMENTS](index=39&type=section&id=ACCOUNTING%20PRONOUNCEMENTS) This section refers to Note 1 for details on recent accounting pronouncements relevant to HP's financial statements - A summary of recent accounting pronouncements applicable to HP's Condensed Consolidated Financial Statements is provided in Note 1, 'Basis of Presentation'[168](index=168&type=chunk) [RESULTS OF OPERATIONS](index=40&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes HP's financial performance, including net revenue, gross margin, operating expenses, and tax impacts for the reporting periods [Net Revenue](index=41&type=section&id=Net%20Revenue) This section analyzes HP's total net revenue, breaking it down by products and services, and discusses growth drivers and currency impacts | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Products net revenue | $13,114 | $12,750 | $38,232 | $37,212 | | Services net revenue | $818 | $769 | $2,424 | $2,292 | | Total net revenue | $13,932 | $13,519 | $40,656 | $39,504 | - **Total net revenue** increased **3.1%** (**3.3%** constant currency) for the three months and **2.9%** (**3.7%** constant currency) for the nine months ended July 31, 2025, driven by products and services, partially offset by Printing declines and unfavorable currency[173](index=173&type=chunk)[174](index=174&type=chunk) [Gross Margin](index=41&type=section&id=Gross%20Margin) This section discusses the factors influencing HP's gross margin, including costs, product mix, and pricing strategies | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Gross Margin | 20.5% | 21.5% | 20.7% | 22.3% | - **Gross margin** decreased by **1.0 percentage point** for the three months and **1.6 percentage points** for the nine months ended July 31, 2025, primarily due to higher tariff/commodity costs, mix shifts towards Personal Systems, and unfavorable currency impacts, partially offset by disciplined pricing and cost savings[176](index=176&type=chunk)[177](index=177&type=chunk) [Operating Expenses](index=41&type=section&id=Operating%20Expenses) This section details HP's operating expenses, including research and development, selling, general and administrative, and restructuring charges | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Research and development | $406 | $413 | $1,204 | $1,248 | | Selling, general and administrative | $1,452 | $1,404 | $4,391 | $4,249 | | Restructuring and other charges | $110 | $46 | $302 | $180 | | Acquisition and divestiture charges | $8 | $22 | $31 | $71 | | Amortization of intangible assets | $159 | $81 | $287 | $242 | - **Restructuring and other charges** increased significantly by **$64 million** (three months) and **$122 million** (nine months) due to the February 2025 amendment of the **Fiscal 2023 Plan**[181](index=181&type=chunk) - **Amortization of intangible assets** increased due to impairment charges of **$65 million** in Print and **$27 million** in Corporate Investments segments[183](index=183&type=chunk) [Interest and Other, Net](index=42&type=section&id=Interest%20and%20Other%2C%20Net) This section explains the components of HP's net interest and other income or expense, including litigation gains and currency impacts | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Interest and other, net | $(92) | $(113) | $(381) | $(410) | - **Interest and other, net** expense decreased by **$21 million** (three months) and **$29 million** (nine months) primarily due to a gain from a single litigation matter, partially offset by unfavorable currency impacts[184](index=184&type=chunk) [Benefit from (Provision for) Taxes](index=42&type=section&id=Benefit%20from%20%28Provision%20for%29%20Taxes) This section analyzes HP's effective tax rate and the factors contributing to its income tax benefits or provisions | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Effective tax rate | (22.3)% | 22.6% | 5.5% | 22.7% | - The **Effective tax rate** for the three and nine months ended July 31, 2025, was significantly lower than the prior year, primarily due to decreases in unrecognized tax benefits[185](index=185&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) in the U.S. is not anticipated to have a material impact on HP's effective tax and cash tax rates for fiscal year 2025[187](index=187&type=chunk) [Segment Information](index=43&type=section&id=Segment%20Information) This section provides a detailed breakdown of the financial performance for HP's Personal Systems, Printing, and Corporate Investments segments [Personal Systems](index=43&type=section&id=Personal%20Systems) This section analyzes the net revenue and operating earnings for HP's Personal Systems segment, including commercial and consumer PCs | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net revenue | $9,931 | $9,369 | $28,179 | $26,604 | | Earnings from operations | $541 | $617 | $1,457 | $1,662 | | Earnings from operations as a % of net revenue | 5.4% | 6.6% | 5.2% | 6.2% | - **Personal Systems net revenue** increased **6.0%** (**6.2%** constant currency) for the three months and **5.9%** (**6.5%** constant currency) for the nine months, driven by increased PC unit volume (Windows-based PC refresh) and higher ASPs due to disciplined pricing[191](index=191&type=chunk)[194](index=194&type=chunk) - **Commercial PS net revenue** increased **5.4%** (three months) and **7.9%** (nine months) due to increased units and ASPs, while **Consumer PS net revenue** increased **7.5%** (three months) but only **0.9%** (nine months) due to portfolio rebalancing[192](index=192&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) [Printing](index=45&type=section&id=Printing) This section analyzes the net revenue and operating earnings for HP's Printing segment, including supplies and various printing solutions | Metric (in millions) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net revenue | $3,986 | $4,143 | $12,436 | $12,886 | | Earnings from operations | $689 | $715 | $2,313 | $2,416 | | Earnings from operations as a % of net revenue | 17.3% | 17.3% | 18.6% | 18.7% | - **Printing net revenue** decreased **3.8%** (**3.4%** constant currency) for the three months and **3.5%** (**2.2%** constant currency) for the nine months, driven by declines in Supplies, Commercial Printing, and Consumer Printing due to demand softness and unfavorable currency[200](index=200&type=chunk)[203](index=203&type=chunk) - **Printer units** decreased by **9.5%** (three months) and **1.3%** (nine months), while **Supplies net revenue** decreased **3.7%** (three months) and **3.3%** (nine months) due to installed base decline and usage[200](index=200&type=chunk)[203](index=203&type=chunk) [Corporate Investments](index=46&type=section&id=Corporate%20Investments) This section discusses the operational loss within HP's Corporate Investments segment, primarily due to incubation projects - The loss from operations in **Corporate Investments** is primarily due to expenses associated with incubation projects and investments in digital enablement[207](index=207&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=47&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses HP's financial liquidity, capital resources, and cash flow management strategies [Liquidity](index=47&type=section&id=Liquidity) This section outlines HP's expected sources of liquidity to meet its operational and financial obligations - HP expects current cash, operating cash flow, new borrowings, commercial paper authorization, and credit facility to meet operating cash requirements, capital expenditures, debt payments, pension funding, share repurchases, and dividends[209](index=209&type=chunk) | Metric (in millions) | As of July 31, 2025 | As of October 31, 2024 | | :------------------- | :------------------ | :--------------------- | | Cash and cash equivalents | $2,871 | $3,238 | | Restricted cash | $3 | $15 | | Total debt | $9,602 | $9,669 | [Operating Activities](index=47&type=section&id=Operating%20Activities) This section details the net cash provided by HP's operating activities and the factors influencing its changes | Metric (in millions) | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $2,073 | $2,126 | - **Net cash provided by operating activities** decreased by **$0.1 billion** for the nine months ended July 31, 2025, primarily due to working capital impacts and lower net earnings, partially offset by changes in receivables from contract manufacturers[212](index=212&type=chunk) [Key Working Capital Metrics](index=48&type=section&id=Key%20Working%20Capital%20Metrics) This section analyzes HP's key working capital metrics, including DSO, DOS, DPO, and the cash conversion cycle | Metric | As of July 31, 2025 | As of July 31, 2024 | Y/Y Change | | :----- | :------------------ | :------------------ | :--------- | | DSO | 33 | 31 | 2 | | DOS | 68 | 67 | 1 | | DPO | (138) | (131) | (7) | | Cash conversion cycle | (37) | (33) | (4) | - The **Cash conversion cycle** improved by **4 days** year-over-year, primarily driven by an increase in **Days of Purchases Outstanding (DPO)** due to higher purchasing volumes[213](index=213&type=chunk)[217](index=217&type=chunk) - **Days of Sales Outstanding (DSO)** increased due to lower factoring, and **Days of Supply (DOS)** increased due to higher inventory in-transit and tariff mitigation actions[215](index=215&type=chunk)[216](index=216&type=chunk) [Investing Activities](index=48&type=section&id=Investing%20Activities) This section details the net cash used in HP's investing activities, including capital expenditures and business acquisitions | Metric (in millions) | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------ | :------------------------------ | | Net cash used in investing activities | $(1,113) | $(514) | - **Net cash used in investing activities** increased by **$0.6 billion** for the nine months ended July 31, 2025, primarily due to **$0.3 billion** in collateral posted for derivative instruments, **$0.3 billion** in higher investment in property, plant, equipment and purchased intangibles, and **$0.1 billion** in business acquisitions[218](index=218&type=chunk) [Financing Activities](index=49&type=section&id=Financing%20Activities) This section details the net cash used in HP's financing activities, including debt repayments and share repurchases | Metric (in millions) | Nine months ended July 31, 2025 | Nine months ended July 31, 2024 | | :------------------- | :------------------------------ | :------------------------------ | | Net cash used in financing activities | $(1,339) | $(1,966) | - **Net cash used in financing activities** decreased by **$0.6 billion** for the nine months ended July 31, 2025, primarily due to a **$0.9 billion** decrease in **share repurchases**, partially offset by higher net debt repayments of **$0.2 billion**[219](index=219&type=chunk) [Share Repurchases and Dividends](index=49&type=section&id=Share%20Repurchases%20and%20Dividends) This section summarizes HP's capital return to shareholders through share repurchases and cash dividends - During the nine months ended July 31, 2025, HP returned **$1.2 billion** to shareholders, comprising **$0.8 billion** in cash dividends and **$0.4 billion** in **share repurchases**[220](index=220&type=chunk) - As of July 31, 2025, HP had approximately **$8.9 billion** remaining under its share repurchase authorization[220](index=220&type=chunk) [Capital Resources](index=49&type=section&id=Capital%20Resources) This section describes HP's available capital resources, including debt facilities and uncommitted lines of credit | Metric (in millions) | As of July 31, 2025 | As of October 31, 2024 | | :------------------- | :------------------ | :--------------------- | | Short-term debt | $820 | $1,406 | | Long-term debt | $8,782 | $8,263 | | Weighted-average interest rate | 4.6% | 4.5% | - HP maintains a **$5.0 billion** sustainability-linked senior unsecured committed revolving credit facility available until August 1, 2029[224](index=224&type=chunk) - As of July 31, 2025, HP had **$1.1 billion** in available borrowing resources from uncommitted lines of credit[225](index=225&type=chunk) [Credit Ratings](index=49&type=section&id=Credit%20Ratings) This section discusses the potential impact of credit rating changes on HP's borrowing costs and financial flexibility - A credit rating downgrade could increase borrowing costs, reduce commercial paper market capacity, and require additional collateral for derivative contracts[226](index=226&type=chunk) [CONTRACTUAL AND OTHER OBLIGATIONS](index=50&type=section&id=CONTRACTUAL%20AND%20OTHER%20OBLIGATIONS) This section outlines HP's various contractual and other financial obligations, including pension contributions and uncertain tax positions [Retirement and Post-Retirement Benefit Plan Contributions](index=50&type=section&id=Retirement%20and%20Post-Retirement%20Benefit%20Plan%20Contributions) This section details HP's anticipated contributions to its non-U.S. and U.S. non-qualified pension plans - HP anticipates making approximately **$4.0 million** in contributions to non-U.S. pension plans and **$10.0 million** to U.S. non-qualified pension plan participants for the remainder of fiscal year 2025[227](index=227&type=chunk) [Cost Savings Plan](index=50&type=section&id=Cost%20Savings%20Plan) This section outlines HP's expected future cash payments related to its approved restructuring plans - HP expects to make future cash payments of approximately **$0.2 billion** related to its approved restructuring plans[228](index=228&type=chunk) [Uncertain Tax Positions](index=50&type=section&id=Uncertain%20Tax%20Positions) This section details HP's recorded liabilities for uncertain tax positions, including related interest and penalties - As of July 31, 2025, HP had approximately **$837 million** in recorded liabilities and related interest and penalties pertaining to uncertain tax positions[229](index=229&type=chunk) [Off-Balance Sheet Arrangements](index=50&type=section&id=Off-Balance%20Sheet%20Arrangements) This section clarifies HP's limited involvement in material off-balance sheet arrangements and its use of third-party liquidity solutions - HP has not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements[230](index=230&type=chunk) - HP utilizes third-party arrangements for cash and liquidity management and to provide liquidity to partners, as detailed in Note 5[231](index=231&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the disclosures about market risk from HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, stating that there have been no material changes since that report - HP's exposure to market risk has not materially changed since October 31, 2024[232](index=232&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of HP's disclosure controls and procedures, identifying an unremediated material weakness in internal control over financial reporting related to IT general controls, specifically user access, change management, and job schedule monitoring for certain software solutions - HP's disclosure controls and procedures were not effective as of July 31, 2025, due to an unremediated material weakness in internal control over financial reporting[233](index=233&type=chunk) - The material weakness stems from undue reliance on information from certain software solutions without effectively designed IT general controls (user access, change management, job schedule monitoring)[234](index=234&type=chunk) - Despite the material weakness, it did not result in any material misstatement of the financial statements, but there is a reasonable possibility it could have[235](index=235&type=chunk) [Part II. Other Information](index=52&type=section&id=Part%20II.%20Other%20Information) This part provides additional required disclosures not covered in the financial statements, including legal proceedings and risk factors [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11, 'Litigation and Contingencies,' for detailed information on HP's legal proceedings - Information regarding legal proceedings is incorporated by reference from Note 11, 'Litigation and Contingencies,' in Item 1 of Part I[240](index=240&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section states that HP's risk factors have not materially changed since the Annual Report on Form 10-K for the fiscal year ended October 31, 2024 - There have been no material changes in HP's risk factors since the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales of equity securities and details the company's share repurchase activities during the three months ended July 31, 2025 - There were no unregistered sales of equity securities during the period covered by this report[242](index=242&type=chunk) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs | | :------- | :-------------------------------------------- | :--------------------------- | :--------------------------------------------------------------------------------------- | | May 2025 | 5,484 | $27.35 | $8,911,940 | | June 2025| — | — | $8,911,940 | | July 2025| — | — | $8,911,940 | | Total | 5,484 | | | - HP repurchased **5.5 million shares** for **$0.2 billion** on the open market during the three months ended July 31, 2025[244](index=244&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - There were no defaults upon senior securities[245](index=245&type=chunk) [Item 4. Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to HP Inc - Mine safety disclosures are not applicable to HP Inc[246](index=246&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) This section discloses Rule 10b5-1 trading plans adopted by HP's President and CEO, Enrique Lores, and President of Imaging, Printing & Solutions, Anneliese Olson, for the sale of common stock and restricted stock units - Enrique Lores, President and CEO, adopted a Rule 10b5-1 plan on June 30, 2025, to sell up to **34,282 shares** of common stock and shares underlying **364,579 restricted stock units**, commencing September 29, 2025[247](index=247&type=chunk) - Anneliese Olson, President of Imaging, Printing & Solutions, adopted a Rule 10b5-1 plan on June 25, 2025, to sell up to **57,617 shares** underlying time-based restricted stock units, commencing October 29, 2025[247](index=247&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section refers to the Exhibit Index for a list of exhibits filed with the report - The Exhibit Index on page 54 provides a list of exhibits filed with this report[248](index=248&type=chunk) [Exhibit Index](index=54&type=section&id=Exhibit%20Index) This section lists all exhibits filed with the report, including corporate governance documents and certifications - The Exhibit Index lists documents incorporated by reference, including Registrant's Restated Certificate of Incorporation and Amended and Restated Bylaws, and certifications from the CEO and CFO[250](index=250&type=chunk) [Signature](index=56&type=section&id=Signature) This section confirms the official signing of the report by HP's Chief Financial Officer - The report is signed by Karen L. Parkhill, Chief Financial Officer (Principal Financial Officer and Authorized Signatory), on August 27, 2025[254](index=254&type=chunk)

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][26] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with a 5% unit growth and increased average selling prices (ASPs) [28] - Print revenue declined by 4% year over year, or 3% in constant currency, with market-driven hardware declines in both consumer and commercial segments [30] - Strong performance in key growth areas, including double-digit growth in consumer subscriptions and industrial graphics [30][15] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, particularly strong in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with a strategy that includes manufacturing diversification and cost reduction [8][22] - The company is shifting its mix to higher value segments, such as AIPCs and commercial premium, while maintaining discipline in pricing [10][12] - The print market is expected to decline in low single digits in 2025, but the company aims to protect the operating profit contribution of the premium business [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market in 2025, expecting mid-single-digit growth in the second half [21] - The company is adapting to a dynamic environment and has strengthened operational agility to navigate evolving conditions [23] - Management acknowledged continued uncertainty in the global trade environment but remains confident in the ability to respond quickly to changes [23] Other Important Information - The company is on track to achieve $2 billion in annualized gross run rate savings by the end of fiscal year 2025 [8][32] - The company returned over $400 million to shareholders through dividends and share repurchases [33] Q&A Session Summary Question: Impact of tariff-related costs in the quarter - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - Management confirmed that AIPCs carry a higher ASP and margin profile compared to non-AIPCs, with a price increase of 5% to 10% driven by AIPC capabilities [49] Question: Expectations for print pricing and office environment - Management expects aggressive pricing competition to continue, but remains confident in the long-term demand for print as the number of pages printed has not deviated from expectations [78] Question: Capital allocation and leverage - Management indicated that leverage improved to slightly over 2 times, and they anticipate returning 100% of free cash flow to shareholders as leverage continues to improve [80]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Data and Key Metrics Changes - Personal Systems revenue grew by 6% year over year, with a 10% sequential increase [9][28] - Print revenue declined by 3% in constant currency, with a focus on maintaining profitable unit placements [13][30] - Strong growth in advanced compute solutions and digital services within Personal Systems [11][28] Market Data and Key Metrics Changes - Americas and EMEA regions grew by 1% in constant currency, while APJ was up 11% [26] - Strong performance in China contributed to Personal Systems growth [26][29] Company Strategy and Development Direction - The company aims to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Focus on shifting to higher value segments and maintaining cost discipline in response to trade-related costs [8][22] - Continued investment in AI capabilities to drive automation and streamline operations [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market, expecting mid-single-digit growth in the second half of 2025 [21][36] - Anticipated decline in the print market by low single digits in 2025, with a strategy focused on protecting operating profit [21][36] - Management acknowledged ongoing uncertainty in the global trade environment but emphasized operational agility [23] Other Important Information - The company has achieved 100% renewable electricity across U.S. operations, marking progress towards net-zero goals [19] - New AI-powered solutions and innovations were highlighted, including the introduction of HP Dimension and AI capabilities in printing [17][18] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while hardware sales were impacted short-term, the demand for printing remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance and margin dynamics - Management expects sequential revenue growth in line with prior year seasonality, driven by holiday uptick and continued momentum from Windows 11 [50][51] Question: PC market confidence and share growth - Management expressed confidence in sustained demand for PCs, driven by Windows 11 and AIPC adoption, with expectations for continued growth into fiscal year 2026 [60][72] Question: Print margins and pricing environment - Management acknowledged a competitive pricing environment but expects print margins to improve in Q4 due to higher supplies volume and disciplined pricing [61][66]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with strong growth in both commercial and consumer segments [9][28] - Print revenue declined by 3% in constant currency, with key growth areas performing well despite overall market softness [13][30] - Consumer subscriptions in Print saw strong growth, particularly in the all-in plan [15][30] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, with strong performance in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11][12] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with significant investments in AI-powered solutions and digital services [15][20] - The strategy includes shifting to higher value segments and maintaining cost discipline to mitigate trade-related costs [8][22] - The company expects the PC market to grow mid-single digits in the second half of 2025, driven by Windows 11 refresh and AITC adoption [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market and the ability to navigate uncertainties in the global trade environment [23][36] - The company is on track to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Management noted that while the print market is expected to decline, the focus will be on protecting operating profit contributions from premium business [21][22] Other Important Information - The company has achieved 100% renewable electricity across its U.S. operations, marking a significant step toward its net-zero goal [19] - The company is establishing digital hubs in partnership with the YMCA, reaching over 700,000 people worldwide [20] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the Print business - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [44][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin profile compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance - The sequential increase in EPS for Q4 is expected to be driven by improved margins from the ReadyNEXT program and seasonal uptick in demand [50][51] Question: PC market confidence - Management expressed confidence in continued demand for PCs driven by Windows 11 refresh and AIPC adoption, projecting mid-single-digit growth for the second half of 2025 [60][72] Question: Print margins volatility - Management acknowledged the sequential drop in print margins but expects them to recover in Q4 due to higher supplies volumes and disciplined pricing [61][66] Question: Capital allocation and leverage - The company is slightly above a 2x leverage ratio and plans to return 100% of free cash flow to shareholders as leverage improves [81][82]

This presentation 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 ("HP") which may differ materially from those expressed orimplied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements ...

1501 Page Mill Road Palo Alto, CA 94304 hp.com Editorial contacts HP Inc. Reports Fiscal 2025 Third Quarter Results PALO ALTO, Calif. – Aug. 27, 2025 (GLOBE NEWSWIRE) – HP (NYSE: HPQ) HP Inc.'s fiscal 2025 third quarter financial performance | | | Q3 FY25 | | Q3 FY24 | Y/Y | | --- | --- | --- | --- | --- | --- | | GAAP net revenue ($B) | $ | 13.9 | $ | 13.5 | 3.1 % | | GAAP operating margin | | 5.1 % | | 7.0 % | (1.9) pts | | GAAP net earnings ($B) | $ | 0.8 | $ | 0.6 | 19 % | | GAAP diluted net EPS | $ | 0 ...

Core Insights - HP Inc. reported a net revenue of $13.9 billion for Q3 FY25, reflecting a year-over-year increase of 3.1% [3][4] - The company achieved a GAAP diluted net EPS of $0.80, up 23% from $0.65 in the prior year [6][10] - Non-GAAP diluted net EPS decreased to $0.75, down 11% from $0.84 in the previous year [6][10] Financial Performance - GAAP net revenue for Q3 FY25 was $13.9 billion, compared to $13.5 billion in Q3 FY24, marking a 3.1% increase [3][4] - GAAP operating margin decreased to 5.1%, down from 7.0% in the prior year [6][10] - Non-GAAP operating margin was 7.1%, down from 8.2% year-over-year [6][10] - Net earnings for Q3 FY25 were $0.8 billion, up 19% from $0.6 billion in Q3 FY24 [6][10] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $1.7 billion, an increase of 17% from $1.4 billion in the prior year [5][6] - Free cash flow for the quarter was $1.5 billion, up 13% from $1.3 billion in Q3 FY24 [6][7] - The company returned $0.4 billion to shareholders through dividends and share repurchases [6][8] Segment Performance - Personal Systems segment net revenue was $9.9 billion, up 6% year-over-year, with a 5.4% operating margin [14] - Printing segment net revenue was $4.0 billion, down 4% year-over-year, with a 17.3% operating margin [14] - Consumer Printing net revenue decreased by 8%, while Commercial Printing net revenue fell by 3% [14] Outlook - For Q4 FY25, HP estimates GAAP diluted net EPS to be in the range of $0.75 to $0.85 and non-GAAP diluted net EPS to be in the range of $0.87 to $0.97 [10][11] - The company anticipates generating free cash flow between $2.6 billion and $3.0 billion for FY25 [11]

Core Viewpoint - HP Inc. is expected to report its third-quarter fiscal 2025 results on August 27, with projected revenues of $13.96 billion, indicating a 3.3% year-over-year increase [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for HP's non-GAAP earnings per share (EPS) is between 68 cents and 80 cents, with a midpoint of 74 cents, reflecting a 9.6% decline from the previous year's EPS of 83 cents [2][10] - The consensus estimate for revenues is set at $13.96 billion, suggesting a 3.3% improvement from the prior-year quarter [1][10] Segment Performance - The Personal Systems segment is anticipated to show sales of $9.99 billion, representing a year-over-year growth of 6.7%, driven by AI PC product launches and gaming growth [4][10] - The Printing division's sales are projected to decline by 4.6% to $3.95 billion, impacted by weakened consumer demand in China and macroeconomic pressures [8][10] Influencing Factors - Continued momentum in the Personal Systems segment, particularly in AI PCs, is expected to enhance top-line growth and improve margins [4][5] - The introduction of new gaming products is likely to contribute positively to HP's sales performance [6] - Macroeconomic challenges, including high interest rates and inflation, are anticipated to negatively affect demand for consumer PCs and commercial sales [7] Earnings Prediction Insights - Current analysis does not predict a definitive earnings beat for HP, as the combination of a positive Earnings ESP and Zacks Rank does not align favorably [9][11]