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]