01—Abstract
Summary
Summary of the 10-Q filed May 28, 2026. Cited figures are marked; the original filing is the authoritative source.
HP Inc. reported net revenue of $14.41 billiona for the three months ended April 30, 2026, up from $13.22 billion a year earlier, and $28.85 billion for the six months, up from $26.72 billion.
Net earnings were $450 millionb for the quarter (diluted EPS $0.49, versus $0.42 a year earlier) and $995 million for the six months (diluted EPS $1.07). Earnings from operations fell to $612 million from $654 million in the quarter, as restructuring and other charges rose to $365 million, driven by the Fiscal 2026 Plan and an enhanced early retirement program that included a $280 million special termination benefit. Personal Systems drove growth, with segment net revenue up 13.2% for the quarter on a 22.3% increase in average selling prices, while PC unit volume fell 7.0%.
Printing was flat for the quarter at $4.20 billionc, with printer units down 6.6%. Operating cash flow for the six months was $1.31 billion, compared with $412 million a year earlier, and the company returned $1.0 billion to shareholders through repurchases ($425 million) and dividends ($551 million).
Balance sheet items remained steady: cash of $3.70 billiond, total debt of $9.67 billion, and a stockholders' deficit of $144 million. The company disclosed a $1.24 billion judgment in its Autonomy-related proceedings, which it has not recorded in its financial statements, and it has approximately $8.0 billion remaining under its share repurchase authorization.
02—Key points
Key Highlights
- Quarterly net revenue rose to $14.41 billion from $13.22 billion, with Personal Systems net revenue up 13.2% to $10.21 billion.
- Diluted EPS was $0.49 for the quarter versus $0.42 a year earlier, while earnings from operations declined to $612 million from $654 million.
- Restructuring and other charges increased to $365 million for the quarter, primarily from the enhanced early retirement program under the Fiscal 2026 Plan, which includes a $220 million pension special termination benefit and a $60 million health care incentive.
- Printing net revenue was flat at $4.20 billion for the quarter, with printer units down 6.6%, while Printing earnings from operations fell 4.6% to $767 million.
- Six-month operating cash flow was $1.31 billion, up from $412 million, mainly due to a favorable cash conversion cycle.
- Share repurchases of $425 million and dividends of $551 million were paid in the six months, with approximately $8.0 billion remaining under the repurchase authorization.
- A U.K. High Court judgment of $1.24 billion in the Autonomy-related proceedings was entered on March 24, 2026; no recovery has been recorded and the Lynch estate has requested permission to appeal.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, HP kept $0.03.
- Revenue$14.41B100.0%
- Cost of revenue−$11.39B79.1%
- Gross profit$3.02B20.9%
- Operating costs−$2.40B16.7%
- Operating income$612.0M4.2%
- Interest, other & tax−$162.0M1.1%
- Net income$450.0M3.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 28, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $14.41B$13.22B | +9.0% |
| Cost of Revenue | $11.39B$10.48B | +8.7% |
| Gross Profit | $3.02B$2.74B | +10.1% |
| R&D Expenses | $432.00M$401.00M | +7.7% |
| SG&A Expenses | $1.51B$1.48B | +2.3% |
| Operating Expenses | $2.40B$2.08B | +15.3% |
| Operating Income | $612.00M$654.00M | −6.4% |
| Interest Expense | $98.00M$114.00M | −14.0% |
| Net Income | $450.00M$406.00M | +10.8% |
| EPS (Basic) | $0.49$0.43 | +14.0% |
| EPS (Diluted) | $0.49$0.42 | +16.7% |
| Shares Outstanding (Basic) | 922.00M950.00M | −2.9% |
| Shares Outstanding (Diluted) | 925.00M956.00M | −3.2% |
05—Questions
Frequently Asked Questions
Why did HP's operating earnings decline despite higher revenue?
Restructuring and other charges rose to $365 million for the quarter from $122 million a year earlier, mainly from the enhanced early retirement program under the Fiscal 2026 Plan. Gross margin also rose only slightly, to 20.9% from 20.7%, and total operating expenses grew to $2.40 billion from $2.09 billion.
How did HP's tax rate change?
The effective tax rate was 8.7% for the three months ended April 30, 2026, compared with 19.8% a year earlier. The filing attributes the difference from the 21% U.S. federal statutory rate primarily to audit settlements in various jurisdictions.
What is the status of HP's workforce reduction plan?
HP expects to reduce global headcount by approximately 4,000 to 6,000 employees under the Fiscal 2026 Plan, with pre-tax charges of approximately $650 million. As of April 30, 2026, the company has incurred $0.5 billion in total costs for that plan and expects to be on track to achieve its expected gross cost reductions by the end of fiscal 2028.
What is HP's debt and liquidity position?
As of April 30, 2026, total debt was $9.67 billion, cash and cash equivalents were $3.70 billion, and the company maintained a $5.0 billion committed revolving credit facility available until August 1, 2029. No commercial paper was outstanding, and HP had $1.0 billion in uncommitted lines of credit available.
What are the key legal matters disclosed in the filing?
A U.K. High Court entered a judgment of $1.24 billion, including interest, in the Autonomy-related proceedings on March 24, 2026, but no recovery has been recorded. The Media Content Protection patent litigation was ruled invalid under 35 U.S.C. § 101 as of November 25, 2025, subject to appeal, and HP's shareholder class action settled, with final approval on February 13, 2026.
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