HP INC
For the period ended Jan 31, 2026. Filed Feb 25, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2026 · Filed Feb 25, 2026
HPQ$28.46-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-07-31; filed 2025-08-28.
0000047217-25-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-01-31; filed 2026-02-25.
0000047217-26-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 139 previous paragraphs and 127 current paragraphs.
81 unchanged; 35 reworded; 9 added; 22 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Since April 2025, new, substantial tariffs have been imposed on imports to the United States. On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act were not authorized by statute which removed the obligation for and collection of related tariffs. We are continuing to assess the impact of subsequent developments, including the potential recovery of tariffs previously paid, as well as the effects of any additional tariffs or trade actions that may be imposed.
Current report
On November 25, 2025, we announced our Fiscal 2026 Plan intended to drive customer satisfaction, product innovation, and productivity primarily through artificial intelligence adoption and enablement that HP expects will be implemented through fiscal 2028. We are on-track to achieve our expected gross reductions in cost by the end of fiscal year 2028. During the first quarter of fiscal 2026, we took actions to integrate AI into our channel partner experience and scale additional AI agents in our supply chain operations and expect to continue to accelerate and scale these initiatives.
Current report
Acquisition and Divestiture (Credits) Charges
Current report
Amortization of intangible assets decreased 11.1% for the three months ended January 31, 2026 primarily due to full amortization of certain intangible assets and impairments recorded in the second half of fiscal year 2025.
Current report
Interest and other, net expense decreased $53 million for the three months ended January 31, 2026 primarily due to lower factoring costs and foreign currency impacts.
Current report
Provision for Taxes
Current report
In February 2024, we filed an automatically effective shelf registration statement with the SEC, which enables us to offer for sale, at any time and from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depository shares and warrants.
Current report
Unconditional Purchase Obligation
Current report
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Unconditional purchase obligations exclude agreements that are cancellable without penalty. The Company's purchase obligations under variable price provisions approximate market prices at the time of purchase and are estimated using current period pricing. Actual future variable price purchase commitments may significantly vary depending on market prices and product mix at the time of purchase. The Company's unconditional purchase obligations are primarily related to inventory and service support. As of January 31, 2026, the Company had outstanding purchase commitments of $2.4 billion. The majority of these commitments are due within five years. For more information, see Note 13, “Commitments,” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Removed paragraphs (22)
Previous report
We are focused on growing our AI PC, advanced compute solutions, hybrid systems, workforce solutions, consumer subscriptions, industrial graphics and our 3D and personalization businesses collectively at a rate faster than our core business with accretive margins in the longer term. We believe our ability to innovate will help us gain momentum in growth areas like AI PC, advanced compute solutions and hybrid systems, and we see significant opportunities to drive greater recurring revenues across Personal Systems and Printing. Our Workforce Solutions organization drives integration across our commercial services, software and security portfolio. We continue to build on strong portfolios like Instant Ink to grow our Consumer Subscription business. In Industrial Graphics, we are driving the shift from analog to digital in segments like labels and packaging. In 3D and Personalization, we are creating end-to-end solutions that we believe can capture more value with our differentiated technology.
Previous report
In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan” or “Future Ready”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan, as amended on February 27, 2025, is expected to run through the end of fiscal year 2025. The three key elements of our Fiscal 2023 Plan are digital transformation, portfolio optimization, and operational efficiency. We are on track to achieve our overall program savings.
Previous report
Since announcing our Fiscal 2023 Plan, we have enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact our products, solutions and operations. Additionally, we are reducing portfolio complexity, improving continuity of supply, and increasing our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also continued to reduce our structural cost through headcount reductions and are on track to achieve our overall headcount reduction goal. We expect to continue to invest some of the savings into our growth areas and our people.
Previous report
For the nine months ended July 31, 2025, gross margin decreased 1.6 percentage points primarily driven by products gross margin due to higher commodity and tariff costs, mix shifts towards Personal Systems and unfavorable currency impacts, partially offset by disciplined pricing actions and cost savings including Future Ready transformation savings. Services gross margin decreased due to unfavorable mix shifts.
Previous report
SG&A expense increased 3.4% for the three months ended July 31, 2025 primarily due to higher variable compensation and go-to-market initiatives.
Previous report
Acquisition and Divestiture Charges
Previous report
Amortization of intangible assets increased for the three and nine months ended July 31, 2025 primarily due to impairment charges of $65 million related to acquired customer contracts, customer lists and distribution agreements within the Print segment and $27 million of technology and patents within the Corporate Investments segment.
Previous report
Interest and other, net expense decreased $21 million and $29 million for the three and nine months ended July 31, 2025, respectively, primarily due to a gain from a single litigation matter that does not relate to HP’s ongoing business operations, partially offset by unfavorable currency impacts.
Previous report
Benefit from (Provision for) Taxes
Previous report
During the three and nine months ended July 31, 2025, we recorded $281 million and $315 million of net income tax benefits, respectively, related to discrete items in the provision for taxes. These amounts included income tax benefits of $243 million and $228 million related to changes in uncertain tax positions, $20 million and $58 million related to restructuring charges, and $15 million and $18 million related to the filing of tax returns in various jurisdictions for the three and nine months ended July 31, 2025, respectively. The three and nine months ended July 31, 2025 also included benefits of $55 million related to changes in valuation allowances and $22 million related to audit settlements in various jurisdictions. These benefits were partially offset by income tax charges of $80 million related to tax effects of internal reorganization for the three and nine months ended July 31, 2025.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. This legislation introduces several measures, including the permanent extension of select provisions from the Tax Cuts and Jobs Act, revisions to the international tax framework, and the reinstatement of favorable tax treatment for certain business-related items. The OBBBA contains multiple effective dates, with key provisions beginning in our fiscal year 2026. Based on our assessment, we do not anticipate a material impact on our effective tax and cash tax rates.
Previous report
In December 2021, the Organisation for Economic Co-operation and Development (“OECD”) introduced model rules for a global minimum tax framework, commonly referred to as BEPS Pillar Two. Numerous governments worldwide have enacted or are in the process of enacting legislation to implement this framework. Where applicable, we plan to treat the tax as a period cost. As of July 31, 2025, we do not anticipate a material impact on our effective tax rate or cash tax payments in these jurisdictions for fiscal year 2025. Our assessment for future fiscal years may be influenced by additional legislative guidance and the enactment of further provisions within the BEPS Pillar Two framework.
Previous report
Nine months ended July 31, 2025 compared with nine months ended July 31, 2024
Previous report
Personal Systems net revenue increased 5.9% (increased 6.5% on a constant currency basis) for the nine months ended July 31, 2025. The net revenue increase was primarily due to a 3.4% increase in ASPs and a 3.3% increase in PCs unit volume driven by Commercial PS. The increase in ASPs is primarily due to disciplined pricing actions and favorable mix shifts towards Commercial PS, partially offset by unfavorable currency impacts.
Previous report
Commercial PS net revenue increased 7.9% primarily due to a 6.3% increase in PC unit volume driven by market expansion and a 2.8% increase in ASPs. The increase in ASPs is primarily due to favorable mix shifts and disciplined pricing actions, partially offset by unfavorable currency impacts.
Previous report
Consumer PS net revenue increased 0.9% due to a 2.6% increase in ASPs, partially offset by 1.7% decrease in PC unit volume as a result of our strategy to rebalance our portfolio to a more profitable mix. The increase in ASPs is primarily driven by disciplined pricing actions.
Previous report
Net revenue for Commercial Printing decreased 3.0%, primarily due to an 11.5% decrease in printer unit volume due to demand softness, partially offset by a 6.9% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts towards industrial solutions.
Previous report
Net revenue for Consumer Printing decreased 8.2%, primarily due to an 8.3% decrease in printer unit volume due to demand softness while ASPs remained flat.
Previous report
Printing earnings from operations as a percentage of net revenue remained flat for the period, including both gross margin and operating expenses as a percentage of revenue.
Previous report
Nine months ended July 31, 2025 compared with nine months ended July 31, 2024
Previous report
Printing net revenue decreased 3.5% (decreased 2.2% on a constant currency basis) for the nine months ended July 31, 2025. The decrease in net revenue was driven by Supplies and Commercial Printing as well as net unfavorable currency impacts. Net revenue for Supplies decreased 3.3%, primarily due to decline in the installed base and usage as well as unfavorable currency impacts, partially offset by disciplined pricing actions. Printer hardware ASPs decreased 3.9% and printer unit volume decreased 1.3% primarily driven by demand softness. The decrease in ASPs was primarily due to unfavorable mix shifts towards Consumer Printing, competitive pricing and currency impacts.
Previous report
Printing earnings from operations as a percentage of net revenue decreased 0.1 percentage points driven by a decrease in gross margin, partially offset by a decrease in operating expenses as a percentage of revenue. The decrease in gross margin is primarily due to unfavorable mix shifts and higher tariff costs, partially offset by cost savings including Future Ready transformation savings. Operating expenses as a percentage of revenue decreased primarily due to lower variable compensation and the receipt of a government grant in the current period.
Reworded paragraphs (35)
Previous wording
HP delivers innovative and sustainable devices, services, and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and other related technologies. We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops, notebooks and workstations (including HP’s portfolio of AI PCs and workstations), thin clients, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects.
Current wording
HP delivers innovative and AI-powered devices, software, services, and subscriptions that drive business growth and professional fulfillment. We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops, notebooks and workstations (including HP’s portfolio of AI PCs and workstations), thin clients, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects.
Previous wording
We believe we are well positioned to lead the future of work with our competitive product lineup and enhanced portfolio of hybrid systems, remote-computing solutions, and intelligent print solutions. We are driving innovation by accelerating the delivery of AI across our product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets. We are consolidating all our software resources under the Technology and Innovation Organization to evolve from a transactional hardware company to a more experience-led organization, further strengthening our ability to capture these opportunities.
Current wording
We are focused on driving further growth, recurring revenue and investment in strategic areas and believe we are well positioned to lead the future of work with our competitive product lineup and enhanced portfolio of hybrid systems, remote-computing solutions, and intelligent print solutions. We are driving innovation by accelerating the delivery of AI across our product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets. We have consolidated all our software resources under the Technology and Innovation Organization to evolve from a transactional hardware company to a more experience-led organization, further strengthening our ability to capture these opportunities.
Previous wording
•In Personal Systems, we face challenges with a competitive pricing environment, variability in commodity costs, and demand softness in certain geographic regions.
Current wording
•In Personal Systems, we face challenges with a competitive pricing environment, variability in commodity costs, especially increasing memory and storage costs, and the uncertainty of the market’s ability to absorb price increases.
Previous wording
Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical conflicts (including the military conflict in Ukraine, continued instability in the Middle East, and tensions in the Taiwan Strait and South China Sea), uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience seasonality in the sale of our products and services which may be affected by general economic conditions.
Current wording
Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical tensions, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience seasonality in the sale of our products and services which may be affected by general economic conditions.
Previous wording
Since April 2025, new, substantial tariffs have been imposed on imports to the United States. We continue to evaluate and implement further mitigating actions, including potential supply chain resiliency movements and cost and pricing measures, as the tariff environment evolves. During the nine months ended July 31, 2025, we experienced higher commodity and tariff costs, which were not fully mitigated by pricing and other actions enacted during the period. Should these or other proposed or incremental tariffs, including potential retaliatory actions imposed by other countries, be implemented and sustained for an extended period of time, as proposed, enacted or otherwise, they may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate the effects of such tariffs.
Current wording
During fiscal year 2025 and through the first quarter of fiscal year 2026, we experienced higher commodity and trade related costs, which were not fully mitigated by pricing and other actions enacted during the period. Additionally, during the first quarter of fiscal year 2026, we experienced higher inflationary pressure in memory and storage costs and potential supply constraints in our Personal Systems business, which we anticipate will continue. We continue to evaluate and implement further mitigating actions, including potential supply chain resiliency movements and cost and pricing measures, as the trade and supply environments evolve.
Previous wording
We are also exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with approximately 65% of our net revenue from outside the United States. As a result, our financial results can be, and particularly in recent periods have been, negatively impacted by fluctuations in foreign currency exchange rates. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled “Risk Factors” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
Current wording
We are also exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with more than 65% of our net revenue from outside the United States. As a result, our financial results can be, and particularly in recent periods have been, negatively impacted by fluctuations in foreign currency exchange rates. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled “Risk Factors” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.
Previous wording
See “Risk Factors—Strategic and Operational Risks—We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024. For more information on our Fiscal 2023 Plan, see Note 3, “Restructuring and Other Charges,” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Current wording
See “Risk Factors—Strategic and Operational Risks—We may not achieve some or all of the expected benefits of our restructuring and other plans and such plans may adversely affect our business” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. For more information on our Fiscal 2026 Plan, see Note 3,
Previous wording
MD&A is based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of contingent liabilities. Management believes that there have been no significant changes during the nine months ended July 31, 2025 to the items that we disclosed as our critical accounting estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
Current wording
MD&A is based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of contingent liabilities. Management believes that there have been no significant changes during the three months ended January 31, 2026 to the items that we disclosed as our critical accounting estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.
Previous wording
For the three months ended July 31, 2025, net revenue increased 3.1% (increased 3.3% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 1.7% to $5.1 billion, and net revenue from international operations increased 3.8% to $8.9 billion. The increase in net revenue was primarily driven by products net revenue due to increased units in Personal Systems as well as an increase in services net revenue due to support services on hardware devices, partially offset by a decline in Printing net revenue and unfavorable currency impacts.
Current wording
For the three months ended January 31, 2026, net revenue increased 6.9% (increased 5.2% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 0.3% to $4.4 billion, and net revenue from international operations increased 10.2% to $10.0 billion. The increase in net revenue was driven by products net revenue due to increased units in Personal Systems, partially offset by demand softness in Printing. Services net revenue increased due to support services on hardware devices.
Previous wording
For the three months ended July 31, 2025, gross margin decreased by 1.0 percentage points primarily driven by products gross margin due to higher tariff costs, mix shifts towards Personal Systems and unfavorable currency impacts, partially offset by disciplined pricing actions. Services gross margin decreased due to unfavorable mix shifts.
Current wording
For the three months ended January 31, 2026, gross margin decreased by 1.4 percentage points primarily driven by products gross margin due to higher commodity and trade related costs as well as unfavorable mix shifts, partially offset by disciplined pricing actions and cost management. Services gross margin increased due to cost savings and favorable mix shifts.
Previous wording
R&D expense remained flat for the three months ended July 31, 2025. R&D expense decreased 3.5% for the nine months ended July 31, 2025 primarily due to disciplined cost savings.
Current wording
R&D expense remained flat for the three months ended January 31, 2026.
Previous wording
SG&A expense increased 3.3% for the nine months ended July 31, 2025 primarily due to higher litigation costs, partially offset by lower variable compensation.
Current wording
SG&A expense increased 3.1% for the three months ended January 31, 2026 primarily due to higher litigation charges and variable compensation, partially offset by cost savings and the receipt of a government grant in the current period.
Previous wording
Restructuring and other charges increased $64 million and $122 million for the three and nine months ended July 31, 2025, respectively, due to the February 2025 amendment of the Fiscal 2023 Plan. For more information, see Note 3, “Restructuring and other charges”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Current wording
Restructuring and other charges for the three months ended January 31, 2026 primarily relate to the Fiscal 2026 Plan. For more information, see Note 3, “Restructuring and other charges”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Previous wording
Acquisition and divestiture charges primarily include direct third-party professional and legal fees, integration and divestiture-related costs, and non-cash adjustments to the fair value of certain acquired assets, such as inventory. Acquisition and divestiture charges for the three and nine months ended July 31, 2025 decreased by $14 million and $40 million, respectively, primarily due to reduced integration activities.
Current wording
Acquisition and divestiture charges for the three months ended January 31, 2026 decreased by $8 million primarily due to lower acquisition and integration activities.
Previous wording
Our effective tax rate was (22.3)% for the three months ended July 31, 2025 and 5.5% for the nine months ended July 31, 2025. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rate for the three and nine months ended July 31, 2025 was primarily due to decreases in unrecognized tax benefits.
Current wording
Our effective tax rate was 18.8% for the three months ended January 31, 2026. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rate for the three months ended January 31, 2026 was primarily due to favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world.
Previous wording
A description of the products and services for each segment can be found in Note 2, “Segment Information” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Current wording
A description of the products and services for each segment and the business unit realignment in the first quarter of fiscal year 2026 can be found in Note 2, “Segment Information” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Previous wording
Personal Systems net revenue increased 6.0% (increased 6.2% on a constant currency basis) for the three months ended July 31, 2025. The net revenue increase was primarily due to a 4.9% increase in PCs unit volume driven by the Windows-based PC operating system refresh and a 2.5% increase in average selling price (“ASPs”). The increase in ASPs is primarily due to disciplined pricing actions, partially offset by unfavorable mix shift towards Consumer PS and currency impacts.
Current wording
Personal Systems net revenue increased 11.1% (increased 9.1% on a constant currency basis) for the three months ended January 31, 2026. The net revenue increase was primarily due to a 12.1% increase in PCs unit volume driven by the Windows-based PC operating system refresh as well as accelerated demand resulting from anticipated memory cost increases primarily in Consumer, partially offset by a 0.2% decrease in average selling price (“ASPs”). The decrease in ASPs is primarily due to unfavorable mix shifts, partially offset by disciplined pricing actions and favorable currency impacts.
Previous wording
Consumer PS net revenue increased 7.5% primarily due to an 8.4% increase in units, partially offset by a 0.9% decrease in ASPs. The decrease in ASPs was primarily due to unfavorable mix shifts and currency impacts, partially offset by disciplined pricing.
Current wording
Commercial PS net revenue increased 9.1% primarily due to an 11.0% increase in units, partially offset by a 0.9% decrease in ASPs. The decrease in ASPs is primarily due to higher Chromebook mix, specifically in the education sector, partially offset by favorable currency impacts.
Previous wording
Commercial PS net revenue increased 5.4% primarily due to a 2.9% increase in units and a 4.6% increase in ASPs. The increase in ASPs is primarily due to favorable mix shifts and disciplined pricing.
Current wording
Consumer PS net revenue increased 16.2% primarily due to a 13.7% increase in units and a 2.3% increase in ASPs. The increase in ASPs was primarily due to favorable currency impacts, favorable mix shifts and disciplined pricing actions.
Previous wording
Personal Systems earnings from operations as a percentage of net revenue decreased by 1.0 percentage points driven by a decrease in gross margin, partially offset by a decrease in operating expenses as a percentage of revenue. Gross margin decreased primarily due to higher commodity and tariff costs as well as unfavorable currency impacts, partially offset by disciplined pricing actions. Operating expenses as a percentage of revenue decreased primarily driven by lower go-to-market initiatives and variable compensation as well as cost savings including Future Ready transformation savings.
Current wording
Personal Systems earnings from operations as a percentage of net revenue decreased by 0.5 percentage points driven by a decrease in gross margin, partially offset by a decrease in operating expenses as a percentage of revenue. Gross margin decreased primarily due to higher commodity costs, partially offset by favorable currency impacts and disciplined pricing actions in Consumer PS. Operating expenses as a percentage of revenue decreased primarily due to cost savings initiatives, partially offset by higher variable compensation.
Previous wording
Printing net revenue decreased 3.8% (decreased 3.4% on a constant currency basis) for the three months ended July 31, 2025. The decrease in net revenue was driven by Supplies, Commercial Printing, and Consumer Printing as well as unfavorable currency impacts. Net revenue for Supplies decreased 3.7%, primarily due to decline in the installed base and usage as well as unfavorable currency impacts, partially offset by disciplined pricing actions. Printer units decreased by 9.5% primarily due to demand softness, while ASPs increased by 3.7% driven by Commercial Printing.
Current wording
Printing net revenue decreased 2.2% (decreased 3.2% on a constant currency basis) for the three months ended January 31, 2026. The decrease in net revenue was driven by Supplies, Commercial Printing, and Consumer Printing. Net revenue for Supplies decreased 1.1%, primarily due to decline in the installed base and usage, partially offset by disciplined pricing actions. Printer units decreased by 6.5% primarily due to demand softness and competitive pressures, while ASPs increased by 0.9%.
Previous wording
Net revenue for Commercial Printing decreased by 4.3%, primarily due to a 4.1% decrease in printer unit volume and a 2.0% decrease in ASPs. The decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable mix shifts.
Current wording
Net revenue for Commercial Printing decreased 3.4%, primarily due to a 6.5% decrease in printer unit volume, partially offset by a 0.5% increase in ASPs. The increase in ASPs was primarily driven by favorable currency impacts, partially offset by unfavorable mix shifts.
Previous wording
Net revenue for Consumer Printing decreased 2.3%, primarily due to a 2.7% decrease in ASPs, while printer unit volume remained flat. The decrease in ASPs was primarily driven by unfavorable currency impacts, mix shifts, and competitive pricing.
Current wording
Net revenue for Consumer Printing decreased 7.8%, primarily due to a 6.4% decrease in printer unit volume, partially offset by a 2.0% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts and currency impacts, partially offset by competitive pricing.
Previous wording
Personal Systems earnings from operations as a percentage of net revenue decreased by 1.2 percentage points driven by a decrease in gross margin and an increase in operating expenses as a percentage of revenue. Gross margin decreased primarily due to higher tariff costs as well as unfavorable currency impacts, partially offset by disciplined pricing actions. Operating expenses as a percentage of revenue increased primarily due to higher variable compensation and go-to-market initiatives.
Current wording
Printing earnings from operations as a percentage of net revenue decreased by 0.4 percentage points for the period. The decrease was driven by an increase in operating expenses as a percentage of revenue, partially offset by an increase in gross margin. Operating expenses as a percentage of revenue increased primarily due to higher variable compensation, partially offset by the receipt of a government grant. Gross margin increased primarily due to mix shift towards Supplies, partially offset by higher net trade related costs.
Previous wording
The loss from operations in Corporate Investments for the three and nine months ended July 31, 2025 was primarily due to expenses associated with our incubation projects and investments in digital enablement.
Current wording
The loss from operations in Corporate Investments for the three months ended January 31, 2026 was primarily due to expenses associated with our incubation projects and investments in digital enablement.
Previous wording
Compared to the corresponding period in fiscal year 2024, net cash provided by operating activities decreased $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.
Current wording
Compared to the corresponding period in fiscal year 2025, net cash provided by operating activities remained flat.
Previous wording
The cash conversion cycle is the sum of DSO and DOS less DPO. Items which may cause the cash conversion cycle in a particular period to differ from historical trends include, but are not limited to, changes in business mix, changes in payment terms and timing, timing and extent of receivables factoring, seasonal trends and the timing of revenue recognition and inventory purchases within the period.
Current wording
The cash conversion cycle is the sum of DSO and DIO less DPO. Items which may cause the cash conversion cycle in a particular period to differ from historical trends include, but are not limited to, changes in business mix, changes in payment terms and timing, timing and extent of receivables factoring, seasonal trends and the timing of revenue recognition and inventory purchases within the period.
Previous wording
DOS measures the average number of days from procurement to sale of our product. DOS is calculated by dividing ending inventory by a 90-day average cost of goods sold. The increase in DOS was primarily due to higher inventory in-transit and tariff mitigation actions.
Current wording
DIO measures the average number of days from procurement to sale of our product. DIO is calculated by dividing ending inventory by a 90-day average cost of goods sold. The decrease in DIO was primarily due to inventory optimization.
Previous wording
DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average cost of goods sold. The increase in DPO was primarily due to higher purchasing volumes.
Current wording
DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average cost of goods sold. The increase in DPO was primarily due to higher purchases.
Previous wording
Compared to the corresponding period in fiscal year 2024, net cash used in investing activities increased by $0.6 billion for the nine months ended July 31, 2025, primarily due to collateral posted for derivative instruments of $0.3 billion, higher investment in property, plant, equipment and purchased intangible of $0.3 billion, and payments made in connection with business acquisitions of $0.1 billion.
Current wording
Compared to the corresponding period in fiscal year 2025, net cash used in investing activities decreased by $31 million for the three months ended January 31, 2026, primarily due to lower investment in property, plant, equipment and purchased intangible of $69 million, and net proceeds from business divestiture of $26 million, partially offset by collateral posted for derivative instruments of $76 million.
Previous wording
Compared to the corresponding period in fiscal year 2024, 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.
Current wording
Compared to the corresponding period in fiscal year 2025, net cash used in financing activities increased by $0.2 billion for the three months ended January 31, 2026, primarily due to a $0.2 billion increase in share repurchases.
Previous wording
During the nine months ended July 31, 2025, HP returned $1.2 billion to shareholders in the form of cash dividends of $0.8 billion and share repurchases of $0.4 billion. As of July 31, 2025, HP had approximately $8.9 billion remaining under the share repurchase authorization approved by HP’s Board of Directors.
Current wording
During the three months ended January 31, 2026, HP returned $0.6 billion to shareholders in the form of share repurchases of $0.3 billion and cash dividends of $0.3 billion. As of January 31, 2026, HP had approximately $8.1 billion remaining under the share repurchase authorization approved by HP’s Board of Directors.
Previous wording
As of July 31, 2025, we anticipate making contributions for the remainder of fiscal year 2025 of approximately $4.0 million to our non-U.S. pension plans and $10.0 million to cover benefit payments to U.S. non-qualified pension plan participants. Our policy is to fund our pension plans so that we meet the minimum contribution required by local government, funding and taxing authorities. For more information on our retirement and post-retirement benefit plans, see Note 4, “Retirement and Post-Retirement Benefit Plans”, to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
Current wording
As of January 31, 2026, we anticipate making contributions for the remainder of fiscal year 2026 of approximately $31.0 million to our non-U.S. pension plans and $23.0 million to cover benefit payments to U.S. non-qualified pension plan participants. Our policy is to fund our pension plans so that we meet the minimum contribution required by local government, funding and taxing authorities. For more information on our retirement and post-retirement benefit plans, see Note 4, “Retirement and Post-Retirement Benefit Plans”, to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.
Previous wording
As a result of our approved restructuring plans, we expect to make future cash payments of approximately $0.2 billion. For more information on our restructuring activities that are part of our cost improvements, see Note 3, “Restructuring and Other Charges”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Current wording
As a result of our approved restructuring plans, we expect to make future cash payments of approximately $0.6 billion. For more information on our restructuring activities that are part of our cost improvements, see Note 3, “Restructuring and Other Charges”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Previous wording
As of July 31, 2025, we had approximately $837 million of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these liabilities would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 4, “Taxes on Earnings”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Current wording
As of January 31, 2026, we had approximately $829 million of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these liabilities would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 4, “Taxes on Earnings”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
New or sustained changes to tariffs and commodity costs could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate these effects.
Current report — wording carried from elsewhere
“Restructuring and Other Charges,” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the nine months ended July 31, 2025, total net revenue increased 2.9% (increased 3.7% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 3.0% to $14.2 billion, and net revenue from international operations increased 2.9% to $26.5 billion. The increase in net revenue was primarily driven by products net revenue due to increased units in Commercial PS as well as an increase in services net revenue due to support services on hardware devices, partially offset by a decline in Printing net revenue and unfavorable currency impacts.