HP Overview
HP Inc. is the world's second-largest personal computer vendor and the largest printer vendor, operating a two-engine business model in which a large, low-margin, share-defending Personal Systems franchise is funded and cross-subsidised by a smaller, structurally declining but highly profitable Printing franchise built on consumables annuity economics. In FY2025 Personal Systems produced 70% of revenue at a 5.3% pre-tax segment margin while Printing produced 30% of revenue at an 18.7% margin, meaning Printing generated roughly 62% of total segment earnings on less than a third of the revenue. Management's declared strategy — "leading the Future of Work" — attempts to convert that hardware base into an AI-enabled, subscription-weighted platform through AI PCs, the Workforce Experience Platform, Poly collaboration hardware and the newly announced HP IQ intelligence layer. As of September 2026 the company is executing this transition under an interim chief executive, amid an acute DRAM/NAND cost shock and a formal search for a permanent CEO.
HP Inc. is the Palo Alto–headquartered personal-computing and imaging/printing company that emerged from the November 2015 separation of the former Hewlett-Packard Company into two independent public companies. HP Inc. retained the legacy corporate registrant — it is the same legal entity as the original Hewlett-Packard Company, renamed — while the enterprise infrastructure, software and services businesses were spun into Hewlett Packard Enterprise Company. That legal continuity matters: HP Inc.'s SEC filings carry the original Commission file number and the original Delaware incorporation and IRS identification numbers, and the Form 10-K explicitly states that references to HP Inc. mean HP Inc. "(formerly Hewlett-Packard Company)" and its consolidated subsidiaries.
HP's own description
The FY2025 Form 10-K opens with the company's self-characterisation: HP describes itself as a global technology leader creating solutions that let people bring ideas to life and connect to what matters most, operating in more than 170 countries and delivering devices, services and subscriptions across personal computing, printing, 3D printing, hybrid work, gaming and adjacent technologies. The filing places artificial intelligence at the centre of its narrative, arguing that AI is transforming how people live and work and that customers are beginning to recognise benefits in security, speed and cost. It highlights a portfolio of AI PCs and workstations built for local AI processing, intelligent print features across home, office and graphics products, and a layered security proposition spanning security-enhanced PCs and printers, hardware-enforced endpoint security software for both HP and non-HP PCs, and endpoint security services using containment, isolation and AI deep-learning malware detection.
Newer 2026 press-release boilerplate has tightened this language considerably: HP now describes itself as "a global technology leader redefining the Future of Work," operating in more than 180 countries and delivering AI-powered devices, software, services and subscriptions. The shift from "innovative and sustainable devices, services and subscriptions" (FY2025 10-K) to "innovative and AI-powered devices, software, services and subscriptions" (2026 releases) is a deliberate repositioning of the equity story from sustainability-and-devices to AI-and-software.
Independent characterisation
HP is best understood as three economically distinct businesses reported through two material segments.
The PC business is a scale-and-distribution business, not a technology business. HP designs and specifies; it does not manufacture. The 10-K states plainly that HP uses outsourced manufacturers worldwide to build HP-designed products, relying on original manufacturers ("OMs") — with Taiwanese contract manufacturers named specifically for notebooks — and that HP represents a substantial portion of the business of certain OMs. Silicon comes from Intel, AMD and NVIDIA, with Qualcomm Snapdragon in selected Arm-based models; operating systems come from Microsoft and Google. HP's value-add is industrial design, security firmware, channel reach, procurement leverage, services attach and brand. The consequence is that HP's PC gross margin is a spread between component cost and street price, with very little insulation when component costs move violently — which is precisely what has happened in FY2026.
The printing business is a razor-and-blades annuity. Supplies alone generated $10,916 million in FY2025, 65% of total Printing segment revenue and 19.7% of consolidated revenue, at margins far above the hardware. Printing's 18.7% FY2025 pre-tax segment margin is not an operating-leverage outcome; it is a consumables monopoly outcome, defended by supplies authentication technology ("Dynamic Security") which is itself the subject of persistent litigation and regulatory attention across multiple jurisdictions. The 10-K's own risk factors concede the structural problem in unusually direct language: secular decline in print demand from digitisation and hybrid work, competition from generic and remanufactured supplies, and customer migration from cartridge printers to refillable "big tank" printers which — HP states explicitly — carry higher initial hardware margin but "do not result in follow-on sales of high margin traditional ink cartridges and, as a result, may have lower overall device lifetime profitability." That is management admitting that its own product-mix shift is dilutive to lifetime economics.
The services, software and subscription overlay is the strategic bet. This spans HP Instant Ink and the HP All-In Plan on the consumer side; managed print services, Device-as-a-Service and lifecycle services on the commercial side; the Workforce Experience Platform (WXP), Poly Lens and Wolf Security on the software side; and Poly hardware in meeting rooms. HP does not disclose a discrete revenue line for "subscriptions" or "software" in its segment note, which is a material transparency gap for anyone underwriting the transition thesis. The company reports only Commercial PS, Consumer PS, Supplies, Commercial Printing, Consumer Printing and Corporate Investments.
Revenue model composition
| Revenue characteristic | Assessment | Evidence |
|---|---|---|
| Product (hardware) revenue | Large majority of total | FY2025 MD&A attributes revenue growth primarily to products revenue on higher Personal Systems units |
| Services revenue | Growing; disclosed only qualitatively | FY2025 MD&A cites an increase in services net revenue from support services on hardware devices |
| Consumables annuity | 19.7% of consolidated FY2025 revenue | Supplies $10,916M / total $55,295M, FY2025 10-K segment note |
| Subscription revenue | — | No discrete line in segment note |
| Licensing revenue | Not separately disclosed; cross-licensing arrangements noted qualitatively | FY2025 10-K, Intellectual Property |
Value chain position and route to market
HP sits between component suppliers and a multi-tier distribution network, owning almost none of the physical production. The 10-K describes four channel archetypes — retailers, value-added resellers, distribution partners and systems integrators — and states that the majority of overall revenue is transacted through channel resellers, with direct/indirect mix varying by business and geography. This creates two structural exposures the filings acknowledge repeatedly: limited visibility into multi-tier channel inventory, and the risk of channel partners selling outside agreed territories or misrepresenting sell-through, which HP states has occurred historically and has damaged gross margins.
Customer concentration is now material and newly so. The FY2025 segment note discloses that TD Synnex Corp accounted for 12% of HP's net revenue in FY2025, whereas no single customer represented 10% or more in FY2024 or FY2023. That is a new disclosure threshold crossing and a genuine concentration risk that did not exist twelve months earlier.
Customer types and end markets
Commercial customers span large enterprise, public sector (including education), and small and medium business, served with the Pro and Elite PC portfolios, Z workstations, thin clients, retail point-of-sale, and managed lifecycle services. Consumer customers are served through gaming (OMEN, Victus, HyperX), mainstream and premium notebooks (OmniBook, Envy, Pavilion, Spectre lineage), Chromebooks and home printing. Industrial and graphics end-markets — print service providers, packaging converters, commercial publishers, production mail — are addressed through Indigo, PageWide and Latex presses. Additive manufacturing customers are served through Multi Jet Fusion and Metal Jet.
Financial Narrative
Data provenance for this section. FY2023–FY2025 figures reconcile to HP's Form 10-K. FY2021–FY2022 figures are S&P Global Market Intelligence standardised financials, which differ marginally from HP's as-reported presentation (most visibly, standardised FY2021 revenue of $63,460 million versus HP's as-reported $63,487 million). Both are shown where relevant and the discrepancy is flagged rather than silently reconciled. HP's own definition of free cash flow differs from the simple operating-cash-flow-less-capex convention used by S&P.
Income statement, five years: notes and sources: notes and sources
Sources: FY2025 Form 10-K; S&P Global Market Intelligence standardised financials for FY2021–FY2022 and for line items HP does not present separately.
Revenue CAGR analysis: notes and sources
Own calculations. Printing's four-year CAGR of −5.9% versus Personal Systems' −2.9% quantifies the mix shift toward the lower-margin engine.
Balance sheet, five years: notes and sources
Source: S&P Global Market Intelligence standardised balance sheet; FY2025 total assets of $41,769M is consistent with third-party trackers reporting $41.77 billion for the year ended 31 October 2025.
HP has negative stockholders' equity in every year of the five-year window. This is not distress; it is the arithmetic consequence of two decades of buybacks exceeding retained earnings, visible in retained earnings of −$2,027 million at FY2025. It does, however, render return on equity, price-to-book and debt-to-equity meaningless as analytical measures for HP, and it is the reason S&P's standardised debt-to-equity ratio prints as −31.45x at FY2025. Any peer comparison using ROE or P/B is invalid for HP and should be replaced with ROIC and EV-based multiples.
Equally notable is the structurally negative working capital of −$6,805 million at FY2025, which is a feature rather than a defect: HP finances a substantial portion of its inventory through supplier payables, running accounts payable of $18,051 million against inventory of $8,512 million. By Q3 FY2026 that had widened further, with accounts payable at $21.4 billion (151 days) against inventory of $10.3 billion (73 days).
Cash flow, five years: notes and sources: notes and sources
Sources: S&P Global Market Intelligence standardised cash flow statement; HP-defined free cash flow of $2.9 billion for FY2025 from HP's FY2025 earnings release. HP defines free cash flow as net cash provided by operating activities adjusted for net investments in leases from integrated financing and net investments in property, plant, equipment and purchased intangibles — for FY2025, $3.7 billion less $131 million of net lease investment and less $897 million of PP&E and purchased intangibles. The FY2021–FY2024 "HP definition" row uses the levered free cash flow proxy from S&P's standardised presentation and should be treated as indicative rather than as HP's contemporaneous disclosure.
Ratio analysis, five years: notes and sources
Return on equity is not meaningful in any year because stockholders' equity is negative. Interest coverage, DIO, DSO, DPO and cash conversion cycle are own calculations from the tables above; all other ratios are S&P Global Market Intelligence.
Commentary on trends, inflections and drivers
Revenue: one violent inflection, then grinding recovery. The defining event of the five-year window is FY2023, when revenue fell 14.6% to $53,718 million. This was the unwind of pandemic-era demand pull-forward in consumer PCs — Consumer PS collapsed from $16,510 million in FY2021 to $10,972 million in FY2023, a 33.5% decline — compounded by consumer printing hardware falling from $3,287 million to $1,327 million over the same two years, a 59.6% decline. Neither has recovered. FY2025 Consumer PS of $11,094 million remains 32.8% below FY2021; FY2025 Consumer Printing of $1,153 million remains 64.9% below FY2021. The FY2024 and FY2025 recovery has been entirely a commercial phenomenon: Commercial PS rose from $24,712 million in FY2023 to $27,438 million in FY2025 (+11.0%), driven by the Windows 10 end-of-support refresh cycle (support ended 14 October 2025) and by AI PC attach.
Gross margin: the single most important line, and it is now breaking down. Gross margin expanded through FY2024 to 22.07% — the best of the five years — as freight normalised and mix favoured commercial. It then fell 1.5 points to 20.60% in FY2025. HP's own MD&A attributes this to products gross margin, specifically higher commodity and tariff costs, mix shift toward Personal Systems and unfavourable currency, partially offset by disciplined pricing and cost savings. The trailing-twelve-month figure to 31 July 2026 has fallen further to 19.66%, and consensus modelled FY2026 gross margin of 19.43% — which would be the lowest of the six-year window and below even FY2022's freight-inflated 19.49%.
The memory shock is the dominant FY2026 driver and is not yet fully in the numbers. HP disclosed to investors that memory costs doubled quarter-over-quarter and that memory now represents roughly 35% of a PC's bill of materials, up from approximately 15–18% one quarter earlier. TrendForce projected PC DRAM contract prices rising 90–95% quarter-over-quarter in Q1 2026. HP guided in December 2025 to approximately $700 million of tariff costs and a $0.30 EPS impact from elevated memory costs in the back half of FY2026, representing roughly 90 basis points of pressure on Personal Systems margins. IDC has stated it expects the memory shortage to continue until early 2028. HP's response has been to secure long-term supply agreements for the year, qualify new suppliers, build strategic inventory positions for key platforms, halve material qualification time, expand lower-cost sourcing across the commodity basket and raise prices — with the industry confirming 15–20% price increases for systems shipping in the second half of 2026.
Operating margin has compressed in every single year. GAAP operating margin fell from 8.95% (FY2021) to 6.60% (FY2025), a 235 basis point erosion across four consecutive years with no interruption. Roughly half of this is gross margin; the other half is operating expense, where SG&A as a percentage of revenue rose from 7.74% in FY2022 to 10.48% in FY2025 — partly a denominator effect from the FY2023 revenue collapse, partly the Poly cost base, and partly stock-based compensation which rose from $330 million (FY2021) to $522 million (FY2025), a 58% increase against a 12.9% revenue decline.
The tax line has been doing heavy lifting on reported earnings. FY2023 carried a tax benefit of $326 million against pre-tax income of $2,937 million — a negative effective rate of −11.1% — which is why FY2023 net income of $3,263 million exceeded FY2022's $3,132 million despite pre-tax income falling from $4,324 million to $2,937 million. FY2025's effective rate of 5.21% is likewise anomalously low. Analysts should not extrapolate. HP has stated that the One Big Beautiful Bill Act, enacted 4 July 2025, with key provisions beginning in FY2026, is not anticipated to have a material impact on effective or cash tax rates.
Cash generation has deteriorated steadily and materially. Operating cash flow fell from $6,409 million in FY2021 to $3,697 million in FY2025 — a 42% decline. HP-defined free cash flow of $2.9 billion in FY2025 was the lowest of the five-year window. Capital expenditure rose sharply in FY2025 to $897 million from $592 million, a 51% increase, which HP has not fully explained in public disclosure. Working capital has been a consistent drag: change in working capital was negative in four of five years, totalling −$4,189 million cumulatively across FY2021–FY2025.
FY2026 cash flow has inflected sharply positive, but for a mechanical reason. Trailing-twelve-month operating cash flow to 31 July 2026 is $4,668 million, up 26.3%, and TTM free cash flow is $3,881 million, up 36.5%. The driver is visible in the cash flow statement: TTM change in accounts payable is +$4,371 million against TTM changes in receivables of −$2,109 million and inventory of −$2,059 million. HP is funding a large strategic inventory build almost entirely on supplier terms, with days payable at 151. This is prudent supply-chain management in a shortage, but it is a financing source that reverses, and the resulting free cash flow is of lower quality than the headline suggests.
Leverage has crept up but remains investment grade. Net debt to EBITDA rose from 0.70x (FY2021) to 1.61x (FY2025) — driven as much by the EBITDA denominator falling 30.8% as by debt rising. Total debt has been essentially flat at $10.8–10.9 billion for three years. The FY2022 spike to $12,372 million funded the Poly acquisition. Interest coverage of 8.5x at FY2025 is adequate but is less than half the 22.4x of FY2021.
Capital returns have been cut hard to protect the balance sheet. Buybacks collapsed from $6,249 million (FY2021) to $100 million (FY2023), recovered to $2,100 million (FY2024), then fell again to $850 million (FY2025). The dividend, by contrast, has risen every year, from $0.78 to $1.158 per share, pushing the payout ratio from 14.3% to 43.0%. Total capital returned in FY2025 was $1.9 billion against HP-defined free cash flow of $2.9 billion — a 66% distribution rate. Management has clearly prioritised dividend continuity over buyback volume, which is the correct hierarchy given the credit rating but leaves the buyback as the residual shock absorber.
7. SEGMENTAL AND GEOGRAPHIC REVENUE MAPPING
Geographic split, as disclosed
HP's geographic disclosure is unusually thin for a company of its size. The FY2025 10-K discloses only United States versus outside the United States, stating that net revenue by country is based on the sales location that predominantly represents the customer location, and that other than the United States, no country represented more than 10% of HP net revenue in any fiscal year presented. HP does not disclose an Americas / EMEA / APAC breakdown in its segment note.
FY2025 figures as disclosed in the FY2025 Form 10-K MD&A: US net revenue increased 2.2% to $19.2 billion, and non-US increased 3.8% to $36.1 billion.
The 10-K risk factors state that approximately 65% of net revenue for FY2025 came from outside the United States, which corroborates the table.
Growth by geography
International revenue grew faster than domestic in FY2025 despite an adverse currency translation of roughly half a percentage point on the group. On a constant-currency basis the international outperformance was therefore wider than the reported figures suggest.
Segment by geography
HP does not disclose segment revenue crossed with geography. This is a genuine and significant disclosure gap: it is impossible from public filings to determine, for example, whether Printing's decline is concentrated in EMEA or APAC, or where AI PC attach rates are strongest. Not publicly disclosed.
Country-level detail
Not publicly disclosed beyond the United States. HP explicitly states no other single country exceeded 10% of revenue. The FY2025 risk factors do, however, identify specific geographic exposures worth noting as qualitative signals: HP names cautious commercial spending on information technology hardware, including in China, as an observed FY2025 condition, and identifies the euro, British pound, Indian rupee, Chinese yuan and Japanese yen as the currencies with material impact on results. HP separately flags weakness in the Japanese yen as exacerbating pricing competition specifically in print products and services — a direct competitive channel from Japanese printer competitors Canon, Epson, Brother and Ricoh.
Fastest-growing and declining areas, with reasons
Given the absence of a regional segment matrix, the analytically usable growth decomposition is by business unit rather than by geography:
In FY2026 to date the polarity has intensified: through three quarters, Personal Systems revenue is up 14.4% year over year to $32,231 million while Printing has declined in two of three quarters, with Q3 FY2026 Printing revenue down 2% reported and down 4% in constant currency.
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View Subscription PlansFinancial Detail
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net revenue (USD Mn) | 63,460 | 62,910 | 53,718 | 53,559 | 55,295 |
Revenue growth YoY (percent) | 12.04 | -0.87 | -14.61 | -0.30 | 3.24 |
Cost of net revenue (USD Mn) | 50,053 | 50,647 | 42,210 | 41,741 | 43,903 |
Gross profit (USD Mn) | 13,407 | 12,263 | 11,508 | 11,818 | 11,392 |
Selling, general and administrative (USD Mn) | 5,728 | 4,869 | 5,242 | 5,646 | 5,795 |
Research and development (USD Mn) | 1,848 | 1,653 | 1,578 | 1,640 | 1,602 |
Amortization of intangibles (USD Mn) | 154 | 228 | 350 | 318 | 345 |
Total operating expenses (USD Mn) | 7,730 | 6,750 | 7,170 | 7,604 | 7,742 |
Operating income (USD Mn) | 5,677 | 5,513 | 4,338 | 4,214 | 3,650 |
EBITDA (USD Mn) | 6,462 | 6,293 | 5,188 | 5,044 | 4,474 |
Depreciation and amortization for EBITDA (USD Mn) | 785 | 780 | 850 | 830 | 824 |
Interest expense (USD Mn) | 254 | 359 | 548 | 452 | 430 |
Interest and investment income (USD Mn) | 31 | 46 | 67 | 78 | 89 |
Pre-tax income (USD Mn) | 7,568 | 4,324 | 2,937 | 3,279 | 2,668 |
Income tax expense (USD Mn) | 1,027 | 1,192 | -326 | 504 | 139 |
Effective tax rate (percent) | 13.57 | 27.57 | -11.10 | 15.37 | 5.21 |
Net income (USD Mn) | 6,541 | 3,132 | 3,263 | 2,775 | 2,529 |
EPS basic (USD) | 5.41 | 3.02 | 3.29 | 2.83 | 2.67 |
EPS diluted (USD) | 5.36 | 2.98 | 3.26 | 2.81 | 2.65 |
Non-GAAP diluted EPS (USD) | 3.79 | 4.08 | 3.28 | 3.43 | 3.12 |
Dividends per share (USD) | 0.78 | 1.00 | 1.05 | 1.10 | 1.158 |
Diluted weighted average shares (millions) | 1,220 | 1,050 | 1,000 | 989 | 953 |
Advertising expense (USD Mn) | 829 | 696 | 611 | 628 | 718 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (percent) | 21.13 | 19.49 | 21.42 | 22.07 | 20.60 |
Operating margin, GAAP (percent) | 8.95 | 8.76 | 8.08 | 7.87 | 6.60 |
EBITDA margin (percent) | 10.18 | 10.00 | 9.66 | 9.42 | 8.09 |
Pre-tax margin (percent) | 11.93 | 6.87 | 5.47 | 6.12 | 4.83 |
Net margin (percent) | 10.31 | 4.98 | 6.07 | 5.18 | 4.57 |
Free cash flow margin (percent) | 9.18 | 5.88 | 5.54 | 5.89 | 5.06 |
R&D as percent of revenue (percent) | 2.91 | 2.63 | 2.94 | 3.06 | 2.90 |
SG&A as percent of revenue (percent) | 9.03 | 7.74 | 9.76 | 10.54 | 10.48 |
CAGR by Period
| Period | CAGR (percent) | Note |
|---|---|---|
FY2021 to FY2025 (4 years) | -3.39 | Reflects the FY2023 pandemic-demand unwind |
FY2023 to FY2025 (2 years) | 1.46 | Post-trough recovery |
FY2024 to FY2025 (1 year) | 3.24 | Sixth consecutive quarter of growth exiting FY2025 |
FY2021 to FY2025, Personal Systems (4 years) | -2.90 | From $43,332M (FY2021 CPS+CoPS) to $38,532M |
FY2021 to FY2025, Printing (4 years) | -5.85 | From $20,128M (FY2021 Supplies+CP+CoP) to $16,702M |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 38,610 | 38,494 | 37,004 | 39,909 | 41,769 |
Cash and cash equivalents (USD Mn) | 4,299 | 3,145 | 3,232 | 3,238 | 3,690 |
Accounts receivable (USD Mn) | 5,511 | 4,546 | 4,237 | 5,117 | 5,692 |
Inventory (USD Mn) | 7,930 | 7,614 | 6,862 | 7,720 | 8,512 |
Total current assets (USD Mn) | 22,170 | 19,736 | 17,977 | 20,760 | 22,453 |
Property, plant and equipment, net (USD Mn) | 3,738 | 4,010 | 4,015 | 4,079 | 4,178 |
Goodwill (USD Mn) | 6,803 | 8,541 | 8,591 | 8,627 | 8,706 |
Other intangible assets (USD Mn) | 784 | 1,933 | 1,593 | 1,319 | 1,012 |
Goodwill plus intangibles (USD Mn) | 7,587 | 10,474 | 10,184 | 9,946 | 9,718 |
Accounts payable (USD Mn) | 16,075 | 15,303 | 14,046 | 16,903 | 18,051 |
Total current liabilities (USD Mn) | 29,096 | 26,189 | 24,488 | 28,687 | 29,258 |
Short-term debt and current maturities (USD Mn) | 1,106 | 218 | 230 | 1,406 | 829 |
Long-term debt (USD Mn) | 6,410 | 10,860 | 9,312 | 8,263 | 8,802 |
Total debt including leases (USD Mn) | 8,802 | 12,372 | 10,797 | 10,899 | 10,882 |
Net debt (USD Mn) | 4,503 | 9,227 | 7,565 | 7,661 | 7,192 |
Total liabilities (USD Mn) | 40,260 | 41,519 | 38,073 | 41,232 | 42,115 |
Total stockholders equity (USD Mn) | -1,650 | -3,025 | -1,069 | -1,323 | -346 |
Working capital (USD Mn) | -6,926 | -6,453 | -6,511 | -7,927 | -6,805 |
Tangible book value (USD Mn) | -9,237 | -13,499 | -11,253 | -11,269 | -10,064 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net income (USD Mn) | 6,541 | 3,132 | 3,263 | 2,775 | 2,529 |
Depreciation and amortization (USD Mn) | 785 | 780 | 850 | 830 | 824 |
Stock-based compensation (USD Mn) | 330 | 343 | 438 | 452 | 522 |
Asset writedown and restructuring (USD Mn) | 251 | 218 | 527 | 301 | 497 |
Change in accounts receivable (USD Mn) | -105 | 1,285 | 278 | -929 | -524 |
Change in inventory (USD Mn) | -2,180 | 214 | 668 | -852 | -828 |
Change in accounts payable (USD Mn) | 1,257 | -909 | -1,240 | 2,840 | 1,142 |
Net cash from operating activities (USD Mn) | 6,409 | 4,463 | 3,571 | 3,749 | 3,697 |
Capital expenditures (USD Mn) | 582 | 765 | 593 | 592 | 897 |
Free cash flow, OCF less capex (USD Mn) | 5,827 | 3,698 | 2,978 | 3,157 | 2,800 |
Free cash flow, HP definition (USD Mn) | 3,926 | 2,785 | 3,172 | 3,274 | 2,900 |
Cash used for acquisitions (USD Mn) | 854 | 2,755 | 7 | 58 | 116 |
Divestiture proceeds (USD Mn) | 0 | 0 | 0 | 0 | 66 |
Dividends paid (USD Mn) | 938 | 1,037 | 1,037 | 1,075 | 1,088 |
Share repurchases (USD Mn) | 6,249 | 4,297 | 100 | 2,100 | 850 |
Total debt issued (USD Mn) | 2,521 | 4,175 | 255 | 380 | 1,385 |
Total debt repaid (USD Mn) | 1,245 | 1,093 | 1,710 | 213 | 1,387 |
Cash interest paid (USD Mn) | 261 | 305 | 548 | 441 | 437 |
Cash income tax paid (USD Mn) | 1,548 | 749 | 398 | 649 | 535 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on assets (percent) | 9.68 | 8.94 | 7.18 | 6.85 | 5.59 |
Return on invested capital (percent) | 54.59 | 36.60 | 34.95 | 30.05 | 29.16 |
Return on capital employed (percent) | 59.70 | 44.80 | 34.70 | 37.60 | 29.20 |
Current ratio (times) | 0.76 | 0.75 | 0.73 | 0.72 | 0.77 |
Quick ratio (times) | 0.45 | 0.38 | 0.40 | 0.40 | 0.42 |
Total debt to EBITDA (times) | 1.29 | 1.87 | 1.95 | 2.03 | 2.26 |
Net debt to EBITDA (times) | 0.70 | 1.47 | 1.46 | 1.52 | 1.61 |
Net debt to free cash flow (times) | 0.77 | 2.50 | 2.54 | 2.43 | 2.57 |
Interest coverage, EBIT over interest expense (times) | 22.35 | 15.36 | 7.92 | 9.32 | 8.49 |
Asset turnover (times) | 1.73 | 1.63 | 1.42 | 1.39 | 1.35 |
Inventory turnover (times) | 7.21 | 6.52 | 5.83 | 5.73 | 5.41 |
Days inventory outstanding (days) | 50.6 | 56.0 | 62.6 | 63.7 | 67.5 |
Days sales outstanding (days) | 31.7 | 26.4 | 28.8 | 34.9 | 37.6 |
Days payable outstanding (days) | 117.2 | 110.3 | 121.5 | 147.8 | 150.1 |
Cash conversion cycle (days) | -34.9 | -27.9 | -30.1 | -49.2 | -45.0 |
Dividend payout ratio (percent) | 14.34 | 33.11 | 31.78 | 38.74 | 43.02 |
Buyback yield or dilution (percent) | 14.09 | 13.93 | 4.76 | 1.10 | 3.64 |
Income Statement and Margin Analysis (%) (FY2024–FY2025)
| Geography | FY2024 | FY2025 |
|---|---|---|
United States net revenue (USD Mn) | 18,787 | 19,200 |
Outside United States net revenue (USD Mn) | 34,772 | 36,100 |
Total net revenue (USD Mn) | 53,559 | 55,295 |
United States share of total (percent) | 35.1 | 34.7 |
Outside United States share of total (percent) | 64.9 | 65.3 |
Margin Analysis (%) (FY2025)
| Metric | FY2025 |
|---|---|
United States net revenue growth YoY (percent) | 2.2 |
Outside United States net revenue growth YoY (percent) | 3.8 |
Total net revenue growth YoY, reported (percent) | 3.2 |
Total net revenue growth YoY, constant currency (percent) | 3.7 |
Business Units
| Business unit | FY2025 growth YoY (percent) | Primary driver |
|---|---|---|
Corporate Investments | 148.0 | Immaterial base; incubation projects |
Commercial PS | 7.7 | Windows 10 end-of-support refresh; AI PC attach; commercial share gains |
Consumer PS | 3.6 | Modest consumer recovery from a depressed base |
Consumer Printing | -4.1 | Secular home-print decline; hardware unit declines |
Commercial Printing | -4.3 | Office print volume decline; digitisation; hybrid work |
Supplies | -3.4 | Page-volume decline; big-tank cannibalisation; non-original competition |
Share Price & Returns
| Reference point | Close (USD) | Date |
|---|---|---|
FY2021 year-end close | 25.36 | 31 Oct 2021 |
FY2022 year-end close | 23.78 | 31 Oct 2022 |
FY2023 year-end close | 23.50 | 31 Oct 2023 |
FY2024 year-end close | 32.79 | 31 Oct 2024 |
FY2025 year-end close | 26.58 | 31 Oct 2025 |
Cycle low, twelve-month | 17.56 | reported as of March 2026 |
Post-Q3 FY2026 after-hours | 27.71 | 26 Aug 2026 |
Recent close | 32.64 | 4 Sep 2026 |
Latest close | 31.17 | 8 Sep 2026 |
Return measure
| Return measure | Value (percent) | Basis |
|---|---|---|
Price return, FY2021 close to 8 Sep 2026 (approximately 5 years) | 22.9 | 25.36 to 31.17, excluding dividends |
Price return, FY2023 close to 8 Sep 2026 (approximately 3 years) | 32.6 | 23.50 to 31.17, excluding dividends |
Price return, FY2025 close to 8 Sep 2026 (approximately 10 months) | 17.3 | 26.58 to 31.17, excluding dividends |
Price return from the twelve-month low to 8 Sep 2026 | 77.5 | 17.56 to 31.17 |
Twelve-month total return, as reported February 2026 | -38.0 | Simply Wall St, February 2026 |
Valuation Multiples
| Multiple | Current (8 Sep 2026) | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
Market capitalisation (USD Mn) | 28,109 | 25,863 | 34,231 | 26,021 | 31,833 | 34,956 |
Enterprise value (USD Mn) | 34,279 | 33,767 | 42,255 | 35,250 | 38,707 | 39,862 |
Price to earnings (times) | 11.87 | 10.23 | 12.34 | 7.98 | 10.16 | 5.34 |
Forward price to earnings (times) | 10.44 | 8.33 | 9.95 | 7.78 | 7.81 | 7.85 |
Price to sales (times) | 0.48 | 0.47 | 0.64 | 0.48 | 0.51 | 0.55 |
Price to book (times) | not meaningful | -74.75 | -25.87 | -24.34 | -10.52 | -21.18 |
EV to sales (times) | 0.58 | 0.61 | 0.79 | 0.66 | 0.62 | 0.63 |
EV to EBITDA (times) | 7.39 | 7.55 | 8.38 | 6.80 | 6.15 | 6.17 |
EV to EBIT (times) | 8.90 | 9.25 | 10.03 | 8.13 | 7.02 | 7.02 |
Price to free cash flow (times) | 7.24 | 9.24 | 10.84 | 8.74 | 8.61 | 6.00 |
EV to free cash flow (times) | 8.83 | 12.06 | 13.39 | 11.84 | 10.47 | 6.84 |
Earnings yield (percent) | 8.72 | 9.78 | 8.11 | 12.54 | 9.84 | 18.71 |
Free cash flow yield (percent) | 13.81 | 10.83 | 9.22 | 11.45 | 11.62 | 16.67 |
Dividend yield (percent) | 3.85 | 4.35 | 3.36 | 4.47 | 4.21 | 3.08 |
Valuation Snapshot
| Metric | Value |
|---|---|
Number of analysts polled | 17 |
Consensus Rating Details
| Consensus rating | Hold |
|---|---|
Average price target (USD) | 29.46 |
Median price target (USD) | 28.00 |
Low price target (USD) | 19.00 |
High price target (USD) | 72.00 |
Implied change to average target from 8 Sep close (percent) | -9.74 |
Capital Markets
| Rating | Mar 2026 | Apr 2026 | May 2026 | Jun 2026 | Jul 2026 | Aug 2026 |
|---|---|---|---|---|---|---|
Strong Buy (analysts) | 3 | 2 | 2 | 2 | 2 | 2 |
Buy (analysts) | 1 | 1 | 0 | 0 | 0 | 0 |
Hold (analysts) | 8 | 9 | 10 | 10 | 10 | 10 |
Sell (analysts) | 2 | 2 | 2 | 2 | 2 | 2 |
Strong Sell (analysts) | 3 | 3 | 3 | 3 | 3 | 3 |
Total (analysts) | 17 | 17 | 17 | 17 | 17 | 17 |
Analyst Ratings & Targets
| Analyst | Firm | Rating | Action | Price target (USD) | Date |
|---|---|---|---|---|---|
Wamsi Mohan | Bank of America Securities | Sell | Maintains | 21 | 3 Sep 2026 |
Jim Kelleher | Argus Research | Buy | Reiterates | 34 | 28 Aug 2026 |
Tim Long | Barclays | Sell | Maintains | 23 | 28 Aug 2026 |
Amit Daryanani | Evercore ISI | Hold | Maintains | 32 | 27 Aug 2026 |
Joseph Cardoso | J.P. Morgan | Hold | Reiterates | 27 raised to 30 | 27 Aug 2026 |
Income Statement and Margin Analysis (%) (FY2025 actual–FY2027 consensus)
| Metric | FY2025 actual | FY2026 consensus | FY2027 consensus |
|---|---|---|---|
Revenue (USD Bn) | 55.30 | 59.85 | 59.86 |
Revenue growth (percent) | 3.24 | 8.23 | 0.02 |
Gross profit (USD Bn) | 11.39 | 11.63 | — |
Gross margin (percent) | 20.60 | 19.43 | — |
Operating income (USD Bn) | 3.65 | 3.98 | — |
Net income (USD Bn) | 2.53 | 2.33 | — |
Non-GAAP EPS (USD) | 3.12 | 3.24 | 3.14 |
Non-GAAP EPS growth (percent) | -7.69 | 3.98 | -3.21 |
Free cash flow (USD Bn) | 2.39 | 3.15 | — |
Dividend per share (USD) | 1.158 | 1.20 | — |
Number of analysts contributing | not applicable | 13 | — |
“—” = not publicly disclosed.
Forecast Dispersion, FY2026 Details
| Forecast dispersion, FY2026 | Low | Average | High |
|---|---|---|---|
Revenue (USD Bn) | 59.0 | 59.8 | 60.4 |
Revenue growth (percent) | 6.8 | 8.2 | 9.2 |
Non-GAAP EPS (USD) | 3.15 | 3.24 | 3.36 |
Non-GAAP EPS growth (percent) | 1.0 | 4.0 | 7.7 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
Dividend per share (USD) | 0.78 | 1.00 | 1.05 | 1.10 | 1.158 | 1.20 |
Dividend per share growth (percent) | 11.43 | 28.21 | 5.00 | 4.76 | 5.24 | 3.61 |
Dividends paid (USD Mn) | 938 | 1,037 | 1,037 | 1,075 | 1,088 | not applicable |
Dividend yield at fiscal year end (percent) | 3.08 | 4.21 | 4.47 | 3.36 | 4.35 | 3.85 |
Payout ratio (percent) | 14.34 | 33.11 | 31.78 | 38.74 | 43.02 | 45.71 |
Dividends & Capital Returns and Share Count (millions)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Share repurchases (USD Mn) | 6,249 | 4,297 | 100 | 2,100 | 850 |
Shares outstanding at year end (millions) | 1,092 | 980 | 989 | 939 | 921 |
Reduction in diluted share count YoY (percent) | 14.09 | 13.93 | 4.76 | 1.10 | 3.64 |
Credit Ratings
| Agency | Long-term issuer rating | Outlook |
|---|---|---|
Moody's | Baa2 | Stable |
Standard and Poor's | BBB | Stable |
Fitch | BBB+ | Stable |
Liquidity Item Details
| Liquidity item | Value | As of |
|---|---|---|
Cash and cash equivalents (USD Bn) | 4.2 | 31 Jul 2026 |
Gross cash including short-term investments (USD Bn) | 4.2 | 31 Jul 2026 |
Available borrowing from uncommitted lines (USD Bn) | 0.9 | 31 Jul 2026 |
Available borrowing from uncommitted lines (USD Bn) | 1.0 | 30 Apr 2026 |
Available borrowing from uncommitted lines (USD Bn) | 1.1 | 31 Jan 2026 |
Total debt (USD Mn) | 10,882 | 31 Oct 2025 |
Total debt (USD Mn) | 10,339 | 31 Jul 2026 |
Net debt (USD Mn) | 7,192 | 31 Oct 2025 |
Net debt (USD Mn) | 6,170 | 31 Jul 2026 |
Guidance Item Details
| Guidance item | Range | Midpoint | Source |
|---|---|---|---|
FY2026 GAAP diluted EPS (USD) | 2.52 to 2.62 | 2.57 | 26 Aug 2026 |
FY2026 non-GAAP diluted EPS (USD) | 3.19 to 3.29 | 3.24 | 26 Aug 2026 |
FY2026 free cash flow (USD Bn) | 3.0 to 3.2 | 3.1 | 26 Aug 2026 |
Q4 FY2026 GAAP diluted EPS (USD) | 0.74 to 0.84 | 0.79 | 26 Aug 2026 |
Q4 FY2026 non-GAAP diluted EPS (USD) | 0.69 to 0.79 | 0.74 | 26 Aug 2026 |
Tariff refund benefit in FY2026 EPS (USD) | 0.19 | 0.19 | 26 Aug 2026 |
Capital Markets — Permanent CEO appointment
| Item | Timing | Why it matters |
|---|---|---|
Permanent CEO appointment | Any time; Broussard's RSU cliff-vests 3 Feb 2027 | Determines strategic direction, capital allocation and whether the edge-AI thesis is funded or abandoned. An external hire from outside the PC industry would signal portfolio action |
Q4 FY2026 results | Late Nov 2026 | Management has indicated margins trough in fiscal Q4; guidance implies a sequential EPS decline to a $0.74 midpoint |
FY2027 initial guidance | With Q4 results | The single most important datapoint. Consensus models FY2027 revenue growth of 0.02% and EPS of −3.2%. Guidance materially above or below this resets the equity |
Memory contract pricing for calendar 2027 | Q4 2026 through Q1 2027 | HP's long-term supply agreements cover "the year"; renewal terms determine FY2027 gross margin |
Q3 and Q4 2026 IDC PC tracker data | Oct 2026 and Jan 2027 | Whether HP's unit share loss stabilises or accelerates |
IEEPA refund appeal outcome | Ongoing at the CIT and on appeal | $0.19 of FY2026 EPS is at stake, plus any FY2027 residual |
Printing revenue and Supplies trajectory | Quarterly | Any acceleration in the decline rate directly threatens 62% of segment earnings |
Fiscal 2026 Plan execution | Through FY2028 | $1 billion of gross savings against $650 million of charges; watch quarterly restructuring charges and operating expense as a percentage of revenue |
Dynamic Security litigation and the India antitrust matter | Ongoing | The 2 Sep 2026 dismissal was favourable; non-US proceedings remain live |
HP IQ and WXP commercial traction | Quarterly commentary | HP does not disclose software revenue. Any decision to begin disclosing it would itself be a bullish signal |
Buyback pace versus the 73.6 million share equity authorisation | Quarterly | Net share count direction determines per-share compounding |
TD Synnex relationship | Annual 10-K | A 12% customer that became a 12% customer in a single year |
Capital Markets — Segment revenue crossed with geography
| Item | Section | Status |
|---|---|---|
Segment revenue crossed with geography | 7 | Not publicly disclosed by HP |
Country-level revenue beyond the United States | 7 | Not publicly disclosed; no country exceeds 10% |
Software, subscription and services revenue as discrete lines | 2, 22 | Not publicly disclosed by HP |
AI PC units and revenue | 16 | Not publicly disclosed by HP |
Poly revenue post-acquisition | 16 | Not publicly disclosed by HP |
3D printing and graphics revenue | 16 | Not publicly disclosed by HP |
Print market share percentage | 15, 16 | HP claims number one rank; no percentage disclosed |
Site-level property register — plants, R&D centres, labs, data centres | 8 | — |
Employee counts for FY2021 through FY2024 | 8 | — |
FY2023 geographic revenue split | 7 | — |
FY2025 summary compensation for Parkhill, Cho, McQuarrie and Jacobs | 9 | — |
2026 proxy beneficial ownership table | 9 | — |
Principal accountant fees for FY2025 | 19 | — |
Outstanding share repurchase authorisation amount | 21 | — |
Detailed debt maturity schedule by year | 21 | — |
2026 annual meeting voting outcomes including say-on-pay and the independent chairman proposal | 9, 19 | — |
MSCI, Sustainalytics and CDP ESG ratings | 20 | — |
Quantified workforce diversity metrics | 20 | Not disclosed in the 10-K or proxy text captured |
Lenovo and Apple comparative financials | 15 | — |
Apogee Corporation acquisition consideration | 11 | — |
Identity of the FY2025 divestiture generating $66 million of proceeds | 11 | Not identified in disclosure captured |
India antitrust matter — authority, amount, status | 19 | — |
FY2021 and FY2022 non-GAAP EPS | 6 | — |
Multi-year management financial targets beyond FY2026 | 10 | — |
“—” = not publicly disclosed.
Executive Leadership
Executive Leadership Team
| Name | Age | Title | Since | Prior roles |
|---|---|---|---|---|
Bruce Broussard | 63 | Interim Chief Executive Officer | Feb 2026 | HP director since 2021; President, CEO and director of Humana (Jan 2013–Jul 2024) and adviser (Jul 2024–Feb 2026); CEO, McKesson Specialty / US Oncology (Jan 2008–Dec 2011); 11 years at US Oncology in roles including CFO, President, CEO and Chairman |
Karen L. Parkhill | 60 | Chief Financial Officer | Aug 2024 | EVP and CFO, Medtronic plc (Jun 2016–2024); Vice Chairman and CFO, Comerica Incorporated (2011–2016); J.P. Morgan Chase 1992–2011, including CFO of Commercial Banking 2007–2011 |
Julie Jacobs | 59 | Chief Legal Officer, General Counsel and Corporate Secretary | Oct 2022 | SEVP, General Counsel and Corporate Secretary, Yahoo (Sep 2021–Oct 2022); EVP and General Counsel, Verizon Media (Jun 2017–Sep 2021); 16+ years at AOL including EVP, General Counsel and Corporate Secretary (May 2010–Jun 2017) |
David McQuarrie | 50 | Chief Commercial Officer | Nov 2022 | SVP and GM, Personal Systems Category (Nov 2021–Nov 2022); Global Head of Customer Support (Nov 2019–Nov 2021); Global Head of Print Business Management (Jan 2017–Oct 2019); sales leadership at Lenovo (2008–2016) and Dell (1998–2007) |
Anneliese Olson | 54 | President, Imaging, Printing and Solutions | Nov 2024 | 28+ years at HP; SVP and Managing Director, North America Market (from Sep 2023); SVP and COO, Worldwide Print (Nov 2019–Apr 2022) |
Ketan Patel | 51 | President, Personal Systems | Nov 2025 | 20+ years at HP; SVP and COO, Global Personal Systems (from Nov 2022); SVP and Managing Director, HP India Market (from Aug 2020) |
Manpreet S. Grewal | 46 | Chief Accounting Officer and Global Controller | Jul 2025 | VP, Controller and CAO, United States Steel Corporation (Mar 2020–2025); VP, Controller and CAO, Covanta (2017–Mar 2020) |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
Aug 2024 | Karen Parkhill appointed CFO | Follows the resignation of Marie Myers effective 31 Dec 2023 and an interim period under Tim Brown from 1 Jan 2024 to 4 Aug 2024 |
Nov 2024 | Anneliese Olson appointed President, Imaging, Printing and Solutions | Succeeds Tuan Tran in the print leadership role |
Jul 2025 | Manpreet Grewal appointed CAO and Global Controller | External hire from U.S. Steel |
Nov 2025 | Ketan Patel appointed President, Personal Systems | Succeeds Alex Cho, an internal promotion from COO of Global Personal Systems |
2 Feb 2026 | Enrique Lores steps down as President, CEO and director, effective end of day | HP states Lores "elected to pursue an opportunity outside of HP"; press reporting identified the destination as PayPal. HP publicly framed the exit as pursuing another professional opportunity, thanked Lores for 36 years of service and seven as CEO, and simultaneously reaffirmed Q1 and full-year FY2026 guidance |
3 Feb 2026 | Bruce Broussard appointed Interim CEO | Board member since 2021. Compensation: monthly cash of $362,500 plus a one-time $7 million RSU award cliff-vesting 3 Feb 2027; no separate board-service compensation while interim CEO. Authorised directorships reduced from 13 to 12; bylaws amended effective 3 Feb 2026 |
Feb 2026 onward | CEO Search Committee | Formed by the board with a leading global executive search firm retained. As of the February 2026 proxy the committee and management had worked with an external adviser to align on a CEO profile and search criteria. As of 9 September 2026 no permanent CEO appointment has been publicly announced. Broussard was described as Interim CEO in the Q3 FY2026 earnings release of 26 August 2026 |
Executive Leadership Team — Chip Bergh
| Name | Age | Independent | Director since | Committees | Principal occupation | Other public boards |
|---|---|---|---|---|---|---|
Chip Bergh | 68 | Yes | 2015 | HR and Compensation; NGSR | Senior Lecturer, Harvard Business School; Chair of the HP Board since 2017 | e.l.f. Beauty; Pinterest |
Bruce Broussard | 63 | No | 2021 | — | Interim CEO, HP Inc. | Marsh and McLennan |
Stacy Brown-Philpot | 50 | Yes | 2015 | Audit; NGSR | Founder and Managing Director, Cherryrock Capital | — |
Stephanie A. Burns | 71 | Yes | 2015 | Finance, Investment and Technology; HR and Compensation (Chair) | Director; former CEO, Dow Corning | Corning |
Mary Anne Citrino | 66 | Yes | 2015 | Audit; Finance, Investment and Technology | Senior Advisor and former Senior Managing Director, Blackstone | Alcoa |
Richard L. Clemmer | 74 | Yes | 2020 | Audit; Finance, Investment and Technology (Chair) | Founding General Partner, Socratic Partners; Chairman of Privafy, Axon Networks, Pallidus, SecEdge | Seagate Technology; Qorvo |
Fama Francisco | 57 | Yes | 2024 | HR and Compensation; NGSR | CEO, Baby, Feminine and Family Care, Procter and Gamble | — |
David Meline | 68 | Yes | 2023 | Audit (Chair); Finance, Investment and Technology | Director; former CFO of Moderna, Amgen and 3M | ABB; Lonza Group; Eikon Therapeutics |
Judith "Jami" Miscik | 67 | Yes | 2021 | Audit; NGSR | Senior Advisor, Lazard Geopolitical Advisory Group; former CEO and Vice Chairman, Kissinger Associates; 22-year CIA career including Deputy Director for Intelligence | General Motors; Morgan Stanley |
Gianluca Pettiti | 47 | Yes | 2025 | Finance, Investment and Technology; HR and Compensation | EVP and President, Life Sciences, Diagnostics and Applied, Thermo Fisher Scientific | — |
Kim K.W. Rucker | 59 | Yes | 2021 | Audit; NGSR (Chair) | Director; former EVP and General Counsel of Andeavor and of Kraft Foods Group | Celanese; GE Vernova; Marathon Petroleum |
Songyee Yoon | 50 | Yes | 2025 | Audit; Finance, Investment and Technology | Founder and Managing Partner, Principal Venture Partners | — |
Governance Overview
| Metric | Value |
|---|---|
Number of director nominees | 12 |
Independent nominees | 11 |
Board independence (percent) | 92 |
Average tenure (years) | 5.4 |
Average age (years) | 62 |
New directors since the beginning of fiscal 2024 | 4 |
Nominees aged 47 to 55 | 3 |
Nominees aged 56 to 65 | 3 |
Nominees aged 66 to 74 | 6 |
Directors with 0 to 3 years tenure | 4 |
Directors with 4 to 7 years tenure | 4 |
Directors with 8 to 10 years tenure | 4 |
Board meetings held in fiscal 2025 | 5 |
Audit Committee meetings in fiscal 2025 | 9 |
Finance, Investment and Technology Committee meetings | 5 |
HR and Compensation Committee meetings | 7 |
Nominating, Governance and Social Responsibility Committee meetings | 5 |
Executive Leadership Team by Name and Position
| Name and position | Year | Salary (USD) | Bonus (USD) | Stock awards (USD) | Option awards (USD) | Non-equity incentive plan (USD) | All other compensation (USD) | Total (USD) |
|---|---|---|---|---|---|---|---|---|
Enrique J. Lores, Former President and CEO | 2025 | 1,450,000 | 0 | 19,339,966 | 0 | 1,879,925 | 433,921 | 23,103,812 |
Executive Leadership Team — Enrique J. Lores, President and CEO
| Name and position | Year | Salary (USD) | Stock awards (USD) | Option awards (USD) | Non-equity incentive plan (USD) | All other compensation (USD) | Total (USD) |
|---|---|---|---|---|---|---|---|
Enrique J. Lores, President and CEO | 2024 | 1,400,000 | 15,289,708 | 0 | 2,380,000 | 290,419 | 19,360,127 |
Enrique J. Lores, President and CEO | 2023 | 1,300,000 | 10,148,835 | 5,714,757 | 1,989,000 | 305,924 | 19,458,516 |
Enrique J. Lores, President and CEO | 2022 | 1,250,000 | 12,844,359 | 5,341,057 | 1,445,564 | 198,946 | 21,079,926 |
Karen Parkhill, Chief Financial Officer | 2024 | 230,303 | 14,999,991 | 0 | 264,273 | 20,220 | 15,514,787 |
Tuan Tran, President, Imaging, Printing and Solutions | 2024 | 861,000 | 5,560,623 | 0 | 1,017,056 | 48,559 | 7,567,246 |
Alex Cho, President, Personal Systems | 2024 | 827,600 | 5,363,227 | 0 | 865,877 | 39,335 | 7,130,184 |
David McQuarrie, Chief Commercial Officer | 2024 | 715,000 | 3,329,259 | 0 | 589,875 | 61,009 | 4,695,143 |
Directors' Remuneration
| Element | Detail |
|---|---|
Cash compensation | $362,500 per month |
Equity | One-time $7,000,000 restricted stock unit award, cliff-vesting 3 February 2027 |
Board service compensation | None while serving as Interim CEO |
Major Shareholders
| Beneficial owner | Shares | Percent of common stock outstanding |
|---|---|---|
The Vanguard Group | 130,020,271 | 13.8 |
BlackRock, Inc. | 116,940,239 | 12.4 |
State Street Corporation | 51,804,957 | 5.5 |
Directors' Shareholdings
| Insider ownership | Shares | Note |
|---|---|---|
All directors, nominees and executive officers as a group, 22 persons | 3,595,673 | Under 1% of shares outstanding; 2025 proxy, as of 31 Dec 2024 |
Enrique J. Lores | 1,721,390 | Largest individual insider holding at the 2025 proxy date; Lores has since departed |
Bruce Broussard | 40,473 | As of the 2025 proxy, before the $7 million interim CEO RSU grant |
Governance Timeline
| Date | Initiative | Detail and target |
|---|---|---|
Feb 2025 | Humane acquisition and formation of HP IQ | Acquisition of the Cosmos AI platform, engineering talent and 300+ patents and applications for a reported $116 million; team forms HP IQ, an AI innovation lab in the Technology and Innovation Organization building an intelligent ecosystem across HP products from AI PCs to smart printers and connected conference rooms |
Q1 FY2025 | Future Ready expansion | Annualised gross run-rate structural cost savings target raised $300 million to $1.9 billion by end of FY2025; restructuring and other charges raised $150 million to approximately $1.2 billion |
FY2025 | China manufacturing diversification | Target of over 90% of products sold in North America built outside China by end of FY2025 |
Mar 2025 | HP Amplify 2025 partner conference | HP AI Companion feature roadmap including voice and text commands and keylogger protection; HP Go multi-carrier connectivity debuting on the EliteBook 6 G1q with Snapdragon X Series; Poly Camera Pro AI features |
25 Nov 2025 | Fiscal 2026 Plan | Company-wide initiative targeting approximately $1 billion gross run-rate cost savings by end of FY2028, with approximately $650 million of restructuring and other charges and a workforce reduction of 4,000–6,000 employees. HP frames the plan explicitly around driving customer satisfaction, product innovation and productivity "primarily through artificial intelligence adoption and enablement, and the resulting efficiencies, including those that enable a reduction in workforce" |
25 Nov 2025 | Dividend increase | Quarterly dividend raised to $0.30 per share, payable 2 January 2026 to holders of record 11 December 2025 |
Dec 2025 | FY2026 cost guidance | Guidance of approximately $700 million in tariff costs and $0.30 EPS impact from elevated memory costs in the back half of FY2026, representing approximately 90 basis points of pressure on Personal Systems margins |
Feb 2026 | CEO transition and search | Interim CEO appointed; CEO Search Committee formed; global executive search firm retained; CEO profile and search criteria developed with an external adviser |
Feb 2026 | OpenAI Frontier exploratory pilots | Four-month evaluation across engineering, security and customer experience functions |
24 Mar 2026 | HP Imagine 2026 | HP IQ intelligence layer with NearSense proximity connectivity; AI-driven WXP capabilities and integrated insights; next-generation Z workstations and hybrid AI infrastructure; HP TPM Guard; new LaserJet devices with AI-powered document digitisation workflows and quantum-resistant security |
Jun 2026 | InfoComm 2026 | AI-powered unified collaboration ecosystem combining Poly Lens and WXP |
28 Jun 2026 | OpenAI Frontier strategic partnership | Full deployment of the Frontier platform across customer support, partner operations, device telemetry, security, employee productivity and software development; co-development of future AI use cases meeting HP standards for data, governance and security; supports HP's advanced telemetry platform with WXP. HP cited pilot results including one engineer completing 122 pull requests across 43 projects in weeks, and a security team remediating multiple software bugs in a day against an estimated month of manual work |
| 2026 | Mission 44 partnership expansion | Next phase of HP's partnership with Lewis Hamilton's Mission 44 foundation, first UK phase, on skills and access for young people from underrepresented backgrounds |
May 2026 | Sustainability target refresh | New long-term targets: reduce value chain emissions 50% by 2030; net zero by 2040; 100% renewable electricity in global operations by 2040 |
Targets & Commitments
| Guidance item | Range or figure | As of |
|---|---|---|
FY2026 GAAP diluted EPS (USD) | 2.52 to 2.62 | Raised 26 Aug 2026 |
FY2026 non-GAAP diluted EPS (USD) | 3.19 to 3.29 | Raised 26 Aug 2026 |
FY2026 free cash flow (USD Bn) | 3.0 to 3.2 | Raised 26 Aug 2026 |
Q4 FY2026 GAAP diluted EPS (USD) | 0.74 to 0.84 | 26 Aug 2026 |
Q4 FY2026 non-GAAP diluted EPS (USD) | 0.69 to 0.79 | 26 Aug 2026 |
Tariff refund benefit embedded in FY2026 EPS (USD) | 0.19 | 26 Aug 2026 |
Tariff refund benefit embedded in Q4 FY2026 EPS (USD) | 0.08 | 26 Aug 2026 |
Fiscal 2026 Plan gross run-rate savings by end FY2028 (USD Bn) | approximately 1.0 | 25 Nov 2025 |
Fiscal 2026 Plan restructuring charges (USD Mn) | approximately 650 | 25 Nov 2025 |
Fiscal 2026 Plan workforce reduction (employees) | 4000 to 6000 | 25 Nov 2025 |
Competitive Landscape
Market Share by Competitor
| Vendor | Shipments Q2 2026 (millions of units) | Market share Q2 2026 (percent) | Shipment growth YoY (percent) |
|---|---|---|---|
Lenovo | 16.6 | 24.4 | -2.1 |
HP Inc. | 13.0 | 19.1 | -9.0 |
Dell Technologies | 9.3 | 13.6 | -5.0 |
Apple | 6.7 | 9.9 | 10.1 |
ASUS | 5.0 | 7.4 | 0.2 |
Total worldwide market | 68.2 | 100.0 | -4.9 |
Peer Comparison FY2026
| Metric | HP Inc. FY2025 | Dell Technologies FY2026 | Lenovo Group | Apple Inc. |
|---|---|---|---|---|
Revenue (USD Bn) | 55.3 | 113.5 | — | — |
Revenue growth YoY (percent) | 3.2 | 18.8 | — | — |
Gross margin (percent) | 20.6 | 20.0 | — | — |
Operating margin (percent) | 6.6 | 7.2 | — | — |
R&D intensity (percent of revenue) | 2.9 | — | — | — |
Operating cash flow (USD Bn) | 3.7 | 11.2 | — | — |
PC unit share Q2 2026 (percent) | 19.1 | 13.6 | 24.4 | 9.9 |
PC unit growth Q2 2026 (percent) | -9.0 | -5.0 | -2.1 | 10.1 |
Recent Developments
Covering approximately March 2025 through 9 September 2026.
