Slides
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Q1 FY26 Earnings Announcement February 24, 2026
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2 This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries (“HP”) which may differ materially from those expressed or implied bysuch forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions andproductivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the fiscal 2026 plan), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logisticschallenges; any statements regarding current or future macroeconomic trends or events, including global trade policies, and theimpact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief as to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms. Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to HP’s ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; the use of artificial intelligence; the impact of macroeconomic and geopolitical trends, changes and events, including global trade policies, the ongoing military conflict in Ukraine, continued instability in the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, changes in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP’s international operations and the effects of business disruption events, including those resulting from climate change; the need to manage (and reliance on) third-party suppliers, including with respect to increasing memory and storage costs, supply constraints and component shortages, and the need to manage HP’s global, multi-tier distribution network and potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; the competitive pressures faced by HP’s businesses; the impact of third-party claims of IP infringement; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; successfully competing and maintaining the value proposition of HP’s products, including supplies and services; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products or our uneven sales cycle; the hiring and retention of key employees, changes in our management team and execution of succession plans; the results of our restructuring plans (including the fiscal 2026 plan), including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of our restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; disruptions in operations from system security risks, data protection breaches, or cyberattacks; HP’s ability to maintain its credit rating, satisfy its debt obligations and complete any contemplated share repurchases, other capital return programs or other strategic transactions; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; integration and other risks associated with business combination and investment transactions; our aspirations related to environmental and societal matters; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; the effectiveness of our internal control over financial reporting; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and HP’s other filings with the Securities and Exchange Commission ("SEC"). HP’s fiscal 2026 plan includes HP’s efforts to drive 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. Anticipated cost savings associated with the fiscal 2026 plan represent expected gross reductions in costs from these measures. These cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP’s expectations on the longer-term sustainability of such cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP’s evolving business models, future investment decisions, market environment and technology landscape. As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ending October 31, 2026, Quarterly Reports on Form 10-Q for the fiscal quarters ending April 30, 2026 and July 31, 2026 and HP’s other filings with the SEC. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements. HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financialand other information for investors. HP encourages investors to visit its website from time to time, as information is updated andnew information is posted. The content of HP’s website is not incorporated by reference into this presentation or in any other report or document HP files with the SEC, and any references to HP’s website are intended to be inactive textual references only. Forward-looking Statements
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3 HP has included non-GAAP financial measures in this presentation to supplement HP’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included elsewhere in this presentation. HP’s management uses net revenue on a constant currency basis, non-GAAP total operating expenses, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, and other non-GAAP financial measures to evaluate and forecast HP’s performance before gains, losses or other charges that are considered by HP’s management to be outside of HP’s core business segment operating results. Gross cash, net cash (debt), and free cash flow are liquidity measures that provide useful information to management about the amount of cash available for investment in HP’s businesses, funding acquisitions, repurchasing stock and other purposes. Net cash (debt) provides useful information to management about the state of HP’s consolidated balance sheet. These and the other non-GAAP financial measures that HP uses may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. For example, items such as amortization of intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time and therefore does not reflect the full economic effect of the change in value of those intangible assets. Amortization of intangible assets, restructuring and other charges, certain litigation charges, net, and acquisition and divestiture (credits) charges, net, are not included in non-GAAP operating expenses, non-GAAP operating profit, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, and non-GAAP diluted net earnings per share. In addition, non-operating retirement-related (credits)/charges, debt extinguishment costs (benefit), certain litigation charges, net and tax adjustments are excluded from non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings and non-GAAP diluted net EPS. These items can have a material impact on the equivalent GAAP earnings measure and cash flows. HP may not be able to immediately liquidate the short-term and long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure. In addition, free cash flow, which includes cash provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net property, plant, and equipment and purchased intangibles, does not represent the total increase or decrease in cash for the period. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We account for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We also provide reconciliations of each non-GAAP financial measure to the most directly comparable GAAP measure, and we encourage investors to review those reconciliations carefully. We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater insight to the information used by HP’s management in its financial and operational decision-making and allows investors to see HP’s results “through the eyes” of management. We further believe that providing this information better enables investors to understand HP’s operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance and financial condition. HP’s Investor Relations website at https://investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated and new information is posted. Use of Non-GAAP Financial Information
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4 Q1FY26 Highlights 1. Adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenues us ing monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period 2. A reconciliation of specific adjustments to GAAP results for the current and prior periods is included on slide 17 and in the GAAP to non-GAAP slides that appear as part of the supplemental slides of this presentation. A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” 3. Free cash flow = Net cash provided by (used in) operating activities adjusted for net investment in leases from integrated fi nancing and net investment in property, plant, equipment and purchased intangible. See slide 23 for a reconciliation of Free Cas h Flow Net revenue of $14.4B, up 6.9% from the prior-year period and up 5.2% in constant currency1 Non-GAAP diluted net earnings per share2 of $0.81, within the previously provided outlook of $0.73 to $0.81 per share GAAP diluted net earnings per share of $0.58, within the previously provided outlook of $0.58 to $0.66 per share Free cash flow of $175M2,3 Returned $0.6B to shareholders in the form of share repurchases and dividends
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5 1. Revenue mix calculated based on total key segment revenue, which does not include corporate investments and other 2. A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” 3. Operating profit mix calculated based on total key segment operating profit, which does not include corporate investments and other 4. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating cu rrent period revenues using monthly exchange rates from the comparative period and excluding any hedging impact recognized in th e current periods 5. Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to re flect the transition of the Print -as-a-Service business from Corporate Investments to Printing. HP reflected this change to its bus iness unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the C orporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consol idated net revenue, earnings from operations, net earnings or net earnings per share Net revenue By key segment and business unit1 Non-GAAP operating profit2 By key segment3 $1.3 billion Printing5 60% of total 18.3% OP margin Personal Systems 40% of total 5.0% OP margin Net revenue By region AMERICAS EMEA APJ 12.5% y/y 13.1% y/y cc4 US: 31% Canada / LA: 8% 1.1% y/y 0.6% y/y cc4 9.9% y/y 5.1% y/y cc 4 Non-US net revenue = 69% of total net revenue 39% Q1 FY26 Mix by Segment and Region Printing Consumer5 2% Personal Systems Consumer 21%Personal Systems = 71% Printing5 = 29% Printing Supplies5 19% Personal Systems Commercial 50% Printing Commercial 8% $14.4 billion 36% 25%
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6 Q1 FY26 Results Overview 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating cu rrent period revenues using monthly average exchange rates from the comparative period and excluding any hedging impact recogniz ed in the current period 2. Not meaningful 3. A reconciliation of specific adjustments to GAAP results for the current period is included on slide 1 7 and in the GAAP to non -GAAP slides that appear as part of the supplemental slides of this presentation. A description of HP’s use of non -GAAP information is provided on slide 3 under “Use of non-GAAP financial information” 4. Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to re flect the transition of the Print -as-a-Service business from Corporate Investments to Printing. HP reflected this change to its bus iness unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previousl y reported consolidated net revenue, earnings from operations, net earnings or net earnings per share $ in millions Net revenue Growth y/y % Growth CC1 y/y % Non-GAAP OP $3 Non-GAAP OP % of rev3 Non-GAAP OP $ y/y3 Non-GAAP OP % of rev y/y3 Printing4 $4,187 (2.2)% (3.2)% $765 18.3% $(36) (0.4) pts Personal Systems $10,251 11.1% 9.1% $511 5.0% $4 (0.5) pts Corporate Investments / Other 4 $— nm2 nm2 $(281) nm2 $43 nm2 Total HP $14,438 6.9% 5.2% $995 6.9% $11 (0.4) pts
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1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating cu rrent period revenue using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period 2. A reconciliation of specific adjustments to GAAP results for the current period is included on slide 17 and in the GAAP to non -GAAP slides that appear as part of the supplemental slides of this presentation. A description of HP’s use of non -GAAP information is provided on slide 3 under “Use of non-GAAP financial information” Revenue (Billions) Non-GAAP diluted net EPSy/y growth (%) y/y growth (%) 21 2 Revenue & Non-GAAP Diluted Net EPS 7
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1. Adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenues us ing monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period EMEA Americas (including U.S.) United States Asia Pacific Billions % growth y/y revenue growth % y/y revenue growth in constant currency % 1 Billions % growth Billions % growth Billions % growth Regional Revenue Trend 8
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9 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating cu rrent period revenue using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period 11% y/y 9% y/y CC1 of revenue billion million $511$10.3 Consumer PS 29% Commercial PS 71% Revenue breakdown Revenue Revenue and OP % trend Operating profit Total units up 12% y/y Commercial PS units up 11% y/y Consumer PS units up 14% y/y Commercial PS revenue up 9% y/y Consumer PS revenue up 16% y/y Key Metrics CES awards for Elitebook X G2 Series reaching 85 TOPS and the EliteBoard G1a keyboard PC and new HyperX OMEN MAX 16, most powerful gaming laptop with fully internal cooling. Revenue up 11% y/y driven by continued Win11 refresh and growth in AI PCs and strength in Consumer. Marks the eighth consecutive quarter of y/y revenue growth. OP rate at 5.0% down 0.5pts y/y, reflecting higher commodity costs, partially offset by pricing. In Billions Personal Systems Q1 FY26 5.0%
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10 OP rate of 18.3%, down 0.4pts y/y driven by higher trade related costs, offset in part by pricing and cost reduction actions. 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating cu rrent period revenue using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period 2. Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to re flect the transition of the Print -as-a-Service business from Corporate Investments to Printing. HP reflected this change to its bus iness unit information in prior reporting periods on an as -if basis which resulted in the reclassification of segment net revenue, cost of net revenue and opera ting expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share Supplies revenue down 1% (down 2% CC) y/y1 Total Hardware units down 6% y/y Consumer Printing revenue down 8% y/y Commercial Printing revenue down 3% y/y Key Metrics Revenue (2)% y/y 18.3%(3)% y/y CC1 of revenue$765$4.2 Operating profit Revenue breakdown Revenue and OP % trend In Billions Revenue down 2% y/y on lower supplies volumes and market driven hardware declines, offset in part by continued growth in Consumer Subscriptions, Industrial Print and 3D. Commercial Printing 26% Supplies 67% Consumer Printing 7% billion million Printing Q1 FY262 Expanded partnership with Microsoft, embedding Microsoft 365 Copilot directly into HP printers to improve how employees manage documents on the device.
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11 Leading the future of work
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12 Hybrid Systems Introduced a new lineup of Commercial Peripherals including Wireless Mice 780M and 720M, Mouse/Keyboard combo 580C, GaN wall chargers, and Portable USB-C hubs, all designed to meet the demands of professionals in a hybrid work environments. Consumer Subscriptions Revenue grew double-digits across Instant Ink, Instant Paper and the All-In-Plan (AIP) with improved customer retention. AIP portfolio scaling in the US with expansion into a major retailer in the next quarter. Workforce Solutions Increased y/y revenue driven by Hardware and Services. Notable momentum in Personal Systems solutions services, growing revenue double digits y/y. Growth in TCV from new and renewal business in the quarter, across Public Sector, Business Services, Manufacturing and Finance. AI PC Maintaining strong momentum reaching over 35% of total compute shipments. Introduced the OmniBook Ultra 14, the slimmest consumer notebook with the fastest AI performance (up to 85 NPU TOPS) and the EliteBook X G2 series, combining sleek design with powerful AI (up to 85 NPU TOPS), for efficient all-day performance. Advanced Compute Solutions Revenue increased y/y driven by improved mix in high-performance segments and continued portfolio strength. Launched ZGX Nano, building out the new AI- station category. Robust demand in OEM, Data Science and amongst Enterprise and SMB customers. Industrial Graphics & 3D Drove 10th consecutive quarter of y/y Industrial growth. Services and Solutions expanded in EMEA. Overall market share expanded behind the shift from analog to digital production. 3D Printing continued to grow well ahead of the market. Collectively grew revenue double -digit s year over year Key Growth Areas
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13 Select Cash & Debt Balances 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, cash equivalents and restricted cash, short -term investments, and certain liquid long -term investments. As of 1Q26, gross cash includes cash and cash equivalents of $3.2 billion and short -term investments of $3 million included in other current assets 3. Gross debt is defined as notes payable and short -term borrowings plus long -term debt after excluding the effect of unamortized premium/discount on debt issuance, debt issuance costs and gains/losses on interest rate swaps. As of 1Q26, gross debt included notes payable and short -term borrowings of $0.9 billion, long -term debt of $8.8 billion, and an adjustment for the aforementioned non- cash items of $52 million 4. Numbers may not foot due to rounding $ Billions 1Q25 2Q25 3Q25 4Q25 1Q26 Gross cash2 2.9 2.7 2.9 3.7 3.2 Gross debt3 9.8 10.8 9.7 9.7 9.8 Net cash (debt)1,4 (6.9) (8.1) (6.8) (6.0) (6.6) Billions 2 3 1 Net Cash (Debt)
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14 Cash Flow & Shareholder Return 1. Free cash flow = Net cash provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net investment in property, plant, equipment and purchased intangible. See slide 23 for a reconciliation of Free Cash Flow Millions Cash Flow 2.7 million 13.3 million 2.7 million 13.3 million $0.2894 $0.3000 $0.2894 $0.3000 Shares repurchased Dividend per share Millions 1 Shareholder Return
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15 Outlook FY26 Key Assumptions FY26 Outlook $0.70-$0.76 GAAP diluted net EPS $0.52-$0.58 Non-GAAP diluted net EPS1,2 $2.90-$3.20 GAAP diluted net EPS $2.47-$2.77 Non-GAAP diluted net EPS1,2 Free cash flow1,4 $2.8-$3.0B Q2’26 Outlook 1. A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” 2. Second quarter and fiscal 2026 non-GAAP diluted net EPS estimates exclude restructuring and other charges, acquisition and divestiture charges, amortization o f intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items 3. Second quarter and fiscal 2026 non-GAAP OI&E estimates exclude non- operating retirement-related credits and the related tax impact 4. Free cash flow = Net cash provided by operating activities adjusted for net investment in leases from integrated financing and net investment in property, plant and equipment and purchased intangible Non-GAAP OI&E1,3 ~($0.5B) Corporate Other Expense ~$1.0B Revenue Grow faster than market, with growth moderating in 2H Due to increased memory costs, currently anticipate to be at the low end of the ranges
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16 Non-GAAP1 Financial Information 1. A reconciliation of specific adjustments to GAAP results for the current period is included on slides 1 7 and in the GAAP to non -GAAP slides that appear as part of the supplemental slides of this presentation. A description of HP’s use of non -GAAP information is provided on slide 3 under “Use of non-GAAP financial information” Q1 FY26 Q4 FY25 Q1 FY25 % of Revenue % of Revenue % of Revenue Revenue $14,438 $14,639 $13,504 Cost of revenue 11,603 80.4% 11,677 79.8% 10,664 79.0% Total OpEx 1,840 12.7% 1,793 12.2% 1,856 13.7% Operating profit $995 6.9% $1,169 8.0% $984 7.3% Interest and other, net (99) (125) (146) Pre-tax earnings 896 6.2% 1,044 7.1% 838 6.2% Income tax (143) (167) (134) Net earnings $753 5.2% $877 6.0% $704 5.2% Diluted net earnings per share $0.81 $0.93 $0.74 $ in millions, except per share amounts
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17 Q1 FY26 GAAP to Non-GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture (credits) charges, net Certain litigation charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $14,438 $14,438 Cost of revenue 11,603 11,603 Total OpEx 2,076 (56) (126) 2 (56) 1,840 Operating profit 759 56 126 (2) 56 995 Interest and other, net (88) (11) (99) Pre-tax earnings 671 56 126 (2) 56 (11) 896 Income tax (126) (10) (25) (3) (10) 3 28 (143) Tax rate 18.8% 16.0% Net earnings $545 46 101 (5) 46 (8) 28 $753 Diluted net earnings per share $0.58 $0.05 $0.11 $0.00 $0.05 $(0.02) $0.04 $0.81
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Supplemental Slides
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20 Inventory & Accounts Receivable Inventory In Billions 1. % of revenue calculations based on trailing 4 -quarter net revenue Accounts Receivable In BillionsPercentage of Revenue1 Percentage of Revenue1
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21 PP&E & Accounts Payable PP&E In Billions 1. % of revenue calculations based on trailing 4 -quarter net revenue Accounts Payable In BillionsPercentage of Revenue1
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22 Working Capital Metrics 1. Cash conversion cycle = Days receivables + Days inventory – Days payable 1 In Days
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23 Free Cash Flow Reconciliation $ in millions 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 Net cash provided by operating activities $581 $1,424 $1,623 $3,749 $374 $38 $1,661 $1,624 $3,697 $383 Net investment in property, plant, equipment and purchased intangible (119) (162) (153) (592) (302) (183) (215) (197) (897) (233) Net investment in leases from integrated financing 19 42 42 165 (2) 50 23 60 $131 $25 Free Cash Flow1 $481 $1,304 $1,512 $3,322 $70 $(95) $1,469 $1,487 $2,931 $175 1. A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information
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24 $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges (benefits), net Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $55,295 $55,295 Cost of revenue 43,903 43,903 Total OpEx 8,218 (345) (405) (45) (140) 7,283 Operating profit 3,174 345 405 45 140 4,109 Interest and other, net (506) (52) (13) (571) Pre-tax earnings 2,668 345 405 45 88 (13) 3,538 Income tax (139) (63) (80) (6) (16) 5 (267) (566) Tax rate 5.2% 16.0% Net earnings 2,529 282 325 39 72 (8) (267) $2,972 Diluted net earnings per share $2.65 $0.30 $0.34 $0.04 $0.08 $(0.01) $(0.28) $3.12 FY25 GAAP to Non -GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information”
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25 Q4 FY25 GAAP to Non-GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges, net Tax adjustments Non-GAAP Revenue $14,639 $14,639 Cost of revenue 11,677 11,677 Total OpEx 2,003 (58) (103) (14) (35) 1,793 Operating profit 959 58 103 14 35 1,169 Interest and other, net (125) (125) Pre-tax earnings 834 58 103 14 35 1,044 Income tax (39) (12) (22) (2) (6) (86) (167) Tax rate 4.7% 16.0% Net earnings $795 46 81 12 29 (86) $877 Diluted net earnings per share $0.84 $0.05 $0.09 $0.01 $0.03 $(0.09) $0.93
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26 A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation (benefits) charges, net Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $13,932 $13,932 Cost of revenue 11,081 11,081 Total OpEx 2,135 (159) (110) (8) (2) 1,856 Operating profit 716 159 110 8 2 995 Interest and other, net (92) (52) (2) (146) Pre-tax earnings 624 159 110 8 (50) (2) 849 Income tax 139 (28) (20) (1) 9 1 (236) (136) Tax rate 22.3% 16.0% Net earnings $763 131 90 7 (41) (1) (236) $713 Diluted net earnings per share $0.80 $0.14 $0.09 $0.00 $(0.04) $0.00 $(0.24) $0.75 Q3 FY25 GAAP to Non -GAAP Bridge
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27 A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $13,220 $13,220 Cost of revenue 10,481 10,481 Total OpEx 2,085 (65) (122) (17) (103) 1,778 Operating profit 654 65 122 17 103 961 Interest and other, net (148) (6) (154) Pre-tax earnings 506 65 122 17 103 (6) 807 Income tax (100) (12) (24) (2) (19) 2 26 (129) Tax rate 19.8% 16.0% Net earnings $406 53 98 15 84 (4) 26 $678 Diluted net earnings per share $0.42 $0.06 $0.10 $0.01 $0.09 $0.00 $0.03 $0.71 Q2 FY25 GAAP to Non -GAAP Bridge
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28 A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $13,504 $13,504 Cost of revenue 10,664 10,664 Total OpEx 1,995 (63) (70) (6) 1,856 Operating profit 845 63 70 6 984 Interest and other, net (141) (5) (146) Pre-tax earnings 704 63 70 6 (5) 838 Income tax (139) (11) (14) (1) 2 29 (134) Tax rate 19.7% 16.0% Net earnings $565 52 56 5 (3) 29 $704 Diluted net earnings per share $0.59 $0.05 $0.06 $0.00 $0.00 $0.04 $0.74 Q1 FY25 GAAP to Non -GAAP Bridge
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29 $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges Debt extinguishment costs Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $53,559 $53,559 Cost of revenue 41,741 41,741 Total OpEx 8,000 (318) (301) (83) (58) 7,240 Operating profit 3,818 318 301 83 58 4,578 Interest and other, net (539) 3 (9) (545) Pre-tax earnings 3,279 318 301 83 58 3 (9) 4,033 Income tax (504) (58) (60) (11) (11) 6 (7) (645) Tax rate 15.4% 16.0% Net earnings $2,775 260 241 72 47 3 (3) (7) $3,388 Diluted net earnings per share $2.81 $0.26 $0.24 $0.08 $0.05 $0.00 $0.00 $(0.01) $3.43 FY24 GAAP to Non -GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information”
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30 A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” Q4 FY24 GAAP to Non -GAAP Bridge $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges Debt extinguishment costs Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $14,055 $14,055 Cost of revenue 11,054 11,054 Total OpEx 2,010 (76) (121) (12) (40) 1,761 Operating profit 991 76 121 12 40 1,240 Interest and other, net (129) 3 (2) (128) Pre-tax earnings 862 76 121 12 40 3 (2) 1,112 Income tax 44 (14) (24) (1) (8) 1 (176) (178) Tax rate (5.1)% 16.0% Net earnings $906 62 97 11 32 3 (1) (176) $934 Diluted net earnings per share $0.93 $0.06 $0.10 $0.02 $0.03 $0.00 $0.00 $(0.18) $0.96
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31 A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Certain litigation charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $13,519 $13,519 Cost of revenue 10,613 10,613 Total OpEx 1,966 (81) (46) (22) (18) 1,799 Operating profit 940 81 46 22 18 1,107 Interest and other, net (113) (2) (115) Pre-tax earnings 827 81 46 22 18 (2) 992 Income tax (187) (14) (10) (2) (3) 2 56 (158) Tax rate 22.6% 16.0% Net earnings $640 67 36 20 15 56 $834 Diluted net earnings per share $0.65 $0.07 $0.04 $0.01 $0.02 $0.00 $0.05 $0.84 Q3 FY24 GAAP to Non -GAAP Bridge
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32 Q2 FY24 GAAP to Non -GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $12,800 $12,800 Cost of revenue 9,777 9,777 Total OpEx 2,071 (80) (71) (22) 1,898 Operating profit 952 80 71 22 1,125 Interest and other, net (155) (3) (158) Pre-tax earnings 797 80 71 22 (3) 967 Income tax (190) (15) (16) (3) 1 68 (155) Tax rate 23.8% 16.0% Net earnings $607 65 55 19 (2) 68 $812 Diluted net earnings per share $0.61 $0.07 $0.06 $0.01 $0.00 $0.07 $0.82
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33 Q1 FY24 GAAP to Non -GAAP Bridge A description of HP’s use of non- GAAP information is provided on slide 3 under “Use of non- GAAP financial information” $ in millions, except tax rate and per share amounts GAAP Amortization of intangible assets Restructuring and other charges Acquisition and divestiture charges Non-operating retirement related (credits) / charges Tax adjustments Non-GAAP Revenue $13,185 $13,185 Cost of revenue 10,297 10,297 Total OpEx 1,953 (81) (63) (27) 1,782 Operating profit 935 81 63 27 1,106 Interest and other, net (142) (2) (144) Pre-tax earnings 793 81 63 27 (2) 962 Income tax (171) (15) (10) (5) 2 45 (154) Tax rate 21.6% 16.0% Net earnings $622 66 53 22 45 $808 Diluted net earnings per share $0.62 $0.07 $0.05 $0.02 $0.00 $0.05 $0.81