HP Inc.

What they do

HP Inc. operates three reportable segments: Personal Systems (desktops, notebooks, workstations, thin clients, retail POS systems, displays, and related software and services), Printing (consumer and commercial printer hardware, supplies, services, and solutions, including graphics and 3D printing), and Corporate Investments (business incubation and investment projects). The company supports multi-operating systems (Microsoft Windows and Google Chrome) and multi-architecture processors from Intel, AMD, and NVIDIA GPUs.

Revenue drivers

• Personal Systems — Largest segment, offering commercial (Pro, Elite, Z workstations) and consumer (Omni, Omen, Victus, Spectre, Envy) PCs. In Q2 FY26, net revenue was $10.2 billion, up 13% year over year, with an operating margin of 5.2%.
• Printing — Provides printer hardware, supplies (ink, laser cartridges, media), and services across office, home, graphics, and 3D printing. Recurring supplies revenue is a key profit driver, though specific figures were not provided.
• Supplies — Consumable products (ink, laser cartridges, media, industrial graphics and 3D printing supplies) for recurring use in both consumer and commercial hardware, contributing to recurring revenue.
• Services and solutions — Includes Device-as-a-Service, Managed Print Services, Instant Ink, HP All-In Plan, and endpoint security solutions, aimed at shifting to subscription-based recurring revenue.

Recent performance

In fiscal Q2 2026 (quarter ended April 30, 2026), HP reported net revenue of $14.4 billion, up 9.0% (up 6.3% in constant currency) from the prior year. GAAP diluted EPS was $0.49, up 16.7% year over year, while non-GAAP diluted EPS was $0.86, up 21.1%. The company generated $0.9 billion in operating cash flow and $0.8 billion in free cash flow. Personal Systems revenue grew 13% year over year, while Printing results were not detailed. Cash returned to shareholders was $374 million in dividends and share repurchases.

Strategy

HP is focused on accelerating AI across its product portfolio, including AI PCs and workstations with local AI processing, and intelligent print features. The company is shifting from a transactional hardware model to an experience-led organization, consolidating software resources under the Technology and Innovation Organization. Key priorities include growth in commercial, solutions, and premium consumer and gaming markets, expanding subscription-based services (Device-as-a-Service, Instant Ink, HP All-In Plan), and strengthening go-to-market execution in an evolving distribution landscape.

Risks

• Macroeconomic demand pressure — Adverse macroeconomic conditions are impacting demand for certain HP products, and the company expects these challenges to continue in the short term.
• Competitive intensity — Primary competitors are exerting pricing pressure and entering new markets, while emerging competitors introduce new technologies and business models, and some alliance partners are becoming competitors.
• Commodity cost volatility — In Personal Systems, variability in commodity costs, especially increasing memory and storage costs, creates uncertainty in the market's ability to absorb price increases.
• Supply chain and single-source suppliers — HP obtains many Printing components from single-source suppliers, and faces challenges from non-original supplies (imitation, refill, or remanufactured alternatives) in Printing.

Outlook

Management raised its fiscal year outlook following a strong second quarter, citing execution discipline and growth in AI PCs and services. They noted challenges from rising commodity costs and a dynamic environment, but expect continued growth in Personal Systems and strategic investments in AI and subscriptions. The company also expects to navigate macroeconomic and competitive headwinds while driving innovation and cost management.