HP Inc. and its subsidiaries ("HP") announced fiscal 2026 second quarter net revenue of $14.4 billion, up 9.0% (up 6.3% in constant currency) from the prior-year period.

"During the second quarter, we continued executing our future of work strategy through intelligent devices, edge AI, and connected experiences while navigating rising commodity costs," said Bruce Broussard, Interim CEO, HP Inc. "We introduced innovations across AI PCs, Z workstations, AI-powered print, and HP IQ that simplify work and improve productivity. These reflect our progress in building intelligent devices and services that capture the value of AI at the edge and support long-term growth."

"We delivered strong second-quarter results, with 9% revenue growth and even stronger earnings and free cash flow," said Karen Parkhill, CFO, HP Inc. "With two solid quarters behind us, we are executing with discipline in a dynamic environment and are strengthening our outlook for the fiscal year to reflect this."

Second quarter GAAP diluted net EPS was $0.49, up from $0.42 in the prior-year period and below the previously provided outlook of $0.52 to $0.58. Second quarter non-GAAP diluted net EPS was $0.86, up from $0.71 in the prior-year period and above the previously provided outlook of $0.70 to $0.76. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude certain adjustments. Refer to "Adjustments to GAAP Net earnings" section in the below tables.

Asset management
HP's net cash provided by operating activities in the second quarter of fiscal 2026 was $0.9 billion. Accounts receivable ended the quarter at $6.1 billion, up 5 days quarter over quarter to 38 days. Inventory ended the quarter at $9.2 billion, up 5 days quarter over quarter to 73 days. Accounts payable ended the quarter at $19.2 billion, up 10 days quarter over quarter to 151 days.

HP generated $0.8 billion of free cash flow in the second quarter of fiscal 2026. Free cash flow includes net cash provided by operating activities of $0.9 billion adjusted for net investment in leases from integrated financing of $24 million and net investments in property, plant, equipment and purchased intangibles of $170 million.

HP's dividend payment of $0.30 per share in the second quarter resulted in cash usage of $274 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 5.2 million shares of common stock in the open market. HP exited the quarter with $3.7 billion in gross cash, which includes cash and cash equivalents of $3.7 billion and short-term investments of $3 million included in other current assets.

Fiscal 2026 second quarter segment results

• Personal Systems net revenue was $10.2 billion, up 13% year over year (up 10% in constant currency) with a 5.2% operating margin. Consumer PS net revenue was up 10% and Commercial PS net revenue was up 14%. Total units were down 7% with Consumer PS units down 8% and Commercial PS units down 7%.
• Printing net revenue was $4.2 billion, flat year over year (down 2% in constant currency) with an 18.3% operating margin. Consumer Printing net revenue was down 10% and Commercial Printing net revenue was flat. Supplies net revenue was up 1% (flat in constant currency). Total hardware units were down 7%, with Consumer Printing units down 8% and Commercial Printing units down 4%.

Outlook
For the fiscal 2026 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.47 to $0.63 and non-GAAP diluted net EPS to be in the range of $0.61 to $0.71. Fiscal 2026 third quarter non-GAAP diluted net EPS estimates exclude $0.08 to $0.14 per diluted share, primarily related to restructuring and other charges, certain litigation charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

For fiscal 2026, HP is updating its estimate of GAAP diluted net EPS to be in the range of $2.15 to $2.45 and updating its estimate of non-GAAP diluted net EPS to be in the range of $2.90 to $3.10. Fiscal 2026 non-GAAP diluted net EPS estimates exclude $0.65 to $0.75 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, certain litigation (benefits) charges, net, tax adjustments, and the related tax impact on these items.

For fiscal 2026, HP anticipates generating free cash flow in the range of $2.8 to $3.0 billion.