HP Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total net revenue of $14.4 billion, a 9.0% increase from $13.2 billion in the same period last year. For the first half of the fiscal year, net revenue reached $28.8 billion, up 7.9% from $26.7 billion in the prior year. The company's gross profit for the quarter was $3.0 billion, translating to a gross margin of 20.9%, compared to 20.7% in the previous year. Net earnings for the quarter were $450 million, or $0.49 per diluted share, compared to $406 million, or $0.42 per diluted share, in the same quarter of the previous year.
The results reflect significant growth in the Personal Systems segment, which saw net revenue increase by 13.2% to $10.2 billion, driven by a 22.3% rise in average selling prices (ASPs), despite a 7.0% decline in unit volume. The Printing segment, however, faced challenges, with net revenue remaining flat at $4.2 billion, impacted by competitive pressures and a decline in printer unit sales. The company attributed the overall revenue growth to pricing actions aimed at mitigating higher commodity costs and an increase in services revenue.
HP's operational metrics showed a notable increase in cash flow, with net cash provided by operating activities rising to $1.3 billion for the first half of fiscal 2026, compared to $412 million in the same period last year. The company also reported a decrease in total debt, maintaining a stable financial position with $9.7 billion in total debt as of April 30, 2026. The cash conversion cycle improved, with days sales outstanding increasing to 38 days, reflecting changes in receivables and inventory management.
Strategically, HP is undergoing a transformation plan aimed at enhancing customer satisfaction and productivity through artificial intelligence adoption. The Fiscal 2026 Plan includes a workforce reduction of approximately 4,000 to 6,000 employees, with expected pre-tax charges of around $650 million. The company is also focusing on expanding its product offerings and enhancing its market presence, particularly in subscription-based services and digital printing solutions.
Looking ahead, HP anticipates continued challenges from macroeconomic conditions, including inflationary pressures and competitive dynamics. The company remains committed to driving innovation and operational efficiency while navigating these challenges. HP's management expressed confidence in its strategic direction and the potential for long-term growth, particularly through advancements in AI and digital solutions.
About HP INC
HP Inc. is a global technology company specializing in personal computing, printing, and related solutions. Its core segments include Personal Systems, offering desktops, laptops, and workstations; Printing, providing consumer and commercial printers; and Graphics and 3D Printing. HP focuses on innovation, security, and sustainability, serving enterprise, SMB, and consumer markets worldwide with a broad product portfolio and integrated services.
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