HP Inc. Reports 12.5% Revenue Growth to $15.7 Billion in Q3 Fiscal 2026

HP Inc. reported its financial results for the third quarter of fiscal 2026, revealing a total net revenue of $15.7 billion, a 12.5% increase from $13.9 billion in the same period last year. The growth was primarily driven by a 13.1% rise in product revenue, which reached $14.8 billion, while service revenue also saw a modest increase to $852 million. For the nine months ending July 31, 2026, total net revenue rose to $44.5 billion, up from $40.7 billion in the prior year, reflecting a 9.5% year-over-year growth. However, net earnings for the quarter decreased to $661 million, or $0.71 per diluted share, compared to $763 million, or $0.80 per diluted share, in the previous year.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. The gross profit margin decreased to 18.8% from 20.5% a year earlier, attributed to higher commodity costs and unfavorable product mix shifts. Operating expenses also saw an increase, with total operating expenses for the quarter at $2.1 billion, up from $2.1 billion in the prior year. The company’s restructuring and other charges decreased significantly to $48 million from $110 million, reflecting the completion of prior restructuring plans.

Strategically, HP has been focusing on its Fiscal 2026 Plan, which aims to enhance customer satisfaction and product innovation through the adoption of artificial intelligence. The plan includes a workforce reduction of approximately 4,000 to 6,000 employees, with an estimated pre-tax charge of $650 million related to these actions. The company has also realigned its business units, moving the Print-as-a-Service business from Corporate Investments to Printing, which resulted in a reallocation of $197 million of goodwill.

Operationally, HP reported a significant increase in accounts receivable, which rose to $7.2 billion from $5.7 billion, indicating a growing customer base and increased sales activity. The company’s inventory also increased to $10.3 billion, up from $8.5 billion, reflecting efforts to meet anticipated demand. Geographically, HP's revenue from the Americas increased to $6.5 billion, while revenue from Europe, the Middle East, and Africa rose to $5.2 billion, and revenue from Asia-Pacific and Japan reached $4.0 billion, showcasing a broad-based growth across regions.

Looking ahead, HP anticipates continued challenges due to macroeconomic conditions, including inflationary pressures and competitive pricing environments. The company is focused on mitigating these challenges through innovation and operational improvements. HP expects to maintain its growth trajectory while navigating the complexities of the current market landscape, with a commitment to enhancing its product offerings and customer engagement strategies.