HP net revenue up in 2026 Q1 Results

HP has announced fiscal 2026 first quarter net revenue of $14.4 billion, up 6.9% (up 5.2% in constant currency) from the prior-year period.
•    First quarter GAAP diluted net earnings per share ("EPS") of $0.58, down 1.7% from the prior year period
•    First quarter non-GAAP diluted net EPS of $0.81, up 9.5% from the prior year period
•    First quarter net revenue of $14.4 billion, up 6.9% from the prior-year period
•    First quarter net cash provided by operating activities of $383 million, free cash flow of $175 million
•    First quarter returned $0.6 billion to shareholders in the form of share repurchases and dividends

"We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs. Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds,” said Bruce Broussard, Interim CEO, HP Inc.

Broussard continued, “The transition from Board member to the Interim CEO role has been smooth and well-coordinated, underscoring the depth of our leadership team, the strength of our governance, and the exceptional talent across HP. We remain confident in our strategy and focused on delivering sustainable, long-term value for our customers and shareholders.”

“We are pleased with our execution in Q1, driving better than expected revenue growth and non-GAAP EPS above consensus,” said Karen Parkhill, CFO, HP Inc. “With just one quarter behind us in a dynamic environment marked by increasing memory costs, we are holding our outlook for the year yet currently anticipate results to be closer to the low end of our range. We are well practised at managing through headwinds and remain focused on executing our mitigation plans.”

First quarter GAAP diluted net EPS was $0.58, down from $0.59 in the prior-year period and within the previously provided outlook of $0.58 to $0.66. First quarter non-GAAP diluted net EPS was $0.81, up from $0.74 in the prior-year period and within the previously provided outlook of $0.73 to $0.81. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $208 million, or $0.23 per diluted share, related to restructuring and other charges, acquisition and divestiture (credits) charges, net, amortisation of intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

Asset Management
HP's net cash provided by operating activities in the first quarter of fiscal 2026 was $383 million. Accounts receivable ended the quarter at $5.3 billion, down 2 days quarter over quarter to 33 days. Inventory ended the quarter at $8.7 billion, up 2 days quarter over quarter to 68 days. Accounts payable ended the quarter at $18.2 billion, up 2 days quarter over quarter to 141 days.
HP generated $175 million of free cash flow in the first quarter of fiscal 2026. Free cash flow includes net cash provided by operating activities of $383 million adjusted for net investments in leases from integrated financing of $25 million and net investments in property, plant, equipment and purchased intangible of $233 million.
HP’s dividend payment of $0.30 per share in the first quarter resulted in cash usage of $277 million. HP also utilised $325 million of cash during the quarter to repurchase approximately 13.3 million shares of common stock in the open market. HP exited the quarter with $3.2 billion in gross cash, which includes cash and cash equivalents of $3.2 billion, and short-term investments of $3 million included in other current assets.

Fiscal 2026 first quarter segment results
•    Personal Systems net revenue was $10.3 billion, up 11% year over year (up 9% in constant currency) with a 5.0% operating margin. Consumer PS net revenue was up 16% and Commercial PS net revenue was up 9%. Total units were up 12% with Consumer PS units up 14% and Commercial PS units up 11%.
•    Printing net revenue was $4.2 billion, down 2% year over year (down 3% in constant currency) with an 18.3% operating margin. Consumer Printing net revenue was down 8% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 1% (down 2% in constant currency). Total hardware units were down 6%, with both Consumer and Commercial Printing units reflecting similar declines.