Overview
- HP reported fiscal 2026 second‑quarter revenue of $14.4 billion and non‑GAAP diluted EPS of $0.86, beating consensus and marking the company’s eighth straight quarter of top‑line growth, which it disclosed on May 27.
- Personal Systems led results with about $10.2 billion in revenue, a roughly 13% increase and a 30% jump in operating profit, while AI‑capable PCs made up roughly 44% of shipments in the quarter.
- The company narrowed its full‑year non‑GAAP EPS guidance to $2.90–$3.10 and said it expects margin pressure to persist through H2 FY26 because memory, storage and energy costs rose sequentially.
- HP generated roughly $0.9 billion in operating cash flow and $0.8 billion in free cash flow in Q2, exited with about $3.7 billion in gross cash, and returned approximately $374 million to shareholders via dividends and buybacks.
- To offset cost headwinds management plans product redesigns, lower‑cost sourcing and productivity programs and targets about $1 billion in annualized savings by FY2028, a shift that could keep prices higher for buyers and pressure near‑term margins even as the company leans into AI products.