Hp Stock Earnings Reports

HP reported Q2 FY2026 results showing continued top-line growth and disciplined execution amid rising commodity costs. Revenue grew 9% year-over-year (6% constant currency), driven by Personal Systems (+13%) while Print was flat. AI-enabled products are gaining traction: AI PCs rose to 44% of shipments in the quarter and HP expects AI PCs to represent 60–70% of shipments next fiscal year and >70% by FY28. Gross margin improved to 20.9% and operating margin to 7.5%; Personal Systems operating profit grew ~30% year-over-year. Management reiterated that memory and storage costs will rise through H2, but said they have secured supply for FY26, fully operationalized a supply/demand/configuration planning model, and are executing a multi-pronged mitigation playbook (pricing, component requalification, use of strategic inventory, and cost/productivity actions). They expect PS margins to trough in Q4 and improve thereafter. Management raised its full-year EPS outlook to $2.90–$3.10 and Q3 EPS to $0.61–$0.71, and now expects annual free cash flow of $2.8–$3.0 billion. The company returned nearly $400 million to shareholders in Q2 and remains committed to returning ~100% of free cash flow over time while keeping gross leverage under 2x. Key risks: continued inflationary pressures (memory, storage, oil/resin, transportation) and potential demand elasticity given higher pricing and expected PC TAM declines in the back half.