HP Inc. Names Bruce Broussard Interim CEO, Reaffirms FY26 EPS and Cash Flow Guidance
HP Inc. appointed Board member Bruce Broussard as interim CEO after Enrique Lores’s departure, forming a CEO Search Committee and hiring a global search firm. It reaffirmed Q1 EPS guidance at GAAP $0.58–0.66/non-GAAP $0.73–0.81, FY26 GAAP $2.47–2.77/non-GAAP $2.90–3.20, and free cash flow of $2.8–3.0 billion.
1. Leadership Transition at HP Inc.
On February 3, 2026, HP Inc. announced that Bruce Broussard, a Board member since 2021, has been appointed Interim Chief Executive Officer effective immediately. He succeeds Enrique Lores, who stepped down after a 36-year tenure, including seven years as President and CEO, to pursue a new professional opportunity. The Board has formed a CEO Search Committee and engaged a leading global executive search firm to identify a permanent successor. Chip Bergh, HP’s Board Chairman, emphasized that Broussard’s three decades of public-company leadership—including ten years as CEO of a Fortune 100 healthcare firm—will ensure stability as the company advances its “Future of Work” strategy.
2. Reaffirmed Fiscal 2026 Outlook
HP reaffirmed its financial outlook for Q1 and full fiscal year 2026 as originally provided on November 25, 2025. For the quarter ending April 30, 2026, the company expects GAAP diluted net EPS between $0.58 and $0.66 and non-GAAP diluted net EPS between $0.73 and $0.81, excluding an estimated $0.15 per share of restructuring, acquisition, amortization, retirement and tax adjustments. For the full year, HP continues to project GAAP diluted net EPS of $2.47 to $2.77 and non-GAAP diluted net EPS of $2.90 to $3.20, excluding $0.43 per share of similar adjustments. Free cash flow is forecast in the range of $2.8 to $3.0 billion, reflecting anticipated costs related to current U.S. trade regulations and mitigation efforts.
3. Compelling Income-Focused Valuation
HP Inc. currently trades at a forward P/E multiple of 6.4x with a dividend yield of 6.1%, levels not seen in the past decade. The company generated approximately $3.2 billion in free cash flow over the last twelve months and maintains a disciplined capital return program that has returned over $5 billion to shareholders through dividends and share repurchases in fiscal 2025. Stable demand for AI-enabled PCs and growth in industrial graphics solutions underpin recurring revenue streams, while a manageable net debt-to-EBITDA ratio of 1.6x offers financial flexibility to sustain its high yield profile.
4. Attractive Long-Term Return Potential
A discounted cash flow analysis carried out by independent analysts implies a long-term internal rate of return of 14.7% for HP, based on normalized enterprise value to EBIT and EV-to-sales multiples that sit at multi-year lows. The model forecasts steady free cash flow growth driven by subscription services, software integrations and expanding commercial hardware footprints. With strategic investments in AI-powered devices and services, management’s ‘One HP’ platform is expected to drive margin expansion and support sustainable dividend coverage above 1.5x over the next five years.