HP Inc. Q2 EPS Soars 21% While Company Lowers Full-Year Outlook
HPQ•HP Inc. posted second-quarter non-GAAP EPS of $0.86, beating estimates by 21% on revenue of $14.41 billion, up 9% year-over-year, with Personal Systems sales rising 13% to $10.2 billion and Printing revenue flat at $4.2 billion. The company generated $0.8 billion in free cash flow, returned $374 million to shareholders, but trimmed its fiscal 2026 GAAP EPS outlook to $2.15–$2.45 from $2.47–$2.77.
1. Q2 Financial Results
HP Inc. delivered second-quarter non-GAAP diluted EPS of $0.86, a 21% beat on consensus, and GAAP diluted EPS of $0.49, up 17% year-over-year. Net revenue reached $14.41 billion, a 9% increase from the prior year, outpacing the Street forecast of $14.04 billion.
2. Segment Performance
The Personal Systems division drove growth with $10.2 billion in revenue, up 13% year-over-year (10% in constant currency), led by commercial unit gains. The Printing segment held steady at $4.2 billion, flat year-over-year, with supplies up 1% and hardware units down 7%.
3. Outlook and Capital Allocation
HP generated $0.8 billion in free cash flow and returned $374 million through dividends and share repurchases in the quarter. Despite robust cash generation, management cut its fiscal 2026 GAAP EPS guidance to $2.15–$2.45 (from $2.47–$2.77) while maintaining non-GAAP EPS estimates at $2.90–$3.10.
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