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Jan 31
HP Q1 2026 Earnings Report
HP Inc. reported fiscal 2026 first quarter financial results with revenue growth and strong free cash flow.
Key Takeaways
HP Inc. delivered a solid first quarter for fiscal 2026, characterized by a 6.9% year-over-year increase in net revenue to $14.4 billion. While GAAP diluted EPS saw a slight decline of 1.7%, non-GAAP diluted EPS grew by 9.5% to $0.81. The company demonstrated strong cash generation with $383 million in operating cash flow and $175 million in free cash flow, while returning $0.6 billion to shareholders.
Net revenue increased 6.9% year-over-year to $14.4 billion, driven by robust growth in Personal Systems.
Non-GAAP diluted net EPS rose 9.5% to $0.81, exceeding the high end of the previously provided outlook.
Personal Systems revenue grew 11% to $10.3 billion, with a significant 16% jump in Consumer PS.
HP returned $0.6 billion to shareholders through $325 million in share repurchases and $277 million in dividends.
Revenue by Segment
Forward Guidance
HP provided outlook for the second quarter of fiscal 2026 and maintained its full-year guidance, though noting it expects to be at the lower end of the range.
Positive Outlook
- Q2 FY26 non-GAAP diluted net EPS estimated between $0.70 and $0.76.
- Full year FY26 non-GAAP diluted net EPS guidance maintained at $2.90 to $3.20.
- Anticipated full year free cash flow generation of $2.8 to $3.0 billion.
- Continued momentum expected in AI PCs and Future of Work strategy.
- Disciplined execution of the fiscal 2026 plan to drive productivity.
Challenges Ahead
- Expects results to be at the lower end of the fiscal 2026 guidance range.
- Dynamic environment marked by increasing memory costs.
- Industry-wide headwinds continue to impact the business.
- Added costs driven by current U.S. trade-related regulations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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