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Jul 31, 2023

HP Q3 2023 Earnings Report

HP's financial performance for the third quarter of fiscal year 2023 was reported, showing a mix of challenges and strategic execution.

Key Takeaways

HP Inc. reported a net revenue of $13.2 billion, a 9.9% decrease year-over-year, but achieved its non-GAAP EPS target. The company delivered sequential growth, driven by innovation and disciplined execution in the PC market.

GAAP diluted net EPS was $0.76, exceeding the previously provided outlook.

Non-GAAP diluted net EPS was $0.86, aligning with the provided outlook.

Net revenue reached $13.2 billion, reflecting a 9.9% decrease from the prior year.

Free cash flow was $0.9 billion, indicating strong cash generation.

Total Revenue
$13.2B
Previous year: $14.7B
-10.0%
EPS
$0.86
Previous year: $1.04
-17.3%
GAAP Operating Margin
7.2%
Previous year: 9.5%
-24.2%
Gross Profit
$2.82B
Previous year: $2.9B
-2.7%
Cash and Equivalents
$1.72B
Previous year: $5.39B
-68.1%
Free Cash Flow
$900M
Previous year: $300M
+200.0%
Total Assets
$36.6B
Previous year: $39.2B
-6.7%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2023 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.65 to $0.77 and non-GAAP diluted net EPS to be in the range of $0.85 to $0.97. HP anticipates generating free cash flow of approximately $3.0 billion for fiscal year 2023.

Positive Outlook

  • GAAP diluted net EPS to be in the range of $0.65 to $0.77 for Q4 2023
  • Non-GAAP diluted net EPS to be in the range of $0.85 to $0.97 for Q4 2023
  • Free cash flow of approximately $3.0 billion is anticipated for fiscal year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income