HP Inc.

HP reported Q2 FY2026 revenue growth of 9% year over year, or 6% in constant currency. Gross margin was 20.9%, operating margin was 7.5% (+20 bps year over year), and diluted non-GAAP EPS was $0.86, up over 20% year over year. Personal Systems revenue grew 13%, with Commercial up 14% and Consumer up 10%; Print revenue was flat year over year. Management said it now expects Q3 EPS of $0.61-$0.71 and full-year EPS of $2.90-$3.10, with annual free cash flow of $2.8B-$3.0B.

Bruce Broussard emphasized that HP is seeing strong execution in a complex environment and positioned the company’s Future of Work strategy around AI moving to the edge. He highlighted new products across PCs, workstations, print, industrial graphics, and the HP IQ intelligence layer, saying customer interest is strong and that HP is becoming a trusted intelligent edge provider. His tone was confident and steady, with added attention to the CEO search and reassurance that the board is actively evaluating candidates.

Karen Parkhill said the quarter reflected disciplined mitigation actions against higher input costs, including product reconfiguration, lower-cost components, inventory optimization, and repricing. She cited revenue of 9% growth, gross margin of 20.9%, operating margin of 7.5%, and EPS of $0.86 on about 925 million diluted shares, plus over $900 million in cash from operations and roughly $800 million in free cash flow. She said HP returned nearly $400 million to shareholders, remained within its target leverage ratio, and raised full-year EPS guidance to $2.90-$3.10 and annual free cash flow to $2.8B-$3.0B.

Analysts focused heavily on how much of the strong PC demand was pull-forward versus durable demand, especially in Commercial, and management estimated pull-forward added roughly 2% to 3% of revenue. They also pressed on margin pressure from memory, storage, resin, and CPU supply; management said Q4 should be the low point for Personal Systems margins, with sequential improvement into next fiscal year, and that supply is secured for FY2026 through long-term agreements. Questions on print margins, supplies, and subscriptions drew responses that HP is seeing stronger All-In Plan traction, expects print margins to improve in Q4, and is not seeing channel inventory problems.