HP Inc. Reports Strong Q3 2026 Earnings and Raises Full-Year Guidance

HP Inc. filed an 8-K to announce its financial results for the third quarter of fiscal year 2026, ending July 31, 2026. The report was highly positive, highlighted by a significant revenue beat and an increase in full-year guidance for both earnings per share (EPS) and free cash flow.

Key Financial Highlights for Q3 2026:

• Net Revenue: $15.7 billion, a 12.5% increase year-over-year, surpassing prior-year revenue of $13.9 billion.
• GAAP Diluted Net EPS: $0.71, down from $0.80 in the prior-year period, but above the company's guidance of $0.47 to $0.63.
• Non-GAAP Diluted Net EPS: $0.83, a 10.7% increase from $0.75 in the prior-year period and significantly above the guided range of $0.61 to $0.71. Both GAAP and non-GAAP EPS included a favorable impact of $0.11 from tariff refunds.
• Free Cash Flow: Strong performance with $1.6 billion generated during the quarter.

Segment Performance:

• Personal Systems: Showed robust growth with net revenue of $11.8 billion, up 18% year-over-year. Commercial revenue was particularly strong, up 22%. However, total unit shipments were down 16%.
• Printing: Experienced a slight decline with net revenue of $3.9 billion, down 2% year-over-year. Supplies revenue was down 3%. Total hardware units were down 7%.

Updated Fiscal 2026 Outlook: Reflecting confidence in its performance, HP raised its full-year guidance:

• GAAP Diluted Net EPS: Raised to a range of $2.52 to $2.62.
• Non-GAAP Diluted Net EPS: Raised to a range of $3.19 to $3.29.
• Free Cash Flow: Raised to a range of $3.0 to $3.2 billion.

Capital Returns: HP returned $0.6 billion to shareholders in Q3 through $300 million in share repurchases and $274 million in dividend payments.

Overall, the earnings report signals strong execution, particularly in the Personal Systems segment, and effective cost management, leading to a confident and raised outlook for the full fiscal year.