HP Inc. Posts $545M Net Income on 6.9% Revenue Growth in Q1 FY2026

HP Inc. (NYSE: HPQ), a maker of personal computers, printers, and related supplies, reported net income of $545 million for the three months ended January 31, 2026, down from $565 million in the same quarter a year earlier. The decline came despite revenue growth of 6.9% to $14.44 billion from $13.50 billion. Read more earnings reports.

Operating income for the quarter slipped to $1.25 billion from $1.29 billion, a drop of roughly 2.9%. Gross profit held nearly flat at $2.84 billion compared to the prior-year quarter. The company's operating margin compressed as selling, general, and administrative expenses rose to $1.50 billion from $1.46 billion.

Revenue Breakdown

Personal systems revenue, which includes notebooks, desktops, and workstations, climbed 11.2% to $10.25 billion from $9.22 billion in the year-ago quarter. Consumer personal systems revenue jumped 16.2% to $2.998 billion, while commercial personal systems revenue increased 9.1% to $7.25 billion.

Printing revenue fell 2.2% to $4.19 billion from $4.28 billion. Supplies revenue declined to $2.80 billion from $2.83 billion, and commercial printing revenue dropped 3.4% to $1.11 billion from $1.14 billion. Consumer printing revenue decreased 7.8% to $283 million from $307 million.

Balance Sheet and Cash Flow

Total assets stood at $41.54 billion as of January 31, 2026, down from $41.77 billion at the end of the prior fiscal year on October 31, 2025. Cash and cash equivalents decreased to $3.15 billion from $3.69 billion over the same period. Inventory rose to $8.74 billion from $8.51 billion.

The company ended the quarter with stockholders' deficit of $766 million, widening from a deficit of $346 million three months earlier. Retained deficit expanded to $2.33 billion from $2.03 billion. Long-term debt stood at $8.84 billion, up slightly from $8.82 billion.

Cash from operations totaled $383 million for the quarter, up from $374 million in the prior-year period. Cash used in investing activities was $269 million, an improvement from $300 million. Cash used in financing activities jumped to $673 million from $433 million, reflecting increased shareholder returns.

Expenses and Margins

Cost of revenue increased to $11.60 billion from $10.66 billion, rising faster than revenue and compressing gross margin to 19.6% from 21.0%. Research and development expenses fell slightly to $392 million from $397 million. The company recorded income tax expense of $126 million, down from $139 million.

Per-Share Results

Diluted earnings per share came in at $0.58, down from $0.59 in the prior-year quarter. Basic earnings per share were $0.59, compared to $0.60. The weighted average diluted share count decreased to 932 million from 957 million, reflecting the company's ongoing share repurchase program. Common shares outstanding fell to 917 million from 921 million at the end of the previous fiscal year.