38d8b2fe09b7cddb0ab3966efc5da4266f4015a252cb7ad5cdb8f0c7d8736a1a

dc68f444fe24fab736b10d1e869f5fc74183b185a2948f110f65b3bfa6421807

| Metric [USD Billion] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Personal Systems** | **9.215**  **[0000047217-23-000019_hpq-20230131.htm:12]**  | **8.176**  **[0000047217-23-000038_hpq-20230430.htm:13]**  | **8.9**  **[0000047217-23-000060_hp73123exhibit991q323.htm:1]**  | **9.4**  **[0000047217-23-000091_hp103123exhibit991q423.htm:2]** **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | **8.8**  **[0000047217-24-000022_hp13124exhibit991q124.htm:1]**  | **8.4**  **[0000047217-24-000041_hpq-20240430.htm:12]** **[0000047217-24-000039_hp43024exhibit991q224.htm:0]**  | **9.4**  **[0000047217-24-000068_hp73124exhibit991q324.htm:1]**  | **9.6**  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| - Commercial PS      | 6.429  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 5.922  **[0000047217-23-000038_hpq-20230430.htm:13]**  | 6.2  **[0000047217-23-000076_hpq-20230731.htm:13]**  | 6.213  **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | 6.045  **[0000047217-24-000024_hpq-20240131.htm:12]**  | 6.2  **[0000047217-24-000041_hpq-20240430.htm:12]**  | 6.7  **[0000047217-24-000070_hpq-20240731.htm:13]**  | 6.522  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| - Consumer PS        | 2.786  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 2.254  **[0000047217-23-000038_hpq-20230430.htm:13]**  | 2.7  **[0000047217-23-000076_hpq-20230731.htm:13]**  | 3.185  **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | 2.764  **[0000047217-24-000024_hpq-20240131.htm:12]**  | 2.2  **[0000047217-24-000041_hpq-20240430.htm:12]**  | 2.7  **[0000047217-24-000070_hpq-20240731.htm:13]**  | 3.069  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| **Printing**         | **4.612**  **[0000047217-23-000019_hpq-20230131.htm:12]**  | **4.736**  **[0000047217-23-000038_hpq-20230430.htm:13]**  | **4.3**  **[0000047217-23-000060_hp73123exhibit991q323.htm:1]**  | **4.4**  **[0000047217-23-000091_hp103123exhibit991q423.htm:2]** **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | **4.4**  **[0000047217-24-000022_hp13124exhibit991q124.htm:1]**  | **4.4**  **[0000047217-24-000041_hpq-20240430.htm:12]** **[0000047217-24-000039_hp43024exhibit991q224.htm:0]**  | **4.1**  **[0000047217-24-000068_hp73124exhibit991q324.htm:1]**  | **4.5**  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| - Supplies           | 2.857  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 3.006  **[0000047217-23-000038_hpq-20230430.htm:13]**  | 2.8  **[0000047217-23-000076_hpq-20230731.htm:13]**  | 2.821  **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | 2.863  **[0000047217-24-000024_hpq-20240131.htm:12]**  | 2.9  **[0000047217-24-000041_hpq-20240430.htm:12]**  | 2.7  **[0000047217-24-000070_hpq-20240731.htm:13]**  | 2.865  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| - Commercial Printing| 1.056  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 1.089  **[0000047217-23-000038_hpq-20230430.htm:13]**  | 0.974  **[0000047217-23-000076_hpq-20230731.htm:13]**  | 1.064  **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | 1.227  **[0000047217-24-000024_hpq-20240131.htm:12]**  | 1.2  **[0000047217-24-000041_hpq-20240430.htm:12]**  | 1.1  **[0000047217-24-000070_hpq-20240731.htm:13]**  | 1.262  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| - Consumer Printing  | 0.699  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 0.641  **[0000047217-23-000038_hpq-20230430.htm:13]**  | 0.521  **[0000047217-23-000076_hpq-20230731.htm:13]**  | 0.533  **[0000047217-23-000091_hp103123exhibit991q423.htm:10]**  | 0.285  **[0000047217-24-000024_hpq-20240131.htm:12]**  | 0.299  **[0000047217-24-000041_hpq-20240430.htm:12]**  | 0.293  **[0000047217-24-000070_hpq-20240731.htm:13]**  | 0.325  **[0000047217-24-000075_hp103124exhibit991q424.htm:10]**  |
| **Corporate Investments** | 1  **[0000047217-23-000019_hpq-20230131.htm:12]**  | 3  **[0000047217-23-000038_hpq-20230430.htm:13]**  | N/A | N/A | 2  **[0000047217-24-000024_hpq-20240131.htm:12]**  | N/A | N/A | N/A |

03695be54a31428d7672917ba6ce3d9435bb7689615ac9a8688453cafb1cead8

HP Inc. is a leading global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. Operating in more than 170 countries, the company is organized into three reportable segments: Personal Systems, Printing, and Corporate Investments **[0000047217-23-000100_hpq-20231031.htm:5]** **[0000047217-24-000041_hpq-20240430.htm:40]** **[0000047217-24-000068_hp73124exhibit991q324.htm:2]**. HP Inc. sells a wide range of products including desktops, notebooks, workstations, printers, and related services, catering to both commercial and consumer markets **[0000047217-23-000100_hpq-20231031.htm:5]** **[0000047217-24-000041_hpq-20240430.htm:11]** **[0000047217-24-000024_hpq-20240131.htm:11]**.

1. **Personal Systems** - Offers commercial and consumer desktops and notebooks, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays, hybrid systems, software, solutions, and services. 
   - **Commercial PS** - Focuses on enterprise and SMB customers.
   - **Consumer PS** - Targets individual consumers with a focus on gaming and remote work.
2. **Printing** - Provides consumer and commercial printer hardware, supplies, solutions, and services, with a focus on office and home printing solutions, graphics solutions, and 3D printing and personalization.
3. **Corporate Investments** - Engages in investing in key growth areas such as hybrid systems, gaming, workforce solutions, consumer subscriptions, industrial graphics, and 3D and personalization, which are expected to grow significantly by the 2026 fiscal year.

2f1ceef4dd43cb6934b92bd44406278aea759e82fb3c6897d859d02925bf817b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

45e302d8c2986e63ca74b76374e57ba0f5ed52be85b4186109f99850d80283eb

| Metric [Unit: $ million] | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas                 | N/A     | **6,086**  **[0000047217-24-000070_hpq-20240731.htm:19]**  | **5,591**  **[0000047217-24-000041_hpq-20240430.htm:18]**  | Declined 7%  **[HPQ_3375504_4]**  | Declined 6%  **[HPQ_3367866_4]**  | Declined 8%  **[HPQ_3385399_5]** **[HPQ_3311156_3]**  | N/A     | Declined 16%  **[HPQ_3230478_3]**  |
| EMEA                     | N/A     | **4,420**  **[0000047217-24-000070_hpq-20240731.htm:19]**  | **4,373**  **[0000047217-24-000041_hpq-20240430.htm:18]**  | Declined 2%  **[HPQ_3375504_4]**  | Declined 2%  **[HPQ_3367866_4]**  | Declined 5%  **[HPQ_3385399_5]** **[HPQ_3311156_3]**  | N/A     | Declined 15%  **[HPQ_3230478_3]**  |
| APJ                      | N/A     | **3,013**  **[0000047217-24-000070_hpq-20240731.htm:19]**  | **2,836**  **[0000047217-24-000041_hpq-20240430.htm:18]**  | Declined 7%  **[HPQ_3375504_4]**  | Declined 8%  **[HPQ_3367866_4]**  | Declined 9%  **[HPQ_3385399_5]** **[HPQ_3311156_3]**  | N/A     | Declined 13%  **[HPQ_3230478_3]**  |

32bee2246418062fcbfee796d09c1c230561335b408d596be9eb2bdb8c710ca3

ad115abde6008b1c9cb2cadaae17988e8e2d7b7e90dfa10b470c38b643ae53ff

1. Given that most of your products are manufactured outside the U.S., and with the potential for new tariffs on imported goods, how specifically do you plan to mitigate risks to your supply chain and margins if such tariffs are imposed?  **[HPQ_3410112_13]** **[HPQ_3410112_12]** 

2. Despite the aggressive cost optimizations under your Future Ready Transformation Plan, operating income appears to be roughly flat year-over-year; why aren't these cost savings translating into higher operating income or free cash flow growth?  **[HPQ_3410112_8]** 

3. In the Print segment, you mentioned ongoing competitive pressure due to Japanese competitors leveraging the weak yen; how do you plan to sustain margins and gain market share in this challenging pricing environment?  **[HPQ_3410112_20]** 

4. You expect AI PCs to make up approximately 25% of your PC unit shipments in FY '25; what concrete steps are you taking to ensure this transition drives meaningful revenue and margin expansion, especially considering potential ASP benefits?  **[HPQ_3410112_23]** **[HPQ_3410112_5]** 

5. Given your capital allocation policy maintains a gross leverage ratio under 2x, why not reassess this target in light of improved operating performance and potential growth opportunities, potentially allowing for greater investments or increased shareholder returns?  **[HPQ_3410112_20]** **[HPQ_3410112_8]** 

a3ecc3825146ef8000861b3fb17cc2fa5ef60e8ad1ee1e8f5e19edf9618e7d0f

Americas

Europe, Middle East, Africa

Asia-Pacific and Japan

- United States

- Other Countries

Total Revenue

fc8996687880fd31425daf5be4ba3b5fa105813a217a52c9e3c406be732c2c81

- Lenovo Group Limited - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Dell Inc. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Huawei Technologies Co., Ltd. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Acer Inc. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- ASUSTeK Computer Inc. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Apple Inc. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Toshiba Corporation - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Microsoft Corporation - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Samsung Electronics Co., Ltd - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Logitech International S.A. - Competitor in the Personal Systems segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Canon Inc. - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Lexmark International, Inc. - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Xerox Corporation Ltd. - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Seiko Epson Corporation - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- The Ricoh Company Ltd. - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .
- Brother Industries, Ltd. - Competitor in the Printing segment  **[0000047217-23-000100_hpq-20231031.htm:12]** .

e8f8c2d08e7a60b24f2a9bb2008a45a4492452368712c2e8034d8b5fc9f6d2d4

057c6cb7c763d7f11c8e4f89e60e3d5b093d98317f827011316ebdd9323fb746

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025 and Q1 2025
- **Guidance**:
  1. **Non-GAAP Diluted EPS for FY 2025**: $3.45 to $3.75  **[HPQ_3410112_6]** .
  2. **GAAP Diluted EPS for FY 2025**: $3.06 to $3.36  **[HPQ_3410112_6]** .
  3. **Non-GAAP Diluted EPS for Q1 2025**: $0.70 to $0.76  **[HPQ_3410112_6]** .
  4. **GAAP Diluted EPS for Q1 2025**: $0.57 to $0.63  **[HPQ_3410112_6]** .
  5. **Free Cash Flow for FY 2025**: $3.2 billion to $3.6 billion  **[HPQ_3410112_6]** .
  6. **Capital Allocation**: Return approximately 100% of free cash flow to shareholders  **[HPQ_3410112_6]** .
  7. **Dividend**: Increased by 5% to $1.16 per share  **[HPQ_3410112_6]** .
  8. **Personal Systems Revenue Growth**: Expected to grow at least in line with the market  **[HPQ_3410112_5]** .
  9. **Personal Systems Operating Margins**: Upper half of 5% to 7% range for the year  **[HPQ_3410112_5]** .
  10. **Print Revenue**: Expected to perform at least in line with the market  **[HPQ_3410112_5]** .
  11. **Print Operating Margin**: Near the top of the 16% to 19% range  **[HPQ_3410112_5]** .
  12. **Supplies Revenue**: Decline low to mid-single digits in FY 2025  **[HPQ_3410112_5]** .
  13. **AI PC Penetration**: Approximately 25% of PC unit shipments in FY 2025  **[HPQ_3410112_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Non-GAAP EPS for Q4 2024**: $0.89 to $0.99  **[HPQ_3400062_6]** .
  2. **GAAP EPS for Q4 2024**: $0.74 to $0.84  **[HPQ_3400062_6]** .
  3. **Non-GAAP EPS for FY 2024**: $3.35 to $3.45  **[HPQ_3400062_6]** .
  4. **GAAP EPS for FY 2024**: $2.62 to $2.72  **[HPQ_3400062_6]** .
  5. **Free Cash Flow for FY 2024**: $3.1 billion to $3.6 billion  **[HPQ_3400062_6]** .
  6. **Personal Systems Revenue for Q4 2024**: Increase sequentially low to mid-single digits  **[HPQ_3400062_5]** .
  7. **Print Revenue for Q4 2024**: Increase low to mid-single digits sequentially  **[HPQ_3400062_6]** .
  8. **Print Margins for Q4 2024**: Near the top of the 16% to 19% range  **[HPQ_3400062_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Non-GAAP EPS for FY 2024**: $3.30 to $3.60  **[HPQ_3390996_6]** .
  2. **GAAP EPS for FY 2024**: $2.60 to $2.90  **[HPQ_3390996_6]** .
  3. **Non-GAAP EPS for Q3 2024**: $0.78 to $0.92  **[HPQ_3390996_6]** .
  4. **GAAP EPS for Q3 2024**: $0.63 to $0.77  **[HPQ_3390996_6]** .
  5. **Free Cash Flow for FY 2024**: $3.1 billion to $3.6 billion  **[HPQ_3390996_6]** .
  6. **OI&E Expense for FY 2024**: Approximately $0.6 billion  **[HPQ_3390996_6]** .
  7. **Personal Systems Revenue for Q3 2024**: Increase sequentially by high-single digit  **[HPQ_3390996_6]** .
  8. **Personal Systems Margins for Q3 2024**: High end of 5% to 7% range  **[HPQ_3390996_6]** .
  9. **Print Revenue for Q3 2024**: Decrease sequentially by low single digit  **[HPQ_3390996_6]** .
  10. **Print Margins for Q3 2024**: Upper half of 16% to 19% range  **[HPQ_3390996_6]** .
  11. **Print Margins for FY 2024**: High end of 16% to 19% range  **[HPQ_3390996_6]** .
  12. **Supplies Revenue for FY 2024**: Decline low to mid-single digit  **[HPQ_3390996_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Free Cash Flow for FY 2024**: $3.1 billion to $3.6 billion  **[HPQ_3375504_6]** .
  2. **OI&E Expense for FY 2024**: Approximately $0.7 billion  **[HPQ_3375504_6]** .
  3. **Non-GAAP EPS for FY 2024**: $3.25 to $3.65  **[HPQ_3375504_6]** .
  4. **GAAP EPS for FY 2024**: $2.61 to $3.01  **[HPQ_3375504_6]** .
  5. **Non-GAAP EPS for Q2 2024**: $0.76 to $0.86  **[HPQ_3375504_6]** .
  6. **GAAP EPS for Q2 2024**: $0.58 to $0.68  **[HPQ_3375504_6]** .
  7. **Personal Systems Revenue for Q2 2024**: Decline sequentially by high single digit  **[HPQ_3375504_6]** .
  8. **Personal Systems Margins for Q2 2024**: Within long-term target range  **[HPQ_3375504_6]** .
  9. **Print Margins for Q2 2024**: High end of 16% to 19% range  **[HPQ_3375504_6]** .
  10. **Supplies Revenue for Q2 2024**: Decline mid-single digits  **[HPQ_3375504_6]** .
  11. **Supplies Revenue for FY 2024**: Decline low to mid-single digits  **[HPQ_3375504_6]** .

98ee16317fbd85f14fdf48101b5d9790ebd6d11eb80000aec83253f1539ae80e

| Name             | Position                                   | Start Date       | Short Bio                                                                                                                                                                                                 |
|------------------|--------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Enrique Lores    | President and CEO                          | November 2019    | Enrique Lores has been serving as the **President and Chief Executive Officer** of HP Inc. since **November 2019**. He has been with the company for nearly 35 years, holding various leadership positions across the organization  **[0000047217-23-000100_hpq-20231031.htm:18]** **[HPQ_3401185_0]** .       |
| Marie Myers      | Chief Financial Officer                    | February 2021    | Marie Myers has served as the **Chief Financial Officer** of HP Inc. since **February 2021**, after previously serving as acting CFO from **October 2020 to February 2021**. She was previously CFO of UiPath from **December 2018 to December 2019**  **[0000047217-23-000100_hpq-20231031.htm:19]** . |
| Tuan Tran        | President of Technology and Innovation     | November 1, 2024 | Tuan Tran was appointed as the **President of Technology and Innovation** at HP Inc., effective **November 1, 2024**. He previously served as the President of Imaging, Printing & Solutions since November 2019  **[0001140361-24-044127_ef20037499_8k.htm:1]** **[0000047217-23-000100_hpq-20231031.htm:19]** .                         |
| Alex Cho         | President, Personal Systems                | June 2018        | Alex Cho has served as the **President of Personal Systems at HP Inc. since June 2018**. Prior to this role, he was the Global Head and General Manager of Commercial Personal Systems from 2014 to 2018  **[0000047217-23-000100_hpq-20231031.htm:18]** **[0000047217-22-000068_hpq-20221031.htm:19]** .                                  |
| Julie Jacobs     | Chief Legal Officer and General Counsel    | October 2022     | Julie Jacobs has served as the **Chief Legal Officer and General Counsel** at HP Inc. since **October 2022**. Before joining HP, she was the Senior Executive Vice President, General Counsel, and Corporate Secretary of Yahoo  **[0000047217-23-000100_hpq-20231031.htm:18]** **[0000047217-22-000068_hpq-20221031.htm:19]** .           |
| Kristen Ludgate  | Chief People Officer                       | July 2021        | Kristen Ludgate has served as the **Chief People Officer** at HP Inc. since **July 2021**. Before joining HP, she was the Executive Vice President and Chief Human Resources Officer at 3M  **[0000047217-23-000100_hpq-20231031.htm:19]** **[0000047217-22-000068_hpq-20221031.htm:20]** .                                               |
| David McQuarrie  | Chief Commercial Officer                   | November 2022    | David McQuarrie has served as the **Chief Commercial Officer** at HP Inc. since **November 2022**. Prior to this role, he was the Senior Vice President & General Manager of the Personal Systems Category  **[0000047217-23-000100_hpq-20231031.htm:19]** **[0000047217-22-000068_hpq-20221031.htm:20]** .                                |
| Anneliese Olson  | President of Imaging, Printing & Solutions | November 1, 2024 | Anneliese Olson was appointed as the **President of Imaging, Printing & Solutions** at HP Inc., effective **November 1, 2024**. She succeeded Tuan Tran in this role  **[0001140361-24-044127_ef20037499_8k.htm:1]** .                                                                         |

ed7cb37a0c2bb8ae01b33115135b708e0bd76341f259831cf5a1ff7183e57ece

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **August 27, 2024**  **[0000047217-24-000080_hpq-20241031.htm:65]** **[0000047217-24-000080_hpq-20241031.htm:51]**  |
| End Date/Duration        | No specific expiration date  **[0000047217-24-000080_hpq-20241031.htm:51]**  |
| Total additional amount  | **$10.0 billion**  **[0000047217-24-000080_hpq-20241031.htm:65]** **[0000047217-24-000080_hpq-20241031.htm:51]**  |
| Remaining authorization amount | **$9.3 billion**  **[0000047217-24-000080_hpq-20241031.htm:65]** **[0000047217-24-000080_hpq-20241031.htm:121]**  |
| Details                  | Increased total share repurchase authorization to $10.0 billion, inclusive of the amount remaining under previously authorized share repurchases.  **[0000047217-24-000080_hpq-20241031.htm:65]** **[0000047217-24-000080_hpq-20241031.htm:51]**  |

20f8c0bb50fc4834943adea122057dde67116483a1579ff6deb5ad26963e99db

**Quarterly guidance for Q1 2025:**
- **Non-GAAP EPS**: $0.70 to $0.76  **[HPQ_3410112_6]**  (lowered from $0.89 to $0.99  **[HPQ_3400062_6]** )  
- **GAAP EPS**: $0.57 to $0.63  **[HPQ_3410112_6]**  (lowered from $0.74 to $0.84  **[HPQ_3400062_6]** )  
- **Personal Systems Operating Margins**: in the lower half of the 5% to 7% range  **[HPQ_3410112_5]**  (no prior guidance)  
- **Print Operating Margins**: near the top of the 16% to 19% range  **[HPQ_3410112_5]**  (no change from prior guidance  **[HPQ_3400062_6]** )

**Annual guidance for FY 2025:**
- **Non-GAAP EPS**: $3.45 to $3.75  **[HPQ_3410112_6]**  (raised from $3.35 to $3.45  **[HPQ_3400062_6]** )  
- **GAAP EPS**: $3.06 to $3.36  **[HPQ_3410112_6]**  (raised from $2.62 to $2.72  **[HPQ_3400062_6]** )  
- **Free Cash Flow**: $3.2 billion to $3.6 billion  **[HPQ_3410112_6]**  (raised from $3.1 billion to $3.6 billion  **[HPQ_3400062_6]** )  
- **Capital Allocation**: commitment to return approximately 100% of free cash flow to shareholders  **[HPQ_3410112_6]**  (no prior guidance)  
- **Personal Systems Revenue Growth**: at least in line with the PC market (projected mid-single digits)  **[HPQ_3410112_5]**  (no prior guidance)  
- **Personal Systems Operating Margins**: in the upper half of the 5% to 7% range  **[HPQ_3410112_5]**  (no prior guidance)  
- **AI PC Penetration**: about 25% of PC unit shipments  **[HPQ_3410112_5]**  (no prior guidance)  
- **Print Revenue Growth**: at least in line with the overall market (projected to decrease low single digits)  **[HPQ_3410112_5]**  (no prior guidance)  
- **Print Supplies Revenue Decline**: low to mid-single digits  **[HPQ_3410112_5]**  (no prior guidance)  
- **Print Operating Margins**: near the top of the 16% to 19% range  **[HPQ_3410112_5]**  (no prior guidance)

783eedae493d5e2ee2064f12ef5a9503c870990223a2724ebef8ba559210bfc8

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2000  **[0000047217-24-000080_hpq-20241031.htm:73]**    | Present  | Current auditor   |

2f75ebd6b3f621995f229626352dd33ba47a20f786320d655945c725833018fe

7b842e2ba6ee8f19fc0cea87e0a2302bb4b8936bd90391292c2d5f26c19ceb9f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $14,055 million (+2% YoY)  **[0000047217-23-000100_hpq-20231031.htm:99]** **[0000047217-24-000080_hpq-20241031.htm:77]**   
- Commercial Personal Systems: $6,522 million (+6% YoY)  **[0000047217-23-000100_hpq-20231031.htm:99]** **[0000047217-24-000080_hpq-20241031.htm:77]**   
- Consumer Printing: $325 million (**-39% YoY**)  **[0000047217-23-000100_hpq-20231031.htm:99]** **[0000047217-24-000080_hpq-20241031.htm:77]**   
- Commercial Printing: $1,262 million (**+19% YoY**)  **[0000047217-23-000100_hpq-20231031.htm:99]** **[0000047217-24-000080_hpq-20241031.htm:77]**   
- Net Income: $906 million (-7% YoY)  **[0000047217-23-000100_hpq-20231031.htm:99]** **[0000047217-24-000080_hpq-20241031.htm:77]**   
- Net Change in Cash: $375 million (**-75% YoY**)  **[0000047217-23-000100_hpq-20231031.htm:85]** **[0000047217-24-000080_hpq-20241031.htm:79]**   

2d4152d5e46fdd54b91ddb55c9f9c49258e3d9f505a6c9c54b063e96f6c21c5a

09cb254fa30b8b51c3d7abdfa773761f6f0655285fd4c3e4f37c7aecc577f865

646fe2c692563991e179f6f53bb8d8c1cf6e8c9f04a3155c28dcc98cdd0b2154

| Year | Amount Due (in millions) | Debt Type | Interest Rate | % of Total Debt |
|------|--------------------------|-----------|---------------|-----------------|
| 2025 | $1,419 **[0000047217-24-000080_hpq-20241031.htm:120]** | Principal payments on short-term debt **[0000047217-24-000080_hpq-20241031.htm:67]** | 5.0% **[0000047217-24-000080_hpq-20241031.htm:119]** | 14.7% = (1,419 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2025 | $1,150 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 2.20% **[0000047217-24-000080_hpq-20241031.htm:120]** | 11.9% = (1,150 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2026 | $720 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 1.45% **[0000047217-24-000080_hpq-20241031.htm:120]** | 7.4% = (720 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2027 | $1,133 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 3.00% **[0000047217-24-000080_hpq-20241031.htm:120]** | 11.7% = (1,133 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2028 | $972 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 4.75% **[0000047217-24-000080_hpq-20241031.htm:120]** | 10.1% = (972 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2029 | $1,023 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 4.00% **[0000047217-24-000080_hpq-20241031.htm:120]** | 10.6% = (1,023 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2030 | $850 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 3.40% **[0000047217-24-000080_hpq-20241031.htm:120]** | 8.8% = (850 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2031 | $1,000 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 2.65% **[0000047217-24-000080_hpq-20241031.htm:120]** | 10.3% = (1,000 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2032 | $1,000 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 4.20% **[0000047217-24-000080_hpq-20241031.htm:120]** | 10.3% = (1,000 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2033 | $1,100 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 5.50% **[0000047217-24-000080_hpq-20241031.htm:120]** | 11.4% = (1,100 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |
| 2041 | $1,200 **[0000047217-24-000080_hpq-20241031.htm:120]** | U.S. Dollar Global Notes **[0000047217-24-000080_hpq-20241031.htm:120]** | 6.00% **[0000047217-24-000080_hpq-20241031.htm:120]** | 12.4% = (1,200 / 9,669) * 100 **[0000047217-24-000080_hpq-20241031.htm:66]** **[0000047217-24-000080_hpq-20241031.htm:120]** |

c765ca65297250b4fdf08dcf2d74734529b48b85c8ed17eb3f6e6e22b160c09f

af2f09f9e07933acf87d7939bfc8e348418f2c73accb9d9c8c3430f570e8dd93

- **HP expects its free cash flow to grow only roughly in line with earnings in fiscal year 2025**, despite cost optimizations and anticipated PC market growth, raising concerns about limited improvement in cash generation.  **[HPQ_3410112_8]**
- **Potential tariffs and geopolitical uncertainties pose risks to HP's supply chain**, with management acknowledging it's "*hard to know what exactly the new tariffs are going to be*", indicating potential negative impacts on operations and margins.  **[HPQ_3410112_12]**
- **HP's print operating margins may face pressure** as management aims to "*lean in*" by placing more hardware units, which "*may put some pressure on the margin in a specific quarter*", suggesting possible margin compression in the future.  **[HPQ_3410112_9]**

e2bf0ab6dc3c4d15de30f0682f0dcadd6b8c5bea5b477c62bf51f82c4b338a3d

1. **Print Margins Pressure**  
   **Q:** What drove the pressure on print margins, and will it improve?  
   **A:** Print margins were below expectations due to more aggressive pricing and a challenging market environment, particularly in China.  **[HPQ_3400062_7]**  HP expects margins to improve in Q4, aiming near the top end of the **16% to 19% target range**, driven by seasonal revenue strength and accelerated cost-cutting actions from the Future Ready plan.  **[HPQ_3400062_7]** 

2. **Operating Profit Impact of Cost Savings**  
   **Q:** Will cost savings from the Future Ready plan improve operating profit?  
   **A:** Despite achieving **$1.3 billion** in run rate savings, operating profit is expected to be close to flat for 2024 due to headwinds and continued investments in growth areas.  **[HPQ_3400062_12]**  Savings are flowing through and helping deliver margins within or above target ranges, but they are also offsetting headwinds and funding investments.  **[HPQ_3400062_12]** 

3. **Capital Allocation and Share Repurchases**  
   **Q:** What is the plan for capital allocation and share repurchases?  
   **A:** HP remains committed to returning roughly **100%** of free cash flow to shareholders, with a new **$10 billion** share repurchase authorization.  **[HPQ_3400062_13]**  The company plans to continue this return policy as long as gross leverage remains below 2x.  **[HPQ_3400062_13]** 

4. **EPS Growth Deceleration**  
   **Q:** Why is EPS growth decelerating despite revenue acceleration?  
   **A:** EPS growth deceleration is due to competitive pressures, especially in the Print segment, where operating profit has not grown as expected.  **[HPQ_3400062_14]**  The challenges are seen as temporary, with no structural issues, and EPS is still expected to grow at the midpoint of guidance.  **[HPQ_3400062_14]** 

5. **Commercial PC Refresh Cycle**  
   **Q:** Is the commercial PC refresh cycle still ahead?  
   **A:** The commercial PC refresh cycle is starting, with strong growth in enterprise and government segments.  **[HPQ_3400062_10]** **[HPQ_3400062_20]**  The installed base is aging, and Windows 11 adoption is influencing upgrades, especially with Microsoft ending support for Windows 10.  **[HPQ_3400062_10]** **[HPQ_3400062_20]**  The majority of the refresh is still ahead, and HP expects continued momentum.  **[HPQ_3400062_10]** **[HPQ_3400062_20]** 

6. **AI PCs and Market Impact**  
   **Q:** How are AI PCs impacting consumer and commercial segments?  
   **A:** AI PCs are performing well, with sales slightly above **10%** in the second half.  **[HPQ_3400062_8]**  Adoption is expected to be faster in consumer initially, with commercial adoption taking longer due to evaluation processes.  **[HPQ_3400062_8]**  HP projects AI PCs to represent **50%** of shipments by 2027, with an average increase of **5% to 10%** in revenue.  **[HPQ_3400062_8]** 

7. **Print Market Share and Competition**  
   **Q:** How is HP managing print market share amid competition?  
   **A:** HP grew market share in home and A4 value segments, despite aggressive pricing from competitors benefiting from a weaker yen.  **[HPQ_3400062_9]**  The company placed profitable units and maintained investments in key growth areas.  **[HPQ_3400062_9]**  Supply chain and cost reductions are helping HP remain competitive.  **[HPQ_3400062_9]** 

8. **Free Cash Flow Guidance**  
   **Q:** Will free cash flow meet guidance despite EPS revisions?  
   **A:** HP's free cash flow outlook remains unchanged at **$3.1 to $3.6 billion** for the full year.  **[HPQ_3400062_15]**  The company is confident in delivering the remainder in Q4, with sequential revenue improvement in Personal Systems contributing.  **[HPQ_3400062_15]** 

9. **Maintaining Pricing in Personal Systems**  
   **Q:** Can HP sustain recent price increases in Personal Systems?  
   **A:** HP continues adjusting prices upward, though it takes time due to contracts and the competitive environment.  **[HPQ_3400062_18]**  The company expects to maintain ASPs as price adjustments progress in coming quarters.  **[HPQ_3400062_18]** 

10. **Print Hardware Placements and Instant Ink**  
    **Q:** What's the update on print hardware placements and Instant Ink?  
    **A:** HP placed more hardware units, grew market share, and continues making progress with Instant Ink subscriptions.  **[HPQ_3400062_16]**  Approximately **50%** of units are sold with upfront profit, consistent with previous reports.  **[HPQ_3400062_16]** 

9002619686f7dca7375a392bcf009505153c545d73d4869c79e59ed4ab2d31b9

1. **PC Market Outlook**  
   **Q:** Will commercial PC growth pick up ahead of Windows 10 end-of-life?  
   **A:** Enrique Lores explained that the Windows 10 refresh started slower than previous transitions, making the opportunity in **2025** bigger due to the deadline when support costs will significantly increase.  **[HPQ_3410112_15]**  An aged installed base needing refresh and growing AI PC adoption are expected to drive commercial PC growth.  **[HPQ_3410112_15]** 

2. **AI PCs Impact on ASPs and Margins**  
   **Q:** How will rising AI PC mix affect ASPs and margins?  
   **A:** Enrique Lores stated that AI PCs are expected to drive an improvement in average selling prices, with shipments anticipated to be **40% to 60%** of the mix in a year, impacting the overall category by **5% to 10%**.  **[HPQ_3410112_11]**  Karen Parkhill added that higher penetration of AI PCs will enhance premium offerings and benefit ASP growth next year.  **[HPQ_3410112_23]** 

3. **Free Cash Flow Growth Expectations**  
   **Q:** Why isn't free cash flow expected to be materially higher next year despite cost optimizations?  
   **A:** Karen Parkhill said they expect free cash flow to grow roughly in line with earnings.  **[HPQ_3410112_8]**  While restructuring charges will decrease, they will be offset by slightly higher capital expenditures to support growth plans.  **[HPQ_3410112_8]**  Enrique Lores added that EPS growth is driven by both share buybacks and operating profit growth.  **[HPQ_3410112_8]** 

4. **Commodity Cost Pressures**  
   **Q:** When will commodity cost pressures ease and benefit margins?  
   **A:** Enrique Lores expects commodity cost pressures to continue through the first half of the fiscal year, with mitigation in the second half through repricing and cost actions.  **[HPQ_3410112_19]**  Karen Parkhill noted that strategic buys helped initially, and now repricing and cost-down actions are taking time to take hold.  **[HPQ_3410112_19]** 

5. **Impact of Potential Tariffs**  
   **Q:** How will potential tariffs affect supply chain and operations?  
   **A:** Enrique Lores acknowledged they produce most products outside the U.S. and have built a more resilient supply chain over the past three years.  **[HPQ_3410112_12]** **[HPQ_3410112_13]**  They are prepared to respond to final tariff decisions and actively manage their supply chain accordingly.  **[HPQ_3410112_12]** **[HPQ_3410112_13]** 

6. **Print Margins and Outlook**  
   **Q:** Why isn't the print operating margin range higher given consistent strong margins?  
   **A:** Karen Parkhill stated they expect print operating margins at the high end of the **16% to 19%** range to continue in FY '25.  **[HPQ_3410112_9]**  Maintaining the lower end of the range provides flexibility to invest where they see opportunities while remaining cognizant of dynamic market conditions.  **[HPQ_3410112_9]** 

7. **Capital Allocation Policy**  
   **Q:** Will strong print margins lead to changes in capital return policy?  
   **A:** Karen Parkhill affirmed that the capital allocation policy remains unchanged, expecting to return approximately **100% of free cash flow** over the long term while maintaining a leverage ratio just under **2x**.  **[HPQ_3410112_20]** 

8. **Growth Services Outlook**  
   **Q:** What are the growth expectations for growth services next year?  
   **A:** Enrique Lores indicated that growth businesses will continue to outpace the overall company.  **[HPQ_3410112_17]**  They expect subscriber growth in consumer services, expansion of offerings like Paper as a Service, and continued growth in Workforce Solutions and hybrid systems as the commercial market recovers.  **[HPQ_3410112_17]** 

bb0788a1691ba72f7a46056ad33ddcafc07e2818eb49584459f9130c05661a56

- **HP expects AI PCs to make up approximately 25% of its PC unit shipments in FY '25**, benefiting from increased demand driven by AI and Windows 11 refresh cycles, which should contribute to both unit growth and higher average selling prices.  **[HPQ_3410112_23]**
- **HP has achieved roughly 80% of its $1.6 billion annualized gross run rate savings target** with one year remaining in its Future Ready cost-saving plan, positioning the company to grow both revenue and operating profit in FY '25.  **[HPQ_3410112_23]** **[HPQ_3410112_8]**
- **HP has strengthened its supply chain resilience by building factories in different parts of the world**, making it well-positioned to mitigate potential impacts from tariffs and geopolitical uncertainties, giving it a competitive advantage over others in the industry.  **[HPQ_3410112_12]**

aad1313b6a6df49cca26cf0d1cc610b844b6e5acbd2beb9d0777c94491bf4a44

1. **Printing Margins Outlook**  
   **Q:** Why will printing margins decline in second half?  
   **A:** We expect printing margins to fall from **20%** in Q1 to within the **16%–19%** range for the year due to a shift in hardware mix and anticipated declines in supplies revenue. While hardware contributes to lower margins, we're not changing our supplies revenue outlook, which we expect to be down **low to mid-single digits** for the year. Our focus remains on growing operating profit dollars rather than margin percentages.  **[HPQ_3375504_10]** 

2. **Second Half Outlook**  
   **Q:** What drives expectations for a stronger second half?  
   **A:** Our stronger second half is driven by several factors: anticipated recovery in the commercial space, traditional seasonality with consumer demand typically higher in the latter half, increased impact from our cost reduction efforts, and the upcoming Windows refresh cycle. While growth will be slightly lower in the second half compared to the first, we are still projecting overall growth.  **[HPQ_3375504_8]** ,  **[HPQ_3375504_10]** 

3. **Supplies Business Performance**  
   **Q:** Why will supplies revenue decelerate rest of year?  
   **A:** Despite recent outperformance, we expect supplies revenue to decline **low to mid-single digits** for the year due to ongoing negative impacts from reduced usage and a shrinking installed base. The favorable comparisons and pricing adjustments that benefited us this quarter are not expected to continue at the same level. Our channel inventory remains healthy.  **[HPQ_3375504_12]** 

4. **PC Pricing Dynamics**  
   **Q:** What drove PC pricing in the quarter?  
   **A:** PC prices were flat overall, with commercial prices increasing and the mix shifting slightly toward consumer. However, price pressures in the low-end consumer segment, driven by market softness, offset these gains. Looking ahead, we anticipate PC prices to rise as commodity costs increase and our product mix shifts more towards commercial.  **[HPQ_3375504_15]** 

5. **Commercial Recovery Conviction**  
   **Q:** Why confident in commercial recovery amid weaknesses?  
   **A:** Our confidence stems from industry projections and several factors: the starting Windows refresh cycle, expected positive impacts from pricing and mix due to rising component costs, and observed stability in SMB and education sectors. Notably, we've seen PC market growth in Europe for the first time in a long while. Despite ongoing weaknesses in areas like China and U.S. federal business, we believe the overall market will improve in the second half.  **[HPQ_3375504_13]** 

6. **AI PCs Outlook**  
   **Q:** What are the milestones for AI-PC adoption?  
   **A:** We're enthusiastic about the potential of AI PCs to enhance security, reduce latency, and lower costs. Key milestones include delivering capable hardware in partnership with silicon providers, ensuring software applications leverage new capabilities, and training customers and sales teams. We project that AI PCs will comprise **40%–60%** of our sales **three years after launch**, with modest impact in **2024** and greater contributions in **2025** and beyond.  **[HPQ_3375504_11]** 

7. **Peripherals and Growth Areas**  
   **Q:** How is peripheral business performing?  
   **A:** Our peripherals business has been impacted by caution in the commercial segment but is expected to recover alongside market improvements. Encouragingly, several growth areas, including our Workforce Solutions and Consumer Services businesses, began growing in Q1—a positive sign for recovery. We're also launching our first consumer subscription that integrates hardware, advancing our strategy to offer our full portfolio as a subscription service.  **[HPQ_3375504_14]** 

8. **Competition in Print Business**  
   **Q:** Is competition from Japanese peers affecting print?  
   **A:** Yes, we're seeing pricing pressure from Japanese competitors primarily in the consumer segment, driven by favorable exchange rates giving them an advantage. Consequently, we've chosen not to pursue certain unprofitable deals in traditional consumer categories. The commercial side remains stable, and any potential risks are already reflected in our guidance.  **[HPQ_3375504_16]** 

9. **Industrial Graphics Update**  
   **Q:** What's the outlook for industrial graphics?  
   **A:** We've seen renewed momentum in our industrial graphics business, especially in labels and packaging, with encouraging recovery. At the upcoming **Drupa** event in May 2024—a major printing industry gathering—we'll launch new products and services, which we expect to positively impact the following quarters. We're optimistic about our prospects in this segment for **2024**.  **[HPQ_3375504_17]** 

c7ca059ec7dc816a71e96c8d4f34aa9ae4e5012f70be0bf7af98b835906546d6

1. **AI PC Adoption and Impact**  
   **Q:** How will AI PCs affect sales and ASPs?  
   **A:** HP expects AI PCs to represent around **10%** of shipments in the second half.  **[HPQ_3390996_11]**  The impact will be more significant in **2025** and **2026**, with AI PCs comprising **40% to 60%** of sales three years after launch.  **[HPQ_3390996_11]**  They anticipate AI PCs will drive an improvement in average selling price of between **5% and 10%**.  **[HPQ_3390996_11]** 

2. **Recovery in Commercial PCs**  
   **Q:** Are you seeing a recovery in commercial PC demand?  
   **A:** Yes, for the first time in eight quarters, HP saw growth in its PC business, with commercial being the highlight.  **[HPQ_3390996_9]**  Growth was consistent across North America and Europe, and between enterprise and SMB.  **[HPQ_3390996_9]**  Key drivers include the aging installed base and initial Windows 11 refresh activity.  **[HPQ_3390996_9]**  The funnel of opportunities for the second half is significantly larger than last year  **[HPQ_3390996_9]** , and they expect this momentum to continue.  **[HPQ_3390996_12]** 

3. **China Market Outlook**  
   **Q:** What is the outlook for China demand?  
   **A:** HP did not see improvement in demand in China during the second quarter for either print or personal systems.  **[HPQ_3390996_16]**  They have not included any improvement in projections for the second half and expect the economic situation to remain challenging in China.  **[HPQ_3390996_16]** 

4. **Print and PC Margin Outlook**  
   **Q:** How do you see margins evolving in Print and PC businesses?  
   **A:** HP expects Print operating margins to be in the upper half of the long-term **16% to 19%** range in Q3 and at the upper end for the full year.  **[HPQ_3390996_8]**  For the PC business, they expect margins to remain in the **5% to 7%** range, with no change to previous guidelines.  **[HPQ_3390996_14]**  Future Ready savings are helping deliver margin rates even in a challenging demand environment.  **[HPQ_3390996_13]** 

5. **Inventories and Strategic Buys**  
   **Q:** Why are inventory levels higher than pre-pandemic?  
   **A:** The higher inventory levels are primarily due to strategic buys and sea shipments  **[HPQ_3390996_10]** **[HPQ_3390996_22]** . There is no major structural change; subscription models do not impact inventory levels.  **[HPQ_3390996_22]**  HP continues to improve operational inventory to offset these decisions.  **[HPQ_3390996_22]** 

6. **Subscription Revenue Growth**  
   **Q:** How is the subscription business performing?  
   **A:** HP does not disclose specific numbers but reports growth in net subscribers and revenue in the consumer services space integrating all subscription models.  **[HPQ_3390996_21]**  They expanded their portfolio with new offerings like the all-in model including the printer.  **[HPQ_3390996_21]**  The goal is to grow this business to offer better value to customers and capture more value per customer, building a more accretive business.  **[HPQ_3390996_21]** 

7. **Share Buybacks**  
   **Q:** Why were share buybacks lower this quarter?  
   **A:** HP has not changed its approach and continues to aim to return **100%** of free cash flow to investors unless better ROI opportunities are identified.  **[HPQ_3390996_18]**  While leverage stays below 2, investors should expect HP to continue returning **100%** of free cash flow over time.  **[HPQ_3390996_18]** 

8. **Revenue Below Pre-COVID Levels**  
   **Q:** Why are revenues still below pre-COVID levels?  
   **A:** The print and office markets are smaller than they used to be, impacting overall size.  **[HPQ_3390996_19]**  Despite recovering share in PCs, HP is still not at pre-pandemic levels and aims to continue growing share.  **[HPQ_3390996_19]**  Multiple factors contribute, and HP plans to discuss projections versus 2019 in more detail in Q4.  **[HPQ_3390996_19]** 

9. **Video Conferencing Demand**  
   **Q:** How is demand for video conferencing equipment?  
   **A:** Demand has been limited as enterprises have been restricting investment.  **[HPQ_3390996_17]**  However, there is some quarter-on-quarter momentum, especially in video conferencing systems, which is expected to continue in the second half.  **[HPQ_3390996_17]**  HP believes hybrid work will remain important, making this a long-term growth opportunity.  **[HPQ_3390996_17]** 

10. **Battery Life in AI PCs**  
    **Q:** How will AI PCs impact battery life?  
    **A:** Battery life is a key differentiator in HP's next-generation AI PCs, with over **30 hours** of battery life.  **[HPQ_3390996_15]**  This is achieved using ARM technology and built-in language models that optimize PC utilization based on user behavior, significantly impacting battery savings on both ARM and x86 products.  **[HPQ_3390996_15]** 

f2beb7d222fbb91732f575b5cde733e120d417f8e783fc91e96dc950a85f3738

- **HP expects EPS growth this year**, viewing recent challenges in the Print segment as temporary, while operating profit continues to grow in Personal Systems.  **[HPQ_3400062_14]** ,  **[HPQ_3400062_12]**
- **The company is experiencing strong growth in the government segment**, with revenue increasing **6% to 7%** this quarter, and expects this to continue, supported by major deals like the one with **NASA**.  **[HPQ_3400062_19]**
- **HP anticipates a significant PC refresh cycle due to Windows 10 end-of-life**, with the majority of refresh still ahead and momentum picking up in the commercial segment, indicating potential revenue growth in Personal Systems.  **[HPQ_3400062_20]**

aa5dfc2d86aa29c5343154e41ea1f769c573d0cd9ebb4bdcb1497b9f708622e5

- **HP is projecting continued weakness in consumer PC demand into the second half, leading to more conservative guidance below normal seasonality for Q3.**  **[HPQ_3390996_19]**
- **Persistent weakness in China with no expected improvement in demand for print or personal systems in the second half, negatively impacting HP's performance in a key market.**  **[HPQ_3390996_9]** **[HPQ_3390996_17]**
- **HP's revenues remain below pre-pandemic levels, with the print and office markets smaller than before, and the company not yet regaining its previous PC market share.**  **[HPQ_3390996_20]**

289fbeb9c9695122ae2145e05997f0c688c8b3ed7fd9657aecad309708a43d18

- **Operating profit growth is under pressure, especially in the Print segment, due to a smaller market and aggressive pricing driven by a weaker yen.** Enrique Lores stated, "We have not seen operating profit growth in print... the major driver for that is the smaller market that we see, especially in office, and the more aggressiveness that we see, especially driven by the weakness in yen."  **[HPQ_3400062_12]**
- **Despite significant cost savings from the Future Ready program, operating profit dollars are expected to be flat, as savings are being offset by investments and headwinds, indicating a lack of structural improvement in profitability.** Karen Parkhill acknowledged, "We are focused on driving savings to offset our headwinds and ensure that we can maintain our investments... you saw this quarter was us having some headwinds hit us, taking some action that's going to help us more in the quarter ahead than it did in this quarter, and purposely continuing our investment because we're focused on the longer term."  **[HPQ_3400062_12]**
- **Softness in consumer demand is leading to lower-than-expected growth in Personal Systems revenue, with growth expected to be lower than historical levels.** Enrique Lores mentioned, "We expect the growth is going to be lower than what we have seen in previous years given that we expect to see this sobbing consumer."  **[HPQ_3400062_17]**

b6794365a851a86471980aa3fa1f3af08307dd8fc19ba2294834701a0a48d04a

- **HP expects a stronger performance in the second half of fiscal 2024**, driven by recovery in the **commercial PC market**, the **Windows refresh cycle**, seasonal consumer demand, and the impact of cost reduction efforts.  **[HPQ_3375504_8]**
- **HP is investing in AI-enabled PCs** and anticipates significant penetration, with **AI PCs expected to account for 40%–60% of sales three years after launch**, positioning the company to capitalize on growth opportunities.  **[HPQ_3375504_11]**
- **HP is regaining market share** in both **big tank printers** and **office printers**, due to portfolio enhancements and operational improvements, with progress seen in regions like **Europe, India, and China**.  **[HPQ_3375504_9]**

bee218df8ac172e78f7c2fb8116a2f162fb1ad80443c08e071952ee86d1fc303

- **Aggressive pricing environment and weak consumer demand in print hardware are impacting HP's market share and profitability.** HP faces aggressive pricing from Japanese competitors in the consumer print market due to unfavorable exchange rates, leading HP to avoid unprofitable deals and potentially lose market share.  **[HPQ_3375504_16]**
- **Weakness in key markets such as China and U.S. federal business is causing softer demand and impacting HP's revenue growth prospects.** HP continues to see areas of weakness like China and softness in the U.S. federal business, especially in January.  **[HPQ_3375504_13]**
- **Declining print margins and supplies revenue are expected in the second half of the year, potentially impacting overall profitability.** HP expects print margins to decrease from **20%** in Q1 to within the **16%-19%** range for FY '24, driven by hardware weakness and declining supplies revenue, which is expected to decline **low to mid-single digits** for the year.  **[HPQ_3375504_10]**

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