# HP INC (HPQ) Informational only - not investment advice. CIK: 0000047217 SIC: 3570 Computer & office Equipment SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3570 Computer & office Equipment](/industry/3570/) Latest 10-K filed: 2025-12-10 SEC page: https://www.sec.gov/edgar/browse/?CIK=47217 Filing source: https://www.sec.gov/Archives/edgar/data/47217/000004721725000071/hpq-20251031.htm ## At a glance FY2025 · period end 2025-10-31 · filed 2025-12-10 · accession 0000047217-25-000071 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000047217.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 55,295,000,000 USD | 2025 | verified | | Net income | 2,529,000,000 USD | 2025 | verified | | Assets | 41,769,000,000 USD | 2025 | verified | | Free cash flow | 2,800,000,000 USD | 2025 | computed | | Net margin | 4.57% | 2025 | computed | | Operating margin | 5.74% | 2025 | computed | | Revenue YoY | +3.24% | 2025 | computed | Stockholders' equity was not positive at FY2025 year-end (-346,000,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed. Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HPQ | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 4.6% | 7.7% | 28 | 110 | | Operating margin | 5.7% | 13.1% | 27 | 104 | | Revenue growth | 3.2% | 5.8% | 34 | 111 | | FCF margin | 5.1% | 9.6% | 25 | 103 | | ROA | 6.1% | 5.6% | 53 | 111 | | Current ratio | 0.77 | 2.02 | 1 | 110 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 55295000000 | USD | 2025 | 2025-12-10 | | Net income | 2529000000 | USD | 2025 | 2025-12-10 | | Assets | 41769000000 | USD | 2025 | 2025-12-10 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-12-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000047217.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 48,238,000,000 | 52,056,000,000 | 58,472,000,000 | 58,756,000,000 | 56,638,000,000 | 63,460,000,000 | 62,910,000,000 | 53,718,000,000 | 53,559,000,000 | 55,295,000,000 | | Net income | 2,496,000,000 | 2,526,000,000 | 5,327,000,000 | 3,152,000,000 | 2,815,000,000 | 6,541,000,000 | 3,132,000,000 | 3,263,000,000 | 2,775,000,000 | 2,529,000,000 | | Operating income | 3,549,000,000 | 3,368,000,000 | 3,831,000,000 | 3,877,000,000 | 3,442,000,000 | 5,359,000,000 | 4,559,000,000 | 3,456,000,000 | 3,818,000,000 | 3,174,000,000 | | Gross profit | | | | | | | 12,263,000,000 | 11,508,000,000 | 11,818,000,000 | 11,392,000,000 | | Diluted EPS | 1.43 | 1.48 | 3.26 | 2.07 | 1.98 | 5.36 | 2.98 | 3.26 | 2.81 | 2.65 | | Operating cash flow | 3,252,000,000 | 3,677,000,000 | 4,528,000,000 | 4,654,000,000 | 4,316,000,000 | 6,409,000,000 | 4,463,000,000 | 3,571,000,000 | 3,749,000,000 | 3,697,000,000 | | Capital expenditures | 433,000,000 | 402,000,000 | 546,000,000 | 671,000,000 | 580,000,000 | 582,000,000 | 765,000,000 | 593,000,000 | 592,000,000 | 897,000,000 | | Dividends paid | 858,000,000 | 894,000,000 | 899,000,000 | 970,000,000 | 997,000,000 | 938,000,000 | 1,037,000,000 | 1,037,000,000 | 1,075,000,000 | 1,088,000,000 | | Share buybacks | 1,161,000,000 | 1,412,000,000 | 2,557,000,000 | 2,405,000,000 | 3,107,000,000 | 6,249,000,000 | 4,297,000,000 | 100,000,000 | 2,100,000,000 | 850,000,000 | | Assets | 28,987,000,000 | 32,913,000,000 | 34,622,000,000 | 33,467,000,000 | 34,681,000,000 | 38,605,000,000 | 38,494,000,000 | 37,004,000,000 | 39,909,000,000 | 41,769,000,000 | | Stockholders' equity | -3,889,000,000 | -3,408,000,000 | -639,000,000 | -1,211,000,000 | -2,275,000,000 | -1,644,000,000 | -3,025,000,000 | -1,069,000,000 | -1,323,000,000 | -346,000,000 | | Cash and cash equivalents | 6,288,000,000 | 6,997,000,000 | 5,166,000,000 | 4,537,000,000 | 4,864,000,000 | 4,299,000,000 | 3,145,000,000 | 3,107,000,000 | 3,238,000,000 | 3,690,000,000 | | Free cash flow | 2,819,000,000 | 3,275,000,000 | 3,982,000,000 | 3,983,000,000 | 3,736,000,000 | 5,827,000,000 | 3,698,000,000 | 2,978,000,000 | 3,157,000,000 | 2,800,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 5.17% | 4.85% | 9.11% | 5.36% | 4.97% | 10.31% | 4.98% | 6.07% | 5.18% | 4.57% | | Operating margin | 7.36% | 6.47% | 6.55% | 6.60% | 6.08% | 8.44% | 7.25% | 6.43% | 7.13% | 5.74% | | Return on assets | 8.61% | 7.67% | 15.39% | 9.42% | 8.12% | 16.94% | 8.14% | 8.82% | 6.95% | 6.05% | | Current ratio | 0.98 | 1.00 | 0.85 | 0.80 | 0.79 | 0.76 | 0.75 | 0.73 | 0.72 | 0.77 | ## As-reported value updates 11 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/HPQ/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000047217.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-07-31 | | | 1.08 | reported discrete quarter | | 2023-Q1 | 2023-01-31 | | | 0.49 | reported discrete quarter | | 2023-Q2 | 2023-04-30 | | | 1.07 | reported discrete quarter | | 2023-Q3 | 2023-04-30 | 12,907,000,000 | | 1.06 | reported discrete quarter | | 2023-Q3 | 2023-07-31 | | 766,000,000 | | reported discrete quarter | | 2023-Q4 | 2023-10-31 | 13,817,000,000 | 974,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-01-31 | 13,185,000,000 | 622,000,000 | 0.62 | reported discrete quarter | | 2024-Q2 | 2024-04-30 | 12,800,000,000 | 607,000,000 | 0.61 | reported discrete quarter | | 2024-Q3 | 2024-07-31 | 13,519,000,000 | 640,000,000 | 0.65 | reported discrete quarter | | 2024-Q4 | 2024-10-31 | 14,055,000,000 | 906,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-01-31 | 13,504,000,000 | 565,000,000 | 0.59 | reported discrete quarter | | 2025-Q2 | 2025-04-30 | 13,220,000,000 | 406,000,000 | 0.42 | reported discrete quarter | | 2025-Q3 | 2025-07-31 | 13,932,000,000 | 763,000,000 | 0.80 | reported discrete quarter | | 2025-Q4 | 2025-10-31 | 14,639,000,000 | 795,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-01-31 | 14,438,000,000 | 545,000,000 | 0.58 | reported discrete quarter | | 2026-Q2 | 2026-04-30 | 14,408,000,000 | 450,000,000 | 0.49 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HPQ's latest 10-K: [/company/HPQ/business/](/company/HPQ/business/). ## Risk Factors Verbatim Item 1A Risk Factors from HPQ's latest 10-K: [/company/HPQ/risk-factors/](/company/HPQ/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/47217/000004721726000029/hpq-20260430.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-28 Report date: 2026-04-30 ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. HP INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations The discussion of financial condition and results of our operations that follows provides information that will assist the reader in understanding our Condensed Consolidated Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Condensed Consolidated Financial Statements. This discussion should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes that appear elsewhere in this document. OVERVIEW HP delivers innovative and AI-powered devices, software, services, and subscriptions that drive business growth and professional fulfillment. We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops, notebooks and workstations (including HP’s portfolio of AI PCs and workstations), thin clients, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects. •In Personal Systems, our long-term strategic focus is on: ◦profitable growth through innovation, market segmentation and simplification of our portfolio; ◦enhanced innovation in multi-operating systems, multi-architecture, customer segments and other key attributes; ◦investing in endpoint services and solutions. We are focused on services, including Device-as-a-Service, as the market shifts to subscription-based solutions, and accelerating in attractive adjacencies such as hybrid systems; and ◦driving innovation to enable productivity and collaboration, with AI PCs and workstations playing a critical role in the transformation of how people live and work. •In Printing, our long-term strategic focus is on: ◦offering innovative, intelligent printing experiences and subscription-based solutions designed to securely serve consumer and SMB customers through our Instant Ink Services and HP All-In Plan, as well as large enterprises through our Managed Print Services solutions; ◦providing digital printing solutions for industrial graphics segments and applications including commercial publishing, labels, packaging, and textiles; and ◦expanding our footprint in 3D printing across digital manufacturing and strategic applications. We are focused on driving further growth, recurring revenue and investment in strategic areas and believe we are well positioned to lead the future of work with our competitive product lineup and enhanced portfolio of hybrid systems, remote-computing solutions, and intelligent print solutions. We are driving innovation by accelerating the delivery of AI across our product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets. We have consolidated all our software resources under the Technology and Innovation Organization to evolve from a transactional hardware company to a more experience-led organization, further strengthening our ability to capture these opportunities. We continue to experience challenges that are representative of the trends and uncertainties that may affect our industry, generally, and our business and financial results, specifically, and we expect these challenges to continue in the short-term. One set of challenges relates to the current macroeconomic environment and the adverse impact on demand for certain of our products. A second set of challenges relates to changes in the competitive landscape. Our primary competitors are exerting competitive pressure in targeted areas and are entering new markets, our emerging competitors are introducing new 38 Table of Contents technologies and business models, and our alliance partners in some businesses are increasingly becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution in an evolving distribution and reseller landscape, with increasing online and omnichannel presence. Specific challenges we face at the segment level are set forth below. •In Personal Systems, we face challenges with a competitive pricing environment, variability in commodity costs, especially increasing memory and storage costs, and the uncertainty of the market’s ability to absorb price increases. •In Printing, we face challenges from changing customer behaviors as well as competitors with a favorable foreign currency environment and non-original supplies (which includes imitation, refill, or remanufactured alternatives). We also obtain many Printing components from single source suppliers due to technology, availability, price, quality, or other considerations. To address these challenges, we continue to pursue innovation with a view towards developing new products and services aligned with generating market demand and meeting the needs of our customers and partners. In addition, we continue to work on improving our operations and adapting our business models, with a particular focus on enhancing our end-to-end processes, analytics, efficiencies and simplification of our product portfolio. We also continue to work on optimizing our sales coverage models, aligning our sales incentives with our strategic goals, improving channel execution and inventory, production and backlog management, strengthening our capabilities in our areas of strategic focus, effective cost management, strengthening our pricing strategy, and developing and capitalizing on market opportunities. Macroeconomic Environment Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical conflicts, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience seasonality in the sale of our products and services which may be affected by general economic conditions. Since April 2025, new, substantial tariffs have been imposed on imports to the United States. On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act were not authorized by statute which removed the obligation for and collection of related tariffs. We are continuing to assess the impact of subsequent developments, including the potential recovery of tariffs previously paid, as well as the effects of any additional tariffs or trade actions that may be imposed. During fiscal year 2025 and the first half of fiscal year 2026, we experienced higher commodity and trade related costs and implemented pricing and other mitigation actions during the period. Additionally, during the first half of fiscal year 2026, we experienced higher inflationary pressure in memory and storage costs and supply constraints in our Personal Systems business, which we anticipate will continue. We continue to evaluate and implement further mitigating actions, including potential supply chain resiliency movements and cost and pricing measures, as the trade and supply environments evolve. New or sustained changes to tariffs and commodity costs could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate these effects. We are also exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with more than 65% of our net revenue from outside the United States. As a result, our financial results can be impacted by fluctuations in foreign currency exchange rates. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled “Risk Factors” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. Transformation Update On November 25, 2025, we announced our Fiscal 2026 Plan intended to drive customer satisfaction, product innovation, and productivity primarily through artificial intelligence adoption and enablement that HP expects will be implemented through fiscal 2028. We are on-track to achieve our expected gross reductions in cost by the end of fiscal year 2028. During the first half of fiscal 2026, we took actions to integrate AI into our channel partner experience and scale additional AI agents in our supply chain operations and expect to continue to accelerate and scale these initiatives. We additionally took actions to reduce headcount through the EER program of which a significant portion of which will get executed during fiscal year 2026. See “Risk Factors—Strategic and Operational Risks—We may not achieve some or all of the expected benefits of our restructuring and other plans and such plans may adversely affect our business” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. For more information on our Fiscal 2026 Plan, see Note 3, 39 Table of Contents “Restructuring and Other Charges,” to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference. CRITICAL ACCOUNTING ESTIMATES MD&A is based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of contingent liabilities. Management believes that there have been no significant changes during the six months ended April 30, 2026 to the items that we disclosed as our critical accounting estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. ACCOUNTING PRONOUNCEMENTS For a summary of recent accounting pronouncements applicable to our Condensed Consolidated Financial Statements see Note 1, “Basis of Presentation”, to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference. 40 Table of Contents RESULTS OF OPERATIONS Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue. As a result, our net revenue growth has been impacted, and we expect it will continue to be impacted, by fluctuations in foreign currency exchange rates. In order to provide a framework for assessing performance excluding the impact of foreign currency fluctuations, we supplement the year-over-year percentage change in net revenue with the year-over-year percentage change in net revenue on a constant currency basis, which excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period, and without adjusting for any repricing or demand impacts from changes in foreign currency exchange rates. This information is provided so that net revenue can be viewed with and without the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our net revenue results and trends, as management does not believe that the excluded items are reflective of ongoing operating results. The constant curre [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/47217/000004721725000071/hpq-20251031.htm Complete FY 2025 MD&A: /company/HPQ/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-12-10 Report date: 2025-10-31 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The discussion of financial condition and results of our operations that follows provides information that will assist the reader in understanding our Consolidated Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Consolidated Financial Statements. This discussion should be read in conjunction with our Consolidated Financial Statements and the related notes that appear elsewhere in this document. This section generally discusses the results of operations for the fiscal year ended October 31, 2025 compared to the fiscal year ended October 31, 2024. For a discussion of fiscal year ended October 31, 2024 compared to the fiscal year ended October 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024. 32 Table of Contents HP INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW HP delivers innovative and sustainable devices, services, and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and other related technologies. We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops, notebooks and workstations (including HP’s portfolio of AI PCs and workstations), thin clients, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects. •In Personal Systems, our long-term strategic focus is on: ◦profitable growth through innovation, market segmentation and simplification of our portfolio; ◦enhanced innovation in multi-operating systems, multi-architecture, customer segments and other key attributes; ◦investing in endpoint services and solutions. We are focused on services, including Device-as-a-Service, as the market shifts to subscription-based solutions, and accelerating in attractive adjacencies such as hybrid systems; and ◦driving innovation to enable productivity and collaboration, with AI PCs and workstations playing a critical role in the transformation of how people live and work. •In Printing, our long-term strategic focus is on: ◦offering innovative, intelligent printing experiences and subscription-based solutions designed to securely serve consumer and SMB customers through our Instant Ink Services and HP All-In Plan, as well as large enterprises through our Managed Print Services solutions; ◦providing digital printing solutions for industrial graphics segments and applications including commercial publishing, labels, packaging, and textiles; and ◦expanding our footprint in 3D printing across digital manufacturing and strategic applications. We are focused on driving further growth, recurring revenue and investment in strategic areas and believe we are well positioned to lead the future of work with our competitive product lineup and enhanced portfolio of hybrid systems, remote-computing solutions, and intelligent print solutions. We are driving innovation by accelerating the delivery of AI across our product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets. We have consolidated all our software resources under the Technology and Innovation Organization to evolve from a transactional hardware company to a more experience-led organization, further strengthening our ability to capture these opportunities. We continue to experience challenges that are representative of the trends and uncertainties that may affect our industry, generally, and our business and financial results, specifically, and we expect these challenges to continue in the short-term. One set of challenges relates to the current macroeconomic environment and the adverse impact on demand for certain of our products. A second set of challenges relates to changes in the competitive landscape. Our primary competitors are exerting competitive pressure in targeted areas and are entering new markets, our emerging competitors are introducing new technologies and business models, and our alliance partners in some businesses are increasingly becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution in an evolving distribution and reseller landscape, with increasing online and omnichannel presence. Specific challenges we face at the segment level are set forth below. •In Personal Systems, we face challenges with a competitive pricing environment, variability in commodity costs, especially increasing memory and storage costs, and the uncertainty of the market’s ability to absorb price increases. •In Printing, we face challenges from changing customer behaviors as well as competitors with a favorable foreign currency environment and non-original supplies (which includes imitation, refill, or remanufactured alternatives). We also obtain many Printing components from single source suppliers due to technology, availability, price, quality, or other considerations. To address these challenges, we continue to pursue innovation with a view towards developing new products and services aligned with generating market demand and meeting the needs of our customers and partners. In addition, we continue to work on improving our operations and adapting our business models, with a particular focus on enhancing our end-to-end processes, analytics, efficiencies and simplification of our product portfolio. We also continue to work on optimizing our sales coverage models, aligning our sales incentives with our strategic goals, improving channel execution and inventory, production and backlog management, strengthening our capabilities in our areas of strategic focus, effective cost management, strengthening our pricing strategy, and developing and capitalizing on market opportunities. 33 Table of Contents HP INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations Macroeconomic Environment Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical tensions, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience seasonality in the sale of our products and services which may be affected by general economic conditions. Since April 2025, new, substantial tariffs have been imposed on imports to the United States. We continue to evaluate and implement further mitigating actions, including potential supply chain resiliency movements and cost and pricing measures, as the tariff environment evolves. During fiscal year 2025, we experienced higher commodity and tariff costs, which were not fully mitigated by pricing and other actions enacted during the period. We anticipate commodity cost pressure to continue, including recent inflationary trends in memory and storage costs and potential supply constraints in our Personal Systems business. New or sustained changes to tariffs and commodity costs could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate these effects. We are also exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with approximately 65% of our net revenue from outside the United States. As a result, our financial results can be, and particularly in recent periods have been, negatively impacted by fluctuations in foreign currency exchange rates. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled “Risk Factors” in Item 1A of Part I in this Annual Report on Form 10-K. Transformation Update In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan” or “Future Ready”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan, as amended in February 2025, ran through the end of fiscal year 2025 and exceeded our overall program savings target. Since announcing our Fiscal 2023 Plan, we have enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact our products, solutions and operations. Additionally, we reduced portfolio complexity, improved continuity of supply, and increased our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also reduced our structural cost through headcount reductions and achieved our overall headcount reduction goal. In November 2025, we announced our new plan to drive customer satisfaction, product innovation, and productivity through AI adoption and enablement (the “Fiscal 2026 Plan”). The Fiscal 2026 Plan is expected to run for three years through the end of fiscal year 2028. We expect to invest some of the savings into our growth areas and our people. See “Risk Factors—Strategic and Operational Risk Factors—We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business” in Item 1A, which is incorporated herein by reference. For more information on our Fiscal 2023 Plan and Fiscal 2026 Plan, see Note 3, “Restructuring and Other Charges,” to the Consolidated Financial Statements in Item 8 of Part II of this report, which is incorporated herein by reference. CRITICAL ACCOUNTING ESTIMATES  General Our Consolidated Financial Statements are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), which require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of contingent liabilities. Critical accounting estimates are those that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amount of assets and liabilities. Management believes that the accounting estimates employed and the resulting amounts are reasonable; however, actual results may differ from these estimates.  A summary of our significant accounting policies is included in Note 1, “Summary of Significant Accounting Policies” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference. Management believes the following accounting policies reflect the critical accounting estimates used in the preparation of our Consolidated Financial Statements. Revenue Recognition - Variable Consideration We recognize revenue depicting the transfer of promised goods or services to customers in an amount that may include variable consideration. When the transaction price includes a variable amount, we estimate the amount using either the expected value or most likely amount method. At the time of revenue [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/HPQ/mda/fy2025/ All MD&A years: /company/HPQ/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/HPQ/mda/fy2024/): filed 2024-12-13; accession 0000047217-24-000080 (https://www.sec.gov/Archives/edgar/data/47217/000004721724000080/hpq-20241031.htm) - [FY 2023 MD&A](/company/HPQ/mda/fy2023/): filed 2023-12-18; accession 0000047217-23-000100 (https://www.sec.gov/Archives/edgar/data/47217/000004721723000100/hpq-20231031.htm) - [FY 2022 MD&A](/company/HPQ/mda/fy2022/): filed 2022-12-06; accession 0000047217-22-000068 (https://www.sec.gov/Archives/edgar/data/47217/000004721722000068/hpq-20221031.htm) - [FY 2021 MD&A](/company/HPQ/mda/fy2021/): filed 2021-12-09; accession 0000047217-21-000060 (https://www.sec.gov/Archives/edgar/data/47217/000004721721000060/hpq-20211031.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3570 Computer & office Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HPQ.md · JSON record: /company/HPQ.json · verified financials: /company/HPQ/financials.json / /company/HPQ/financials.csv · machine TOC for the whole site: /llms.txt