Hp (HPQ)

Condensed Consolidated Balance Sheets as of July 31, 2026 and October 31, 2025 (Unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2026 and 2025 (Unaudited) 8 Condensed Consolidated Statements of Stockholders Deficit (Unaudited) 9 Notes to Condensed Consolidated Financial Statements (Unaudited) 11 Note 1: Basis of Presentation 11 Note 2: Segment Information 12 Note 3: Restructuring and Other Charges 15 17 Note 5: Supplementary Financial Information 18 Note 6: Fair Value 22 Note 7: Financial Instruments 24 Note 8: Borrowings 29 Note 9: Stockholders Deficit 31 Note 10: Earnings Per Share 33 Note 11: Litigation and Contingencies 33 Note 12: Guarantees, Indemnifications and Warranties 36 Note 13: Commitments 38 Nine months ended July 31 2026202520262025 In millions, except per share amounts Net revenue: Products $14,825 $13,114 $41,986 $38,232 Services852 818 2,537 2,424 Total net revenue15,677 13,932 44,523 40,656 Cost of net revenue: Products 12,256 10,599 34,312 30,800 Services476 482 1,415 1,426 Total cost of net revenue12,732 11,081 35,727 32,226 Gross profit2,945 2,851 8,796 8,430 Research and development389 406 1,213 1,204 Selling, general and administrative1,537 1,452 4,555 4,391 Restructuring and other charges48 110 539 302 Acquisition and divestiture charges4 8 6 31 Amortization of intangible assets75 159 220 287 Total operating expenses2,053 2,135 6,533 6,215 Earnings from operations892 716 2,263 2,215 Interest and other, net(94)(92)(301)(381) Earnings before taxes798 624 1,962 1,834 (Provision for) benefit from taxes(137)139 (306)(100) Net earnings$661 $763 $1,656 $1,734 Net earnings per share: Basic$0.72 $0.81 $1.80 $1.83 Diluted$0.71 $0.80 $1.79 $1.82 Weighted-average shares used to compute net earnings per share: Basic919 947 922 948 Diluted927 954 927 955 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents HP INC. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three months ended July 31Nine months ended July 31 2026202520262025 In millions Net earnings$661 $763 $1,656 $1,734 Other comprehensive income (loss) before taxes: Change in unrealized components of available-for-sale debt securities: Unrealized gains arising during the period1 5 2 11 Unrealized gains (losses) arising during the period141 59 (6)(301) Losses reclassified into earnings18 202 119 11 159 261 113 (290) Change in unrealized components of defined benefit plans: Unrealized gains (losses) arising during the period20 (7)(14)(8) Amortization of actuarial loss and prior service benefit5 5 14 15 Curtailments, settlements and other3 2 5 2 28 5 9 Change in cumulative translation adjustment(3)(1)11 16 Other comprehensive income (loss) before taxes185 265 131 (254) (Provision for) benefit from taxes(32)(63)(22)47 Other comprehensive income (loss), net of taxes153 202 109 (207) Comprehensive income$814 $965 $1,765 $1,527 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 6 Table of Contents HP INC. Condensed Consolidated Balance Sheets (Unaudited) As of July 31, 2026October 31, 2025 In millions, except par value ASSETS Current assets: Cash, cash equivalents and restricted cash$4,169 $3,705 Accounts receivable, net of allowance for credit losses of $57 and $83 as of July 31, 2026 and October 31, 2025 7,168 5,692 Inventory10,322 8,512 Other current assets5,087 4,544 Total current assets26,746 22,453 Property, plant and equipment, net3,110 3,049 Goodwill8,726 8,706 Other non-current assets7,119 7,561 Total assets$45,701 $41,769 LIABILITIES AND STOCKHOLDERS DEFICIT Current liabilities: Notes payable and short-term borrowings$1,292 $845 Accounts payable21,383 18,051 Other current liabilities11,288 10,362 Total current liabilities33,963 29,258 Long-term debt7,868 8,821 Other non-current liabilities3,962 4,036 Stockholders deficit: Preferred stock, $0.01 par value (300 shares authorized; none issued) Common stock, $0.01 par value (9,600 shares authorized; 903 and 921 shares issued and outstanding as of July 31, 2026 and October 31, 2025) 9 9 Additional paid-in capital2,364 2,129 Accumulated deficit(2,117)(2,027) Accumulated other comprehensive loss(348)(457) Total stockholders deficit(92)(346) Total liabilities and stockholders deficit$45,701 $41,769 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents HP INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine months ended July 31 20262025 In millions Cash flows from operating activities: Net earnings$1,656 $1,734 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation, amortization and impairment722 708 Stock-based compensation expense389 432 Restructuring and other charges539 302 Deferred taxes on earnings(110)(67) 126 103 Changes in operating assets and liabilities, net of divestitures: Accounts receivable (1,531)54 Inventory(1,902)(671) Accounts payable3,323 94 Net investment in leases from integrated financing(69)(71) Taxes on earnings(184)(360) Restructuring and other(256)(238) Other assets and liabilities341 53 Net cash provided by operating activities3,044 2,073 Cash flows from investing activities: Investment in property, plant, equipment and purchased intangibles(590)(700) (21)(23) Maturities and sales of available-for-sale securities and other investments32 69 Collateral returned (posted) for derivative instruments98 (343) (10)(116) Proceeds from business divestitures, net 26 Net cash used in investing activities(465)(1,113) Cash flows from financing activities: 291 1,248 (770)(1,312) Stock-based award activities and others(94)(113) Repurchase of common stock(725)(350) Cash dividends paid(825)(818) 6 Net cash used in financing activities(2,123)(1,339) Increase (decrease) in cash, cash equivalents and restricted cash456 (379) Cash, cash equivalents and restricted cash at beginning of period (1) 3,713 3,253 Cash, cash equivalents and restricted cash at end of period$4,169 $2,874 Additional Paid-in CapitalAccumulated Other Comprehensive Loss Total Stockholders Deficit Number of SharesPar ValueAccumulated Deficit In millions, except number of shares in thousands Balance as of October 31, 2025 921,149 $9 $2,129 $(2,027)$(457)$(346) Net earnings 545 545 Other comprehensive loss, net of taxes (197)(197) Comprehensive income 348 Issuance of common stock in connection with employee stock plans and other9,385 (73) (73) Repurchases of common stock (Note 9)(13,360) (31)(294) (325) Cash dividends ($0.60 per common share) (552) (552) Stock-based compensation expense 182 182 917,174 $9 $2,207 $(2,328)$(654)$(766) Net earnings 450 450 Other comprehensive income, net of taxes 153 153 Comprehensive income 603 Issuance of common stock in connection with employee stock plans and other2,213 (2) (2) Repurchases of common stock (Note 9)(4,977) (12)(83) (95) Cash dividends 1 1 Stock-based compensation expense 115 115 914,410 $9 $2,308 $(1,960)$(501)$(144) Net earnings 661 661 Other comprehensive income, net of taxes 153 153 Comprehensive income 814 Issuance of common stock in connection with employee stock plans and other1,195 (11) (11) Repurchases of common stock (Note 9)(12,196) (32)(271) (303) Cash dividends ($0.60 per common share) (547) (547) Stock-based compensation expense 99 99 903,409 $9 $2,364 $(2,117)$(348)$(92) 9 Table of Contents Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Loss Total Stockholders Deficit Number of SharesPar ValueAccumulated Deficit In millions, except number of shares in thousands Balance as of October 31, 2024 938,989 $9 $1,778 $(2,676)$(434)$(1,323) Net earnings 565 565 Other comprehensive income, net of taxes 230 230 Comprehensive income 795 Issuance of common stock in connection with employee stock plans and other8,405 (92) (92) Repurchases of common stock (Note 9)(2,734) (4)(93) (97) Cash dividends ($0.58 per common share) (547) (547) Stock-based compensation expense 192 192 944,660 $9 $1,874 $(2,751)$(204)$(1,072) Net earnings 406 406 Other comprehensive loss, net of taxes (639)(639) Comprehensive loss (233) Issuance of common stock in connection with employee stock plans and other667 (9) (9) Repurchases of common stock (Note 9)(3,118) (6)(97) (103) Cash dividends 1 1 Stock-based compensation expense 140 140 942,209 $9 $1,999 $(2,441)$(843)$(1,276) Net earnings 763 763 Other comprehensive income, net of taxes 202 202 Comprehensive income 965 Issuance of common stock in connection with employee stock plans and other2,057 5 5 Repurchases of common stock (Note 9)(5,501) (13)(139) (152) Cash dividends ($0.58 per common share) (543) (543) Stock-based compensation expense 100 100 938,765 $9 $2,091 $(2,360)$(641)$(901) The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 10 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1: Basis of Presentation Basis of Presentation The accompanying Condensed Consolidated Financial Statements of HP and its wholly owned subsidiaries are prepared in conformity with United States ( U.S. ) generally accepted accounting principles ( GAAP ). The interim financial information is unaudited but reflects all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2025 in HP s Annual Report on Form 10-K, filed on December 13, 2025. The Condensed Consolidated Balance Sheet for October 31, 2025 was derived from audited financial statements. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. All intercompany balances and transactions have been eliminated. Reclassifications HP has reclassified certain prior-year amounts to conform to the current-year presentation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP s Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued guidance that requires disaggregation of specific expense categories in disclosures within the footnotes to the financial statements on an annual and interim basis. HP is required to adopt this guidance for its annual period ending October 31, 2028 and all interim periods thereafter. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. In December 2023, the FASB issued guidance that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. HP is required to adopt this guidance for its annual period ending October 31, 2026. The Company will adopt the guidance prospectively. Adoption of this new guidance will result in additional disclosures in the Taxes on Earnings note in the Company s Consolidated Financial Statements but will not impact the consolidated financial results. 11 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 2: Segment Information HP has three reportable segments: Personal Systems, Printing, and Corporate Investments. Personal Systems offers desktops, notebooks, and workstations (including HP s portfolio of AI PCs and workstations), thin clients, retail point-of-sale ( POS ) systems, displays, hybrid systems, software, solutions including endpoint security and services. Personal Systems includes support and deployment, configurations, and extended warranty services. HP supports a multi-operating system and multi-architecture strategy, primarily using Microsoft Windows and Google Chrome operating systems. HP s platforms incorporate processors from Intel, AMD and Qualcomm, including integrated AI acceleration, as well as NVIDIA GPUs for advanced graphics and compute workloads. Personal Systems groups its global business capabilities into the following business units when reporting business performance: Commercial PS consists of endpoint computing devices and hybrid systems, for use by enterprise, public sector (which includes education), and small- and medium-sized business ( SMB ) customers. These devices include HP s Pro and Elite commercial PC portfolio, HP s Z line of workstations, thin clients, retail POS systems, and HP s Dragonfly and Chromebook PCs. HP offers a range of secure services and solutions to commercial customers to help them manage the lifecycle of their PCs and mobility installed base. Consumer PS consists of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, sharing information and staying connected, informed, and secure. These devices include HP s new Omni consumer PC portfolio, the Omen and Victus gaming lines, and HP s Spectre, Envy, Pavilion and Chromebook PCs. Printing provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on Graphics and 3D Printing and Personalization in the commercial and industrial markets. HP s global business capabilities within Printing are described below: Office Printing Solutions delivers HP s security enhanced office printers, supplies, services, and solutions to SMBs, public sector and large enterprises. It also includes Original Equipment Manufacturer ( OEM ) hardware and solutions. Home Printing Solutions delivers innovative and security enhanced printing products, supplies, services and solutions for the home, home business and micro business customers. Graphics Solutions delivers large-format, commercial and industrial solutions and supplies to print service providers and packaging converters through a wide portfolio of printers and presses. 3D Printing & Personalization offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey. HP offers complete solutions in collaboration with an ecosystem of partners. Printing groups its global business capabilities into the following business units when reporting business performance: Commercial Printing consists of office printing solutions, graphics solutions and 3D printing and personalization, excluding supplies; Consumer Printing consists of home printing solutions, excluding supplies; and Supplies comprises a set of highly innovative consumable products, ranging from ink and laser cartridges to media, industrial graphics supplies and 3D printing and personalization supplies, for recurring use in consumer and commercial hardware. Corporate Investments includes certain business incubation projects and investments in digital enablement. HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, and certain litigation (charges) benefits, net. 12 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Significant Segment Expenses and Operating Results Three months ended July 31Nine months ended July 31 2026202520262025 In millions Net revenue Commercial PS$8,579 $7,036 $23,575 $20,467 Consumer PS3,188 2,895 8,656 7,712 Personal Systems11,767 9,931 32,231 28,179 Supplies2,536 2,609 8,089 8,166 Commercial Printing1,101 1,113 3,374 3,424 Consumer Printing275 280 831 889 Printing3,912 4,002 12,294 12,479 Corporate Investments Total segment net revenue15,679 13,933 44,525 40,658 Other(2)(1)(2)(2) Total net revenue$15,677 $13,932 $44,523 $40,656 Cost of net revenue Personal Systems$10,250 $8,421 $27,785 $24,009 Printing2,475 2,640 7,889 8,134 Corporate Investments 1 2 Total segment cost of net revenue12,725 11,061 35,675 32,145 Operating expenses Personal Systems$980 $969 $2,868 $2,713 Printing728 681 2,164 2,059 Corporate Investments28 24 80 67 Total segment operating expenses1,736 1,674 5,112 4,839 Earnings before taxes Personal Systems$537 $541 $1,578 $1,457 Printing709 681 2,241 2,286 Corporate Investments(28)(24)(81)(69) Total segment earnings from operations1,218 1,198 3,738 3,674 Corporate and unallocated costs and other(102)(103)(258)(302) Stock-based compensation expense(95)(100)(389)(432) Restructuring and other charges(48)(110)(539)(302) Acquisition and divestiture charges(4)(8)(6)(31) Amortization of intangible assets(75)(159)(220)(287) Certain litigation charges (2)(2)(63)(105) Interest and other, net(1) (94)(92)(301)(381) Total earnings before taxes$798 $624 $1,962 $1,834 (1) The three and nine months ended July 31, 2025 includes Certain litigation benefits from a single litigation matter that does not relate to HP's ongoing business operations. 13 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Realignment Effective at the beginning of its first quarter of fiscal year 2026, HP realigned its business unit financial reporting to reflect the transition of the Print-as-a-Service business from Corporate Investments to Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of segment net revenue, cost of net revenue and operating expenses from the Corporate Investments segment to Supplies and Consumer Printing. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share ( EPS ). In connection with this business unit realignment, the Company reallocated $197 million of goodwill from Corporate Investments to Printing on a relative fair value basis. The realignment did not result in any impairments to goodwill in any of the affected reporting units. 14 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 3: Restructuring and Other Charges Summary of Restructuring Plans Fiscal 2026 Plan On November 25, 2025, HP s Board of Directors approved the 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. HP expects to reduce global headcount by approximately 4,000 to 6,000 employees. HP estimates that it will incur pre-tax charges of approximately $650 million relating to labor and non-labor actions, and other charges. During the course of the Fiscal 2026 Plan, HP expects to incur approximately $500 million in labor costs related to workforce reductions and expects the remaining costs to relate to non-labor actions and other charges. Fiscal 2023 Plan On November 18, 2022, HP s Board of Directors approved the Fiscal 2023 Plan intended to enable digital transformation, portfolio optimization and operational efficiency that HP implemented through fiscal 2025. The Fiscal 2023 Plan is substantially complete. HP does not expect any further significant costs associated with the plan. Approximately 9,500 employees departed as part of the plan through a combination of employee exits and voluntary Enhanced Early Retirement ( EER ). HP incurred $865 million in severance costs and $347 million in infrastructure costs related to non-labor and other charges. HP s restructuring and other charges under the Fiscal 2026 Plan and Fiscal 2023 Plan were as follows: Fiscal 2026 Plan Three months ended July 31, 2026Nine months ended July 31, 2026 Severance$38 $200 Non-labor7 30 Special Termination Benefit 280 Other charges(1) 15 37 $60 $547 Other prior plan costs(2) (12)(8) $48 $539 Fiscal 2023 Plan Three months ended July 31, 2025Nine months ended July 31, 2025 Severance$77 $218 Non-labor14 34 19 50 $110 $302 Severance Non-laborOther prior-year plansTotal In millions Accrued balance as of October 31, 2025$ $ $172 $172 Charges200 30 (8)222 Cash payments(91)(13)(122)(226) Non-cash and other adjustments (17)2 (15) Accrued balance as of July 31, 2026$109 $ $44 $153 Reflected in the Condensed Consolidated Balance Sheets Other current liabilities$76 $ $41 $117 Other non-current liabilities$33 $ $3 $36 $ $ $138 $138 Charges 252 252 Cash payments (188)(188) Non-cash and other adjustments (21)(21) Accrued balance as of July 31, 2025$ $ $181 $181 July 31, 2026October 31, 2025 In millions Cash and cash equivalents$4,169 $3,690 Restricted cash(1) 15 $4,169 $3,705 (1) Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold. Accounts Receivable The allowance for credit losses related to accounts receivable and changes were as follows: Nine months ended July 31, 2026 In millions Balance at beginning of period$83 Current-period allowance for credit losses(18) Deductions, net of recoveries(8) Balance at end of period$57 HP utilizes certain third-party arrangements in the normal course of business as part of HP s cash and liquidity management and also to provide liquidity to certain partners to facilitate their working capital requirements. These financing arrangements, which in certain circumstances may contain partial recourse, result in a transfer of HP s receivables and risk to the third-party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognized from the Condensed Consolidated Balance Sheets upon transfer, and HP receives a payment for the receivables from the third-party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Condensed Consolidated Balance Sheets. The recourse obligations as of July 31, 2026 and October 31, 2025 were not material. The following is a summary of the activity under these arrangements: Three months ended July 31Nine months ended July 31 202620252026 2025 In millions Balance at beginning of period(1) $289 $217 $117 $284 Trade receivables sold1,729 3,085 7,153 9,259 Cash receipts(2,009)(3,184)(7,264)(9,431) Foreign currency and other(5)2 (2)8 Balance at end of period(1) $4 $120 $4 $120 (1) Amounts outstanding from third parties reported in Accounts receivable in the Condensed Consolidated Balance Sheets. 18 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Inventory As of July 31, 2026October 31, 2025 In millions Finished goods$5,958 $4,721 Purchased parts and fabricated assemblies4,364 3,791 $10,322 $8,512 Other Current Assets As of July 31, 2026October 31, 2025 In millions Supplier and other receivables $2,468 $1,981 Prepaid and other current assets 1,486 1,577 Value-added taxes receivable1,133 986 5,087 $4,544 Property, Plant and Equipment, Net As of July 31, 2026October 31, 2025 In millions Land, buildings and leasehold improvements$2,634 $2,619 Machinery and equipment, including equipment held for lease6,251 5,867 8,885 8,486 Accumulated depreciation(5,775)(5,437) $3,110 $3,049 Other Non-Current Assets As of July 31, 2026October 31, 2025 In millions Deferred tax assets$3,413 $3,318 Right-of-use assets1,086 1,129 Intangible assets(1) 802 1,012 Prepaid pension and post-retirement benefit assets(2) 220 425 Deposits and prepaid187 316 Other1,411 1,361 $7,119 $7,561 (1) During the three and nine months ended July 31, 2026, the Company incurred impairment charges of $23 million and $55 million related to acquired customer contracts, customer lists and distribution agreements and technology and patents related to the Personal Systems segment. (2) Decrease relates to the reclassification of EER benefits to be paid from the U.S. defined pension plan in connection with the Fiscal 2026 Plan. See Note 3 Restructuring and Other Charges for further information. 19 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Other Current Liabilities As of July 31, 2026October 31, 2025 In millions Sales and marketing programs$3,476 $3,103 Deferred revenue1,761 1,609 Other accrued taxes1,410 1,258 Employee compensation and benefits1,272 965 Operating lease liabilities409 401 Warranty354 401 Tax liability101 297 Other2,505 2,328 $11,288 $10,362 Other Non-Current Liabilities As of July 31, 2026October 31, 2025 In millions Deferred revenue$1,675 $1,632 Operating lease liabilities770 815 Pension, post-retirement, and post-employment liabilities552 564 Tax liability445 496 Deferred tax liability18 16 Other502 513 $3,962 $4,036 Interest and Other, Net Three months ended July 31Nine months ended July 31 202620252026 2025 In millions Interest expense on borrowings$(96)$(111)$(293)$(329) Factoring costs(16)(32)(61)(101) Certain litigation benefits 52 52 Non-operating retirement-related credits6 3 28 13 Other, net12 (4)25 (16) $(94)$(92)$(301)$(381) 20 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Net Revenue by Region Three months ended July 31Nine months ended July 31 202620252026 2025 In millions Americas$6,486 $6,107 $17,921 $17,419 Europe, Middle East and Africa 5,181 4,502 15,377 13,649 Asia-Pacific and Japan4,010 3,323 11,225 9,588 Total net revenue$15,677 $13,932 $44,523 $40,656 Value of Remaining Performance Obligations As of July 31, 2026, the estimated value of transaction price allocated to remaining performance obligations was $4.2 billion. HP expects to recognize approximately $2.0 billion of the unearned amount in next 12 months and $2.2 billion thereafter. HP has elected the practical expedients and accordingly does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations if: the contract has an original expected duration of one year or less; or the revenue from the performance obligation is recognized over time on an as-invoiced basis when the amount corresponds directly with the value to the customer; or the portion of the transaction price that is variable in nature is allocated entirely to a wholly unsatisfied performance obligation. The remaining performance obligations are subject to change and may be affected by various factors, such as termination of contracts, contract modifications and adjustment for currency. Contract Liabilities As of July 31, 2026 and October 31, 2025, HP s contract liabilities balances were $3.4 billion and $3.2 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The increase in the contract liabilities balance for the nine months ended July 31, 2026, was primarily driven by sales of fixed-price support and maintenance services, partially offset by $1.2 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2025. Supplier Finance Programs HP facilitates voluntary supplier finance programs to provide certain suppliers the opportunity to sell their right to HP s payment obligations to participating financial institutions. Under these programs, HP agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. Participation by suppliers in these programs has no impact on the payment terms and amounts due from HP. HP does not have an economic interest in a supplier's participation in the program and is not a party to the agreement between the supplier and the financial institutions. In connection with these programs, HP does not pledge assets or other forms of guarantees as security for the committed payment to the participating financial institutions. For certain programs, HP pays a monthly service fee to a third-party administrator that provides the supplier finance platform and related support. HP and the participating financial institutions may terminate the agreement upon at least 30 days notice. As of July 31, 2026 and October 31, 2025, HP had $10.9 billion and $8.9 billion respectively, in obligations outstanding (i.e., unpaid invoices) that were confirmed as valid under the supplier finance programs. These obligations are included within the Accounts payable line item of HP s Condensed Consolidated Balance Sheets. As of both July 31, 2026 and October 31, 2025, the Company s outstanding payment obligations that suppliers elected to sell to participating financial institutions were immaterial and $0.1 billion, respectively. 21 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 6: Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3 Unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. The following table presents HP s assets and liabilities that are measured at fair value on a recurring basis: As of July 31, 2026As of October 31, 2025 Fair Value Measured UsingFair Value Measured Using Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total In millions Assets Cash Equivalents $1,412 $ $ $1,412 $1,878 $ $ $1,878 Available-for-Sale Investments 3 3 3 3 11 105 116 9 122 131 210 210 182 182 Other derivatives 1 1 Total assets$1,423 $318 $ $1,741 $1,887 $308 $ $2,195 Liabilities Derivative Instruments Interest rate contracts$ $ $ $ $ $1 $ $1 Foreign currency contracts 167 167 242 242 Other derivatives 2 2 1 1 Total liabilities$ $169 $ $169 $ $244 $ $244 (1) Money market funds invested in government debt and traded in active markets are included in Level 1. Government debt includes instruments such as U.S. treasury notes, U.S. agency securities and non-U.S. government bonds. (2) As of July 31, 2026 and October 31, 2025, $46 million and $63 million, respectively, of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. 22 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Valuation Techniques Cash Equivalents and Investments: HP holds money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments is based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data. Derivative Instruments: HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 7, Financial Instruments for a further discussion of HP s use of derivative instruments. Other Fair Value Disclosures Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considering its own credit risk. The portion of HP s debt that is hedged is reflected in the Condensed Consolidated Balance Sheets as an amount equal to the debt s carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The fair value of HP s short- and long-term debt was $8.9 billion as compared to its carrying amount of $9.2 billion as of July 31, 2026. The fair value of HP s short- and long-term debt was $9.6 billion as compared to its carrying value of $9.7 billion as of October 31, 2025. If measured at fair value in the Condensed Consolidated Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy. Other Financial Instruments: For the balance of HP s financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in Other current liabilities on the Condensed Consolidated Balance Sheets, the carrying amounts approximate fair value due to their short term maturities. If measured at fair value in the Condensed Consolidated Balance Sheets, these other financial instruments would be classified as Level 2 or Level 3 of the fair value hierarchy. Non-Marketable Equity Investments and Non-Financial Assets: HP s non-marketable equity investments are measured at cost less impairment, adjusted for observable price changes. HP s non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Condensed Consolidated Balance Sheets these would generally be classified within Level 3 of the fair value hierarchy. 23 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 7: Financial Instruments Cash Equivalents and Available-for-Sale Investments As of July 31, 2026As of October 31, 2025 CostGross Unrealized GainGross Unrealized LossFair ValueCostGross Unrealized GainGross Unrealized LossFair Value In millions Cash Equivalents 1,412 1,412 1,878 1,878 Total cash equivalents1,412 1,412 1,878 1,878 Available-for-Sale Investments 3 3 3 3 89 27 116 104 27 131 92 27 119 107 27 134 Total cash equivalents and available-for-sale investments$1,504 $27 $ $1,531 $1,985 $27 $ $2,012 (1) Money market funds invested in government debt and traded in active markets are included in Level 1. Government debt includes instruments such as U.S. treasury notes, U.S. agency securities and non-U.S. government bonds. (2) As of July 31, 2026 and October 31, 2025, $46 million and $63 million, respectively, of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of July 31, 2026 and October 31, 2025, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future. Contractual maturities of investments in available-for-sale debt securities were as follows: As of July 31, 2026 Amortized CostFair Value In millions Due in one year$12 $12 Due in one to five years35 37 $47 $49 As of October 31, 2025 Outstanding Gross NotionalOther Current AssetsOther Non-Current AssetsOther Current LiabilitiesOther Non-Current LiabilitiesOutstanding Gross NotionalOther Current AssetsOther Non-Current AssetsOther Current LiabilitiesOther Non-Current Liabilities In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts$ $ $ $ $ $250 $ $ $1 $ Cash flow hedges: Foreign currency contracts17,516 163 41 125 17 14,492 141 27 174 54 17,516 163 41 125 17 14,742 141 27 175 54 Derivatives not designated as hedging instruments Foreign currency contracts4,132 6 25 4,389 14 14 Other derivatives166 2 168 1 1 Total derivatives not designated as hedging instruments4,298 6 27 4,557 15 15 Total derivatives$21,814 $169 $41 $152 $17 $19,299 $156 $27 $190 $54 Offsetting of Derivative Instruments HP recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of July 31, 2026 and October 31, 2025, information related to the potential effect of HP s master netting agreements and collateral security agreements was as follows: In the Condensed Consolidated Balance Sheets (i)(ii)(iii) = (i) (ii)(iv)(v)(vi) = (iii) (iv) (v) Gross Amounts Not Offset Gross Amount RecognizedGross Amount OffsetNet Amount PresentedDerivativesFinancial CollateralNet Amount In millions As of July 31, 2026 Derivative assets$210 $ $210 $133 $162 (1)$(85) Derivative liabilities$169 $ $169 $133 $328 (2)$(292) As of October 31, 2025 Derivative assets$183 $ $183 $143 $15 (1)$25 Derivative liabilities$244 $ $244 $143 $279 (2)$(178) (1)Represents the cash collateral posted by counterparties as of the respective reporting date for HP s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. (2)Represents the collateral posted by HP including any excess or re-use of counterparty cash collateral as of the respective reporting date for HP s liability position, net of derivative amounts that could be offset as of, generally, two business days prior to the respective reporting date. Effect of Derivative Instruments in the Condensed Consolidated Statements of Earnings 26 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship were as follows: Hedged ItemLocationYearGain/(loss) recognized in earnings on hedged item Three months ended July 31Fixed-rate debtInterest and other, net2026 $ 20252 $(2) Nine months ended July 31Fixed-rate debtInterest and other, net20261 $(1) 202517 $(17) The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive (loss) income was as follows: Three months ended July 31Nine months ended July 31 2026202520262025 In millions Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives: Foreign currency contracts$141 $59 $(6)$(304) Interest rate contracts 3 Total$141 $59 $(6)$(301) The pre-tax effect of derivative instruments in cash flow hedging relationships included in earnings were as follows: Nine months ended July 31 202520262025 Products net revenue(12)$(184)$(101)$50 Cost of products net revenue(21)(37)(71) Operating expenses 7 1 Interest and other, net3 12 9 Total(18)$(202)$(119)$(11) As of July 31, 2026, HP expects to reclassify an estimated accumulated other comprehensive gain of $21 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions. The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive (loss) income based on the change of market rate, and therefore could have a different impact on earnings. 27 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Condensed Consolidated Statements of Earnings was as follows: Gain/(loss) recognized in earnings on derivative instrument Three months ended July 31Nine months ended July 31 Location2026202520262025 In millions Foreign currency contractsInterest and other, net$(32)$7 $(39)$(7) Other derivativesInterest and other, net(11)(3)(3)2 Total$(43)$4 $(42)$(5) 28 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 8: Borrowings Notes Payable and Short-Term Borrowings As of July 31, 2026As of October 31, 2025 Amount OutstandingWeighted-Average Interest RateAmount OutstandingWeighted-Average Interest Rate In millions $1,292 4.1 %$788 3.2 % Notes payable to banks and other %57 % Total notes payable and short-term borrowings $1,292 $845 Long-Term Debt As of July 31, 2026October 31, 2025 In millions U.S. Dollar Global Notes(1) Maturity DateIssue PriceStated Interest Rate $1,000 issued June 2021 June 202699.808 %1.45 %$ $522 $1,000 issued June 2020 June 202799.718 %3.00 %1,000 999 $900 issued June 2022 January 202899.841 %4.75 %900 899 $1,000 issued March 2022 April 202999.767 %4.00 %999 999 $500 issued April 2025 April 203099.732 %5.40 %499 499 $850 issued June 2020 June 203099.790 %3.40 %503 503 $1,000 issued June 2021 June 203199.573 %2.65 %998 998 $1,000 issued March 2022 April 203299.966 %4.20 %676 676 $1,100 issued June 2022 January 203399.725 %5.50 %1,098 1,098 $500 issued April 2025 April 203599.778 %6.10 %499 499 $1,200 issued September 2011 September 204199.863 %6.00 %1,199 1,199 8,371 8,891 Other borrowings at 1.47%-8.36%, due in fiscal years 2026-2036 826 765 Fair value adjustment related to hedged debt (1) Unamortized debt issuance cost(37)(46) Current portion of long-term debt(1,292)(788) Total long-term debt$7,868 $8,821 (1)HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt. As disclosed in Note 7, Financial Instruments, HP uses interest rate swaps to mitigate some of the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps. Commercial Paper As of July 31, 2026, HP maintained a U.S. commercial paper program for the issuance of U.S. dollar-denominated commercial paper. The principal amount outstanding under this program and certain short-term borrowings at any time cannot exceed a $6.0 billion authorization by HP s Board of Directors. As of July 31, 2026 and October 31, 2025, no commercial paper was outstanding under the program. 29 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Credit Facility As of July 31, 2026, HP maintained a $5.0 billion 5-year sustainability-linked senior unsecured committed revolving credit facility, which HP entered into on August 1, 2024. Commitments under the revolving credit facility will be available until August 1, 2029. Commitment fees, interest rates and other terms of borrowing under the revolving credit facility vary based on HP s external credit ratings and certain sustainability metrics. Funds borrowed under the revolving credit facility may be used for general corporate purposes. As of July 31, 2026, there were no borrowings outstanding under the revolving credit facility. The revolving credit facility also acts as a backstop to provide liquidity support for our commercial paper program. As of July 31, 2026, HP was in compliance with the covenants in the credit agreement governing the revolving credit facility. Available Borrowing Resources As of July 31, 2026, HP had available borrowing resources of $0.9 billion from uncommitted lines of credit in addition to funds available under the revolving credit facility. 30 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 9: Stockholders Deficit Share Repurchase Program HP s share repurchase program authorizes both open market and private repurchase transactions. During the three and nine months ended July 31, 2026, HP executed share repurchases of 12.2 million and 30.5 million shares and settled total shares for $0.3 billion and $0.7 billion, respectively. During the three and nine months ended July 31, 2025, HP executed share repurchases of 5.5 million and 11.4 million shares and settled total shares for $0.2 billion and $0.4 billion, respectively. Share repurchases executed during the three months and nine months ended July 31, 2025 included 0.3 million shares settled in August 2025. The shares repurchased during the nine months ended July 31, 2026 and 2025 were all open market repurchase transactions. As of July 31, 2026, HP had approximately $7.7 billion remaining under the share repurchase authorization approved by HP s Board of Directors. 31 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Changes and reclassifications related to Accumulated Other Comprehensive Loss, net of taxes Three months ended July 31Nine months ended July 31 2026202520262025 In millions Other comprehensive income (loss), net of taxes: Unrealized components of available-for-sale debt securities Balance at the beginning of period$30 $20 $29 $14 Unrealized gains arising during the period1 5 2 11 (1) (1) Unrealized components of available-for-sale debt securities, net of taxes1 4 2 10 Balance at the end of period$31 $24 $31 $24 Unrealized components of cash flow hedges Balance at the beginning of period$(81)$(393)$(48)$47 Unrealized gains (losses) arising during the period141 59 (6)(301) Losses reclassified into earnings18 202 119 11 Tax effects on change in unrealized components of cash flow hedges(28)(61)(15)50 Unrealized components of cash flow hedges, net of taxes131 200 98 (240) Balance at the end of period$50 $(193)$50 $(193) Unrealized components of defined benefit plans Balance at the beginning of period$(476)$(488)$(450)$(496) Unrealized gains (losses) arising during the period20 (7)(14)(8) Amortization of actuarial loss and prior service benefit 5 5 14 15 Curtailments, settlements and other3 2 5 2 Tax effects on change in unrealized components of defined benefit plans(4) (7)(1) Unrealized components of defined benefit plans, net of taxes24 (2)8 Balance at the end of period$(452)$(488)$(452)$(488) Cumulative translation adjustment Balance at the beginning of period$26 $18 $12 $1 Change in cumulative translation adjustment(3)(1)11 16 Tax effect on change in cumulative translation adjustment (1) (1) Cumulative translation adjustment, net of taxes(3)(2)11 15 Balance at the end of period$23 $16 $23 $16 Other comprehensive income (loss)$153 $202 $109 $(207) Accumulated other comprehensive loss$(348)$(641)$(348)$(641) 32 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 10: Earnings Per Share HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan. A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows: Three months ended July 31Nine months ended July 31 2026202520262025 In millions, except per share amounts Numerator: Net earnings$661 $763 $1,656 $1,734 Denominator: Weighted-average shares used to compute basic net EPS919 947 922 948 Dilutive effect of employee stock plans8 7 5 7 Weighted-average shares used to compute diluted net EPS927 954 927 955 Net earnings per share: Basic$0.72 $0.81 $1.80 $1.83 Diluted$0.71 $0.80 $1.79 $1.82 Anti-dilutive weighted-average stock plans(1) 12 14 17 8 (1)HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent average unrecognized compensation cost. Note 11: Litigation and Contingencies HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of July 31, 2026, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP s financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Pursuant to the separation and distribution agreement entered into with Hewlett Packard Enterprise Company ( Hewlett Packard Enterprise ), HP shares responsibility with Hewlett Packard Enterprise for certain matters, as indicated below, and Hewlett Packard Enterprise has agreed to indemnify HP in whole or in part with respect to certain matters. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP s potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. Litigation, Proceedings and Investigations Copyright Levies. Proceedings are ongoing or have been concluded involving HP in certain European countries, challenging the imposition or the modification of levies regimes upon IT equipment (such as PCs or printers) or the restrictions to exonerate the application of private copying levies on devices purchased by business users. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some European countries are expected to implement legislation to introduce or extend existing levy schemes to digital devices. HP, other companies and various industry associations have opposed the extension of levies to the digital product and certain requirements for business sales exemptions and have advocated alternative models of compensation to rights holders. 33 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Based on the exemption of levies on business sales and industry opposition to increasing levies to digital products, HP s assessments of the merits of various proceedings and HP s estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the ongoing disputes. India Directorate of Revenue Intelligence Proceedings. On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the DRI ) issued notices to Hewlett-Packard India Sales Private Limited ( HP India ), a subsidiary of HP, seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties and interest. On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related notice affirming certain duties and penalties against HP India and the named individuals of approximately $386 million (plus interest). On April 20, 2012, the Commissioner issued an order on the parts-related notice affirming duties and penalties against HP India and certain of the named individuals of approximately $17 million. HP India filed appeals of the Commissioner s orders before the Customs, Excise and Service Tax Appellate Tribunal (the Customs Tribunal ). The Customs Department also filed cross-appeals before the Customs Tribunal. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner s orders and rejected HP India s request to remand the matter to the Commissioner on procedural grounds. The Customs Tribunal began hearing the parties cross appeals on April 10, 2025, and completed the hearing in December 2025. On May 6, 2026, the Customs Tribunal announced that a decision has been adopted, but the content of the decision was not made available to the parties at that time. On June 29, 2026, the Customs Tribunal issued its decision. The Tribunal overturned several duty, interest, penalty and confiscation findings, and eliminated all individual penalties. The revised duty, interest and penalty amounts will be determined through a damage ruling by the Customs Authority. That ruling is expected no earlier than September 2026 and could be issued significantly later. HP intends to appeal the 2026 orders before the Supreme Court of India by August 28, 2026. DRI also is entitled to appeal. Pursuant to the separation and distribution agreement, Hewlett Packard Enterprise has agreed to indemnify HP in part, based on the extent to which any liability arises from the products and spare parts of Hewlett Packard Enterprise s businesses. Media Content Protection LLC Patent Litigation (formerly Philips Patent Litigation). In September 2020, Koninklijke Philips N.V. and Philips North America LLC (collectively, Philips ) filed a complaint against HP for patent infringement in federal court for the District of Delaware and filed a companion complaint with the U.S. International Trade Commission ( ITC ) pursuant to Section 337 of the Tariff Act against HP and 8 other sets of respondents. Both complaints allege that certain digital video-capable devices and components thereof infringe four of Philips patents. In October 2020, the ITC instituted an investigation, and Philips later withdrew two of the four patents. On March 23, 2022, the ITC rendered a final determination that no violation of Section 337 has occurred. Philips did not appeal and elected to resume litigation with its case in federal court. Philips seeks unspecified damages and an injunction against HP, and the prior stay has been lifted. On August 10, 2023, HP filed a motion for summary judgment of indefiniteness for all asserted claims. On July 1, 2024, the district court denied the motion without prejudice to renew. Philips conveyed the patents asserted in the district court action to Media Content Protection LLC ( MCP ), and MCP was substituted as plaintiff in place of Philips. As of November 25, 2025, the district court has ruled that all patents asserted against HP are invalid under 35 U.S.C. 101, subject to appeal. In re HP Inc. Derivative Litigation. On May 17, 2021, stockholder Scott Franklin filed a derivative complaint against certain then-current and former officers and directors in federal court in the District of Delaware. Plaintiff purports to bring the action on behalf of HP, which he has named as a nominal defendant, bringing claims for breach of fiduciary duty and violations of securities laws. The derivative plaintiff seeks compensatory damages, governance reforms, and other relief. By court order following stipulations by the parties, the case was transferred to the Northern District of California, and the case was stayed pending a ruling on the motion to dismiss in York County on behalf of the County of York Retirement Fund v. HP Inc., et al. ( York County ), and exhaustion of all related appeals. On January 13, 2022, stockholder Gerald Lovoi filed a derivative complaint in federal court in the Northern District of California against the same current and former officers and directors named in the Franklin action. The complaint alleges the same basic claims based on the same alleged conduct as the Franklin action and seeks similar relief. By stipulation of the parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County and exhaustion of all related appeals. On May 31, 2024, the court adopted a stipulation in which the derivative plaintiffs and defendants agreed to consolidate the derivative proceedings, close the Lovoi action, and extend the current stay through summary judgment in the York County action. On April 24, 2026, the derivative plaintiffs filed an unopposed motion for preliminary approval of the settlement set forth in the stipulation and agreement of settlement dated April 22, 2026, which resolves all derivative claims in the consolidated derivative action. The district court preliminarily approved the settlement on May 29, 2026, and the final settlement hearing is scheduled for September 2026. 34 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Legal Proceedings re Authentication of Supplies. Since 2016, HP has from time to time been named in civil litigation, or been the subject of government investigations, involving supplies authentication protocols used in certain HP printers in multiple geographies, including but not limited to the United States, Italy, Israel, the Netherlands, Australia and New Zealand. The supplies authentication protocols are often referred to as Dynamic Security. The core allegations in these proceedings claim misleading or inadequate consumer notifications and permissions pertaining to the use of Dynamic Security, the installation of firmware updates, or the potential inability of cartridges with clone chips or circuitry to work in HP printers with Dynamic Security. Plaintiffs base or have based their claims on various legal theories, including but not limited to unfair competition, computer trespass, and similar statutory claims. Among other relief, Plaintiffs have sought or seek money damages and in certain cases have or may seek injunctive relief against the use or operation of Dynamic Security or relief requiring interoperability. If HP is not successful in its defense of these cases or investigations, it could be subject to damages, penalties, significant settlement demands, or injunctive relief that may be costly or may disrupt operations. Certain of these proceedings in the United States, Italy, the Netherlands, Israel, Australia and New Zealand have been resolved, have concluded, or have concluded subject only to HP s pending appeal. Digital Revolution B.V. (trading as 123Inkt) filed civil litigation, including competition claims, against HP Nederlands B.V., et al. (Netherlands) in March 2020. HP substantially prevailed before the trial court, and both parties appealed. On November 19, 2024, the court of appeal issued a decision rejecting competition claims against HP and providing that use of Dynamic Security by HP is not unlawful. On February 18, 2025, Digital Revolution filed a cassation appeal against the decision before the Dutch Supreme Court. On December 12, 2025 the Attorney General issued his non-binding opinion advising the Supreme Court to reject the appeal. The Dutch Supreme Court issued its decision on June 5, 2026, rejecting competition claims against HP and providing that use of Dynamic Security by HP is not unlawful. In addition, a putative class action was filed against HP in federal court in Illinois in January 2024, arising out of the use of Dynamic Security firmware updates in HP printers. Plaintiffs seek compensatory damages, restitution, injunctive relief against alleged unfair and anticompetitive business practices, and other relief. On September 30, 2025, the court dismissed the complaint in its entirety but gave plaintiffs leave to file an amended complaint. Plaintiffs filed an amended complaint. The court has set a hearing in August 2026 to address HP s motion to dismiss the amended complaint. The case is in its early stages. Autonomy-Related Legal Proceedings. In 2015, four former Hewlett Packard Company subsidiaries that became subsidiaries of Hewlett Packard Enterprise at the time of the Separation (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems Limited, and Autonomy, Inc., hereinafter the Claimants ) initiated civil proceedings in the U.K. High Court of Justice against two members of Autonomy s former management, Michael Lynch and Sushovan Hussain, for breach of their fiduciary duties in causing Autonomy group companies to engage in improper transactions and accounting practices before and in connection with the 2011 acquisition of Autonomy. Trial concluded in January 2020. In May 2022, the court issued its liability judgment, finding that the Claimants had succeeded on substantially all claims and that Messrs. Lynch and Hussain engaged in fraud, and dismissing a counterclaim filed by Mr. Lynch. The court deferred the issue of damages to further proceedings, but indicated that damages awarded may be substantially less than was claimed. In February 2024, the court held a two-week trial on damages, the Claimants sought recovery for $4 billion in losses, and the court took the issue under advisement. In May 2025, Claimants reached an agreement with Mr. Hussain to resolve claims against him. On July 22, 2025, the court issued its ruling on the quantum of damages, finding that the Lynch estate owed approximately 740 million pounds. The court held a hearing for the week of November 17, 2025, to address additional matters, including attorneys fees, pre-judgment interest, and the relevant date to use for the exchange rate to convert the recovery from pounds to dollars. On March 24, 2026, the court entered its judgment, awarding damages plus interest totaling $1.24 billion, and denying the Lynch estate s request for permission to appeal. The damages award includes a set-off for prior settlements. The Lynch estate filed a request for permission to appeal with the appellate level court. The Claimants have opposed that request. On August 25, 2026, the Court of Appeal denied the Lynch Estate's request for permission to appeal most issues raised by the Estate. The appeal may proceed on a limited number of issues relating primarily to damages. Litigation is unpredictable, and there can be no assurance of a recovery. Any amount ultimately recovered would be recorded in the period received. No adjustment has been recorded in the financial statements in relation to this potential recovery. Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise will share equally in any recovery. 35 Table of Contents HP INC. Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Standard Essential Patent matters. HP is engaged in a number of patent-related matters involving patents asserted to be essential to industry standards (such as Wi Fi). This includes discussions with third parties regarding patent license arrangements and, in some instances, litigation. Based on HP s assessment of various matters, HP has accrued amounts for those matters for which a loss is probable and reasonably estimable. Environmental HP is, and may become a party to, proceedings brought by U.S., state, or other governmental entities or private third parties under federal, state, local, or foreign environmental laws, including the Comprehensive Environmental Response, Compensation and Liability Act ( CERCLA ), known as Superfund, or state laws similar to CERCLA. HP is also conducting environmental investigations or remediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with environmental agencies. Tariffs On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act ( IEEPA ) were not authorized by statute which removed the obligation for and collection of related tariffs. As of July 31, 2026, the Company has applied for the recovery of approximately $0.3 billion of previously paid IEEPA tariffs. The Company received $127 million of refunds during the three and nine months ended July 31, 2026, and $91 million subsequent to the reporting period. Refunds are recognized as a reduction of Products cost of net revenue when received. Note 12: Guarantees, Indemnifications and Warranties Guarantees In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote. Cross-Indemnifications with Hewlett Packard Enterprise On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise, Hewlett-Packard Company s former enterprise technology infrastructure, software, services and financing businesses. The separation and distribution agreement provides for cross-indemnities between HP and Hewlett Packard Enterprise for liabilities allocated to the respective party pursuant to the terms of such agreement. For information on cross-indemnifications with Hewlett Packard Enterprise for litigation matters, see Note 11, Litigation and Contingencies . Indemnifications In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third-party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the vendors and customers use of HP s software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. HP records tax indemnification receivables from various third parties for certain tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by those same third parties under existing legal agreements. HP records a tax indemnification payable to various third parties under these agreements when management believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. The actual amount that the third parties pay or may be obligated to pay HP could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. 36 Table of Contents HP INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Warranties HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP s baseline experience, affect the estimated warranty obligation. HP s aggregate product warranty liabilities and changes were as follows: Nine months ended July 31, 2026 In millions Balance at beginning of period$452 Accruals and adjustments468 (521) Balance at end of period$399 37 Table of Contents HP INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Note 13: Commitments Unconditional Purchase Obligations HP s unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price and volume provisions and the approximate timing of the transaction. Unconditional purchase obligations exclude agreements that are cancellable without penalty. The Company's purchase obligations under variable price provisions approximate market prices at the time of purchase and are estimated using current period pricing. Actual future variable price purchase commitments may significantly vary depending on market prices and product mix at the time of purchase. The Company's unconditional purchase obligations are primarily related to inventory and service support. As of July 31, 2026, unconditional purchase obligations were as follows: Fiscal yearIn millions 2026(1) $143 2027619 2028997 2029271 2030104 Thereafter3 Total$2,137 (1) Represents expected unconditional purchase obligations for the remaining three months of fiscal year 2026. The Company's purchase obligations increased from $1.1 billion as of October 31, 2025 due to inventory purchase obligations of processors under variable price provisions to support future business needs. 38 Table of Contents 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 39 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, increasing commodity costs, particularly in 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 IEEPA were not authorized by statute which removed the obligation for and collection of related tariffs. As of July 31, 2026, we have applied for the recovery of approximately $0.3 billion of previously paid IEEPA tariffs. We have received $127 million of refunds during the three and nine months ended July 31, 2026, and $91 million subsequent to the reporting period. Refunds are recognized as a reduction of Products cost of net revenue when received. We are continuing to assess the recoverability of additional IEEPA tariffs previously paid, as well as the effects of any additional tariffs or trade actions that may be imposed. During the nine months ended July 31, 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 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. During the nine months ended July 31, 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 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 40 Table of Contents Form 10-K for the fiscal year ended October 31, 2025. For more information on our Fiscal 2026 Plan, see Note 3, 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. 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. 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 nine months ended July 31, 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. 41 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 currency measures are provided in addition to, and not as a substitute for, the year-over-year percentage change in net revenue on a GAAP basis. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes. Results of operations in dollars and as a percentage of net revenue were as follows: Three months ended July 31Nine months ended July 31 2026202520262025 Dollars% of Net RevenueDollars% of Net RevenueDollars% of Net RevenueDollars% of Net Revenue Dollars in millions Net revenue: Products$14,825 94.6 %$13,114 94.1 %$41,986 94.3 %$38,232 94.0 % Services852 5.4 %818 5.9 %2,537 5.7 %2,424 6.0 % Total net revenue15,677 100.0 %13,932 100.0 %44,523 100.0 %40,656 100.0 % Cost of net revenue: Products(1) 12,256 82.7 %10,599 80.8 %34,312 81.7 %30,800 80.6 % Services(2) 476 55.9 %482 58.9 %1,415 55.8 %1,426 58.8 % Total cost of net revenue12,732 81.2 %11,081 79.5 %35,727 80.2 %32,226 79.3 % Gross Margin2,945 18.8 %2,851 20.5 %8,796 19.8 %8,430 20.7 % Research and development389 2.5 %406 2.9 %1,213 2.7 %1,204 3.0 % Selling, general and administrative1,537 9.8 %1,452 10.4 %4,555 10.2 %4,391 10.8 % Restructuring and other charges48 0.3 %110 0.9 %539 1.3 %302 0.7 % Acquisition and divestiture charges4 %8 0.1 %6 %31 0.1 % Amortization of intangible assets75 0.5 %159 1.1 %220 0.5 %287 0.7 % Total operating expenses2,053 13.1 %2,135 15.4 %6,533 14.7 %6,215 15.3 % Earnings from operations892 5.7 %716 5.1 %2,263 5.1 %2,215 5.4 % Interest and other, net(94)(0.6)%(92)(0.6)%(301)(0.7)%(381)(0.9)% Earnings before taxes798 5.1 %624 4.5 %1,962 4.4 %1,834 4.5 % (Provision for) benefit from taxes(137)(0.9)%139 1.0 %(306)(0.7)%(100)(0.2)% Net earnings$661 4.2 %$763 5.5 %$1,656 3.7 %$1,734 4.3 % (1) Products cost of net revenue as a percentage of net revenue is calculated as a percentage of product net revenue. (2) Services cost of net revenue as a percentage of net revenue is calculated as a percentage of services net revenue. 42 Table of Contents Net Revenue Products net revenue includes revenue from the sale of hardware, supplies, subscriptions and software licenses. Services net revenue includes revenue from our service offerings and support on hardware devices. For the three months ended July 31, 2026, net revenue increased 12.5% (increased 10.9% on a constant currency basis) as compared to the prior-year period. Net revenue from international operations increased 16.8% to $10.4 billion, while U.S. net revenue increased 5.1% to $5.3 billion. The increase in net revenue was primarily driven by products net revenue due to pricing actions to mitigate higher commodity costs in Personal Systems and favorable currency impacts, partially offset by demand softness in Printing. Services net revenue increased due to support services on hardware devices. For the nine months ended July 31, 2026, total net revenue increased 9.5% (increased 7.5% on a constant currency basis) as compared to the prior-year period. Net revenue from international operations increased 13.7% to $30.1 billion, while U.S. net revenue increased 1.6% to $14.4 billion. The increase in net revenue was primarily driven by products net revenue due to pricing actions to mitigate higher commodity costs in Personal Systems, partially offset by demand softness and competitive pressures in Printing. Services net revenue increased due to support services on hardware devices. A detailed discussion of the factors contributing to the changes in segment net revenue is included in Segment Information below. Gross Margin For the three months ended July 31, 2026, gross margin decreased 1.7 percentage points primarily driven by higher commodity costs and unfavorable mix shifts towards Personal Systems, partially offset by pricing actions including favorable currency impacts, and IEEPA tariff refunds. Services gross margin increased due to favorable mix shifts. For the nine months ended July 31, 2026, gross margin decreased 0.9 percentage points primarily driven by products gross margin due to higher commodity costs and unfavorable mix shifts towards Personal Systems, partially offset by pricing actions including favorable currency impacts, and IEEPA tariff refunds. Services gross margin increased due to favorable mix shifts. A detailed discussion of the factors contributing to the changes in segment gross margins is included under Segment Information below. Operating Expenses Research and Development ( R&D ) R&D expense decreased 4.2% for the three months ended July 31, 2026, primarily driven by favorable net R&D partner funding, partially offset by higher variable compensation. R&D expense increased 0.7% for the nine months ended July 31, 2026 primarily driven by higher variable compensation. Selling, General and Administrative ( SG&A ) SG&A expense increased 5.9% and 3.7% for the three and nine months ended July 31, 2026 primarily driven by higher variable compensation, partially offset by disciplined cost management. Restructuring and Other Charges Restructuring and other charges decreased $62 million for the three months ended July 31, 2026 driven by severance activity under the Fiscal 2023 Plan in the prior period. Restructuring and other charges increased $237 million for the nine months ended July 31, 2026 primarily driven by the EER program under the Fiscal 2026 Plan. For more information, see Note 3, 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. Acquisition and Divestiture Charges Acquisition and divestiture charges for the three and nine months ended July 31, 2026 decreased by $4 million and $25 million, respectively, primarily due to lower acquisition and integration activities. 43 Table of Contents Amortization of Intangible Assets Amortization of intangible assets decreased $84 million and $67 million for the three and nine months ended July 31, 2026, respectively, primarily driven by higher impairment charges of $69 million and $37 million, respectively, in the prior periods. Interest and Other, Net Interest and other, net expense remained flat for the three months ended July 31, 2026 primarily due to a gain from a single litigation matter that does not relate to HP s ongoing business operations recorded in the prior period, offset by lower interest expense on debt and factoring costs in the current period. Interest and other, net expense decreased $80 million for the nine months ended July 31, 2026 primarily due to lower interest expense on debt and factoring costs in the current period, partially offset by a gain from a single litigation matter that does not relate to HP s ongoing business operations recorded in the prior period. Provision for Taxes Our effective tax rate was 17.2% for the three months ended July 31, 2026 and 15.6% for the nine months ended July 31, 2026. The difference between the U.S. federal statutory tax rate of 21% and our effective tax rate for the three months ended July 31, 2026 was primarily due to decreases in unrecognized tax benefits. For the nine months ended July 31, 2026, the difference was primarily due to decreases in unrecognized tax benefits and audit settlements in various jurisdictions. 44 Table of Contents Segment Information A description of the products and services for each segment and the business unit realignment in the first quarter of fiscal year 2026 can be found in Note 2, Segment Information to the Condensed Consolidated Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference. Personal Systems Three months ended July 31Nine months ended July 31 20262025% Change20262025% Change Dollars in millions Net revenue$11,767$9,93118.5 %$32,231$28,17914.4 % Earnings from operations$537$541(0.7)%$1,578$1,4578.3 % Earnings from operations as a % of net revenue4.6 %5.4 %4.9 %5.2 % The components of net revenue and the weighted net revenue change by business unit were as follows: Three months ended July 31Nine months ended July 31 Net RevenueWeighted Net Revenue Change(1) Net RevenueWeighted Net Revenue Change(1) 2026202520262025 Dollars in millionsPercentage PointsDollars in millionsPercentage Points Commercial PS$8,579 $7,036 15.5 $23,575 $20,467 11.0 Consumer PS3,188 2,895 3.0 8,656 7,712 3.4 Total Personal Systems$11,767 $9,931 18.5 $32,231 $28,179 14.4 (1)Weighted Net Revenue Change Percentage Points measures contribution of each business unit towards overall segment revenue growth. It is calculated by dividing the change in revenue of each business unit from the prior-year period by total segment revenue for the prior-year period. Three months ended July 31, 2026 compared with three months ended July 31, 2025 Personal Systems net revenue increased 18.5% (increased 16.7% on a constant currency basis) for the three months ended July 31, 2026. The net revenue increase was primarily due to a 40.8% increase in ASPs, partially offset by a 15.8% decrease in PCs unit volume driven by a focus on higher value units in an increasing commodity cost environment. The increase in ASPs is primarily due to pricing actions to mitigate higher commodity costs, favorable currency impacts and mix shifts. Commercial PS net revenue increased 21.9% primarily due to a 41.1% increase in ASPs, partially offset by a 13.6% decrease in units. The increase in ASPs is primarily due to pricing actions, favorable currency impacts and mix shifts towards premium. Consumer PS net revenue increased 10.1% primarily due to a 37.1% increase in ASPs, partially offset by a 19.4% decrease in units. The increase in ASPs was primarily due to pricing actions and favorable currency impacts partially offset by unfavorable mix shifts. Personal Systems earnings from operations as a percentage of net revenue decreased by 0.8 percentage points driven by a decrease in gross margin, partially offset by a decrease in operating expenses as a percentage of revenue. Gross margin decreased primarily due to higher commodity costs, partially offset by pricing actions, IEEPA tariff refunds and favorable currency impacts. Operating expenses as a percentage of revenue decreased primarily driven by disciplined cost management and favorable net R&D partner funding, partially offset by higher variable compensation. 45 Table of Contents Nine months ended July 31, 2026 compared with nine months ended July 31, 2025 Personal Systems net revenue increased 14.4% (increased 12.1% on a constant currency basis) for the nine months ended July 31, 2026. The net revenue increase was primarily due to a 19.8% increase in ASPs, partially offset by a 4.2% decrease in PC unit volume. The decrease in PC unit volume was driven by an increasing commodity cost environment, partially offset by the Windows-based PC operating system refresh. The increase in ASPs is primarily due to pricing actions to mitigate higher commodity costs, as well as favorable currency impacts. Consequently, the cost environment drove an increase in ASPs and decrease in PC unit volume in both Commercial and Consumer PS. Commercial PS net revenue increased 15.2% primarily due to a 20.2% increase in ASPs, partially offset by a 3.7% decrease in PC unit volume. Consumer PS net revenue increased 12.2% primarily due to a 18.4% increase in ASPs, partially offset by a 5.0% decrease in PC unit volume. Personal Systems earnings from operations as a percentage of net revenue decreased by 0.3 percentage points driven by a decrease in gross margin, partially offset by a decrease in operating expenses as a percentage of revenue. Gross margin decreased primarily due to higher commodity costs, partially offset by pricing actions including favorable currency impacts. Operating expenses as a percentage of revenue decreased due to disciplined cost management, partially offset by higher variable compensation. 46 Table of Contents Printing Three months ended July 31Nine months ended July 31 20262025% Change20262025% Change Dollars in millions Net revenue$3,912$4,002(2.2)%$12,294$12,479(1.5)% Earnings from operations$709$6814.1 %$2,241$2,286(2.0)% Earnings from operations as a % of net revenue18.1 %17.0 %18.2 %18.3 % The components of net revenue and the weighted net revenue change by business unit were as follows: Three months ended July 31Nine months ended July 31 Net RevenueWeighted Net Revenue Change(1) Net RevenueWeighted Net Revenue Change(1) 2026202520262025 Dollars in millionsPercentage PointsDollars in millionsPercentage Points Supplies$2,536 $2,609 (1.8)$8,089 $8,166 (0.6) Commercial Printing1,101 1,113 (0.3)3,374 3,424 (0.4) Consumer Printing275 280 (0.1)831 889 (0.5) $3,912 $4,002 (2.2)$12,294 $12,479 (1.5) (1)Weighted Net Revenue Change Percentage Points measures contribution of each business unit towards overall segment revenue growth. It is calculated by dividing the change in revenue of each business unit from the prior-year period by total segment revenue for the prior-year period. Three months ended July 31, 2026 compared with three months ended July 31, 2025 Printing net revenue decreased 2.2% (decreased 3.6% on a constant currency basis) for the three months ended July 31, 2026. The decrease in net revenue across Supplies, Commercial and Consumer Printing was partially offset by favorable currency impacts. Net revenue for Supplies decreased 2.8%, primarily due to a decline in installed base and usage, partially offset by pricing actions and favorable currency impacts. Printer units decreased by 6.8% primarily due to demand softness, particularly in China, as well as competitive pressures, while ASPs increased by 5.8%. The increase in ASPs was primarily driven by favorable mix shifts towards Commercial, pricing actions and currency impacts. Net revenue for Commercial Printing decreased 1.1%, due to a 2.4% decrease in printer unit volume and a 1.7% decrease in ASPs. The decrease in ASPs was primarily driven by unfavorable mix shifts, partially offset by favorable pricing actions and currency impacts. Net revenue for Consumer Printing decreased 1.8% primarily due to a 9.1% decrease in printer unit volume, partially offset by a 16.5% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts towards Big Tank and currency impacts. Printing earnings from operations as a percentage of net revenue increased by 1.1 percentage points driven by an increase in gross margin as a percentage of revenue, partially offset by an increase in operating expenses as a percentage of revenue. The increase in gross margin is primarily due to IEEPA tariff refunds and pricing actions, partially offset by unfavorable mix shifts. Operating expenses as a percentage of revenue increased primarily due to higher variable compensation. 47 Table of Contents Nine months ended July 31, 2026 compared with nine months ended July 31, 2025 Printing net revenue decreased 1.5% (decreased 2.9% on a constant currency basis) for the nine months ended July 31, 2026. The decrease in net revenue across Supplies, Commercial and Consumer Printing was partially offset by favorable currency impacts. Net revenue for Supplies decreased, primarily due to a decline in installed base and usage, partially offset by pricing actions and favorable currency impacts. Printer unit volume decreased 6.6% driven by demand softness and competitive pressures, while hardware ASPs increased 3.9%. The increase in ASPs was primarily driven by favorable pricing actions, mix shifts and currency impacts. Net revenue for Commercial Printing decreased by 1.5%, primarily due to a 4.5% decrease in printer unit volume, partially offset by a 0.6% increase in ASPs. The increase in ASPs was primarily driven by pricing actions, partially offset by unfavorable mix shifts. Net revenue for Consumer Printing decreased 6.5%, primarily due to a 7.8% decrease in printer unit volume, partially offset by a 7.6% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts towards Big Tank and currency impacts, partially offset by competitive pricing. Printing earnings from operations as a percentage of net revenue decreased 0.1 percentage points driven by an increase in operating expenses as a percentage of revenue, partially offset by an increase in gross margin. Operating expenses as a percentage of revenue increased primarily driven by higher variable compensation. Gross margin increased primarily due to IEEPA tariff refunds and pricing actions, partially offset by unfavorable mix shifts. Corporate Investments The loss from operations in Corporate Investments for the three and nine months ended July 31, 2026 was primarily due to expenses associated with our incubation projects and investments in digital enablement. 48 Table of Contents LIQUIDITY AND CAPITAL RESOURCES We use cash generated by operations as our primary source of liquidity. We believe that current cash, cash flow from operating activities, new borrowings, available commercial paper authorization and the credit facility will be sufficient to meet HP s operating cash requirements, planned capital expenditures, interest and principal payments on all borrowings, pension and post-retirement funding requirements, authorized share repurchases and annual dividend payments for the foreseeable future. Additionally, if suitable acquisition opportunities arise, the Company may obtain all or a portion of the required financing through additional borrowings. While our access to capital markets may be constrained and our cost of borrowing may increase under certain business, market and economic conditions, our access to a variety of funding sources to meet our liquidity needs is designed to facilitate continued access to capital resources under all such conditions. Our liquidity is subject to various risks including the risks identified in 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 and the market risks identified in the section entitled Quantitative and Qualitative Disclosures about Market Risk in Item 3 of Part I of this report. Amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs and may from time to time be distributed to the U.S. Repatriations of amounts held outside the U.S. generally will not be taxable from a U.S. federal tax perspective but may be subject to state income or foreign withholding tax upon repatriation. As we evaluate the future cash needs of our operations, we may revise the amount of foreign earnings considered to be permanently reinvested in our foreign subsidiaries and how to utilize such funds, including reducing our gross debt level, or other uses. Liquidity Our cash, cash equivalents and restricted cash and total debt were as follows: As of July 31, 2026October 31, 2025 In millions Cash and cash equivalents$4,169 $3,690 Restricted cash$ $15 Total debt$9,160 $9,666 Our key cash flow metrics were as follows: Nine months ended July 31 20262025 In millions Net cash provided by operating activities$3,044 $2,073 Net cash used in investing activities(465)(1,113) Net cash used in financing activities(2,123)(1,339) Net increase (decrease) in cash, cash equivalents and restricted cash$456 $(379) Operating Activities Compared to the corresponding period in fiscal year 2025, net cash provided by operating activities increased $1.0 billion for the nine months ended July 31, 2026, primarily due to favorable changes in working capital, partially offset by changes in receivables from contract manufacturers. 49 Table of Contents Key Working Capital Metrics Management utilizes current cash conversion cycle information to manage our working capital level. Our working capital metrics and cash conversion cycle impacts were as follows: July 31, 2025Y/Y Change41 33 8 73 68 5 (151)(138)(13)(37)(37) July 31, 2026October 31, 2025 Short-term debt$1,292 $845 $7,868 $8,821 4.8 %4.6 %Total Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs In thousands, except per share amounts May 2026 $ $7,986,940 June 20265,908 $24.80 5,908 $7,840,435 July 20266,288 $24.41 6,288 $7,686,940 Total12,196 12,196 The Company s share repurchase program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions. On August 27, 2024 HP s Board of Directors increased HP s share repurchase authorization to $10.0 billion inclusive of the amount remaining under previously authorized share repurchases. In the three months ended July 31, 2026, we returned $0.3 billion to shareholders through the repurchase of 12.2 million shares on the open market. Item 3. Defaults Upon Senior Securities. None. Item 4. Mine Safety Disclosures. Not applicable. Item 5. Other Information. Our directors and officers (as defined in Exchange Act Rule 16a-1(f)) may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5 1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Exchange Act. On June 4, 2026, Anneliese Olson, our President of Imaging, Printing & Solutions, adopted a written plan for the sale of up to 170,929 shares of our common stock underlying time-based restricted stock units and shares of our common stock underlying any dividend equivalent units that accrue with respect to such awards. The plan is scheduled to commence on October 29, 2026 and is scheduled to expire on March 31, 2027, or on any earlier date on which all of the shares have been sold. This plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.