HP Inc. Reports Fiscal 2023 Second Quarter Results

HP Inc. and its subsidiaries fiscal 2023 second quarter net revenue of $12.9 billion, down 21.7% (down 18% in constant currency) from the prior-year period.

“Our disciplined execution and strong innovation in a tough macro environment allowed us to deliver non-GAAP EPS at the high-end of our target in Q2,” said Enrique Lores, HP president and CEO. “We are well-positioned to win in our markets and drive long-term sustainable growth as we make continued progress against our Future Ready plan.”

Second quarter GAAP diluted net EPS was $1.07, up from $0.94 in the prior-year period and above the previously provided outlook of $0.40 to $0.50. Second quarter non-GAAP diluted net EPS was $0.80, down from $1.08 in the prior-year period and within the previously provided outlook of $0.73 to $0.83.

Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $(269) million, or $(0.27) per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits and tax adjustments.

HP’s net cash provided by operating activities in the second quarter of fiscal 2023 was $0.6 billion. HP generated $0.5 billion of free cash flow in the second quarter.

Personal Systems net revenue was $8.2 billion, down 29% year over year (down 25% in constant currency) with a 5.4% operating margin. Consumer PS net revenue was down 39% and Commercial PS net revenue was down 24%. Total units were down 28% with Consumer PS units down 34% and Commercial PS units down 23%.

Printing net revenue was $4.7 billion, down 5% year over year (down 2% in constant currency) with a 19% operating margin. Consumer Printing net revenue was down 19% and Commercial Printing net revenue was up 5%. Supplies net revenue was down 4% (down 3% in constant currency). Total hardware units were down 4% overall, with Consumer Printing units down 5% and Commercial Printing units flat.