HP Inc.

Record Q3 performance; broad momentum in Personal Systems - Revenue: $15.7B, +13% YoY (record Q3) and 9th straight quarter of revenue growth. - EPS: $0.83, +11% YoY, and above the top end of guidance even excluding tariff refund benefits (tariff refunds contributed ~$0.11 to EPS). - Personal Systems (PS): $11.8B, +18% YoY (volume down as expected; growth driven by higher-value mix + repricing + services). AI PC portfolio remains key: still expected to be ~50% of shipment mix by end of fiscal year. - Print: revenue -2% YoY (in line with expectations); management is prioritizing profitability and “big tank” placement.

AI/edge strategy is a core “growth engine,” with tangible products + enterprise platform tie-ins - HP is pushing Hybrid/Edge AI (cloud + on-device) citing better cost economics, security, latency, and governance. - Major initiatives highlighted: - HP Z Boost + WXP integration (enabling data-center class GPU sharing locally). - HP ZGX Fury to bring frontier-scale model building/running to deskside. - New AI-enabled PC form factors (e.g., OmniBook Ultra 6 / OmniDesk Mini). - Print Precise Print expanded to 150+ countries; claims up to 38% less paper and 47% less ink. - Nio AI companion gaining momentum; won an industry award and got a 3-year $100M agreement with RRD (partner/customer acceleration signal).

Cost/supply-chain challenges remain the main near-term headwind; mitigation plan is working but not “done” - Management reiterated a 4-pillar mitigation plan: securing supply, shaping demand/configuration, targeted cost reductions, and disciplined pricing. - Gross margin: 18.8% (down YoY as expected) due to higher commodity/inputs and PS mix; tariff refunds partially offset. - Operating margin: 6.5%; when excluding tariff refunds, in line with expectations. - Key investor-relevant signal: Karen said the early benefit from lower-cost memory inventory is largely behind them; now higher-cost inventory is flowing through the P&L in the back half—raising risk of margin pressure.