HP Inc

Q2 headline results beat guidance (good + surprising): - Revenue +9% YoY (+6% constant currency), the 8th consecutive quarter of top-line growth. - EPS: $0.86, up 20% YoY, above guidance—driven by disciplined execution and mitigation actions against commodity/memory cost pressure. - Operating margin 7.5% (+20 bps YoY); gross margin 20.9% aided by pricing and mix. - Personal Systems led: revenue +13% YoY, including AIPC mix rising from >35% to 44% of shipment mix; commercial and consumer both grew.

Capital return + cash flow (good): - Cash from operations >$900M and free cash flow ~ $800M in the quarter. - Returned nearly $400M to shareholders via dividends + share repurchase. - Company reiterates intention to return ~100% of free cash flow over time *as long as* gross leverage stays <2x and there are no better uses of capital.

FY26 outlook strengthened, but margins will face headwinds (mixed, with important forecasts): - Updated full-year EPS guidance: $2.90–$3.10 (improving confidence vs prior quarter). - Q3 EPS: $0.61–$0.71. - Annual free cash flow forecast: $2.8B–$3.0B (solid). - Opex control: OpEx expected to be $500M and corporate other expense slightly under $1B for FY26. - Key risk to margins: memory/storage input costs are expected to continue rising in H2, with PS margins expected to be below the long-term range for the rest of the year; Q4 expected as a “trough/low point” with sequential improvement into FY27.