10-K – 2025-12-10 – hpq-20251031.htm

ability to provide prompt, full, and reliable information about the incident to our customers, partners, regulators, and the public. Remote work and remote access to our systems has increased significantly, which also increases our cybersecurity attack surface. We have also seen an increase in cyberattack volume, frequency, and sophistication driven by the global enablement of remote workforces. Geopolitical tensions or conflicts may further heighten the risk of cybersecurity attacks. The emergence and maturation of AI capabilities may also lead to new and/or more sophisticated methods of attack, including fraud that relies upon “deep fake” impersonation technology or other forms of generative automation that may scale up the efficiency or effectiveness of cybersecurity attacks. While we carry cyber insurance, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.
Because we process proprietary information and sensitive or confidential data relating to our business (including data relating to employees, independent contractors and other personnel), our customers and third parties, breaches of our security measures or accidental loss, inadvertent disclosure or unapproved dissemination of such data can expose us, our customers, third parties and the individuals affected to a risk of loss, alteration or misuse of such information. A breach could also damage our brand and reputation or otherwise harm our business, and could result in government enforcement actions, litigation, civil monetary penalties or fines and other potential liability for us. We are subject to federal, state, and international laws relating to privacy and data protection, particularly in the U.S., European Union (such as the General Data Protection Regulation (“GDPR”)) and China, and other countries’ legislative and regulatory bodies are increasingly proposing new or more stringent requirements relating to privacy and data protection. These laws and regulations continue to evolve, are increasing in complexity and number and increasingly conflict among the various countries in which we operate, which has resulted in greater compliance risk and cost for us. In addition, the cost and operational consequences of implementing new privacy and data protection measures could be significant.
Portions of our IT infrastructure, including those provided by third parties, have experienced, and may experience in the future, interruptions, outages, delays or cessations of service or may produce errors in connection with systems integrations, migration work or other causes, which could result in business disruptions. The process of remediating these issues could be more expensive, time-consuming, disruptive and resource intensive than planned. Further, such disruptions could adversely impact our ability to fulfill orders and respond to customer requests and interrupt other processes, resulting in delayed sales, lower margins, lost customers or reputational damage.
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.
We have undertaken and may undertake in the future restructuring and other plans in order to realign our cost structure, drive customer satisfaction, product innovation and productivity through artificial intelligence, and achieve operating efficiencies that we expect to reduce costs, including the Fiscal 2023 Plan and our Fiscal 2026 Plan. Implementation of any such plans may be costly and disruptive to our business, and we may not be able to obtain the anticipated cost savings, operational improvements and estimated workforce reductions within the projected timing or at all. Additionally, as a result of these plans, we may experience a loss of continuity, loss of accumulated knowledge and/or inefficiency, loss of key employees and/or other retention issues during transitional periods. Restructuring and other plans can require a significant amount of time and focus, which may divert attention from operating and growing our business. Moreover, projections of any cost savings or other benefits associated with our restructuring plans are based on current business operations and market dynamics, and could be significantly impacted by various factors, including but not limited to our evolving business models, future investment decisions, market environment and technology landscape. For more information about our restructuring and other plans, see Note 3, “Restructuring and Other Charges” to our Consolidated Financial Statements in Item 8.
We may not be able to execute acquisitions, divestitures and other significant transactions successfully and we may have difficulty or fail to successfully integrate acquired companies.
As part of our business strategy, we may acquire companies or businesses, divest businesses or assets, enter into strategic alliances and joint ventures, and make investments to further our business. Risks associated with these transactions include the following:
• In certain instances we have not, and we may not in the future, fully realize the anticipated benefits of particular transactions in the timeframe we expected or at all, such transactions may be less profitable than anticipated or unprofitable, we may not identify all factors to estimate accurately our costs, timing or other matters, and realizing the benefits of a particular transaction may depend upon competition, market trends, additional costs or investments and the actions of advisors, suppliers or other third parties.
• Certain transactions have resulted, and in the future may result, in significant costs and expenses, including those related to compensation and benefit costs, goodwill and impairment charges, charges from elimination of duplicative facilities and contracts, inventory adjustments, assumed litigation and other liabilities, advisory fees, and payments to executive officers and key employees under retention plans.
• Our due diligence may fail to identify significant issues with the target’s product quality, financial disclosures, accounting
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practices or internal controls, including as a result of being dependent on the veracity and completeness of statements and disclosures made or actions taken by third parties, or the assumptions or judgments we make with respect to our due diligence may be incorrect.
• In order to finance a transaction, we may issue common stock (potentially creating dilution) or take on additional debt, which may adversely impact our credit rating.
• These transactions could adversely impact our effective tax rate.
• An acquisition target may have differing or inadequate cybersecurity and data protection controls.
• These transactions may lead to litigation.
In addition, if we fail to identify, successfully complete and integrate transactions that further our strategic objectives, we may be required to expend resources to develop products, services and technology internally, which may put us at a competitive disadvantage.
In the case of a divestiture, we may have difficulty finding buyers or alternative exit strategies on acceptable terms in a timely manner. We may also dispose of a business at a price or on terms that are less desirable than we had anticipated. In addition, we may experience fewer benefits than expected, and the impact of the divestiture on our financial performance may be larger than projected.
The business combination and investment transactions in which we engage may be large or complex, and we must manage post-closing issues such as the integration of the acquired business. Integrations involve significant challenges and are often time-consuming and expensive and could significantly disrupt our business and the acquired business. These challenges include successfully combining product and service offerings; entering or expanding into markets; retaining key employees; integrating employees, facilities, technology, products, processes, operations (including supply and manufacturing operations), sales and distribution channels, business models and business systems; and retaining customers and distributors.
Our aspirations and disclosures related to environmental and societal matters expose us to risks that could adversely affect our reputation and performance.
We face increasing attention from the investment community, special interest groups, customers, enforcement authorities and other stakeholders, who may have conflicting views, related to our positions, performance, and disclosures relating to environmental and societal related matters and we are subject to legal and regulatory requirements relating to such positions, performance, and disclosures, which continue to broaden and may be conflicting, both in terms of scope and geography. We have environmental and societal goals, which reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our failure to adequately update, accomplish or accurately track and report on these goals on a timely basis, or at all, or a decision to amend, retire, or stop reporting on certain goals, or positions we take or do not take on social issues could adversely affect our reputation, financial performance and growth, and expose us to increased scrutiny from the investment community, special interest groups, customers and enforcement authorities. Additionally, a failure to adequately meet regulatory expectations may result in the loss of business and reputational impacts, and we periodically are, and in the future could become the target of litigation, investigations or other proceedings initiated by government authorities or private actors alleging that our activities related to environmental and societal matters are anti-competitive, discriminatory or otherwise unlawful. Moreover, efforts to meet evolving and increasingly divergent stakeholder expectations on environmental and societal and related matters may place a strain on our employees and systems.
Our ability to achieve any environmental and societal objectives is subject to numerous risks, some of which are outside of our control. Examples of such risks include the availability and cost of low- or non-carbon-based energy sources, evolving regulatory requirements affecting product circularity, environmental or societal standards or disclosures, evolving consumer protection laws, the availability of materials and suppliers that can meet our environmental, societal and other related goals and the availability of funds to invest in environmental and societal initiatives in times where we are seeking to reduce costs.
Standards for tracking and reporting environmental and societal matters continue to evolve. Our selection of voluntary disclosure frameworks and standards, and the interpretation or application of those frameworks and standards, may change from time to time or differ from those of others. Methodologies for reporting environmental and societal data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations and other changes in circumstances. Our processes and controls for reporting environmental and societal matters across our operations and supply chain are evolving along with multiple disparate standards for identifying, measuring, and reporting environmental and societal metrics, including sustainability-related disclosures that are or may become required by the SEC, European and other regulators (including, but not limited to, the EU Corporate Sustainability Reporting Directive, the EU Corporate Sustainability Due Diligence Directive and the state of California’s climate change disclosure requirements), and such standards may change over time, which could result in revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future.
Some anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
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Certain provisions in our certificate of incorporation and bylaws and the Delaware General Corporation Law may discourage, delay or prevent changes of control of HP judged as undesirable by our Board of Directors. These provisions include: authorizing blank check preferred stock, which we could issue with voting, liquidation, dividend and other rights superior to our common stock; limiting the liability of, and providing indemnification to, our directors and officers; specifying that our stockholders may take action only at a duly called annual or special meeting of stockholders and otherwise in accordance with our bylaws and limiting the ability of our stockholders to call special meetings; requiring advance notice of proposals by our stockholders for business to be conducted at stockholder meetings and for nominations of candidates for election to our Board of Directors; and controlling the procedures for our Board of Directors and stockholder meetings, and election, appointment and removal of our directors. These provisions could deter or delay hostile takeovers, proxy contests and changes in control or our management or limit the opportunity for our stockholders to receive a premium for their shares of our stock.
MACROECONOMIC, INDUSTRY AND FINANCIAL RISKS
Due to the international nature of our business, geopolitical or economic changes or events, uncertainty or other factors could harm our business and financial performance.
Approximately 65% of our net revenue for fiscal year 2025 came from outside the United States. In addition, we operate in emerging markets, which can be more volatile. Our future business and financial performance could suffer due to a variety of international factors, including:
• instability in a country’s or region’s economic, regulatory or political conditions, including inflation, recession, interest rate fluctuations, changes or uncertainty in fiscal or monetary policy, actual or anticipated military or political conflicts, health emergencies or pandemics;
• the imposition by governments of additional taxes, tariffs or other restrictions on foreign trade or changes in restrictions on trade between the United States and other countries where HP products are manufactured or sold, including China;
• trade sanctions, embargoes, country localization requirements and import restrictions and other policies and regulations affecting production, shipping, pricing and marketing of products, including policies adopted by any country that may favor domestic companies and technologies over foreign competitors;
• political sentiment impacting global trade, including the willingness of non-U.S. consumers to purchase from U.S. corporations;
• local labor conditions and regulations, including labor issues faced by suppliers and OEMs, or immigration and labor laws which may adversely impact our access to technical and professional talent;
• changes or uncertainty in international, national or local legal environments, including tax, data handling, privacy, artificial intelligence, intellectual property, consumer protection, environmental and antitrust laws;
• import, export or other business licensing requirements or requirements relating to making foreign direct investments, which could increase our cost of doing business, prevent us from shipping products, affect our ability to obtain favorable terms for components, increase our operating costs or lead to penalties or restrictions;
• compliance with the U.S. Foreign Corrupt Practices Act, U.S. export control and trade sanction laws, and similar anti-corruption and international trade laws, and adverse consequences for any failure to comply, including compliance by recently acquired companies, which may have less robust internal compliance procedures; and
• fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points for our products and shipments.
The factors described above also could disrupt our product and component manufacturing and key suppliers located outside of the United States and our supply chain. For example, we rely on manufacturers in Taiwan to produce notebook computers and other suppliers in Asia for product assembly and manufacture and have manufacturing operations in Israel which support our Industrial Graphics business. The impact of certain geopolitical conflicts (including any escalation or expansion thereof), such as the ongoing military conflicts in Ukraine and the Middle East or tensions in the Taiwan Strait and South China Sea, and any broadening of ancillary geopolitical, economic, and other effects could adversely impact these operations and could heighten the other risks identified in this report.
Since April 2025, new, substantial tariffs have been imposed on imports to the United States. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the United States and other retaliatory measures. As a result, during fiscal 2025, we experienced higher commodity and tariff costs, which were not fully mitigated by pricing and other actions enacted during the period. Should these or other proposed tariffs, including potential retaliatory actions imposed by other countries, be implemented and sustained for an extended period of time, as proposed, enacted or otherwise, they may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate the effects of such tariffs. There can be no assurance that we will be able to successfully offset or mitigate these impacts. Additionally, changing our business model and
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supply chain to comply with and offset the impact of new or revised trade restrictions has in the past and could in the future be expensive, time-consuming and disruptive to our business.
Economic weakness and uncertainty is expected to continue to adversely affect demand for our products and services and, as a result, our business and financial performance.
Our business and financial performance depend on worldwide economic conditions and the demand for our products and services. Ongoing economic weakness, including an economic slowdown or recession, uncertainty in markets throughout the world and other adverse economic conditions, including inflation, changes in monetary policy, changes in levels of government spending, increased interest rates, tariffs and other trade restrictions, exchange rates and an evolving global trade environment, have resulted in, and may continue to result in, decreased demand for our products and services and challenges in managing inventory levels and accurately forecasting revenue, gross margin, cash flows and expenses. For example, during fiscal year 2025 we observed continued market uncertainty, cautious commercial spending on information technology hardware, including in China, lower discretionary consumer spending, increasing commodity costs, inflationary pressures, the implementation of tariffs and other trade restrictions, and foreign currency fluctuations. Changes in government spending limits may continue to reduce demand for our products and services from governments or organizations that receive government funding. Moreover, U.S. government contracts are subject to congressional funding, which at times has been and may in the future be unavailable or delayed, which could impact our business.
Prolonged or more severe economic weakness and uncertainty could also cause our expenses to vary materially from our expectations. Financial turmoil affecting the banking system and financial markets or significant financial services institution failures could negatively impact our treasury operations or those of our suppliers, vendors or customers, rapidly and without notice. Poor financial performance of asset markets and the adverse effects of fluctuating exchange rates could lead to higher pension and post-retirement benefit expenses. Interest and other expenses could vary materially from expectations depending on interest rates, borrowing costs, exchange rates, costs of hedging and the fair value of derivative instruments. Economic downturns also may lead to future restructuring actions and associated expenses.
We are exposed to fluctuations in currency exchange rates, which could adversely impact our results.
Currencies other than the U.S. dollar, including the euro, the British pound, Indian rupee, Chinese yuan (renminbi) and the Japanese yen, can have an impact on our results as expressed in U.S. dollars. Global events, trade disputes, economic sanctions, inflation, increasing interest rates and emerging market volatility, and the resulting uncertainty, may cause currencies to fluctuate, which may contribute to variations in our sales in impacted jurisdictions. Because most of our revenues are generated outside the United States, fluctuations in currency exchange rates have adversely affected, and could in the future adversely affect, our net revenue growth. In addition, currency variations can adversely affect margins on sales of our products in countries outside of the United States and products that include components obtained from suppliers located outside of the United States, as well as our ability to increase prices. In addition, currency fluctuations, particularly weakness in the Japanese Yen, has and may continue to exacerbate pricing competition for our print products and services. From time to time, we may use derivative contracts designated as cash flow hedges to protect against foreign currency exchange rate risks. However, our hedging strategies may be ineffective, may not offset any or more than a portion of the adverse financial impact resulting from currency variations, or may result in losses.
Business disruption events could seriously harm our future revenue, cash flows and financial condition and increase our costs and expenses.
Our worldwide operations could be disrupted by natural disasters, telecommunications failures, cybersecurity incidents or other disruptions impacting information technology systems, manufacturing equipment failures, power or water shortages, fires, extreme weather conditions, and other disasters or catastrophic events, for which we are predominantly self-insured. Terrorist acts or armed conflicts, for which we are predominantly uninsured, may also disrupt our operations. Global pandemics or other public health crises may adversely affect, among other things, our supply chain and associated costs; demand for our products and services; our operations and sales, marketing and distribution efforts; our research and development capabilities; our engineering, design, and manufacturing processes; and other important business activities. These events could result in significant losses, adversely affect our competitive position, increase our costs, require substantial expenditures and recovery time, make it difficult or impossible to provide services or deliver products to our customers or to receive components from our suppliers, create delays and inefficiencies in our supply chain and result in the need to impose employee travel restrictions. Our operations and those of our suppliers and distributors could be adversely affected if manufacturing, logistics, or other operations in key locations, are disrupted for any reason, such as those described above or other economic, business, labor, environmental, public health, regulatory or political reasons. In addition, even if our operations are unaffected or recover quickly, if our customers cannot timely resume their own operations, they may reduce or cancel their orders, or these events could otherwise result in a decrease in demand for our products.
Climate change and associated regulatory and market impacts may have an adverse effect on our business.
There are climate-related risks wherever our business is conducted. Global climate change is resulting, and is projected to continue to result, in natural disasters and adverse weather, such as drought, wildfires, storms, sea-level rise, flooding, heat waves, and cold waves, occurring more frequently or with greater intensity. Such extreme climate related events are driving changes in market dynamics, stakeholder expectations, and local, national and international climate change policies and regulations, which could result in
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disruptions to us, our suppliers, vendors, customers and logistics hubs and impact employees’ abilities to live in certain areas, commute or to work from home effectively. These disruptions could make it more difficult and costly for us to deliver our products and services, obtain components or other supplies through our supply chain, maintain or resume operations or perform other critical corporate functions, and could reduce customer demand for our products and services. Furthermore, climate change has reduced the availability and increased the cost of insurance for these negative impacts of natural disasters and adverse weather conditions by contributing to an increase in the incidence and severity of such natural disasters.
The increasing concern over climate change has resulted, and we expect will continue to result, in transition risks such as shifting customer preferences and regulations, including with regard to our products and their environmental impact. These demands have, and we expect will continue to, cause us to incur additional costs and make other changes to our operations. If we fail to manage transition risks effectively, customer demand for our products and services could diminish, and our profitability and cash flow could suffer. Additionally, concerns over climate change have resulted in, and are expected to continue to result in, the adoption of regulatory requirements designed to address climate change, such as imposing a price on carbon emissions, requirements of increased circularity in products, product efficiency and environmental certification requirements and climate-related disclosures. As a result, we have experienced and expect to continue to experience, increased compliance burdens and costs, increased indirect costs resulting from our suppliers passing on compliance costs to us, and certain of our products may be rendered obsolete, financially unviable or face market access issues. Further, conflicting regulations and a lack of harmonization of legal and regulatory environments across the jurisdictions in which we operate may create enhanced compliance risks and costs. The impacts of climate change, whether involving physical risks or transition risks, are expected to be widespread and may materially adversely affect our business and financial results.
Failure to maintain our credit ratings could adversely affect our liquidity, capital position, borrowing costs and access to capital markets, as well as our subscription based and other offerings.
Our credit risk is evaluated by the major independent rating agencies. A downgrade of our current credit rating could increase the cost of borrowing under our credit facilities, reduce access to capital markets and/or market capacity for our commercial paper or require the posting of additional collateral under some of our derivative contracts. In addition, a downgrade of our credit rating could have an adverse impact on our subscription, other recurring revenue business and other offerings and our strategy related to such businesses due to higher borrowing costs and customer preferences when deciding to purchase our subscription based and other offerings. We have in the past, and may from time to time in the future, take actions to manage our capital structure, including reducing our outstanding debt, in order to maintain our credit rating. Such actions may reduce the funds we would otherwise have available for working capital, capital expenditures, dividends, stock repurchases, acquisitions, and other general corporate purposes. We cannot be assured that we will be able to maintain our current credit ratings, and any additional actual or anticipated changes or downgrades in our credit ratings, including any announcement that our ratings are under further review for a downgrade, may impact us in a similar manner and have a negative impact on our liquidity, capital position, access to capital markets and our subscription based and other offerings.
Our debt obligations could adversely affect our business and financial condition.
In addition to our current debt, we may also incur additional indebtedness. Our debt level and related debt service obligations could have the effect, among others, of reducing our flexibility to respond to changing business and economic conditions, and reducing funds available for working capital, capital expenditures, dividends, stock repurchases, acquisitions, and other general corporate purposes. We may also be required to raise additional financing for working capital, capital expenditures, debt service obligations, debt refinancing, future acquisitions or for other general corporate purposes, which will depend on, among other factors, our financial position and performance, as well as prevailing market conditions and other factors beyond our control. Consequently, we may not be able to obtain additional financing or refinancing on terms acceptable to us, or at all, which could adversely impact our ability to service our outstanding indebtedness or to repay our outstanding indebtedness as it becomes due and could adversely impact our business and financial condition. Additionally, further indebtedness may increase the risk of a future downgrade in our credit ratings, which could increase future debt costs, limit the future availability of debt financing and adversely affect our subscription based business.
The amount and frequency of our share repurchases and dividends are affected by a number of factors and may fluctuate.
Although historically we have announced regular cash dividend payments and we have adopted a share repurchase program, we are not obligated to pay cash dividends or to repurchase a specified number or dollar value of shares under our share repurchase program or at all. The declaration and payment of any future dividends is at the discretion of our Board of Directors. The level of dividends and amount, timing, and purchases under our share repurchase program, if any, are influenced by many factors and may fluctuate based on our operating results, cash flows, and priorities for the use of cash, the market price of our common stock, and, with respect to share repurchases, our possession of potentially material nonpublic information . In addition, we cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term shareholder value.
We make estimates and assumptions in connection with the preparation of our financial statements, and any changes to those estimates and assumptions could adversely affect our results of operations, cash flows and financial condition.
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In connection with the preparation of our financial statements, we use certain estimates and assumptions based on historical experience and other factors. Our most critical accounting estimates are described in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of this report. For example, we make significant estimates and assumptions when accounting for revenue recognition, taxes on earnings and goodwill, and when making decisions related to provisions for legal proceedings and other contingencies. We also estimate sales and marketing program incentives based on a number of factors including historical experience, expected customer behavior and market conditions. These estimates and assumptions are subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could adversely affect our results of operations, cash flows and financial condition.
Ineffective internal controls could impact our business and operating results.
Our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, failure or interruption of information technology systems, the circumvention or overriding of controls, or fraud. Even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed and the company could fail to meet its financial reporting obligations.
LEGAL AND REGULATORY RISKS
Our business is subject to various federal, state, local and foreign laws and regulations that could adversely affect our business and results of operations and cash flows.
We are subject to various, and sometimes conflicting, federal, state, local and foreign laws and regulations. There can be no assurance that such laws and regulations will not be interpreted and changed in ways that will require us to modify our business models and objectives or affect our returns on investments by restricting existing activities and products, subjecting them to escalating costs or increased restrictions or prohibiting them outright. In particular, we face increasing complexity in our product design and procurement operations as we adjust to new and future requirements relating to the composition of our products, their safe use, the energy consumption associated with those products, climate change laws and regulations, and product repairability, reuse, recyclability and take-back legislation. In addition, there is existing and proposed legislation related to human rights, environmental and social responsibility (including tracing requirements related to forced labor prohibitions) for our operations, supply chain partners, and our products and services. Moreover, we are becoming increasingly subject to laws, regulations and international treaties relating to climate change, such as carbon pricing or product energy efficiency requirements or more prescriptive reporting requirements. Additionally, the rapid evolution and increased adoption of AI technologies and our obligations to comply with emerging laws and regulations may require us to develop additional AI-specific governance programs, which could entail significant costs or limit our ability to incorporate certain AI capabilities into our products and solutions.
As new laws, regulations, treaties, executive orders, directives, enforcement priorities and similar initiatives and programs are adopted and implemented, we are required to comply or potentially face market access limitations or restrictions on our products entering certain jurisdictions or our ability to provide services within certain jurisdictions, sanctions or other penalties, including fines. Such burdens or costs have in the past resulted in, and may in the future result in, an adverse effect on our financial condition, results of operations and cash flows. We also face significant compliance and operational burdens and incur significant costs in our efforts to comply with or rectify non-compliance with these laws or regulations. Our potential exposure also includes third-party property damage, personal injury claims and clean-up costs. Further, liability under some environmental laws relating to contaminated sites can be imposed retroactively, on a joint and several basis, and without any finding of noncompliance or fault.
We are subject to risks associated with litigation and regulatory proceedings.
We face legal claims or regulatory matters involving stockholder, consumer, competition, commercial, IP, employment, and other issues on a global basis. There is an increasingly active litigation and regulatory environment, including but not limited to employment and patent-monetization claims in the United States, Germany and Brazil, and litigation and regulatory matters focused on consumer protection, privacy, and competition regulation globally. Patent monetization campaigns have become increasingly aggressive, including those by patent holders for standardized technology, such as Wi-Fi and video and other standardized technology in PCs, who have sued in venues that allow injunctions despite commitments to license patents on fair and reasonable terms. If we are unsuccessful in defending against such claims, we may be exposed to exorbitant licensing demands in order to avoid potential disruptions to our business. As described in Note 14, “Litigation and Contingencies” to the Consolidated Financial Statements in Item 8, we are engaged in a number of litigation and regulatory matters that may have a material adverse impact on our business, financial condition, cash flows or results of operations, if decided adversely to or settled by us. Litigation and regulatory proceedings are inherently uncertain, and adverse rulings and settlements have occurred and may occur, including awards of monetary damages, imposition of fines, issuance of injunctions or cease-and-desist orders directing us to cease engaging in certain business practices, cease manufacturing or selling certain products, requiring the compulsory licensing of patents, or requiring other remedies. In addition, regardless of the outcome, litigation and regulatory proceedings can be costly, time-consuming, disruptive to our operations, distracting to management, and adversely impact our reputation.
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We and Hewlett Packard Enterprise entered into a separation and distribution agreement and various other agreements in connection with the separation of the two 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. If Hewlett Packard Enterprise or its successor entities (including spun off businesses to which obligations have been transferred) are unable to satisfy their obligations under these agreements, we could incur operational difficulties or losses.
Failure to comply with our customer and partner contracts or government contracting regulations could adversely affect our business and financial performance.
Our contracts with our customers may include unique and specialized performance requirements. In particular, our contracts with federal, state, provincial and local governmental customers are subject to procurement regulations, contract provisions, executive orders and other specific requirements relating to their formation, administration and performance. In addition, contracts with customers may also include a requirement to comply with customer codes of conduct, which may have terms that conflict with our code of conduct, business policies and strategic objectives. Any failure by us to comply with the specific provisions in our customer contracts or any violation of government contracting regulations or applicable law could result in loss of business or the imposition of civil and criminal penalties, which may include termination of contracts, forfeiture of profits, suspension of payments and, in the case of our government contracts, fines and suspension from future government contracting. Such failures could also cause reputational damage to our business and affect our ability to compete for new contracts. If our customer contracts are terminated, if we are suspended or disbarred from government work, or if our ability to compete for new contracts is adversely affected, our financial performance could suffer. Our partner contracts also contain terms relating to new partner business models and tools creation that could raise issues for which laws or regulations are currently changing or emerging. This could affect us in ways that are not currently fully known or measurable.
Changes in our tax provisions, adverse tax audits, the adoption of new tax legislation, or exposure to additional tax liabilities could have a material impact on our financial performance.
We are subject to income taxes in the United States and approximately 60 other countries, and we are subject to routine corporate income tax audits in many of these jurisdictions. We believe that the positions taken on our tax returns are fully supported, but tax authorities may challenge these positions, and our positions may not be fully sustained on examination by the relevant tax authorities. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision, and, we believe we have provided adequate reserves for all tax deficiencies or reductions in tax benefits that could reasonably result from an audit. Our accrual for uncertain tax positions is attributable primarily to uncertainties concerning the tax treatment of our domestic operations, including the allocation of income among different jurisdictions, intercompany transactions, pension and related interest. We adjust our uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. Determining the appropriate provision for potential deficiencies or reductions in tax benefits that could reasonably result from an audit requires management judgments and estimates, and income tax audits are inherently unpredictable. We may not accurately predict the outcomes of these audits, and the amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax provision and, therefore, could have a material impact on our income tax provision, net income and cash flows.
Our effective tax rate in the future could be adversely affected by changes to our operating structure, changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, or changes in tax laws or in their interpretation or enforcement. In addition, changes in tax law and regulation in the U.S. or elsewhere could significantly impact our tax rate, the carrying value of deferred tax assets, or our deferred tax liabilities. In addition, our effective tax rate could also be materially affected by the Organisation for Economic Co-operation and Development’s (the “OECD”), the European Commission’s and other certain major jurisdictions’ heightened interest in and taxation of large multi-national companies. For instance, the OECD has enacted model rules for a new global minimum tax framework (“BEPS Pillar Two”), and various governments around the world have enacted, or are in the process of enacting, legislation on these rules.

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ITEM 1B.    Unresolved Staff Comments.
None.

Item 1C. Cybersecurity
HP’s work to defend against cybersecurity threats is occurring against the backdrop of an evolving global threat landscape. Like other Fortune 500 companies, we face a substantial number of cybersecurity threats—ranging from common cyberattacks such as phishing to more evolved threats that incorporate the use of AI. Our products and processes pose an attractive challenge for the most advanced of threat actors—including but not limited to those who are state-sponsored. As a global corporation with a wide range of systems and networks in place, and with customers who threat actors might also wish to target, we could face attacks not only on our own structures, but also on those of our many third-party providers and partners. In response to this threat environment, we have implemented a comprehensive cybersecurity program to assess, identify, and manage risks from cybersecurity threats. Our holistic approach is designed to integrate cybersecurity across the value chain, including in the design, development, and delivery of our products, services, solutions, and operations.
Our Chief Information Security Officer (“CISO”), who has extensive cybersecurity knowledge and skills gained from over 20 years of experience as a CISO at the Company and elsewhere, has responsibility for HP’s global cybersecurity program, including infrastructure and technology platforms, overseeing governance, regulatory and compliance, operations, strategy, and architecture. The CISO reports to our Chief Financial Officer. This role is responsible for building out a cybersecurity organization that is designed to enable robust security coupled with productivity for more than 70,000 global employees, contractors, and partners. The CISO supports HP’s business acceleration and transformation by identifying and managing cybersecurity risks, balancing them with business priorities, and using a contemporary security posture to support HP’s position as an industry leader. As part of this, the CISO receives reports on cybersecurity threats from a number of experienced information security officers responsible for various parts of the business on an ongoing basis and in conjunction with management, regularly reviews risk management measures implemented by the Company to identify and mitigate data protection and cybersecurity risks.
Our cybersecurity organization collaborates heavily with technology, business and legal stakeholders to enable secure business strategy, maintain, and grow proper security oversight, enhance security monitoring and response, and quantify and reduce risks and compliance gaps. There are six key focus areas within the cybersecurity organization: enterprise security operations, architecture and security engineering, identity access management, IT risk management and compliance, governance, risk and compliance, and strategy and program delivery. Additionally, we aim to incorporate a broad range of industry-standard cybersecurity best practices throughout our cybersecurity organization. These include, among other things:
• an insider threat program that coordinates resources to discourage, identify, and mitigate cybersecurity threats;
• regular audits of HP cybersecurity systems and annual risk assessments of related HP systems and processes, including our information security management systems;
• an incident response plan that sets out a coordinated approach to investigating, containing, documenting and mitigating incidents, including reporting findings and keeping senior management and other key stakeholders informed and involved as appropriate;
• annual and ongoing security awareness training for employees;
• a cybersecurity/information security policy, as well as an acceptable use policy that defines the permitted usage of company-provided technology and contains consequences for noncompliance;
• company-wide privacy policies as well as a physical security program that secures our offices and data center facilities;
• systems and processes designed to oversee, identify, and reduce the potential impact of a security incident at a third-party vendor, service provider or customer or otherwise implicating the third-party technology and systems we use; and
• engagement with industry peers and participation in cybersecurity forums to share knowledge and learn from best practices.
On an annual basis, the cybersecurity organization also enlists the aid of an independent third party to assess our alignment with the National Institute of Standards & Technology’s Cyber Security Framework. The assessment examines our information/cybersecurity program and its associated controls and delivers a report that documents assessment results and provides recommendations for further enhancements. The cybersecurity organization is responsible for presenting an overview of the Cybersecurity Risk Assessment Report to the Board of Directors on at least an annual basis, and the HP executive leadership team is heavily involved in implementing and resolving recommendations. From time to time, we also engage assessors, consultants, auditors, or other third parties to assist with assessing, identifying, and managing cybersecurity risks.
Our cybersecurity risks are evaluated by senior leadership, including as part of our enterprise risk assessments that are reviewed by the Audit Committee and our Board of Directors, and our Internal Audit function, which is an objective, independent assurance and
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advisory organization that helps HP achieve business objectives and conducts regular assessments, audits, and testing of the cybersecurity program and its associated controls.
As of the date of this Form 10-K, risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected us, including our business strategy, results of operations or financial condition. However, there can be no guarantee that we will not experience such an event moving forward and if realized, these risks are reasonably likely to materially affect us . Additional information on cybersecurity risks we face can be found in “Risk Factors” in Item 1A of Part I of this report under the heading “System security risks, data protection breaches, cyberattacks, system outages and systems integration issues could disrupt our internal operations or services provided to customers, and could reduce our revenue, increase our expenses, damage our reputation and adversely affect our cash flows and stock price,” which should be read in conjunction with the foregoing information.
Our Board, in coordination with the Audit Committee, oversees the Company’s enterprise risk management process, including the management of risks arising from cybersecurity threats . Our Board has delegated the primary responsibility to oversee cybersecurity matters to the Audit Committee. The Board and Audit Committee regularly review the measures implemented by the Company to identify and mitigate data protection and cybersecurity risks . As part of such reviews, the Board and Audit Committee regularly receive reports and presentations from management regarding our information and technology security program, including the CISO , which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations arising with respect to the Company’s peers and third parties. We have protocols by which certain cybersecurity incidents that meet established reporting thresholds are escalated within the Company and, where appropriate, reported promptly to the Board and Audit Committee, as well as ongoing updates regarding any such incident until it has been addressed.

ITEM 2. Properties.
As of October 31, 2025, we owned or leased approximately 16.9 million square feet of space worldwide, a summary of which is provided below.

  Fiscal year ended October 31, 2025

  Owned Leased Total
  (square feet in millions)
Administration and support 1.9  5.0  6.9 
(Percentage) 28 % 72 % 100 %
Manufacturing, research and development facilities and warehouse operations
2.4  4.9  7.3 
(Percentage) 33 % 67 % 100 %
Total (1)
4.3  9.9  14.2 
(Percentage) 30 % 70 % 100 %

(1) Excludes 2.7 million square feet of vacated space, of which 1.9 million square feet is leased to third parties.
We believe that our existing properties are in good condition and are suitable for the conduct of our business. Each of our segments Personal Systems, Printing and Corporate Investments uses each of the properties at least in part, and we retain the flexibility to use each of the properties in whole or in part for each of the segments.
Headquarters
Our global headquarters, including our principal executive offices, are located at 1501 Page Mill Road, Palo Alto, California, United States. The locations of our geographic headquarters are as follows:

Americas   Europe, Middle East, Africa   Asia Pacific
Palo Alto, United States   Geneva, Switzerland   Singapore

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Product Development and Manufacturing
The locations of our major product development and manufacturing facilities are as follows:

Americas Europe, Middle East, Africa Asia Pacific
Mexico— Tijuana
United States —Boise, Corvallis,
Fort Collins, Fountain Valley,
Palo Alto, San Diego, Scotts Valley,
Spring, Vancouver
Israel— Kiryat-Gat, Rehovot, Netanya
Spain— Barcelona
  China— Chongqing, Shanghai
 India —Bangalore
 Malaysia— Penang
 Singapore— Singapore
 South Korea— Pangyo
 Taiwan— Taipei

ITEM 3. Legal Proceedings.
Information with respect to this item may be found in Note 14, “Litigation and Contingencies” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.

ITEM 4. Mine Safety Disclosures.
Not applicable.
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PART II

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our common stock is traded on the New York Stock Exchange under the symbol HPQ.
For information about dividends, see our Consolidated Statements of Stockholders’ Deficit in Item 8, which is incorporated herein by reference.
As of December 1, 2025, there were approximately 42,937 stockholders of record.
Recent Sales of Unregistered Securities
There were no unregistered sales of equity securities in fiscal year 2025.
Issuer Purchases of Equity Securities

Total
Number
of Shares
Purchased Average
Price Paid
per Share Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs Approximate Dollar
Value of Shares
that May Yet Be
Purchased under the
Plans or Programs
Period In thousands, except per share amounts
August 2025 5,721  $ 26.22  5,721  $ 8,761,940 
September 2025 5,779  $ 28.17  5,779  $ 8,599,150 
October 2025 6,830  $ 27.41  6,830  $ 8,411,940 
Total 18,330    18,330   

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 total share repurchase authorization to $10.0 billion, inclusive of the amount remaining under previously authorized share repurchases. In the fourth quarter of fiscal year 2025, we returned $0.5 billion to shareholders through the repurchase of 18.3 million shares on the open market.
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Stock Performance Graph and Cumulative Total Return
The graph below shows the cumulative total stockholder return assuming the investment of $100 at the market close on October 31, 2020 (and the reinvestment of dividends thereafter) in each of HP common stock, the S&P 500 Index, and the S&P Information Technology Index. The comparisons in the graph below are based on historical data and are not indicative of, or intended to forecast, future performance of our common stock.

10/20
10/21
10/22
10/23
10/24
10/25

HP Inc. $ 100.00  $ 173.62  $ 162.80  $ 160.88  $ 224.51  $ 182.07 
S&P 500 Index $ 100.00  $ 142.89  $ 122.00  $ 134.35  $ 185.38  $ 225.10 
S&P Information Technology Index $ 100.00  $ 146.93  $ 117.16  $ 153.30  $ 231.83  $ 318.88 

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ITEM 6. [Reserved].
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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The discussion of financial condition and results of our operations that follows provides information that will assist the reader in understanding our Consolidated Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Consolidated Financial Statements. This discussion should be read in conjunction with our Consolidated Financial Statements and the related notes that appear elsewhere in this document. This section generally discusses the results of operations for the fiscal year ended October 31, 2025 compared to the fiscal year ended October 31, 2024. For a discussion of fiscal year ended October 31, 2024 compared to the fiscal year ended October 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations

OVERVIEW
HP delivers innovative and sustainable devices, services, and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming and other related technologies. We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops, notebooks and workstations (including HP’s portfolio of AI PCs and workstations), thin clients, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects.
• In Personal Systems, our long-term strategic focus is on:
◦ profitable growth through innovation, market segmentation and simplification of our portfolio;
◦ enhanced innovation in multi-operating systems, multi-architecture, customer segments and other key attributes;
◦ investing in endpoint services and solutions. We are focused on services, including Device-as-a-Service, as the market shifts to subscription-based solutions, and accelerating in attractive adjacencies such as hybrid systems; and
◦ driving innovation to enable productivity and collaboration, with AI PCs and workstations playing a critical role in the transformation of how people live and work.
• In Printing, our long-term strategic focus is on:
◦ offering innovative, intelligent printing experiences and subscription-based solutions designed to securely serve consumer and SMB customers through our Instant Ink Services and HP All-In Plan, as well as large enterprises through our Managed Print Services solutions;
◦ providing digital printing solutions for industrial graphics segments and applications including commercial publishing, labels, packaging, and textiles; and
◦ expanding our footprint in 3D printing across digital manufacturing and strategic applications.
We are focused on driving further growth, recurring revenue and investment in strategic areas and believe we are well positioned to lead the future of work with our competitive product lineup and enhanced portfolio of hybrid systems, remote-computing solutions, and intelligent print solutions. We are driving innovation by accelerating the delivery of AI across our product portfolio and focusing on growth opportunities in commercial, solutions, and premium consumer and gaming markets. We have consolidated all our software resources under the Technology and Innovation Organization to evolve from a transactional hardware company to a more experience-led organization, further strengthening our ability to capture these opportunities.
We continue to experience challenges that are representative of the trends and uncertainties that may affect our industry, generally, and our business and financial results, specifically, and we expect these challenges to continue in the short-term. One set of challenges relates to the current macroeconomic environment and the adverse impact on demand for certain of our products. A second set of challenges relates to changes in the competitive landscape. Our primary competitors are exerting competitive pressure in targeted areas and are entering new markets, our emerging competitors are introducing new technologies and business models, and our alliance partners in some businesses are increasingly becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution in an evolving distribution and reseller landscape, with increasing online and omnichannel presence. Specific challenges we face at the segment level are set forth below.
• In Personal Systems, we face challenges with a competitive pricing environment, variability in commodity costs, especially increasing memory and storage costs, and the uncertainty of the market’s ability to absorb price increases.
• In Printing, we face challenges from changing customer behaviors as well as competitors with a favorable foreign currency environment and non-original supplies (which includes imitation, refill, or remanufactured alternatives). We also obtain many Printing components from single source suppliers due to technology, availability, price, quality, or other considerations.
To address these challenges, we continue to pursue innovation with a view towards developing new products and services aligned with generating market demand and meeting the needs of our customers and partners. In addition, we continue to work on improving our operations and adapting our business models, with a particular focus on enhancing our end-to-end processes, analytics, efficiencies and simplification of our product portfolio. We also continue to work on optimizing our sales coverage models, aligning our sales incentives with our strategic goals, improving channel execution and inventory, production and backlog management, strengthening our capabilities in our areas of strategic focus, effective cost management, strengthening our pricing strategy, and developing and capitalizing on market opportunities.
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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations

Macroeconomic Environment
Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as ongoing geopolitical tensions, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience seasonality in the sale of our products and services which may be affected by general economic conditions.
Since April 2025, new, substantial tariffs have been imposed on imports to the United States. We continue to evaluate and implement further mitigating actions, including potential supply chain resiliency movements and cost and pricing measures, as the tariff environment evolves. During fiscal year 2025, we experienced higher commodity and tariff costs, which were not fully mitigated by pricing and other actions enacted during the period. We anticipate commodity cost pressure to continue, including recent inflationary trends in memory and storage costs and potential supply constraints in our Personal Systems business. New or sustained changes to tariffs and commodity costs could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may have a significant adverse impact to our results of operations and cash flows to the extent our efforts do not fully mitigate these effects. We are also exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with approximately 65% of our net revenue from outside the United States. As a result, our financial results can be, and particularly in recent periods have been, negatively impacted by fluctuations in foreign currency exchange rates. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled “Risk Factors” in Item 1A of Part I in this Annual Report on Form 10-K.
Transformation Update
In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan” or “Future Ready”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan, as amended in February 2025, ran through the end of fiscal year 2025 and exceeded our overall program savings target. Since announcing our Fiscal 2023 Plan, we have enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact our products, solutions and operations. Additionally, we reduced portfolio complexity, improved continuity of supply, and increased our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also reduced our structural cost through headcount reductions and achieved our overall headcount reduction goal.
In November 2025, we announced our new plan to drive customer satisfaction, product innovation, and productivity through AI adoption and enablement (the “Fiscal 2026 Plan”). The Fiscal 2026 Plan is expected to run for three years through the end of fiscal year 2028. We expect to invest some of the savings into our growth areas and our people.
See “Risk Factors—Strategic and Operational Risk Factors—We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business” in Item 1A, which is incorporated herein by reference. For more information on our Fiscal 2023 Plan and Fiscal 2026 Plan, see Note 3, “Restructuring and Other Charges,” to the Consolidated Financial Statements in Item 8 of Part II of this report, which is incorporated herein by reference.

CRITICAL ACCOUNTING ESTIMATES  
General
Our Consolidated Financial Statements are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), which require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and the disclosure of contingent liabilities. Critical accounting estimates are those that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amount of assets and liabilities. Management believes that the accounting estimates employed and the resulting amounts are reasonable; however, actual results may differ from these estimates. 
A summary of our significant accounting policies is included in Note 1, “Summary of Significant Accounting Policies” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference. Management believes the following accounting policies reflect the critical accounting estimates used in the preparation of our Consolidated Financial Statements.
Revenue Recognition - Variable Consideration
We recognize revenue depicting the transfer of promised goods or services to customers in an amount that may include variable consideration. When the transaction price includes a variable amount, we estimate the amount using either the expected value or most likely amount method. At the time of revenue recognition, we reduce the transaction price by the estimated variable consideration (e.g., customer and distributor programs and incentive offerings, rebates, promotions, and other volume-based incentives). We use
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations

estimates to determine the expected variable consideration for such programs based on historical experience, expected consumer behavior and market conditions.
Taxes on Earnings
As a result of certain employment actions and capital investments we have undertaken, income from manufacturing activities in certain jurisdictions is subject to reduced tax rates and, in some cases, is wholly exempt from taxes for fiscal years through 2029.
We record a valuation allowance to reduce deferred tax assets to the amount that we are more likely than not to realize. In determining the need for a valuation allowance, we consider future market growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which we operate and prudent and feasible tax planning strategies. In the event we were to determine that it is more likely than not that we will be unable to realize all or part of our deferred tax assets in the future, we would increase the valuation allowance and recognize a corresponding charge to earnings or other comprehensive income in the period in which we make such a determination. Likewise, if we later determine that we are more likely than not to realize the deferred tax assets, we would reverse the applicable portion of the previously recognized valuation allowance. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income in the jurisdictions in which the deferred tax assets are located.
We are subject to income taxes in the United States and approximately 60 other countries, and we are subject to routine corporate income tax audits in many of these jurisdictions. We believe that positions taken on our tax returns are fully supported, but tax authorities may challenge these positions, and our positions may not be fully sustained on examination by the relevant tax authorities. Accordingly, our income tax provision includes amounts intended to satisfy assessments that may result from these challenges. Our accrual for uncertain tax positions is attributable primarily to uncertainties concerning the tax treatment of our domestic operations, including the allocation of income among different jurisdictions, intercompany transactions, pension and related interest. We adjust our uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. Determining the appropriate provision for potential deficiencies or reductions in tax benefits that could reasonably result from an audit requires management judgments and estimates, and income tax audits are inherently unpredictable. We may not accurately predict the outcomes of these audits, and the amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in our income tax provision and, therefore, could have a material impact on our provision for taxes, net earnings and cash flows. For a further discussion on taxes on earnings, refer to Note 6, “Taxes on Earnings” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Legal Contingencies
We are involved in various lawsuits, claims, investigations and proceedings including those consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. We record a liability when we believe that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. We review these matters at least quarterly and adjust these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events, pertaining to a particular case. Litigation is inherently unpredictable. However, we believe we have valid defenses with respect to legal matters pending against us. 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. We believe we have recorded adequate provisions for any such matters and, as of October 31, 2025, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in our financial statements.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations

RECENT ACCOUNTING PRONOUNCEMENTS
For a summary of recent accounting pronouncements applicable to our consolidated financial statements see Note 1, “Summary of Significant Accounting Policies” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.

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: 

  For the fiscal years ended October 31
  2025 2024 2023
Dollars % of Net Revenue Dollars % of Net Revenue Dollars % of Net Revenue
  Dollars in millions
Net revenue:
Products $ 52,002  94.0  % $ 50,453  94.2  % $ 50,660  94.3  %
Services 3,293  6.0  % 3,106  5.8  % 3,058  5.7  %
Total net revenue 55,295  100.0  % 53,559  100.0  % 53,718  100.0  %
Cost of net revenue:
Products (1)
41,993  80.8  % 39,952  79.2  % 40,484  79.9  %
Services (2)
1,910  58.0  % 1,789  57.6  % 1,726  56.4  %
Total cost of net revenue 43,903  79.4  % 41,741  77.9  % 42,210  78.6  %
Gross margin
11,392  20.6  % 11,818  22.1  % 11,508  21.4  %
Research and development 1,602  2.9  % 1,640  3.1  % 1,578  2.9  %
Selling, general and administrative 5,821  10.5  % 5,658  10.6  % 5,357  10.0  %
Restructuring and other charges 405  0.8  % 301  0.5  % 527  1.0  %
Acquisition and divestiture charges 45  0.1  % 83  0.2  % 240  0.4  %
Amortization of intangible assets 345  0.6  % 318  0.6  % 350  0.7  %

Total operating expenses 8,218  14.9  % 8,000  15.0  % 8,052  15.0  %
Earnings from operations 3,174  5.7  % 3,818  7.1  % 3,456  6.4  %
Interest and other, net (506) (0.9) % (539) (1.0) % (519) (0.9) %
Earnings before taxes 2,668  4.8  % 3,279  6.1  % 2,937  5.5  %
(Provision for) benefit from taxes
(139) (0.2) % (504) (0.9) % 326  0.6  %
Net earnings $ 2,529  4.6  % $ 2,775  5.2  % $ 3,263  6.1  %

(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.
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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.
In fiscal year 2025, total net revenue increased 3.2% (increased 3.7% on a constant currency basis) as compared to the prior-year period. Net revenue from the United States increased 2.2% to $19.2 billion, and outside of the United States increased 3.8% to $36.1 billion. The increase in net revenue was primarily driven by products net revenue due to increased units in Personal Systems as well as an increase in services net revenue due to support services on hardware devices, partially offset by a decline in Printing net revenue and unfavorable currency impacts.
A detailed discussion of the factors contributing to the changes in segment net revenue is included under “Segment Information” below. 
Gross Margin
In fiscal year 2025, gross margin decreased by 1.5 percentage points primarily driven by products gross margin due to higher commodity and tariff costs, mix shifts towards Personal Systems and unfavorable currency impacts, partially offset by disciplined pricing actions and cost savings including Future Ready transformation savings. Services gross margin decreased due to unfavorable 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 2.3% in fiscal year 2025, primarily due to disciplined cost savings.
Selling, general and administrative (“SG&A”)
SG&A expense increased 2.9% in fiscal year 2025, primarily due to higher litigation costs, partially offset by lower variable compensation and the receipt of a new government grant in the current period as well as cost savings including Future Ready transformation savings.
Restructuring and other charges
Restructuring and other charges relate primarily to the Fiscal 2023 Plan. For more information, see Note 3, “Restructuring and Other Charges”, to the Consolidated Financial Statements in Item 8 of Part II of this report, which is incorporated herein by reference.
Acquisition and divestiture charges
Acquisition and divestiture charges primarily include direct third-party professional and legal fees, and integration and divestiture-related costs, as well as non-cash adjustments to the fair value of certain acquired assets such as inventory. Acquisition and divestiture charges decreased by $38 million in the fiscal year 2025, primarily due to reduced integration activities.
Amortization of intangible assets 
Amortization of intangible assets increased in fiscal year 2025 primarily due to impairment charges of $65 million related to acquired customer contracts, customer lists and distribution agreements within the Printing segment and $27 million of technology and patents within the Corporate Investments segment.
Interest and other, net
Interest and other, net decreased $33 million in the fiscal year 2025 primarily due to a gain from a single litigation matter that does not relate to HP’s ongoing business operations, lower factoring costs and interest expense on debt, partially offset by unfavorable currency impacts.
Provision for taxes
Our effective tax rate was 5.2% in fiscal year 2025. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to decreases in uncertain tax positions.
For a reconciliation of our effective tax rate to the U.S. federal statutory rate of 21% in fiscal year 2025, and further explanation of our provision for income taxes, see Note 6, “Taxes on Earnings” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
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In fiscal year 2025, we recorded $415 million of net income tax benefits related to non-recurring items in the provision for taxes. This amount included $273 million related to changes in uncertain tax positions, $80 million related to restructuring charges, $44 million related to changes in valuation allowances, $28 million related to the filing of tax returns in various jurisdictions, $22 million related to audit settlements in various jurisdictions, and $16 million related to litigation charges. These benefits were partially offset by $69 million of charges related to changes in tax rates.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. This legislation introduces several measures, including the permanent extension of select provisions from the Tax Cuts and Jobs Act, revisions to the international tax framework, and the reinstatement of favorable tax treatment for certain business-related items. The OBBBA contains multiple effective dates, with key provisions beginning in our fiscal year 2026. Based on our assessment, we do not anticipate a material impact on our effective tax and cash tax rates.
Segment Information
A description of the products and services for each segment can be found in Note 2, “Segment Information,” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.

Personal Systems

  For the fiscal years ended October 31
  2025 2024 2023
  Dollars in millions
Net revenue $ 38,532 $ 36,195 $ 35,684
Earnings from operations $ 2,054 $ 2,253 $ 2,129
Earnings from operations as a % of net revenue 5.3% 6.2 % 6.0%

The components of net revenue and the weighted net revenue change by business unit were as follows:

  For the fiscal years ended October 31
  Net Revenue Weighted Net Revenue Change Percentage Points (1)

  2025 2024 2023 2025 2024
  In millions  
Commercial PS
$ 27,438  $ 25,486  $ 24,712  5.4  2.1 
Consumer PS
11,094  10,709  10,972  1.1  (0.7)
Total Personal Systems $ 38,532  $ 36,195  $ 35,684  6.5  1.4 

(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.
Fiscal year 2025 compared with fiscal year 2024
Personal Systems net revenue increased 6.5% (increased 6.7% on a constant currency basis) in the fiscal year 2025, as compared to the prior-year period. The net revenue increase was primarily due to a 4.3% increase in unit volume driven by the Windows-based PC operating system refresh, and a 3.1% increase in average selling price (“ASPs”). The increase in ASPs is primarily due to favorable mix shift towards Commercial PS and disciplined pricing, partially offset by unfavorable currency impact.
Commercial PS net revenue increased 7.7% primarily due to a 6.4% increase in units due to market expansion and a 2.7% increase in ASPs. The increase in ASPs was driven by favorable mix shifts and disciplined pricing, partially offset by unfavorable currency impacts.
Consumer PS net revenue increased 3.6% primarily due to by a 2.3% increase in ASPs and a 1.2% increase in units. The increase in ASPs was driven by disciplined pricing and favorable mix shifts, partially offset by unfavorable currency impacts.
38

Personal Systems earnings from operations as a percentage of net revenue decreased by 0.9 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 and tariff costs, partially offset by disciplined pricing actions. Operating expenses as a percentage of revenue decreased primarily due to lower variable compensation and litigation charges as well as cost savings including Future Ready transformation savings.

Printing

  For the fiscal years ended October 31
  2025 2024 2023
  Dollars in millions
Net revenue $ 16,702 $ 17,338 $ 18,029
Earnings from operations $ 3,118 $ 3,290 $ 3,399
Earnings from operations as a % of net revenue 18.7% 19.0% 18.9%

The components of the net revenue and weighted net revenue change by business unit were as follows: 

  For the fiscal years ended October 31
  Net Revenue Weighted Net Revenue Change Percentage Points (1)

  2025 2024 2023 2025 2024
  In millions  
Supplies $ 10,916  $ 11,295  $ 11,452  (2.2) (0.9)
Commercial Printing
4,633  4,841  5,250  (1.2) (2.2)
Consumer Printing
1,153  1,202  1,327  (0.3) (0.7)
Total Printing $ 16,702  $ 17,338  $ 18,029  (3.7) (3.8)

(1)     Weighted Net Revenue Change Percentage Points measures the 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 period by total segment revenue for the prior-year period. 
Fiscal year 2025 compared with fiscal year 2024
Printing net revenue decreased 3.7% (decreased 2.7% on a constant currency basis) for fiscal year 2025 as compared to the prior-year period. The decline in net revenue was driven by Supplies, Commercial Printing and Consumer Printing as well as unfavorable currency impacts. Net revenue for Supplies decreased 3.4% primarily due to decline in the installed base and usage and currency impacts, partially offset by disciplined pricing. Printer unit volume decreased 4.2% due to demand softness and hardware ASPs decreased 1.5%. Printer hardware ASPs decreased primarily due to unfavorable mix shifts towards Consumer Printing and unfavorable currency impacts.
Net revenue for Commercial Printing decreased by 4.3%, primarily due to a 6.2% decrease in printer unit volume, partially offset by a 0.1% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts, partially offset by competitive pricing.
Net revenue for Consumer Printing decreased 4.1%, primarily due to a 3.1% decrease in printer unit volume and a 1.4% decrease in ASPs. The decrease in ASPs was primarily driven by unfavorable currency impacts and mix shifts, partially offset by disciplined pricing.
Printing earnings from operations as a percentage of net revenue decreased by 0.3 percentage points driven by a decrease in gross margin, while operating expenses as a percentage of revenue remained flat. Gross margin decreased primarily due to higher tariff costs, partially offset by favorable mix shifts towards Supplies, disciplined pricing, cost savings including Future Ready transformation savings and the receipt of a new government grant in the current period.

Corporate Investments
The loss from operations in Corporate Investments for fiscal year 2025 was primarily due to expenses associated with our incubation projects and investments in digital enablement.
39

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 and market risks identified in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in Item 7A, which are incorporated herein by reference.
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 October 31
  2025 2024
  In millions
Cash and cash equivalents $ 3,690  $ 3,238 
Restricted cash
$ 15  $ 15 
Total debt $ 9,666  $ 9,669 

Our key cash flow metrics were as follows:

  For the fiscal years ended October 31
  2025 2024 2023
   In millions
Net cash provided by operating activities $ 3,697  $ 3,749  $ 3,571 
Net cash used in investing activities (1,177) (646) (590)
Net cash used in financing activities (2,060) (3,082) (2,894)
Net increase in cash, cash equivalents, and restricted cash
$ 460  $ 21  $ 87 

Operating activities  
Net cash provided by operating activities decreased by $0.1 billion for fiscal year 2025 primarily due to working capital impacts and lower net earnings, partially offset by changes in receivables from contract manufacturers.
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Key working capital metrics
Management utilizes current cash conversion cycle information to manage our working capital level. The table below presents the cash conversion cycle: 

As of October 31
2025 2024 2023
Days of sales outstanding in accounts receivable (“DSO”) 35  33  28 
Days of supply in inventory (“DOS”) 66  63  57 
Days of purchases outstanding in accounts payable (“DPO”) (139) (138) (117)
Cash conversion cycle (38) (42) (32)

October 31, 2025 as compared to October 31, 2024
The cash conversion cycle is the sum of days of DSO and DOS less DPO. Items which may cause the cash conversion cycle in a particular period to differ from historical trends include, but are not limited to, changes in business mix, changes in payment terms, timing and extent of receivables factoring, seasonal trends and the timing of revenue recognition and inventory purchases within the period.
DSO measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for credit losses, by a 90-day average of net revenue. The increase in DSO was primarily due to lower factoring.
DOS measures the average number of days from procurement to sale of our product. DOS is calculated by dividing ending inventory by a 90-day average of cost of goods sold. The increase in DOS was primarily due to higher Personal Systems volume driven by Windows-based PC operating system refresh demand, tariff mitigation and supply chain resiliency actions.
DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average of cost of goods sold. The increase in DPO was primarily due to higher purchasing volumes.
Investing activities
Net cash used in investing activities increased $0.5 billion for fiscal year 2025 as compared to the prior-year period, primarily due to higher investment in property, plant, equipment and purchased intangible of $0.3 billion, collateral posted for derivative instruments of $0.3 billion.
Financing activities
Net cash used in financing activities decreased by $1.0 billion in fiscal year 2025 compared to the prior-year period, primarily due to a $1.3 billion decrease in share repurchases, partially offset by higher net debt repayment of $0.2 billion.
Share repurchases and dividends
In fiscal year 2025, HP returned $1.9 billion to shareholders in the form of cash dividends of $1.1 billion and share repurchases of $0.8 billion. As of October 31, 2025, HP had approximately $8.4 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.
For more information on our share repurchases, see Note 12, “Stockholders’ Deficit”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Capital resources
Debt Levels  

  As of October 31
  2025 2024
  Dollars in millions
Short-term debt $ 845 $ 1,406
Long-term debt $ 8,821 $ 8,263
Weighted-average interest rate 4.6  % 4.5  %

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We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital and targeted capital structure.
Short-term debt decreased by $0.6 billion and long-term debt increased by $0.6 billion for fiscal year 2025 as compared to the prior-year period. These changes are due to the issuance of unsecured senior debt in April 2025, the repayment upon maturity of the Global Notes due June 2025 and the reclassification of the Global Notes due in June 2026 to short-term.
Our weighted-average interest rate reflects the effective interest rate on our borrowings prevailing during the period and reflects the effect of interest rate swaps. For more information on our interest rate swaps, see Note 10, “Financial Instruments” in the Consolidated Financial Statements and notes thereto in Item 8, “Financial Statements and Supplementary Data”, which is incorporated herein by reference.
As of October 31, 2025, we maintained a $5.0 billion sustainability-linked senior unsecured committed revolving credit facility maturing August 1, 2029. Funds borrowed under the revolving credit facility may be used for general corporate purposes.
Available borrowing resources
As of October 31, 2025, we had available borrowing resources of $1.1 billion from uncommitted lines of credit in addition to funds available under the revolving credit facility.
In February 2024, we filed an automatically effective shelf registration statement with the SEC, which enables us to offer for sale, at any time and from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depository shares and warrants.
For more information on our borrowings, see Note 11, “Borrowings”, to the Consolidated Financial Statements in Item 8 of Part II of this report, which is incorporated herein by reference.
Credit ratings
Our credit risk is evaluated by major independent rating agencies based upon publicly available information as well as information they obtain during our ongoing discussions. While we currently do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, a downgrade from our current credit rating may increase the cost of borrowing under our credit facility, reduce market capacity for our commercial paper, require the posting of additional collateral under some of our derivative contracts and may have a negative impact on our liquidity and capital position and our contractual business going forward, depending on the extent of such downgrade. See “Risk Factors—Macroeconomic, Industry and Financial Risks—Failure to maintain our credit ratings could adversely affect our liquidity, capital position, borrowing costs and access to capital markets, as well as our subscription based and other offerings . ” in Item 1A, which is incorporated herein by reference. We can access alternative sources of funding, including drawdowns under our credit facility, if necessary, to offset potential reductions in the market capacity for our commercial paper.
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HP INC. AND SUBSIDIARIES

Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

CONTRACTUAL AND OTHER OBLIGATIONS
Our contractual and other obligations as of October 31, 2025, were as follows:

  Payments Due by Period
  Total Short-term Long-term
  In millions
Principal payments on debt (1)
$ 9,688  $ 831  $ 8,857 
Interest payments on debt (2)
2,775  406  2,369 
Purchase obligations (3)
1,085  509  576 
Operating lease obligations 1,387  474  913 
Finance lease obligations 35  16  19 
Total
$ 14,970  $ 2,236  $ 12,734 

(1) Amounts represent the principal cash payments relating to our short-term and long-term debt and do not include any fair value adjustments, discounts or premiums.
(2) Amounts represent the expected interest payments relating to our short-term and long-term debt. We have outstanding interest rate swap agreements accounted for as fair value hedges that have the economic effect of changing fixed interest rates associated with some of our U.S. Dollar Global Notes to variable interest rates. The impact of our outstanding interest rate swaps as of October 31, 2025 was factored into the calculation of the future interest payments on debt.
(3) Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us 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. These purchase obligations are related principally to inventory and other items. Purchase obligations exclude agreements that are cancellable without penalty. Purchase obligations also exclude open purchase orders that are routine arrangements entered into in the ordinary course of business as they are difficult to quantify in a meaningful way. Even though open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule, and adjust terms based on our business needs prior to the delivery of goods or performance of services.
Retirement and Post-Retirement Benefit Plan Contributions
In fiscal year 2026, we expect to contribute approximately $ 43 million to our non-U.S. pension plans, $ 31 million to cover benefit payments to U.S. non-qualified pension plan participants and $ 3 million to cover benefit claims for our post-retirement benefit plans. Our policy is to fund our pension plans so that we meet the minimum contribution required by local government, funding and taxing authorities. Expected contributions and payments to our pension and post-retirement benefit plans are excluded from the contractual obligations table because they do not represent contractual cash outflows as they are dependent on numerous factors which may result in a wide range of outcomes. For more information on our retirement and post-retirement benefit plans, see Note 4, “Retirement and Post-Retirement Benefit Plans”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Cost Savings Plans
As a result of our approved restructuring plans, we expect to make future cash payments of approximately $0.2 billion in the fiscal year 2026. For more information on our restructuring activities that are part of our cost improvements, see Note 3, “Restructuring and Other Charges”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Uncertain Tax Positions
As of October 31, 2025, we had approximately $797 million of recorded liabilities including related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these liabilities would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 6, “Taxes on Earnings”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
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Off-balance sheet arrangements
As part of our ongoing business, we have not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. 
We have third-party short-term financing arrangements intended to facilitate the working capital requirements of certain customers and HP. For more information on our third-party short-term financing arrangements, see Note 7 “Supplementary Financial Information” to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
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Table of Contents

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.
In the normal course of business, we are exposed to foreign currency exchange rate and interest rate risks that could impact our financial position, cash flows and results of operations. Our risk management strategy with respect to these market risks may include the use of derivative instruments. We use derivative contracts only to manage existing underlying exposures. Accordingly, we do not use derivative contracts for speculative purposes. Our risks, risk management strategy and a sensitivity analysis estimating the effects of changes in fair value for each of these exposures are outlined below.
Actual gains and losses in the future may differ materially from the sensitivity analyses based on changes in the timing and amount of foreign currency exchange rate and interest rate movements and our actual exposures and derivatives in place at the time of the change, as well as the effectiveness of the derivative to hedge the related exposure.
Foreign currency exchange rate risk
We are exposed to foreign currency exchange rate risk inherent in our sales commitments, anticipated sales, anticipated purchases and assets and liabilities denominated in currencies other than the U.S. dollar. We transact business in over 40 currencies worldwide, of which the most significant foreign currencies to our operations for fiscal year 2025 were Euro, Chinese yuan renminbi, Japanese yen and British pound. For most currencies, we are a net receiver of the foreign currency and therefore benefit from a weaker U.S. dollar and are adversely affected by a stronger U.S. dollar relative to the foreign currency. Even where we are a net receiver of the foreign currency, a weaker U.S. dollar may adversely affect certain expense figures, if taken alone.
We use a combination of forward contracts and at times, options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in our forecasted net revenue and, to a lesser extent in cost of sales. We also use other derivatives not designated as hedging instruments consisting primarily of forward contracts to hedge foreign currency balance sheet exposures. Alternatively, we may choose not to hedge the risk associated with our foreign currency exposures, primarily if such exposure acts as a natural hedge for offsetting amounts denominated in the same currency or if the currency is too difficult or too expensive to hedge.
We have performed sensitivity analyses as of October 31, 2025 and 2024, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the levels of foreign currency exchange rates relative to the U.S. dollar, with all other variables held constant. The analyses cover all of our foreign currency derivative contracts offset by underlying exposures. The foreign currency exchange rates we used in performing the sensitivity analysis were based on market rates in effect as of October 31, 2025 and 2024. The sensitivity analyses indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would result in a foreign exchang e loss of $134 million and $94 million as of October 31, 2025 and October 31, 2024, respectively.
Interest rate risk
We also are exposed to interest rate risk related to debt we have issued and our investment portfolio.
We issue long-term debt in either U.S. dollars or foreign currencies based on market conditions at the time of financing. We may use interest rate and/or currency swaps to modify the market risk exposures in connection with the debt to achieve a floating interest expense and/or U.S. dollar principal outflows. The swap transactions generally involve the exchange of fixed for floating interest payments. However, we may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if we believe a larger proportion of fixed-rate debt would be beneficial.
In order to hedge the fair value of certain fixed-rate investments, we may enter into interest rate swaps that convert fixed interest returns into variable interest returns. We may use cash flow hedges to hedge the variability in interest income received on certain variable-rate investments. We may also enter into interest rate swaps that convert variable rate interest returns into fixed-rate interest returns.
We have performed sensitivity analyses as of October 31, 2025 and 2024, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the levels of interest rates across the entire yield curve, with all other variables held constant. The analyses cover our debt, investments and interest rate swaps. The analyses use actual or approximate maturities for the debt, investments and interest rate swaps. The discount rates used were based on the market interest rates in effect as of October 31, 2025 and 2024. The sensitivity analyses indicated that a hypothetical 10% adverse movement in interest rates would have resulted in a loss in the fair values of our debt and investments, net of interest rate swaps, of $157 million and $164 million as of October 31, 2025 and October 31, 2024, respectively.
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Table of Contents     

ITEM 8. Financial Statements and Supplementary Data.

Table of Contents

  Page
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 )
47

Management's Report on Internal Control Over Financial Reporting
49

Consolidated Statements of Earnings
50

Consolidated Statements of Comprehensive Income
51

Consolidated Balance Sheets
52

Consolidated Statements of Cash Flows
53

Consolidated Statements of Stockholders’ Deficit
54

Notes to Consolidated Financial Statements
55

Note 1: Summary of Significant Accounting Policies
55

Note 2: Segment Information
62

Note 3: Restructuring and Other Charges
65

Note 4: Retirement and Post-Retirement Benefit Plans
66

Note 5: Stock-Based Compensation
72

Note 6: Taxes on Earnings
75

Note 7: Supplementary Financial Information
79

Note 8: Goodwill and Intangible Assets
84

Note 9: Fair Value
85

Note 10: Financial Instruments
87

Note 11: Borrowings
91

Note 12: Stockholders’ Deficit
93

Note 13: Earnings Per Share
95

Note 14: Litigation and Contingencies
96

Note 15: Guarantees, Indemnifications and Warranties
99

Note 16: Commitments
99

Note 17: Leases
100

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Table of Contents     

Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of HP Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of HP Inc. and subsidiaries (the Company) as of October 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive income, stockholders’ deficit and cash flows for each of the three years in the period ended October 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at October 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended October 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated December 10, 2025 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

Estimation of variable consideration

Description of the Matter
As described in Note 1 of the consolidated financial statements, the Company reduces revenue for customer and distributor programs and incentive offerings including rebates, promotions and other volume-based incentives. The Company uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected customer behavior and market conditions. Estimated variable consideration is presented within other current liabilities on the consolidated balance sheet and totaled $3.1 billion at October 31, 2025.
Auditing the Company’s measurement of certain variable consideration is especially challenging because the calculation is complex and reflects management's assumptions about expected customer behavior, considering historical experience. Changes in those assumptions can have a material effect on the amount of variable consideration recognized.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over its measurement of variable consideration, including management’s evaluation of the significant assumptions that have a material effect on the variable consideration.
Our audit procedures included, among others, developing an independent estimate of the variable consideration and comparing our estimate to the recorded balance. We performed this predictive analysis at both an aggregated and disaggregated level. We also inspected the terms and conditions of the incentive offerings. In addition, we compared previous estimates of variable consideration to actual payments.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2000.
Houston, Texas
December 10, 2025
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Table of Contents     

Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of HP Inc.
Opinion on Internal Control Over Financial Reporting
We have audited HP Inc. and subsidiaries’ internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, HP Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of October 31, 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of October 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive income, stockholders’ deficit and cash flows for each of the three years in the period ended October 31, 2025, and the related notes and our report dated December 10, 2025 expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Houston, Texas
December 10, 2025
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Management’s Report on Internal Control Over Financial Reporting
HP’s management is responsible for establishing and maintaining adequate internal control over financial reporting. HP’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. HP’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of HP; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of HP are being made only in accordance with authorizations of management and directors of HP; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of HP’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
HP’s management assessed the effectiveness of HP’s internal control over financial reporting as of October 31, 2025 utilizing the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 framework).
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024, we identified a material weakness in internal control over financial reporting. The material weakness resulted from undue reliance on information generated from certain software solutions affecting various financial statement line items as well as net revenue without effectively designed information technology (“IT”) general controls specifically around user access and change management and job schedule monitoring IT operations. As of October 31, 2025, the Company has concluded that the previously identified material weakness was remediated.
Based on the assessment by HP’s management, we determined that HP’s internal control over financial reporting was effective as of October 31, 2025. The effectiveness of HP’s internal control over financial reporting as of October 31, 2025 has been audited by Ernst & Young LLP, HP’s independent registered public accounting firm, as stated in their report which appears in Part II, Item 8 of this Annual Report on Form 10-K.

 /s/ ENRIQUE LORES /s/ KAREN L. PARKHILL

Enrique Lores
President and Chief Executive Officer
December 10, 2025
  Karen L. Parkhill
Chief Financial Officer
December 10, 2025

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HP INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
  For the fiscal years ended October 31
  2025 2024 2023
  In millions, except per share amounts
Net revenue:

Products
$ 52,002   $ 50,453   $ 50,660  
Services 3,293   3,106   3,058  
Total net revenue 55,295   53,559   53,718  
Cost of net revenue:
Products
41,993   39,952   40,484  
Services 1,910   1,789   1,726  
Total cost of net revenue 43,903   41,741   42,210  
Gross profit
11,392   11,818   11,508  
Research and development 1,602   1,640   1,578  
Selling, general and administrative 5,821   5,658   5,357  
Restructuring and other charges 405   301   527  
Acquisition and divestiture charges 45   83   240  
Amortization of intangible assets 345   318   350  

Total operating expenses 8,218   8,000   8,052  
Earnings from operations 3,174   3,818   3,456  
Interest and other, net ( 506 ) ( 539 ) ( 519 )
Earnings before taxes 2,668   3,279   2,937  
(Provision for) benefit from taxes
( 139 ) ( 504 ) 326  
Net earnings $ 2,529   $ 2,775   $ 3,263  

Net earnings per share:      
Basic $ 2.67   $ 2.83   $ 3.29  
Diluted $ 2.65   $ 2.81   $ 3.26  

Weighted-average shares used to compute net earnings per share:      
Basic 946   979   992  
Diluted 953   989   1,000  

The accompanying notes are an integral part of these Consolidated Financial Statements.

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Consolidated Statements of Comprehensive Income
For the fiscal years ended October 31
  2025 2024 2023
  In millions
Net earnings $ 2,529   $ 2,775   $ 3,263  
Other comprehensive loss before taxes:
 
Change in unrealized components of available-for-sale debt securities:  
Unrealized gains arising during the period
16   8   2  

Change in unrealized components of cash flow hedges:  
Unrealized (losses) gains arising during the period
( 211 ) 51   ( 427 )
Losses (gains) reclassified into earnings
98   ( 274 ) ( 84 )
  ( 113 ) ( 223 ) ( 511 )
Change in unrealized components of defined benefit plans:  
Unrealized gains (losses) arising during the period
30   ( 76 ) ( 141 )
Amortization of actuarial loss and prior service benefit 21   8   —  
Curtailments, settlements and other 6   2   —  
  57   ( 66 ) ( 141 )
Change in cumulative translation adjustment 12   24   23  
     Other comprehensive loss before taxes
( 28 ) ( 257 ) ( 627 )
        Benefit from taxes
5   46   119  
Other comprehensive loss, net of taxes
( 23 ) ( 211 ) ( 508 )
Comprehensive income $ 2,506   $ 2,564   $ 2,755  

The accompanying notes are an integral part of these Consolidated Financial Statements.

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 HP INC. AND SUBSIDIARIES
Consolidated Balance Sheets
  As of October 31
  2025 2024
  In millions, except par value
ASSETS    
Current assets:    
Cash, cash equivalents and restricted cash $ 3,705   $ 3,253  
Accounts receivable, net of allowance for credit losses of $ 83 as of October 31, 2025 and 2024
5,692   5,117  
Inventory 8,512   7,720  
Other current assets 4,544   4,670  
Total current assets 22,453   20,760  
Property, plant and equipment, net 3,049   2,914  
Goodwill 8,706   8,627  
Other non-current assets 7,561   7,608  
Total assets $ 41,769   $ 39,909  
LIABILITIES AND STOCKHOLDERS’ DEFICIT  
Current liabilities:  
Notes payable and short-term borrowings $ 845   $ 1,406  
Accounts payable 18,051   16,903  
Other current liabilities 10,362   10,378  
Total current liabilities 29,258   28,687  
Long-term debt 8,821   8,263  
Other non-current liabilities 4,036   4,282  
Commitments and contingencies
Stockholders’ deficit: 0
Preferred stock, $ 0.01 par value ( 300 shares authorized; none issued)
—   —  
Common stock, $ 0.01 par value ( 9,600 shares authorized; 921 and 939 shares issued and outstanding as of October 31, 2025 and 2024, respectively)
9   9  
Additional paid-in capital 2,129   1,778  
Accumulated deficit ( 2,027 ) ( 2,676 )
Accumulated other comprehensive loss ( 457 ) ( 434 )
Total stockholders’ deficit ( 346 ) ( 1,323 )
Total liabilities and stockholders’ deficit $ 41,769   $ 39,909  

The accompanying notes are an integral part of these Consolidated Financial Statements.
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Consolidated Statements of Cash Flows
  For the fiscal years ended October 31
  2025 2024 2023
  In millions
Cash flows from operating activities:      
Net earnings $ 2,529   $ 2,775   $ 3,263  
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation, amortization and impairment 916   830   850  
Stock-based compensation expense 522   452   438  
Restructuring and other charges 405   301   527  
Deferred taxes on earnings ( 6 ) ( 122 ) ( 923 )

Other, net 116   ( 38 ) ( 10 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable ( 524 ) ( 929 ) 278  
Inventory ( 828 ) ( 852 ) 668  
Accounts payable 1,142   2,840   ( 1,240 )
Net investment in leases related to integrated financing
( 131 ) ( 165 ) ( 110 )
Taxes on earnings ( 391 ) ( 24 ) 198  
Restructuring and other ( 326 ) ( 264 ) ( 310 )
Other assets and liabilities 273   ( 1,055 ) ( 58 )
Net cash provided by operating activities 3,697   3,749   3,571  
Cash flows from investing activities:    
Investment in property, plant, equipment and purchased intangibles, net
( 897 ) ( 592 ) ( 593 )

Purchases of available-for-sale securities and other investments ( 40 ) ( 4 ) ( 11 )
Maturities and sales of available-for-sale securities and other investments 74   8   21  
Collateral posted for derivative instruments ( 264 ) —   —  
Payments made in connection with business acquisitions, net of cash acquired ( 116 ) ( 58 ) ( 7 )
Proceeds from business divestitures
66   —   —  
Net cash used in investing activities ( 1,177 ) ( 646 ) ( 590 )
Cash flows from financing activities:    
Payments of short-term borrowings with original maturities less than 90 days, net
—   —   ( 10 )
Proceeds from debt, net of issuance costs 1,385   380   255  
Payment of debt and other associated costs
( 1,387 ) ( 213 ) ( 1,700 )
Stock-based award activities and others ( 126 ) ( 74 ) ( 99 )
Repurchase of common stock ( 850 ) ( 2,100 ) ( 100 )
Cash dividends paid ( 1,088 ) ( 1,075 ) ( 1,037 )
Collateral returned for derivative instruments
—   —   ( 200 )
Settlement of cash flow hedges 6   —   ( 3 )
Net cash used in financing activities ( 2,060 ) ( 3,082 ) ( 2,894 )
Increase in cash, cash equivalents and restricted cash
460   21   87  
Cash, cash equivalents and restricted cash at beginning of period 3,253   3,232   3,145  
Cash, cash equivalents and restricted cash at end of period (1)
$ 3,713   $ 3,253   $ 3,232  

Supplemental cash flow disclosures:
Income taxes paid, net of refunds $ 535   $ 649   $ 398  
Interest expense paid $ 437   $ 441   $ 548  

(1)     Includes cash held for sale of $ 8  million recorded within Other current assets
The accompanying notes are an integral part of these Consolidated Financial Statements.
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Consolidated Statements of Stockholders’ Deficit
  Common Stock Additional
Paid-in Capital   Accumulated
Other
Comprehensive (Loss) Income
Total Stockholders’ Deficit
Number of Shares Par Value Accumulated Deficit
  In millions, except number of shares in thousands
Balance as of October 31, 2022
979,869   $ 10   $ 1,172   $ ( 4,492 ) $ 285   $ ( 3,025 )
Net earnings 3,263   3,263  
Other comprehensive loss, net of taxes
( 508 ) ( 508 )
Comprehensive income 2,755  
Issuance of common stock in connection with employee stock plans and other 12,537   ( 100 ) ( 100 )
Repurchases of common stock (Note 12) ( 3,624 ) ( 5 ) ( 95 ) ( 100 )
Cash dividends ($ 1.05 per common share)
( 1,037 ) ( 1,037 )
Stock-based compensation expense 438   438  

Balance as of October 31, 2023
988,782   10   1,505   ( 2,361 ) ( 223 ) ( 1,069 )
Net earnings 2,775   2,775  
Other comprehensive loss, net of taxes
( 211 ) ( 211 )
Comprehensive income 2,564  
Issuance of common stock in connection with employee stock plans and other 13,063   ( 74 ) ( 74 )
Repurchases of common stock (Note 12) ( 62,856 ) ( 1 ) ( 110 ) ( 2,015 ) ( 2,126 )
Cash dividends ($ 1.10 per common share)
( 1,075 ) ( 1,075 )
Stock-based compensation expense 452   452  
Other 5   5  
Balance as of October 31, 2024
938,989   9   1,778   ( 2,676 ) ( 434 ) ( 1,323 )
Net earnings 2,529   2,529  
Other comprehensive loss, net of taxes
( 23 ) ( 23 )
Comprehensive income 2,506  
Issuance of common stock in connection with employee stock plans and other 11,783   ( 109 ) ( 109 )
Repurchases of common stock (Note 12) ( 29,623 ) ( 62 ) ( 791 ) ( 853 )
Cash dividends ($ 1.16 per common share)
( 1,088 ) ( 1,088 )
Stock-based compensation expense 522   522  

Other
( 1 ) ( 1 )
Balance as of October 31, 2025
921,149   $ 9   $ 2,129   $ ( 2,027 ) $ ( 457 ) $ ( 346 )

The accompanying notes are an integral part of these Consolidated Financial Statements.

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Notes to Consolidated Financial Statements

Note 1: Summary of Significant Accounting Policies
Basis of Presentation
The accompanying Consolidated Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with U.S. GAAP.
Principles of Consolidation
The 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 Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates.
Foreign Currency Translation
HP predominantly uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for non-monetary assets and liabilities. Net revenue, costs and expenses denominated in non-U.S. dollars are recorded in U.S. dollars at exchange rates in effect during each period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain foreign subsidiaries designate the local currency as the functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as translation adjustments and includes them as a component of Accumulated other comprehensive loss.
Recently Adopted Accounting Pronouncements
In September 2022, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances the transparency about the use of supplier finance programs. Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services are required to disclose information about those programs to allow users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude. HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which was adopted for its annual period ending October 31, 2025, in line with the effective adoption dates prescribed by the FASB. See Note 7, “Supplementary Financial Information,” for additional disclosure related to HP’s supplier finance programs.
In November 2023, the FASB issued guidance that updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance on an annual and interim basis. HP adopted this guidance for its annual period ending October 31, 2025. While the adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements, the new guidance resulted in increased disclosures on reportable segments in Note 2 of the Notes to the Consolidated Financial Statements.
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 on a prospective basis. 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, which will result in increased disclosures in the Notes to its Consolidated Financial Statements.

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Notes to Consolidated Financial Statements

Revenue Recognition
General
HP recognizes revenues at a point in time or over time depicting the transfer of promised goods or services to customers in an amount that reflects the consideration to which HP expects to be entitled in exchange for those goods or services. HP follows the five-step model for revenue recognition as summarized below:
1. Identify the contract with a customer - A contract with customer exists when (i) it is approved and signed by all parties, (ii) each party’s rights and obligations can be identified, (iii) payment terms are defined, (iv) it has commercial substance and (v) the customer has the ability and intent to pay. HP evaluates customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores. While the majority of our sales contracts contain standard terms and conditions, there are certain contracts with non-standard terms and conditions.
2. Identify the performance obligations in the contract - HP evaluates each performance obligation in an arrangement to determine whether it is distinct, such as hardware and/or service. A performance obligation constitutes distinct goods or services when the customer can benefit from such goods or services either on its own or together with other resources that are readily available to the customer and the performance obligation is distinct within the context of the contract.
3. Determine the transaction price - Transaction price is the amount of consideration to which HP expects to be entitled in exchange for transferring goods or services to the customer. If the transaction price includes a variable amount, HP estimates the amount it expects to be entitled to using either the expected value or the most likely amount method. HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, and other volume-based incentives. HP uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected consumer behavior and market conditions. HP has elected the practical expedient of not accounting for significant financing components if the period between revenue recognition and when the customer pays for the product or service is one year or less.
4. Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates the transaction price to each performance obligation in proportion to its Standalone Selling Price (“SSP”). HP establishes SSP using the price charged for a performance obligation when sold separately (“observable price”) and, in some instances, using the price established by management having the relevant authority. When observable price is not available, HP establishes SSP maximizing the use of observable inputs based on management judgment while considering internal factors such as historical discounting trends for products and services, pricing practices and other observable factors.
5. Recognize revenue when (or as) the performance obligation is satisfied - Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of a promised good or service to a customer. HP generally invoices the customer upon delivery of the goods or services and the payments are due as per contract terms. For fixed price support or maintenance contracts that are stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over the duration of the contract.
HP reports revenue net of any taxes collected from customers and remitted to government authorities, and the collected taxes are recorded as other current liabilities until remitted to the relevant government authority. HP includes costs related to shipping and handling in Cost of net revenue.
HP records revenue on a gross basis when HP is a principal in the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory risks.
Hardware
HP transfers control of the products to the customer at the time the product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations to the customer remain unfulfilled. HP records revenue from the sale of equipment under sales-type leases as revenue at the commencement of the lease.
Services
HP recognizes revenue from fixed-price support, maintenance and other service contracts over time depicting the pattern of service delivery and recognizes the costs associated with these contracts as incurred.
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Notes to Consolidated Financial Statements

Contract Assets and Liabilities
Contract assets are rights to consideration in exchange for goods or services that HP has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are not material to HP’s Consolidated Financial Statements.
Contract liabilities are recorded as deferred revenues when amounts invoiced to customers are more than the revenues recognized or when payments are received in advance for fixed-price support or maintenance contracts. The short-term and long-term deferred revenues are reported within the Other current liabilities and Other non-current liabilities respectively.
Cost to obtain a contract and fulfillment cost
Incremental direct costs of obtaining a contract primarily consist of sales commissions. HP has elected the practical expedient to expense as incurred the costs to obtain a contract with a benefit period equal to or less than one year. For contracts with a period of benefit greater than one year, HP capitalizes incremental costs of obtaining a contract with a customer and amortizes these costs over their expected period of benefit provided such costs are recoverable.
Fulfillment costs consist of set-up and transition costs related to other service contracts. These costs generate or enhance resources of HP that will be used in satisfying the performance obligation in the future and are capitalized and amortized over the expected period of the benefit, provided such costs are recoverable.
Leases
At the inception of a contract, HP assesses whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether HP obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether HP has the right to direct the use of the asset.
All significant lease arrangements are recognized at lease commencement. Leases with a lease term of 12 months or less at inception are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in the Consolidated Statement of Earnings. HP determines the lease term by assuming the exercise of renewal options that are reasonably certain. As most of the leases do not provide an implicit interest rate, HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate at the commencement date to determine the present value of future payments that are reasonably certain.
Stock-Based Compensation
HP determines stock-based compensation expense based on the measurement date fair value of the award. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience.  
Retirement and Post-Retirement Plans
HP has various defined benefit, other contributory and non-contributory retirement and post-retirement plans. HP generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life of participants. In limited cases, HP amortizes actuarial gains and losses using the corridor approach. See Note 4, “Retirement and Post-Retirement Benefit Plans” for a full description of these plans and the accounting and funding policies.
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Notes to Consolidated Financial Statements

Advertising Cost
Costs to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. Such costs totaled approximately $ 718 million, $ 628 million and $ 611 million in fiscal years 2025, 2024 and 2023, respectively.
Restructuring and Other Charges
HP records charges associated with management-approved restructuring plans to reorganize one or more of HP’s business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to reduce a specified number of employees, enhanced early retirement incentives, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. HP records restructuring charges based on estimated employee terminations, committed early retirements and site closure and consolidation plans. HP accrues for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements. Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and transformation program management costs, and are distinct from ongoing operational costs. These costs primarily relate to third-party professional services and other non-recurring costs.
Taxes on Earnings
HP recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized.
HP records accruals for uncertain tax positions when HP believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. HP makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as any related interest and penalties.
HP is subject to the Global Intangible Low-Taxed Income (“GILTI”) tax in the U.S. and elects to recognize these taxes as a current expense in the period incurred.
Accounts Receivable
HP records allowance for credit losses for the current expected credit losses inherent in the asset over its expected life. The allowance for credit losses is maintained based on the relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.
HP records a specific reserve for individual accounts when HP becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. If there are additional changes in circumstances related to the specific customer, HP further adjusts estimates of the recoverability of receivables. HP assesses collectability by pooling receivables where similar risk characteristics exist.
HP maintains an allowance for credit losses for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, financial condition of customers, length of time receivables are past due, trends in the weighted-average risk rating for the portfolio, macroeconomic conditions, information derived from competitive benchmarking, significant one-time events, and historical experience. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable.
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 cases provide for partial recourse, result in the transfer of HP’s trade receivables to a third-party. HP reflects amounts transferred to, but not yet collected from the third-party in Accounts receivable in the Consolidated Balance Sheets. For arrangements involving an element of recourse, the fair value of the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Balance Sheets.
Concentrations of Risk
Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, receivables from trade customers and contract manufacturers and derivatives.
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Notes to Consolidated Financial Statements

HP maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and HP’s policy is designed to limit exposure from any particular institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of these financial institutions. HP has not sustained material credit losses from instruments held at these financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency, interest rate and, on certain investment exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. The likelihood of which HP deems to be remote.
HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of these distributors’ and resellers’ aggregated business deteriorates substantially, HP’s operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 47 % and 38 % of gross accounts receivable as of October 31, 2025 and 2024, respectively. One customer, TD Synnex Corp, accounted for 12.6 % of gross accounts receivable as of October 31, 2025 and 9.7 % of gross accounts receivable as of October 31, 2024. Credit risk with respect to other accounts receivable is generally diversified due to HP’s large customer base and their dispersion across many different industries and geographic markets. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. 
HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 94 % and 89 % of HP’s supplier receivables of $ 0.6 billion and $ 0.8 billion as of October 31, 2025 and 2024, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. HP’s credit risk associated with these receivables is mitigated wholly or in part, by the amount HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in net revenue and does not recognize any profit on these component sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of products net revenue. 
HP obtains a significant number of components from single source suppliers like Canon, due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of HP’s relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP’s net revenue, cash flows and gross margins.
Inventory
HP records inventory at the lower of cost or net realizable value on a first-in, first-out basis. Cost is computed using standard cost which approximates actual cost. Adjustments, if required, to reduce the cost of inventory to net realizable value are made for estimated excess, obsolete or impaired balances after considering judgments related to future demand and market conditions.
Property, Plant and Equipment, Net
HP reflects property, plant and equipment at cost less accumulated depreciation. HP capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation expense is recognized on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives are five to 40  years for buildings and improvements and three to 15  years for machinery and equipment. HP depreciates leasehold improvements over the life of the lease or the asset, whichever is shorter. HP depreciates equipment held for lease over the initial term of the lease to the equipment’s estimated residual value. On retirement or disposition, the asset cost and related accumulated depreciation are removed from the Consolidated Balance Sheets with any gain or loss recognized in the Consolidated Statements of Earnings.
Internal Use Software and Cloud Computing Arrangements
HP capitalizes external costs and directly attributable internal costs to acquire or create internal use software which are incurred subsequent to the completion of the preliminary project stage. These costs relate to activities such as software design, configuration, coding, testing, and installation. Costs related to post-implementation activities such as training and maintenance are expensed as incurred. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software, generally not to exceed five years .
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Notes to Consolidated Financial Statements

HP also enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. For internal-use software obtained through a hosting arrangement that is in the nature of a service contract, HP incurs certain implementation costs such as integrating, configuring, and software customization, which are consistent with costs incurred during the application development stage for on-premise software. HP applies the same guidance to determine costs that are eligible for capitalization. For these arrangements, HP amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. HP also applies the same impairment model to both internal-use software and capitalized implementation costs in a software hosting arrangement that is in the nature of a service contract.
Goodwill
HP reviews goodwill for impairment annually during its fourth quarter and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. HP can elect to perform a qualitative assessment to test a reporting unit’s goodwill for impairment or directly perform the quantitative impairment test. Based on the qualitative assessment, if HP determines that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative impairment test will be performed.
If a quantitative impairment test is performed, HP compares the fair value of each reporting unit to its carrying amount. The fair values are derived most significantly from the income approach, with lesser weight attributed to the market approach. Under the income approach, HP estimates the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit’s ability to execute on the projected cash flows. Under the market approach, HP estimates fair value based on market multiples of earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. HP weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach.
If the fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired. If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss.
Debt and Marketable Equity Securities Investments
HP determines the appropriate classification of its investments at the time of purchase and re-evaluates the classifications at each balance sheet date. Debt and marketable equity securities are generally considered available-for-sale. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Marketable debt securities with maturities of twelve months or less are classified as short-term investments and marketable debt securities with maturities greater than twelve months are classified based on their availability for use in current operations. Marketable equity securities, including mutual funds, are classified as either short or long-term based on the nature of each security and its availability for use in current operations.
Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of applicable taxes, in Accumulated other comprehensive loss. Unrealized gains and losses on equity securities, credit losses and impairments on available-for-sale debt securities are recorded in Consolidated Statements of Earnings. Realized gains and losses on available-for-sale securities are calculated at the individual security level and included in Interest and other, net in the Consolidated Statements of Earnings.
HP monitors its investment portfolio for potential impairment and credit losses on a quarterly basis. If HP intends to sell a debt security or it is more likely than not that HP will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Interest and other, net and a new cost basis in the investment is established.
In other cases, if the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit related reasons, HP records a credit loss allowance, limited by the amount that fair value is less than the amortized cost basis. HP recognizes the corresponding charge in Interest and other, net and the remaining unrealized loss, if any, in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Factors that HP considers while determining the credit loss allowance includes, but is not limited to, severity and the reason for the decline in value, interest rate changes and counterparty long-term ratings.
Derivatives
HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps, total return swaps, treasury rate locks and forward starting swaps to hedge certain foreign currency, interest rate and, return on certain investment exposures. HP also may use other derivative instruments not designated as hedges, such as forwards used to hedge foreign currency balance sheet
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Notes to Consolidated Financial Statements

exposures. HP does not use derivative instruments for speculative purposes. See Note 10, “Financial Instruments” for a full description of HP’s derivative instrument activities and related accounting policies.
Legal Contingencies
HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP records a liability for contingencies when it believes it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. See Note 14, “Litigation and Contingencies” for a full description of HP’s loss contingencies and related accounting policies.
Government Assistance
HP recognizes government assistance in its financial statements when there is reasonable assurance that the assistance will be received and HP will comply with the specified conditions thereof.
Government assistance related to capital expenditures are deducted from property, plant and equipment, net and recognized in the Consolidated Statements of Earnings as a reduction to depreciation and amortization expense over the remaining useful life of the associated assets.
Government assistance related to income are recognized in the Consolidated Statements of Earnings as a reduction to the related expenses, in the period the expenses are incurred, based on the underlying nature and purpose of the assistance .
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Notes to Consolidated Financial Statements (Continued)

Note 2: Segment Information
HP’s operations are organized into three reportable segments: Personal Systems, Printing, and Corporate Investments. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). HP’s organizational structure is based on many factors that the CODM uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results. The CODM uses earnings from operations to evaluate the performance of the overall business and to allocate resources to each of the segments, primarily through budgeting and segment performance reviews.
The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements. HP derives the results of the business segments directly from its internal management reporting system.
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.
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Notes to Consolidated Financial Statements (Continued)

Significant Segment Expenses and Operating Results

  For the fiscal years ended October 31
  2025 2024 2023
  In millions

Net revenue
     
Commercial PS $ 27,438   $ 25,486   $ 24,712  
Consumer PS
11,094   10,709   10,972  
Personal Systems 38,532   36,195   35,684  
Supplies 10,916   11,295   11,452  
Commercial Printing 4,633   4,841   5,250  
Consumer Printing 1,153   1,202   1,327  
Printing 16,702   17,338   18,029  
Corporate Investments 62   25   7  
Total segment net revenue 55,296   53,558   53,720  
Other ( 1 ) 1   ( 2 )
Total net revenue $ 55,295   $ 53,559   $ 53,718  

Cost of net revenue

Personal Systems
$ 32,877   $ 30,385   $ 30,267  
Printing
10,871   11,233   11,847  
Corporate Investments
58   48   10  
Total segment cost of net revenue
$ 43,806   $ 41,666   $ 42,124  

Operating expenses

Personal Systems
$ 3,601   $ 3,557   $ 3,288  
Printing
2,713   2,815   2,783  
Corporate Investments
134   109   139  
Total segment operating expenses
$ 6,448   $ 6,481   $ 6,210  

Earnings before taxes
   
Personal Systems $ 2,054   $ 2,253   $ 2,129  
Printing 3,118   3,290   3,399  
Corporate Investments ( 130 ) ( 132 ) ( 142 )
Total segment earnings from operations 5,042   5,411   5,386  
Corporate and unallocated costs and other ( 411 ) ( 381 ) ( 375 )
Stock-based compensation expense ( 522 ) ( 452 ) ( 438 )
Restructuring and other charges ( 405 ) ( 301 ) ( 527 )
Acquisition and divestiture charges ( 45 ) ( 83 ) ( 240 )
Amortization of intangible assets ( 345 ) ( 318 ) ( 350 )
Certain litigation charges ( 140 ) ( 58 ) —  
Interest and other, net (1)
( 506 ) ( 539 ) ( 519 )
Total earnings before taxes $ 2,668   $ 3,279   $ 2,937  

(1)     Fiscal year 2025 includes Certain litigation benefits from a single litigation matter that does not relate to HP's ongoing business operations

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Notes to Consolidated Financial Statements (Continued)

Segment Assets
HP allocates assets to its business segments based on the segments primarily benefiting from the assets. Total assets by segment and the reconciliation of segment assets to HP consolidated assets were as follows:

  As of October 31
  2025 2024
  In millions
Personal Systems $ 24,928   $ 22,378  
Printing 14,632   16,457  
Corporate Investments 279   181  
Corporate and unallocated assets 1,930   893  
Total assets $ 41,769   $ 39,909  

Major Customers
One customer, TD Synnex Corp, accounted for 12 % of HP’s net revenue for fiscal year 2025. No single customer represented 10% or more of HP’s net revenue in fiscal year 2024 or 2023.
Geographic Information
Net revenue by country is based upon the sales location that predominately represents the customer location. Other than the United States, no country represented more than 10% of HP net revenue in any fiscal year presented.
Net revenue by country was as follows:

  For the fiscal years ended October 31
  2025 2024 2023
    In millions  
United States $ 19,212   $ 18,790   $ 18,829  
Other countries 36,083   34,769   34,889  
Total net revenue $ 55,295   $ 53,559   $ 53,718  

Net property, plant and equipment by country in which HP operates was as follows:

  As of October 31
  2025 2024
  In millions
United States $ 1,647   $ 1,471  
Singapore 338   335  
South Korea 276   297  

Other countries 788   811  
Total property, plant and equipment, net $ 3,049   $ 2,914  

 
No single country other than those represented above exceeded 10% or more of HP’s total net property, plant and equipment in any fiscal year presented.
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Notes to Consolidated Financial Statements (Continued)

Note 3: Restructuring and Other Charges
Summary of Restructuring Plans
HP’s restructuring activities in fiscal years 2025, 2024 and 2023 summarized by plan were as follows:

Fiscal 2023 Plan Other prior year plans (1)
Total
Severance and EER Non-labor
In millions
Accrued balance as of October 31, 2022
$ —   $ —   $ 32   $ 32  
Charges 402   41   1   444  
Cash payments ( 172 ) ( 15 ) ( 35 ) ( 222 )
Non-cash and other adjustments ( 142 ) (2) ( 8 ) 4   ( 146 )
Accrued balance as of October 31, 2023
88   18   2   108  
Charges 205   16   12   233  
Cash payments ( 173 ) ( 18 ) ( 5 ) ( 196 )
Non-cash and other adjustments —   ( 5 ) ( 2 ) ( 7 )
Accrued balance as of October 31, 2024
120   11   7   138  
Charges 266   61   —   327  
Cash payments ( 230 ) ( 14 ) ( 4 ) ( 248 )
Non-cash and other adjustments 4   ( 50 ) 1   ( 45 )
Accrued balance as of October 31, 2025
$ 160   $ 8   $ 4   $ 172  
Total costs incurred to date as of October 31, 2025
$ 873   $ 118   $ 878   $ 1,869  

Reflected in Consolidated Balance Sheet:

Other current liabilities $ 160   $ 3   $ 4   $ 167  
Other non-current liabilities $ —   $ 5   $ —   $ 5  

(1)     Primarily includes the fiscal 2020 plan along with other legacy plans, all of which are substantially complete. HP does not expect any further material activity associated with these plans.
(2)     Includes reclassification of liability related to the Enhanced Early Retirement ("EER") plan of $ 139 for certain healthcare and medical savings account benefits to pension and post-retirement plans. See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information .
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 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. HP expects to incur approximately $ 400  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 EER. HP incurred $ 873  million in severance costs and $ 347  million in infrastructure costs related to non-labor and other charges.

Other Charges
Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and transformation program management costs, and are distinct from ongoing operational costs. These costs primarily relate to third-party professional services and other non-recurring costs. HP incurred $ 78 million, $ 68 million and $ 83 million of other charges in fiscal year 2025, 2024 and 2023, respectively.

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Notes to Consolidated Financial Statements (Continued)

Note 4: Retirement and Post-Retirement Benefit Plans
Defined Benefit Plans
HP sponsors a number of defined benefit pension plans worldwide. The most significant defined benefit plan, the HP Inc. Pension Plan (“Pension Plan”) is a frozen plan in the United States.
HP reduces the benefit payable to certain U.S. employees under the Pension Plan for service before 1993, if any, by any amounts due to the employee under HP’s frozen defined contribution Deferred Profit-Sharing Plan (“DPSP”). As of October 31, 2025 and 2024, the fair value of HP’s DPSP plan assets was $ 278 million and $ 297 million, respectively. The DPSP obligations are equal to the plan assets and are recognized as an offset to the Pension Plan when HP calculates its defined benefit pension cost and obligations.
Post-Retirement Benefit Plans
HP sponsors retiree health and welfare benefit plans, of which the most significant are in the United States. Under the HP Inc. Retiree Welfare Benefits Plan, certain pre-2003 retirees and grandfathered participants with continuous service to HP since 2002 are eligible to receive partially subsidized medical coverage based on years of service at retirement. HP’s share of the premium cost is capped for all subsidized medical coverage provided under the HP Inc. Retiree Welfare Benefits Plan. HP currently leverages the employer group waiver plan process to provide HP Inc. Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits. Effective January 1, 2026, Medicare-eligible retirees will receive the capped subsidy and enroll in individual market options through an exchange. 
Certain employees not grandfathered for partially subsidized medical coverage under the above programs, and employees hired after 2002 but before August 2008, are eligible for credits under the HP Inc. Retiree Welfare Benefits Plan. Credits offered after September 2008 are provided in the form of matching credits on employee contributions made to a voluntary employee beneficiary association upon attaining age 45 or as part of early retirement programs. On retirement, former employees may use these credits for the reimbursement of certain eligible medical expenses, including premiums required for coverage.
Defined Contribution Plans
HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined contribution expense was $ 132 million, $ 133 million, and $ 131 million in fiscal year 2025, 2024, and 2023, respectively.
U.S. employees are automatically enrolled in the HP Inc. 401(k) Plan when they meet eligibility requirements, unless they decline participation. The employer matching contributions in the HP Inc. 401(k) Plan is 100 % of the first 4 % of eligible compensation contributed by employees, and the employer match is vested after three years of employee service. Generally, an employee must be employed by HP Inc. on the last day of the calendar year to receive a match.
Pension and Post-Retirement Benefit Expense  
The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Statements of Earnings were as follows:

  For the fiscal years ended October 31
  2025 2024 2023 2025 2024 2023 2025 2024 2023
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
  In millions
Service cost $ —   $ —   $ —   $ 39   $ 37   $ 39   $ 1   $ 1   $ 1  
Interest cost 214   228   217   43   46   41   14   15   15  
Expected return on plan assets ( 241 ) ( 246 ) ( 258 ) ( 57 ) ( 51 ) ( 53 ) ( 14 ) ( 15 ) ( 14 )
Amortization and deferrals:            
Actuarial loss (gain) 29   28   18   8   ( 1 ) 4   ( 17 ) ( 15 ) ( 16 )
Prior service cost (credit) —   —   —   7   6   5   ( 6 ) ( 10 ) ( 11 )
Net periodic benefit cost (credit)
2   10   ( 23 ) 40   37   36   ( 22 ) ( 24 ) ( 25 )

Settlement loss
—   —   —   8   2   —   —   —   —  
Special termination benefit cost —   —   105   —   —   —   —   —   34  
Total periodic benefit cost (credit)
$ 2   $ 10   $ 82   $ 48   $ 39   $ 36   $ ( 22 ) $ ( 24 ) $ 9  

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Notes to Consolidated Financial Statements (Continued)

The components of net periodic benefit (credit) cost other than the service cost component are included in Interest and other, net in the Consolidated Statements of Earnings.
The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows: 

  For the fiscal years ended October 31
  2025 2024 2023 2025 2024 2023 2025 2024 2023
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
Discount rate 5.3 % 6.2 % 5.7 % 3.2 % 3.9 % 3.5 % 5.2 % 6.0 % 5.6 %
Expected increase in compensation levels 2.0 % 2.0 % 2.0 % 2.7 % 3.0 % 3.0 % — % — % — %
Expected long-term return on plan assets 5.9 % 6.6 % 6.4 % 5.1 % 5.3 % 5.4 % 4.5 % 5.2 % 3.3 %
Interest crediting rate
5.2 % 5.5 % 5.0 % 2.6 % 2.6 % 2.6 % 4.7 % 5.4 % 4.2 %

Funded Status
The funded status of the defined benefit and post-retirement benefit plans was as follows:

  As of October 31
  2025 2024 2025 2024 2025 2024
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
  In millions
Change in fair value of plan assets:            
Fair value of assets — beginning of year $ 4,218   $ 3,853   $ 1,085   $ 959   $ 317   $ 382  

Actual return on plan assets 314   598   67   111   15   33  
Employer contributions 26   26   43   53   5   4  
Participant contributions —   —   15   17   25   28  
Benefits paid ( 250 ) ( 258 ) ( 38 ) ( 54 ) ( 48 ) ( 48 )
Settlement ( 2 ) ( 1 ) ( 35 ) ( 28 ) —   —  
Transfers
—   —   —   —   —   ( 82 )
Currency impact —   —   67   27   —   —  
Fair value of assets — end of year $ 4,306   $ 4,218   $ 1,204   $ 1,085   $ 314   $ 317  
Change in benefits obligation            
Projected benefit obligation — beginning of year $ 4,218   $ 3,854   $ 1,345   $ 1,185   $ 287   $ 299  

Service cost —   —   39   37   1   1  
Interest cost 214   228   43   46   14   15  
Participant contributions —   —   15   17   25   28  
Actuarial loss (gain)
83   395   ( 16 ) 116   ( 12 ) ( 8 )
Benefits paid ( 250 ) ( 258 ) ( 38 ) ( 54 ) ( 48 ) ( 48 )

Settlement ( 2 ) ( 1 ) ( 35 ) ( 28 ) —   —  

Currency impact —   —   79   26   —   —  
Projected benefit obligation — end of year $ 4,263   $ 4,218   $ 1,432   $ 1,345   $ 267   $ 287  
Funded status at end of year $ 43   $ —   $ ( 228 ) $ ( 260 ) $ 47   $ 30  
Accumulated benefit obligation $ 4,263   $ 4,217   $ 1,325   $ 1,248  

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Notes to Consolidated Financial Statements (Continued)

The cumulative net actuarial losses for our defined pension plans and retiree welfare plans decreased year over year. These loss decreases were primarily due to higher than expected return on assets and increases in discount rates. The decrease in losses was partially offset due to plan experience and other assumption changes.
The weighted-average assumptions used to calculate the projected benefit obligations were as follows:

  For the fiscal years ended October 31
  2025 2024 2025 2024 2025 2024
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
Discount rate 5.3 % 5.3 % 3.5 % 3.2 % 5.2 % 5.2 %
Expected increase in compensation levels 2.0 % 2.0 % 2.8 % 2.7 % — % — %
Interest crediting rate
5.1 % 5.2 % 2.6 % 2.6 % 4.6 % 4.7 %

The net assets and liabilities for HP’s defined benefit and post-retirement benefit plans recognized on HP’s Consolidated Balance Sheet were as follows:

  As of October 31
  2025 2024 2025 2024 2025 2024
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
  In millions
Other non-current assets $ 313   $ 277   $ 61   $ 50   $ 51   $ 35  
Other current liabilities ( 31 ) ( 31 ) ( 9 ) ( 10 ) ( 3 ) ( 4 )
Other non-current liabilities ( 239 ) ( 246 ) ( 280 ) ( 300 ) ( 1 ) ( 1 )
Funded status at end of year $ 43   $ —   $ ( 228 ) $ ( 260 ) $ 47   $ 30  

The following table summarizes the pre-tax net actuarial loss (gain) and prior service cost (credit) recognized in Accumulated other comprehensive income (loss) for the defined benefit and post-retirement benefit plans.

  As of October 31, 2025
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans Post-Retirement
Benefit Plans
  In millions
Net actuarial loss (gain) $ 553   $ 31   $ ( 187 )
Prior service cost (credit) —   28   ( 40 )
Total recognized in Accumulated other comprehensive income (loss) $ 553   $ 59   $ ( 227 )

 
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows:

  As of October 31
  2025 2024 2025 2024
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans
  In millions
Aggregate fair value of plan assets $ —   $ —   $ 976   $ 894  
Aggregate projected benefit obligation $ 270   $ 277   $ 1,267   $ 1,207  

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Notes to Consolidated Financial Statements (Continued)

Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows:

  As of October 31
  2025 2024 2025 2024
  U.S. Defined
Benefit Plans Non-U.S. Defined
Benefit Plans
  In millions
Aggregate fair value of plan assets $ —   $ —   $ 685   $ 610  
Aggregate accumulated benefit obligation $ 270   $ 277   $ 900   $ 859  

Total Plan Assets
The table below sets forth the total value of plan assets as of October 31, 2025. Refer to Note 9, “Fair Value” for details on fair value hierarchy. Certain investments that are measured using the Net Asset Value (“NAV”) per share as a practical expedient have not been categorized in the fair value hierarchy.