HP Inc. reported third-quarter fiscal 2026 revenue of $15.7 billion, a 12.5% increase from the same period a year earlier, marking the ninth consecutive quarter of year-over-year growth. Non-GAAP diluted earnings per share reached $0.83, exceeding the prior guidance range of $0.61 to $0.71, though $0.11 of the beat stemmed from tariff refunds. Adjusted EPS, excluding the refund impact, would have been $0.72. Free cash flow for the quarter totaled $1.6 billion, bringing the year-to-date figure to $2.5 billion.
Revenue growth was driven by the Personal Systems segment, which contributed 75% of total sales at $11.8 billion, up 18.5% year-over-year. Commercial Personal Systems accounted for 55% of company-wide revenue, surging 22%, while Consumer Personal Systems contributed 20%, growing 10%. Operating profit in the segment declined by $4 million to $537 million, with the operating margin contracting to 4.6% from 5.4% a year earlier. Unit volumes fell 16%, including a 14% drop in commercial and a 19% decline in consumer sales. AI PCs represented 46% of Personal Systems shipments.
The Printing segment generated $3.9 billion in revenue, down 2.2% year-over-year, with supplies accounting for 16% of total company revenue and declining 3%. Operating profit rose 11% to $709 million, lifting the segment’s margin to 18.1% from 17.0%. Hardware unit shipments fell 7%, with consumer printing down 2% and commercial printing down 1%. Geographic revenue was split 41% in the Americas, 33% in EMEA, and 26% in Asia-Pacific, where growth reached 20.7% year-over-year.
HP returned $600 million to shareholders in the quarter, including $274 million in dividends and $300 million in share repurchases covering 12.2 million shares. Year-to-date, the company has repurchased 30.8 million shares for $725 million. Debt reduction totaled $500 million, reducing gross debt to $9.2 billion and net debt to $5.0 billion, down from $6.8 billion a year earlier.
For the fourth quarter, HP guided non-GAAP diluted EPS to $0.69 to $0.79, including an estimated $0.08 benefit from tariff refunds. Excluding this impact, the implied range is $0.61 to $0.71. Full-year FY26 non-GAAP diluted EPS guidance was raised to $3.19 to $3.29, up from the prior $2.90 to $3.10, with an estimated $0.19 full-year tariff refund benefit. Free cash flow guidance was increased to $3.0 billion to $3.2 billion. The company also reiterated its AI PC roadmap, targeting a 50% shipment mix by the end of fiscal 2026, 60–70% in fiscal 2027, and above 70% in fiscal 2028.
Shares of HP fell 9.2% in after-hours trading to $27.71 following the results presentation.
