HP (HPQ) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Financial performance and outlook

• Achieved 7% revenue growth in Q1 with EPS at the high end of guidance, gaining share in key segments and print markets.

• Memory supply constraints and rising costs are being managed with mitigation strategies, including cost reductions and price increases.

• Revenue growth expected to moderate in the second half, with EPS likely at the lower end of the annual range.

• Print operating margins are expected at the high end of the 16%-19% range for the fiscal year.

• Free cash flow remains a priority, with actions to protect it despite unit declines and market volatility.

Strategic initiatives and business drivers

• Focused on driving share gains and higher pricing in Personal Systems, especially in commercial and premium categories.

• AI PCs now represent 35% of shipments, with continued growth expected; Windows 11 refresh is 60% complete, with remaining opportunity in Europe and Asia.

• Non-PC businesses, including peripherals and workforce solutions, are targeted for growth and offer higher margins.

• Print strategy emphasizes profitable unit placement, Big Tank expansion, and subscription models like the All-In Plan.

• Industrial print has grown for 10 consecutive quarters, benefiting from the analog-to-digital shift.

Cost management and operational efficiency

• Implementing a $1 billion AI-enabled cost savings program by FY 2028, with $300 million targeted for this fiscal year.

• AI is being used to automate supply chain processes and support channel partners.

• Additional cost actions are being accelerated to offset headwinds, with flexibility to increase spending for savings.

• Working capital stewardship continues, with no major changes anticipated for 2026.