HP Inc.

Good day, everyone, and welcome to the first quarter 2026 HP Inc. Earnings Conference Call. My name is Regina, and I will be your conference moderator for today's call. At this time, all participants will be in listen-only mode. We will be facilitating a question and answer session toward the end of the conference. Should you need assistance during the call, please signal a conference specialist by pressing the star key followed by zero. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Alok Juyal, Global Treasurer and Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to HP's first quarter 2026 earnings conference call. With me today are Bruce Broussard, HP's Interim Chief Executive Officer, and Karen Parkhill, HP's Chief Financial Officer. Before handing the call over to Bruce, let me remind you that this call is a webcast and a replay will be available on our website shortly after the call for approximately one year. We posted the earnings release and accompanying slide presentation on our investor relations webpage at investor.hp.com. As always, elements of this presentation are forward-looking and are based on our best view of the world and our business as we see them today. For more detailed information, please see disclaimers in the earnings materials relating to forward-looking statements that involve risks, uncertainties, and assumptions. For a discussion of some of these risks, uncertainties, and assumptions, please refer to HP's SEC reports, including our most recent Form 10-K. HP assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information Discussed on this call reflects estimates based on information available now and could differ materially from the amounts ultimately reported in HP's SEC filings. During this webcast, unless otherwise specifically noted, all comparisons are year-over-year comparisons with the corresponding year-ago period. In addition, unless otherwise noted, references to HP channel inventory Refer to Tier 1 channel inventory and market share references are based on calendar quarter information. For financial information that has been expressed on a non-GAAP basis, we've included reconciliations to the comparable GAAP information. Please refer to the tables and slide presentation accompanying today's earnings release for those reconciliations. With that, I will now turn the call over to Bruce.

Thank you, Alok. And thank you, everyone, for joining us here today. I'm excited to be here with you for my first earnings call as interim CEO. I've served as a director on HP's board since 2021, and I, along with my fellow board members, strongly believe in the management team and strategic direction we are charting at HP. I'd like to also acknowledge Enrique Lores and his contribution to the success company during his 36-year tenure. We are sincerely grateful to him. The Board and I are committed to strong stewardship, including disciplined decision-making, operational consistency, stability for our employees, and delivering value for our customers and shareholders. With that in mind, I want to provide a brief update on the CEO search. The process is well underway. The board's priority is to identify the right leader to guide HP through its next phase of evolution. We will consider a broad range of candidates with a preference for proven executives who have successfully operated large multi-segment business in a complex and dynamic environment. During my first few weeks since we've announced the CEO transition, I've immersed myself in the company. I've met with thousands of employees and spent considerable time talking with customers and suppliers. I've also had the opportunity to work closely with the leadership team. I want to thank the employees, suppliers, and customers for the warm welcome. Together, these discussions give me a clear view of the opportunity ahead and the deep confidence in what the organization can deliver. We are at an exciting inflection point in technology where customers need a trusted partner to enable edge computing, simplify experiences through integrated solutions, and embed AI into products that proactively anticipate users' needs. This is the foundation of our future of work strategy, which positions us to expand market share and ensures our pricing reflects the value we deliver especially as we navigate near-term challenges. We will stay disciplined in executing our fiscal 26 plan, which you will hear more about today, taking great care of our customers, partners, and suppliers, and continuing to build a company where people are proud to work and grow. I'm working directly with the talented HP leadership team to ensure we are actively managing every lever available to us to drive value creation. With that, let's get into the quarter. Overall, we executed well in Q1 and made solid progress against our strategy. Karen will cover the details shortly, but let me highlight a few points. We delivered another quarter of steady top-line growth with revenue of $14.4 billion, up 7% year over year. driven by performance and personal systems as we continue to see the positive impact on PC demand in the Windows 11 refresh cycle and the continuing momentum of AI PCs. We achieved PC market share gains across our high-value commercial and consumer categories, contributing to our double-digit revenue growth in the segment. In print, our results were in line with expectations with continued momentum in consumer subscriptions, which grew revenue double digit, and industrial print, which grew mid-single digit, with continuing shifts from analog to digital production. We prioritized the placement of profitable units and grew big tank share in developed markets. Non-GAAP EPS of 81 cents reflected 9% growth compared to the prior year, and was at the top of our guidance. Turning to our strategic advancement highlights, HP is dedicated to creating a more fulfilling professional experience. In the first quarter, we made meaningful progress bringing AI to the workplace through innovation. HP's focus on AI at the edge reflects the increasingly critical role of this technology in the daily lives of our customers. As the AI curve moves from a pyramid to scale deployment and measurable returns, we are enabling customers with compute power to run powerful large language models locally, complementing AI in the cloud with secure, high performance, and cost-effective AI at the edge. This is an important part of our future of work strategy. This quarter, AI PCs accounted for over 35% of our PC ship up from 30% in the prior quarter and 25% the quarter before. We also launched the HP Elite Board G1A. This is the first AI PC with intelligence built into the keyboard for hybrid work, and it's just one example of how we are bringing on-device architecture to life. In print, our new AI-powered scanning and redaction capabilities are now reaching customers, simplifying workflows, and reducing friction for small business. Our focus on delivering more secure and AI-enabled print experiences is also being recognized, with industry analyst Chris Serka recognizing our leadership in AI-driven print solutions. The next step in our strategy is driving better together experiences. We believe there is enormous value in integrating devices, software, and services to work as a unified experience. In the first quarter, we launched HP Digital Passport, a personalized hub that centralizes information across the full HP ecosystem, resulting in better customer engagement and more efficient support. We also expanded our partnership with Microsoft embedding Microsoft 365 Copilot directly into HP printers to improve how employees manage documents on the device. This brings us to our third step, empowering CIOs with tools to gain actionable insights, manage risk, and run IT more strategically at scale. To that end, we introduce multiple enterprise-focused updates in Q1. expanding our workforce experience platform, commonly called WXP, capabilities to further simplify device and printer management, combined with reducing downtime. WXP is now the most comprehensive multi-vendor fleet management solution across PCs, print, and collaboration. By taking in data from 50 million endpoints and processing more than a terabyte of data daily, The platform enables predictive insights that allow IT teams to proactively identify issues, streamline operations, and improve workforce activity. In addition, this month HP established an exploratory partnership with OpenAI to pilot OpenAI Frontier, their new enterprise platform for building and managing AI agents. This puts HP at the forefront of enterprise AI deployments with built-in governance, security, and observability as we move from pilots to scaled adoption across workforce. In March, we will host our HP Imagine event for industry and media analysts. This showcases our latest innovative solutions to help people do their best work from anywhere. The new experiences we unveil at HP Imagine will demonstrate how we continue to lead the future of work by helping customers drive growth, professional fulfillment, and foster innovation in the era of AI. Now, let me touch on the rising memory cost environment and how HP is addressing these market challenges, which are impacting companies across the technology sector. Like others, we are seeing increased input costs driven primarily by the rising prices of DRAM and NAN. We expect this volatility to remain throughout fiscal 26 and likely into fiscal 27. While we believe the market will rationalize over time, we have already been implementing a number of mitigation measures. And since I moved into this role, I've been actively working with the team to drive these actions forward. make adjustments where needed, and bring as much of the memory dynamic as we can under our control. To get a bit more granular on these mitigation measures, let me focus on progress of our key strategies. First, on the supply side, we have leveraged the strength of our supplier relationships and secured long-term agreements covering our memory requirements for fiscal 26. We've qualified new suppliers built-in strategic inventory positions for key platforms, and cut the time to qualify new material in half to accelerate our product configuration changes. Second, on the cost side, we've expanded lower cost sourcing across our commodity basket, lowering logistics costs with agile end-to-end planning processes as part of the company-wide AI-enabled program. And we've accelerated company-wide productivity efforts as part of this program to use the company-wide broader cost base to execute offsets. Third, at the same time we are implementing strategies on supply and cost, we are also configuring our products and shaping demand to align the supply we have with our customer needs. And we are taking targeted pricing actions to offset the remaining cost impact and close partnerships with both our channel and direct customers. We have a strong track record of managing through commodity super cycles and uncertain times. We've demonstrated this during the pandemic and more recently through trade cost uncertainty. We built a more resilient supply chain and leveraged our strong brand and distribution strength to gain share and expand margins. HP is also well diversified. with a meaningful portion of our personal systems profit coming from services and peripherals. While the near-term environment will remain challenged and pressure PS margins, we are confident the actions we are taking will position us for the long-term success. I also want to touch briefly on last week's U.S. Supreme Court ruling on tariffs. We are evaluating the impact of the decisions, including the announcement of new tariffs in the last few days. Right now, we do not expect to be negatively impacted by the subsequent developments following the court decision. However, we will continue to engage the administration on these matters and others. We are confident in the strength and agility of our supply chain, which provides the flexibility needed to navigate an uncertain trade-related cost environment. In this fluid operating environment, fiscal 26 will be shaped by a range of factors some of which remain uncertain. Our focus will be on prudent execution of mitigation plans to offset the impact of memory costs, accelerate company-wide cost action, and continue to execute against our future of work strategy. We expect that the memory situation will normalize at some point. In the meantime, we are not backing away from our long-term commitments despite headwinds. And my focus is to ensure we continue to move forward with urgency and discipline without missing a beat. Before I close, I want to say what an honor it is to be part of the HP team. This is a special company, and I have great respect for our mission, culture, and people. To our shareholders, thank you for your continued belief and confidence in HP. And to our employees around the world, thank you for your dedication and commitment And I'm proud to be on this journey with you. And lastly, I want to provide an update on the investor day we had planned for April. In light of our ongoing CEO transition, we will be rescheduling this and look forward to sharing a date with you at the right time. I'll now hand it off to Karen to walk through the first quarter results and outlook for the remainder of the year.