HP Inc.

Good day, everyone, and welcome to the third quarter 2026 HP Inc. earnings conference call. My name is Lisa, and I'll be your conference moderator for today's call. At this time, all participants are in a listen-only mode. We will be facilitating a question and answer session towards 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 Mr. Alok Juyal, Global Treasurer and Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to HP's third 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 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. References to HP's channel inventory refer to the Tier 1 channel inventory, and market share references are based on calendar quarter information. In addition, unless otherwise specified, all financial measures discussed today are non-GAAP and EPS refers to non-GAAP diluted net earnings per share. Please refer to the tables in today's earnings release and the accompanying slide presentation on our website for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. With that, I will now turn the call over to Bruce.

Thank you, Alok, and thanks, everyone, for joining us today. I'm pleased to share that we delivered record third quarter revenue and continue to exceed expectations on EPS. We're also laying a strong foundation for the AI era and our building momentum. Our strategic execution, robust commodity mitigation plan, and relentless are helping us advance our business and enable our customers to successfully navigate this most significant technology shift. Today, I'll share our third quarter highlights, discuss the innovations we are bringing to market, and touch on how we are managing the current environment. Before I do, I know some of you are interested in an update on the CEO search. I am sure you can appreciate that I am unable to share details or a timeline, but the search is proceeding well, and we continue to make good progress on finding the right next leader for HP. In the meantime, having spent the past several months leading the company day to day, I've developed a deeper perspective on HP. Four observations stand out. First, we need to continue advancing our operating infrastructure to become better connected, AI-enabled, and data-driven, improving productivity while delivering better experiences for our customers, partners, and employees. Second, we will continue advancing our devices to be AI-leading by bringing more computing to the edge where context is created. This will enable more intelligent and many more. resources and capabilities against those priorities with focus and discipline. HP has tremendous assets, one of the most iconic brands in technology, a strong global footprint, sophisticated supply chain, deep commercial relationships, and a talented team. And there are meaningful opportunities to make HP stronger, more cohesive, and more effective. We are taking action now to strengthen the foundation, sharpen our priorities, and improve execution so that when our next CEO steps in, they can build on that momentum and lead HP into its next chapter of growth and value creation. Let me get to our results. This quarter, we delivered $15.7 billion in revenue, a record Q3 for HP. This represents an increase of 13% and our ninth consecutive quarter of top-line growth, driven by another strong quarter in personal systems, while print results were in line with our expectations. We executed on our commitments and accelerated our key growth areas, which collectively grew 46% year over year and faster than our core. We continue to take share in high-value segments while managing commodity headwinds with our mitigation playbook, enabling us to deliver EPS above our expectations, even when excluding a tariff-free fund benefit, while also delivering strong free cash flow. In short, we did what we said we would do. In personal systems, we achieved our 10th consecutive quarter of revenue growth up 18% year over year, driven by solid growth across both commercial and consumer segments. We are particularly pleased with this continued strength of our AIPC portfolio, which continued to grow and is still expected to be 50% of our shipment mix by the end of this fiscal year. At the same time, consistent with our strategy, We delivered double-digit revenue expansion in our key growth areas, including advanced compute solutions and workforce solutions. We also continue to capture share in high-value categories, including premium PC, returning us to share leadership in the Americas. Overall, these results show customers continue to invest in the hardware and solutions they need to run AI where work happens. Turning to print, revenue was down 2% year over year in what continues to be a competitive market. We remained focused on pricing discipline and the placement of profitable units. We said we would double down on big tank markets, and we did, gaining another four points of share this quarter. Industrial printing delivered its 12th straight quarter of revenue growth as customers continued to leverage our award-winning hardware portfolio to drive their digital workflows and grow their businesses. Across both segments, we are balancing near-term execution with long-term investment and shifting our portfolio towards high value and more profitable categories. Turning to innovation, this quarter we unveiled and many more advancements designed to help our customers thrive in the AI era. We believe the future of AI is hybrid. That means AI will operate both in the cloud and increasingly at the edge. For customers already seeing the cost of cloud-based AI add up, economics alone makes edge AI compelling. It can also improve security, latency and strengthen data governance. To make Edge AI a reality, we are working with customers and ecosystem partners to build platforms that extend data center class AI capabilities to the edge. By enabling GPU sharing through HP ZBoost and integrating it with our WXP software layer, security, and device features, we are making traditional cloud AI capabilities available locally. Building advanced AI locally has too often meant specialized infrastructure, large budgets, and complex setups. We are changing that. With our HP ZGX FURY, we bring data center class AI to the desk side so teams can build and run frontier scale models and always on agents locally. The response since we first showed this direction at Computex has been clear. Customers want local AI they can own. Over the next month, we will extend this momentum into more of the form factors people already carry, with the memory and power those on-device models actually need. A leading automotive company is using HP solutions to bring visual AI and inferencing directly to its manufacturing line. helping improve quality inspections, performance, and economics. We see the same potential in many other sectors that require onsite compute performance, strong security, and the most cost-effective ways to manage increasingly complex AI models. This creates significant opportunities in areas like retail, public sector, and healthcare. We are also advancing what PCs can do as devices. In the eugenic era, PCs are becoming partners that understand your needs and help meet them. So we are reimagining what a personal computer can do with our new Omnibook Ultra 16 powered by NVIDIA RTX Spark. It brings the compute needed to build and run sophisticated AI models and personal agents to a thin, mainstream mobile PC. and our OmniDesk Mini Desktop combines full-sized performance with a compact design and built-in AI capabilities. In print, we're already delivering tangible customer value with AI. In June, we expanded our flagship AI-powered print experience, Precise Print, to more than 150 countries. By intelligently removing unnecessary web content before printing, Precise Print helps customers reduce paper usage by up to 38% and ink consumption up to 47%. Our HP Neo AI Companion brings agentic AI to industrial print operations and is gaining momentum. Neo was awarded the 2026 European Digital Press Association Award for Best Software Agent in the Print Industry AI category. This underscores our commitment to intelligent, data-driven production ecosystems with built-in remote remediation capabilities and, importantly, solving uptime problems for our printer service customers. In Q3, we also signed a three-year, $100 million strategic agreement with RRD, one of the world's leading print service providers. This reflects our shared vision to accelerate AI and industrial automation and print production. Succeeding at the edge also requires intelligent ways to manage the technology portfolio. Work moves across PCs, meeting rooms, collaboration tools, printers, and other endpoints. Our WXP platform helps CIOs track and manage fleets of connected devices and applications. This quarter we integrated HP PolyLens and collaboration capabilities into WXP, giving IT teams greater visibility across PCs, printers, and collaboration devices. By bringing together insights that were previously isolated across different environments, organizations and channel partners can turn data into actionable intelligence, improve workforce experiences, Lower costs and establish a governance layer. WXP was named a leader in the 2026 Gartner Magic Quadrant for digital employee experience management tools. We believe the future of computing will be increasingly intelligent and integrated, with devices anticipating user needs, executing tasks seamlessly, and connecting traditionally separate cloud and desktop environments. By bringing AI capabilities closer to users, these devices can provide the context required for more effective reasoning and inference. AI at the Edge offers meaningful benefits for our customers while creating significant incremental growth opportunities for HP and the broader industry. We believe HP is uniquely positioned to lead this evolution through our broad portfolio of products and services, trusted brand, presence in more than 180 countries, and robust innovation pipeline. Together, these strengths create substantial opportunities for growth. At HP, we consider ourselves customer zero. using our own business as a proving ground for the products and solutions we develop. Like our customers, HP is benefiting today from localized AI capabilities using edge inferencing across our business. For example, in our Singapore production facility, teams are using our ZBook workstations running an Opus model to enhance quality insurance and detection capabilities on the manufacturing line. As Passport, we scaled our work with OpenAI. Through OpenAI Frontier, we are integrating AI across the customer and partner experiences, the HG store, digital support, WXP telemetry, employee productivity, and software development. Early deployments are already helping teams accelerate engineering workflows, enhance security analysis, and automate routine tasks while maintaining HP's high standards for data, governance, and security. We are just getting started with OpenAI and expect to share more as we turn our pilots into scaled capabilities that create business value. Let me now focus on the external supply and cost environment, which remains complex. We continue to effectively execute our mitigation plan. We remain confident in our memory and storage supply availability for this fiscal year and our focus on our needs into next year and beyond. The enhanced operating model we are building is designed to compound over time, creating a more connected process-led enterprise that can serve customers with greater consistency, speed, and predictability. What we are building is not a short-term efficiency program or a situational response, but a fundamental, stronger operating model that better connects planning, decision-making, and execution across the enterprise. We already see early signs of this working in areas such as order delivery predictability, improved accuracy rates leading to better conversion on incoming orders. With solid mitigation efforts already in place and additional steps planned, we remain confident about HP's upside potential, both in near-term and long-term, when the constraints the industry face begins to lift. Looking ahead, we remain focused on being the trusted resource for customers in navigating a dynamic environment. In personal systems, we see opportunity for increasing commercial workloads, AIPCs, advanced compute to the broader shift towards hybrid AI and growing need for contacts aware use cases at the edge. In print, we will continue to place profitable hardware units, grow big tank and subscription businesses, and invest in industrial application. Our teams will continue to manage memory storage and geopolitical pressures through pricing, sourcing, supply chain actions, productivity, and Portfolio Choices. The opportunity ahead is significant. AI is moving from isolated experimentation into day-to-day workflows, devices and environments. HP is well positioned to be the customer's trusted edge AI platform, helping them make the most of that transition. In closing, I'm proud of how the HP team performed this quarter. We delivered strong personal systems growth, managed through a challenging print market, and continued to drive innovation that will shape how work is done. Thank you to our employees for their commitment, and to our customers, partners, and investors for the trust you continue to place in HP. With that, I'll turn it over to Karen.