HP reports Higher Q3 Revenue Amid Printing Decline

HP reports Higher Q3 Revenue Amid Printing Decline

HP reported a 12.5% year-over-year increase in third-quarter fiscal 2026 revenue to $15.7 billion, as strong growth in its Personal Systems business more than offset continued weakness in printing.

The quarter’s strongest performance came from Personal Systems, which generated $11.8 billion in revenue, up 18.5% from a year earlier and 16.7% on a constant-currency basis.

HP said Personal Systems revenue growth was driven by pricing actions aimed at offsetting commodity-cost pressures and by increasing premium-market share, partly offset by lower volumes. Commercial PC revenue rose 22%, while consumer PC revenue increased 10%, even as total Personal Systems unit shipments fell 16%. HP also reported double-digit growth in AI PCs, Advanced Compute Solutions and Workforce Solutions, marking the business’s tenth consecutive quarter of year-over-year revenue growth.

Printing remained a drag on consolidated growth. Printing revenue fell 2.2% year over year to $3.9 billion, or 3.6% on a constant-currency basis. Supplies revenue declined 3%, while total hardware units fell 7%. Consumer Printing revenue declined 2% and Commercial Printing revenue fell 1%.

Despite the revenue decline, Printing’s profitability improved. Non-GAAP operating profit rose to $709 million, and the operating margin increased 1.1 percentage points to 18.1%. HP attributed the improvement to favorable tariff refunds and pricing actions, while pointing to continued growth in Industrial Printing and 3D Printing.

Looking ahead, HP expects Personal Systems revenue to be below seasonal levels, while Printing is expected to be in line with seasonal trends. HP’s full-year fiscal 2026 outlook calls for non-GAAP diluted EPS of $3.19 to $3.29 and free cash flow of $3.0 billion to $3.2 billion.

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