HP Inc. Reports First Quarter 2016 Results

More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at www.hp.com/investor/home.

HP's FY16 Q1 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2016Q1Webcast.

About HP Inc.
HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.

Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a generally accepted accounting principles (GAAP) basis, HP provides net revenue on a constant currency basis, as well as non-GAAP operating margin from continuing operations, non-GAAP net earnings from continuing operations, non-GAAP diluted net earnings per share from continuing operations and gross cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share from continuing operations. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP's management uses these non-GAAP measures to evaluate its business, the substance behind HP's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP's management compensates for those limitations, and the substantive reasons why HP's management believes that these non-GAAP measures provide useful information to investors is included under "Use of non-GAAP financial measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating profit, operating margin, net earnings from continuing operations, diluted net earnings per share from continuing operations or cash and cash equivalents prepared in accordance with GAAP.

Forward-looking statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, as well as the execution of the restructuring plan and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and the delivery of HP's services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plan, including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of the restructuring plan; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2015, and HP's other filings with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2016. HP assumes no obligation and does not intend to update these forward-looking statements. HP's Investor Relations website at www.hp.com/investor/home contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit our website from time to time, as information is updated and new information is posted.

                                                                            
                                                                            
                          HP INC. AND SUBSIDIARIES                          
               CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS                
                                (Unaudited)                                 
                  (In millions, except per share amounts)                   
                                                                            
                                              Three months ended            
                                   ---------------------------------------- 
                                    January 31,   October 31,   January 31, 
                                       2016          2015          2015      
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Net  revenue                                                $          12,246    $          12,266    $          13,858  
                                                                                                                                                        
Costs  and  expenses:                                                                                                                  
    Cost  of  products  and  services                      9,961                  9,900                11,173  
    Research  and  development                                    292                      282                      304  
    Selling,  general  and                                                                                                            
      administrative                                                  1,037                  1,212                  1,222  
    Amortization  of  intangible                                                                                                
      assets                                                                          8                        26                        27  
    Restructuring  charges                                            20                        41                        14  
    Defined  benefit  plan  settlement                                                                                      
      charges                                                                        -                          7                          -  
                                                                      ------------    ------------    ------------  
        Total  costs  and  expenses                          11,318                11,468                12,740  
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Earnings  from  continuing                                                                                                        
  operations  before  interest  and                                                                                          
  taxes                                                                            928                      798                  1,118  
                                                                                                                                                        
Interest  and  other,  net                                          (94)                    (99)                  (121)
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Earnings  from  continuing                                                                                                        
  operations  before  taxes                                        834                      699                      997  
                                                                                                                                                        
(Provision)  benefit  for  taxes                            (184)                    816                    (227)
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Earnings  from  continuing                                                                                                        
  operations                                                                  650                  1,515                      770  
(Loss)  earnings  from  discontinued                                                                                      
  operations,  net  of  taxes                                      (58)                  (192)                    596  
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Net  earnings                                              $                592    $            1,323    $            1,366  
                                                                      ============    ============    ============  
                                                                                                                                                        
Net  earnings  (loss)  per  share:                                                                                            
Basic                                                                                                                                              
    Continuing  operations                        $              0.37    $              0.84    $              0.42  
    Discontinued  operations                                  (0.04)                (0.11)                  0.33  
                                                                      ------------    ------------    ------------  
        Total  basic  net  earnings  per                                                                                        
          share                                                  $              0.33    $              0.73    $              0.75  
                                                                      ============    ============    ============  
                                                                                                                                                        
Diluted                                                                                                                                          
    Continuing  operations                        $              0.36    $              0.83    $              0.41  
    Discontinued  operations                                  (0.03)                (0.10)                  0.32  
                                                                      ------------    ------------    ------------  
        Total  diluted  net  earnings  per                                                                                    
          share                                                  $              0.33    $              0.73    $              0.73  
                                                                      ============    ============    ============  
                                                                                                                                                        
Cash  dividends  declared  per  share    $              0.25    $                    -    $              0.32  
                                                                                                                                                        
Weighted-average  shares  used  to                                                                                          
  compute  net  earnings  per  share:                                                                                        
    Basic                                                                      1,776                  1,802                  1,833  
    Diluted                                                                  1,785                  1,821                  1,861  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                ADJUSTMENTS  TO  GAAP  NET  EARNINGS,  EARNINGS  FROM  OPERATIONS,                  
                        OPERATING  MARGIN  AND  DILUTED  NET  EARNINGS  PER  SHARE                          
                                                                (Unaudited)                                                                  
                                    (In  millions,  except  per  share  amounts)                                      
                                                                                                                                                        
                                              Three        Diluted      Three      Diluted      Three    Diluted    
                                            months            net        months          net        months          net      
                                            ended        earnings    ended      earnings    ended      earnings  
                                            January          per        October        per        January        per      
                                          31,  2016        share    31,  2015      share    31,  2015      share    
                                          --------    --------  --------  --------  --------  --------  
                                                                                                                                                        
GAAP  net  earnings                                                                                                                      
  from  continuing                                                                                                                        
  operations                    $        650    $      0.36  $    1,515  $      0.83  $        770  $      0.41  
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible  assets                8            0.01              26          0.01              27          0.01  
    Restructuring                                                                                                                          
      charges                                  20            0.01              41          0.02              14          0.01  
    Non-operating                                                                                                                          
      retirement-                                                                                                                            
      related  credits                (40)        (0.02)          (58)      (0.03)          (58)      (0.03)
    Defined  benefit                                                                                                                      
      plan  settlement                                                                                                                    
      charges                                    -                  -                7                -                -                -  
    Adjustments  for                                                                                                                      
      taxes                                        7                  -                9          0.01              12          0.01  
    Valuation                                                                                                                                  
      allowances,  net                                                                                                                    
      and  separation                                                                                                                      
      taxes  and                                                                                                                                
      adjustments                            -                  -          (992)      (0.54)              -                -  
                                          --------    --------  --------  --------  --------  --------  
Non-GAAP  net                                                                                                                                
  earnings  from                                                                                                                            
  continuing                                                                                                                                  
  operations                    $        645    $      0.36  $        548  $      0.30  $        765  $      0.41  
                                          ========    ========  ========  ========  ========  ========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  continuing                                                                                                                                  
  operations  before                                                                                                                    
  interest  and  taxes    $        928                      $        798                    $    1,118                    
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible  assets                8                                  26                                27                    
    Restructuring                                                                                                                          
      charges                                  20                                  41                                14                    
    Non-operating                                                                                                                          
      retirement-                                                                                                                            
      related  credits                (40)                              (58)                            (58)                  
    Defined  benefit                                                                                                                      
      plan  settlement                                                                                                                    
      charges                                    -                                    7                                  -                    
                                          --------                      --------                    --------                    
Non-GAAP  earnings                                                                                                                      
  from  continuing                                                                                                                        
  operations  before                                                                                                                    
  interest  and  taxes    $        916                      $        814                    $    1,101                    
                                          ========                      ========                    ========                    
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin  from                                                                                                                                
  continuing                                                                                                                                  
  operations                                  8%                                  7%                                8%                  
Non-GAAP  adjustments              (1%)                                0%                                0%                  
                                          --------                      --------                    --------                    
Non-GAAP  operating                                                                                                                    
  margin  from                                                                                                                                
  continuing                                                                                                                                  
  operations                                  7%                                  7%                                8%                  
                                          ========                      ========                    ========                    
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                        CONSOLIDATED  CONDENSED  BALANCE  SHEETS                                      
                                                                  (Unaudited)                                                                
                                                                (In  millions)                                                              
                                                                                                                                                        
                                                                                                                        As  of                      
                                                                                                  ---------------------------
                                                                                                    January  31,      October  31,  
                                                                                                          2016                      2015        
                                                                                                  ------------    -------------
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                            $            3,688    $              7,584
    Accounts  receivable                                                                      4,114                    4,825
    Inventory                                                                                          4,052                    4,288
    Other  current  assets                                                                    3,301                    4,498
    Current  assets  of  discontinued  operations                                  -                  30,592
                                                                                                  ------------    -------------
                                                                                                                                                        
        Total  current  assets                                                              15,155                  51,787
                                                                                                  ------------    -------------
                                                                                                                                                        
Property,  plant  and  equipment                                                      1,529                    1,492
Other  non-current  assets                                                                3,873                    1,508
Goodwill  and  intangible  assets                                                    5,756                    5,764
Non-current  assets  of  discontinued  operations                              -                  46,331
                                                                                                  ------------    -------------
                                                                                                                                                        
Total  assets                                                                          $          26,313    $          106,882
                                                                                                  ============    =============
                                                                                                                                                        
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                $                  49    $              2,194
    Accounts  payable                                                                            9,041                  10,194
    Employee  compensation  and  benefits                                            553                        747
    Taxes  on  earnings                                                                              182                        243
    Deferred  revenue                                                                                863                    1,051
    Other  accrued  liabilities                                                          6,073                    6,241
    Current  liabilities  of  discontinued  operations                        -                  21,521
                                                                                                  ------------    -------------
                                                                                                                                                        
        Total  current  liabilities                                                    16,761                  42,191
                                                                                                  ------------    -------------
                                                                                                                                                        
Long-term  debt                                                                                    6,683                    6,677
Other  non-current  liabilities                                                      8,644                    7,414
Non-current  liabilities  of  discontinued                                                                          
  operations                                                                                                  -                  22,449
                                                                                                                                                        
Stockholders'  (deficit)  equity:                                                                                          
    HP  stockholders'  (deficit)  equity                                        (5,775)                27,768
    Non-controlling  interests                                                                  -                        383
                                                                                                  ------------    -------------
        Total  stockholders'  (deficit)  equity                              (5,775)                28,151
                                                                                                  ------------    -------------
                                                                                                                                                        
Total  liabilities  and  stockholder's  equity              $          26,313    $          106,882
                                                                                                  ============    =============
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                          Three  months  ended          
                                                                                                                  January  31,                
                                                                                                  --------------------------  
                                                                                                          2016                  2015(a)      
                                                                                                  ------------    ------------  
Cash  flows  from  operating  activities:                                                                              
    Net  earnings                                                                      $                592    $            1,366  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  (used  in)  provided  by  operating                                                                          
      activities:                                                                                                                            
        Depreciation  and  amortization                                                    79                  1,028  
        Stock-based  compensation  expense                                              61                      187  
        Provision  for  doubtful  accounts  and                                                                          
          inventory                                                                                          45                        62  
        Restructuring  charges                                                                    20                      146  
        Deferred  taxes  on  earnings                                                        526                    (173)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                    (1)                  (109)
        Other,  net                                                                                        (18)                    138  
                                                                                                                                                        
        Changes  in  operating  assets  and  liabilities                                                          
          (net  of  acquisitions):                                                                                                  
            Accounts  receivable                                                                  704                  1,540  
            Financing  receivable                                                                    -                      222  
            Inventory                                                                                      202                    (224)
            Accounts  payable                                                                  (1,104)                  (852)
            Taxes  on  earnings                                                                    (534)                    293  
            Restructuring                                                                              (31)                  (483)
            Other  assets  and  liabilities                                              (649)              (2,397)
                                                                                                  ------------    ------------  
                Net  cash  (used  in)  provided  by  operating                                                        
                  activities                                                                            (108)                    744  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
        Investment  in  property,  plant  and  equipment                    (120)                  (947)
        Proceeds  from  sale  of  property,  plant  and                                                              
          equipment                                                                                            -                      130  
        Purchases  of  available-for-sale  securities                                                            
          and  other  investments                                                                    -                      (50)
        Maturities  and  sales  of  available-for-sale                                                            
          securities  and  other  investments                                              9                        30  
        Payments  made  in  connection  with  business                                                              
          acquisitions                                                                                      -                        (1)
                                                                                                  ------------    ------------  
                Net  cash  used  in  investing  activities                        (111)                  (838)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
        Short-term  borrowings  with  original                                                                          
          maturities  less  than  90  days,  net                                          26                        77  
        Proceeds  from  debt,  net  of  issuance  costs                              4                      299  
        Payment  of  debt                                                                        (2,155)                  (911)
        Settlement  of  cash  flow  hedge                                                  (11)                        -  
        Net  transfer  of  cash  and  cash  equivalents  to                                                        
          Hewlett  Packard  Enterprise  Company                              (10,375)                        -  
        Issuance  of  common  stock  under  employee                                                                  
          stock  plans                                                                                        2                      181  
        Repurchase  of  common  stock                                                      (797)              (1,571)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                      1                      109  
        Cash  dividends  paid                                                                    (221)                  (304)
                                                                                                  ------------    ------------  
                Net  cash  used  in  financing  activities                  (13,526)              (2,120)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Decrease  in  cash  and  cash  equivalents                                  (13,745)              (2,214)
Cash  and  cash  equivalents  at  beginning  of  period              17,433                15,133  
                                                                                                  ------------    ------------  
Cash  and  cash  equivalents  at  end  of  period              $            3,688    $          12,919  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  The  consolidated  condensed  statement  of  cash  flows  for  the  three  months  
ended  January  31,  2015  represents  the  combined  cash  flows  of  HP  prior  to        
separation,  as  previously  filed,  and  has  not  been  adjusted  to  reflect  the      
effect  of  the  separation  of  Hewlett  Packard  Enterprise  Company.                          
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                            Three  months  ended                        
                                                                      ----------------------------------------  
                                                                        January  31,      October  31,      January  31,  
                                                                              2016                    2015                    2015          
                                                                      ------------    ------------    ------------  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                  $            7,467    $            7,694    $            8,562  
    Printing                                                                4,642                  4,965                  5,596  
    Corporate  Investments                                              3                          4                        12  
                                                                      ------------    ------------    ------------  
        Total  segments                                              12,112                12,663                14,170  
    Intersegment  net  revenue                                                                                                    
      eliminations  and  other                                      134                    (397)                  (312)
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
        Total  net  revenue                            $          12,246    $          12,266    $          13,858  
                                                                      ============    ============    ============  
                                                                                                                                                        
Earnings  from  continuing                                                                                                        
  operations  before  taxes:(a)                                                                                                
                                                                                                                                                        
    Personal  Systems                                  $                229    $                281    $                303  
    Printing                                                                    787                      837                  1,050  
    Corporate  Investments                                          (23)                    (11)                      (5)
                                                                      ------------    ------------    ------------  
        Total  segment  earnings  from                                                                                          
          operations                                                          993                  1,107                  1,348  
                                                                                                                                                        
    Corporate  and  unallocated  costs                                                                                      
      and  eliminations                                                  (16)                  (223)                  (196)
    Stock-based  compensation  expense                    (61)                    (70)                    (51)
    Amortization  of  intangible                                                                                                
      assets                                                                        (8)                    (26)                    (27)
    Restructuring  charges                                          (20)                    (41)                    (14)
    Non-operating  retirement-related                                                                                    
      credits                                                                      40                        58                        58  
    Defined  benefit  plan  settlement                                                                                      
      charges                                                                        -                        (7)                        -  
    Interest  and  other,  net                                      (94)                    (99)                  (121)
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
        Total  earnings  from  continuing                                                                                    
          operations  before  taxes              $                834    $                699    $                997  
                                                                      ============    ============    ============  
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2016,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  In  addition,
        HP  implemented  a  reporting  change  to  provide  better  transparency  to  its  
        segment  operating  results.  This  reporting  change  resulted  in  the                
        exclusion  of  certain  market-related  factors  such  as  interest  cost,            
        expected  return  on  plan  assets,  amortized  actuarial  gains/losses,  and      
        impacts  from  other  market-related  factors  related  to  its  defined  benefit
        pension  and  post-retirement  benefit  plans  from  its  segment  operating        
        results  ("Non-operating  retirement-related  credits").  This  change  also    
        resulted  in  the  exclusion  of  certain  plan  curtailments,  settlements  and  
        special  termination  benefits  related  to  its  defined  benefit  pension  and  
        post-retirement  benefit  plans  from  HP's  segment  operating  results.            
        Segment  operating  results  will  continue  to  include  service  costs  and        
        amortization  of  prior  service  costs  associated  with  HP's  defined  benefit
        pension  and  post-retirement  benefit  plans.  The  organizational  and              
        reporting  changes  had  an  immaterial  impact  to  previously  reported              
        segment  net  revenue  and  earnings  from  operations.  These  changes  also  had
        no  impact  on  HP's  previously  reported  consolidated  net  revenue,  earnings
        from  operations,  net  earnings  or  net  earnings  per  share.                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                  HP  INC.  AND  SUBSIDIARIES                                                      
                                          SEGMENT/BUSINESS  UNIT  INFORMATION                                            
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                  Three  months  ended                        Change  (%)      
                                              -------------------------------------    ------------    
                                                January  31,  October  31,    January  31,                                
                                                      2016                  2015                  2015            Q/Q        Y/Y      
                                              ------------  -----------    -----------    -----    -----    
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                                                                                                    
        Notebooks                    $            4,205  $          4,384    $          4,724          (4%)    (11%)
        Desktops                                    2,527              2,530                2,949            0%      (14%)
        Workstations                                444                  472                    526          (6%)    (16%)
        Other                                              291                  308                    363          (6%)    (20%)
                                              ------------  -----------    -----------                                
            Total  Personal                                                                                                                
              Systems                                7,467              7,694                8,562          (3%)    (13%)
                                              ------------  -----------    -----------                                
                                                                                                                                                        
    Printing                                                                                                                                    
        Supplies                                    3,101              3,239                3,601          (4%)    (14%)
        Commercial  Hardware              1,219              1,366                1,394        (11%)    (13%)
        Consumer  Hardware                      322                  360                    601        (11%)    (46%)
                                              ------------  -----------    -----------                                
            Total  Printing                    4,642              4,965                5,596          (7%)    (17%)
                                              ------------  -----------    -----------                                
                                                                                                                                                        
    Corporate  Investments                      3                      4                      12        (25%)    (75%)
                                              ------------  -----------    -----------                                
            Total  segments                  12,112            12,663              14,170          (4%)    (15%)
                                              ------------  -----------    -----------                                
                                                                                                                                                        
    Elimination  of                                                                                                                        
      intersegment  net                                                                                                                  
      revenue  and  other(b)                  134                (397)                (312)        NM          NM    
                                              ------------  -----------    -----------                                
                                                                                                                                                        
        Total  net  revenue    $          12,246  $        12,266    $        13,858          (0%)    (12%)
                                              ============  ===========    ===========                                
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2016,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  This                
        organizational  change  had  an  immaterial  impact  to  previously  reported      
        segment  net  revenue  and  operating  profit,  and  HP  has  reflected  this          
        change  to  its  segment  information  retrospectively  to  the  earliest  period
        presented.  This  change  had  no  impact  on  HP's  previously  reported                
        consolidated  net  revenue,  earnings  from  operations,  net  earnings  or  net  
        EPS.                                                                                                                                        
                                                                                                                                                        
(b)  "NM"  represents  not  meaningful.                                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                        SEGMENT  OPERATING  MARGIN  SUMMARY  DATA                                      
                                                                  (Unaudited)                                                                
                                                                                                                                                        
                                                                                  Three  months      Change  in  Operating  
                                                                                          ended                    Margin  (pts)        
                                                                                --------------  ---------------------
                                                                                  January  31,                                                
                                                                                          2016                    Q/Q                Y/Y      
                                                                                --------------  ----------  ----------
                                                                                                                                                        
Segment  operating  margin:(a)                                                                                                
    Personal  Systems                                                                3.1%    (0.6  pts)    (0.4  pts)
    Printing                                                                              17.0%        0.1  pts    (1.8  pts)
    Corporate  Investments(b)                                                    NM                  NM                  NM
        Total  segments                                                                8.2%    (0.5  pts)    (1.3  pts)
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2016,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  In  addition,
        HP  implemented  a  reporting  change  to  provide  better  transparency  to  its  
        segment  operating  results.  This  reporting  change  resulted  in  the                
        exclusion  of  certain  market-related  factors  such  as  interest  cost,            
        expected  return  on  plan  assets,  amortized  actuarial  gains/losses,  and      
        impacts  from  other  market-related  factors  related  to  its  defined  benefit
        pension  and  post-retirement  benefit  plans  from  its  segment  operating        
        results  ("Non-operating  retirement-related  credits").  This  change  also    
        resulted  in  the  exclusion  of  certain  plan  curtailments,  settlements  and  
        special  termination  benefits  related  to  its  defined  benefit  pension  and  
        post-retirement  benefit  plans  from  HP's  segment  operating  results.            
        Segment  operating  results  will  continue  to  include  service  costs  and        
        amortization  of  prior  service  costs  associated  with  HP's  defined  benefit
        pension  and  post-retirement  benefit  plans.  The  organizational  and              
        reporting  changes  had  an  immaterial  impact  to  previously  reported              
        segment  net  revenue  and  earnings  from  operations.  These  changes  also  had
        no  impact  on  HP's  previously  reported  consolidated  net  revenue,  earnings
        from  operations,  net  earnings  or  net  earnings  per  share.                                
                                                                                                                                                        
(b)  "NM"  represents  not  meaningful.                                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                CALCULATION  OF  DILUTED  NET  EARNINGS  PER  SHARE                              
                                                                  (Unaudited)                                                                
                                      (In  millions,  except  per  share  amounts)                                    
                                                                                                                                                        
                                                                                              Three  months  ended                      
                                                                      -----------------------------------------
                                                                        January  31,      October  31,      January  31,  
                                                                                2016                    2015                    2015        
                                                                      -------------  -------------  -------------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings  from                                                                                                        
      continuing  operations                      $                  650  $              1,515  $                  770
                                                                      =============  =============  =============
    Non-GAAP  net  earnings  from                                                                                                
      continuing  operations                      $                  645  $                  548  $                  765
                                                                      =============  =============  =============
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares                                                                                                      
      outstanding  during  the                                                                                                      
      reporting  period                                                1,776                  1,802                  1,833
    Dilutive  effect  of  employee                                                                                              
      stock  plans(a)                                                            9                        19                        28
                                                                      -------------  -------------  -------------
        Weighted-average  shares  used                                                                                        
          to  compute  diluted  net                                                                                                  
          earnings  per  share                                        1,785                  1,821                  1,861
                                                                      =============  -------------  =============
                                                                                                                                                        
GAAP  diluted  net  earnings  per                                                                                              
  share  from  continuing  operations    $                0.36  $                0.83  $                0.41
                                                                      =============  =============  =============
Non-GAAP  diluted  net  earnings  per                                                                                      
  share  from  continuing  operations    $                0.36  $                0.30  $                0.41
                                                                      =============  =============  =============
                                                                                                                                                        
(a)  Includes  any  dilutive  effect  of  restricted  stock  units,  restricted            
        stock,  stock  options  and  performance-based  awards.                                            
                                                                                                                                                        
 

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