HP Inc. Reports Fiscal 2017 Second Quarter 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 FY17 Q2 earnings conference call is accessible via an audio webcast at
www.hp.com/investor/2017Q2Webcast.

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. (NYSE: HPQ) 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, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share and gross cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share. 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 statements that could be deemed 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, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of the restructuring plans and any resulting cost savings, net 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, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of 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, clients 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 plans, including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of the restructuring plans; 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, 2016, and HP's other filings with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this release, including any 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 April 30, 2017 and HP's other filings with the Securities and Exchange Commission. 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 its 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         
                                        ----------------------------------- 
                                         April 30,  January 31,   April 30, 
                                                                      2017                  2017                2016        
                                                                                ----------    -----------    ----------  
Net  revenue                                                          $      12,385    $        12,684    $      11,588  
Costs  and  expenses:                                                                                                                  
    Cost  of  revenue                                                      10,002              10,436              9,338  
    Research  and  development                                          314                    296                  301  
    Selling,  general  and  administrative                1,087                1,017              1,002  
    Restructuring  and  other  charges                            140                      63                  100  
    Acquisition-related  charges                                      20                      16                    --  
    Amortization  of  intangible  assets                            1                      --                      6  
    Defined  benefit  plan  settlement                                                                                      
      charges                                                                              3                      --                    --  
                                                                                ----------    -----------    ----------  
        Total  costs  and  expenses                                11,567              11,828            10,747  
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
Earnings  from  continuing  operations                        818                    856                  841  
Interest  and  other,  net                                                (64)                  (81)                  (5)
                                                                                ----------    -----------    ----------  
Earnings  from  continuing  operations                                                                                  
  before  taxes                                                                    754                    775                  836  
Provision  for  taxes                                                      (195)                (164)              (176)
                                                                                ----------    -----------    ----------  
Net  earnings  from  continuing  operations                559                    611                  660  
Net  loss  from  discontinued  operations,                                                                            
  net  of  taxes                                                                      --                      --                  (31)
                                                                                ----------    -----------    ----------  
Net  earnings                                                        $            559    $              611    $            629  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
Net  earnings  (loss)  per  share:                                                                                            
Basic                                                                                                                                              
    Continuing  operations                                  $          0.33    $            0.36    $          0.38  
    Discontinued  operations                                              --                      --              (0.01)
                                                                                ----------    -----------    ----------  
        Total  basic  net  earnings  per  share    $          0.33    $            0.36    $          0.37  
                                                                                ==========    ===========    ==========  
Diluted                                                                                                                                          
    Continuing  operations                                  $          0.33    $            0.36    $          0.38  
    Discontinued  operations                                              --                      --              (0.02)
                                                                                ----------    -----------    ----------  
        Total  diluted  net  earnings  per                                                                                    
          share                                                            $          0.33    $            0.36    $          0.36  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
Cash  dividends  declared  per  share              $              --    $            0.27    $              --  
                                                                                                                                                        
Weighted-average  shares  used  to  compute                                                                          
  net  earnings  (loss)  per  share:                                                                                          
    Basic                                                                            1,688                1,704              1,720  
    Diluted                                                                        1,709                1,721              1,731  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                              CONSOLIDATED  CONDENSED  STATEMENTS  OF  EARNINGS                                
                                                                (Unaudited)                                                                  
                                    (In  millions,  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                  Six  months  ended  April  30,  
                                                                                                  --------------------------  
                                                                                                          2017                    2016          
                                                                                                  ------------    ------------  
Net  revenue                                                                            $          25,069    $          23,834  
Costs  and  expenses:                                                                                                                  
    Cost  of  revenue                                                                            20,438                19,299  
    Research  and  development                                                                610                      593  
    Selling,  general  and  administrative                                      2,104                  2,039  
    Restructuring  and  other  charges                                                  203                      120  
    Acquisition-related  charges                                                            36                        --  
    Amortization  of  intangible  assets                                                  1                        14  
    Defined  benefit  plan  settlement  charges                                      3                        --  
                                                                                                  ------------    ------------  
        Total  costs  and  expenses                                                      23,395                22,065  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Earnings  from  continuing  operations                                          1,674                  1,769  
Interest  and  other,  net                                                                    (145)                    (99)
                                                                                                  ------------    ------------  
Earnings  from  continuing  operations  before  taxes                1,529                  1,670  
Provision  for  taxes                                                                            (359)                  (360)
                                                                                                  ------------    ------------  
Net  earnings  from  continuing  operations                                  1,170                  1,310  
Net  loss  from  discontinued  operations,  net  of                                                              
  taxes                                                                                                          --                      (89)
                                                                                                  ------------    ------------  
Net  earnings                                                                          $            1,170    $            1,221  
                                                                                                  ============    ============  
                                                                                                                                                        
Net  earnings  (loss)  per  share:                                                                                            
Basic                                                                                                                                              
    Continuing  operations                                                    $              0.69    $              0.75  
    Discontinued  operations                                                                    --                  (0.05)
                                                                                                  ------------    ------------  
        Total  basic  net  earnings  per  share                      $              0.69    $              0.70  
                                                                                                  ============    ============  
Diluted                                                                                                                                          
    Continuing  operations                                                    $              0.68    $              0.75  
    Discontinued  operations                                                                    --                  (0.06)
                                                                                                  ------------    ------------  
        Total  diluted  net  earnings  per  share                  $              0.68    $              0.69  
                                                                                                  ============    ============  
                                                                                                                                                        
Cash  dividends  declared  per  share                                $              0.27    $              0.25  
                                                                                                                                                        
Weighted-average  shares  used  to  compute  net                                                                  
  earnings  (loss)  per  share:                                                                                                  
    Basic                                                                                                  1,696                  1,748  
    Diluted                                                                                              1,716                  1,758  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    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  
                                    April  30,          per        January        per        April  30,        per      
                                          2017            share    31,  2017      share            2016          share    
                                    ---------    --------  --------  --------    ---------  --------  
GAAP  net  earnings                                                                                                                      
  from  continuing                                                                                                                        
  operations              $          559    $      0.33  $        611  $      0.36    $          660  $      0.38  
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Restructuring                                                                                                                          
      and  other                                                                                                                                
      charges                            140            0.08              63          0.04                100          0.06  
    Acquisition-                                                                                                                            
      related  charges              20            0.01              16          0.01                  --              --  
    Amortization  of                                                                                                                      
      intangible                                                                                                                              
      assets                                  1                --              --              --                    6              --  
    Defined  benefit                                                                                                                      
      plan  settlement                                                                                                                    
      charges                                3                --              --              --                  --              --  
    Non-operating                                                                                                                          
      retirement-                                                                                                                            
      related  credits            (35)        (0.02)          (32)      (0.02)              (40)      (0.02)
    Tax                                                                                                                                              
      indemnification                                                                                                                    
      credits                              (5)              --              (9)      (0.01)                (8)            --  
    Adjustments  for                                                                                                                      
      taxes                                    2                --              (3)            --                (16)      (0.01)
                                    ---------    --------  --------  --------    ---------  --------  
Non-GAAP  net                                                                                                                                
  earnings                  $          685    $      0.40  $        646  $      0.38    $          702  $      0.41  
                                    =========    ========  ========  ========    =========  ========  
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  continuing                                                                                                                                  
  operations              $          818                      $        856                      $          841                    
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Restructuring                                                                                                                          
      and  other                                                                                                                                
      charges                            140                                  63                                  100                    
    Acquisition-                                                                                                                            
      related  charges              20                                  16                                    --                    
    Amortization  of                                                                                                                      
      intangible                                                                                                                              
      assets                                  1                                  --                                      6                    
    Defined  benefit                                                                                                                      
      plan  settlement                                                                                                                    
      charges                                3                                  --                                    --                    
    Non-operating                                                                                                                          
      retirement-                                                                                                                            
      related  credits            (35)                              (32)                                (40)                  
                                    ---------                      --------                      ---------                    
Non-GAAP  earnings  $          947                      $        903                      $          907                    
                                    =========                      ========                      =========                    
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin  from                                                                                                                                
  continuing                                                                                                                                  
  operations                              7%                                  7%                                    7%                  
Non-GAAP                                                                                                                                        
  adjustments                            1%                                --                                      1%                  
                                    ---------                      --------                      ---------                    
Non-GAAP  operating                                                                                                                    
  margin                                      8%                                  7%                                    8%                  
                                    =========                      ========                      =========                    
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    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)                                      
                                                                                                                                                        
                                                                  ------------------------------------------  
                                                                        Six                                      Six                              
                                                                      months        Diluted          months        Diluted    
                                                                      ended              net              ended              net        
                                                                  April  30,    earnings      April  30,    earnings    
                                                                        2017        per  share          2016        per  share  
                                                                  ---------    ---------    ---------    ---------  
GAAP  net  earnings  from                                                                                                            
  continuing  operations                      $      1,170    $        0.68            1,310    $        0.75  
Non-GAAP  adjustments:                                                                                                              
    Restructuring  and  other                                                                                                      
      charges                                                          203              0.12                120              0.07  
    Acquisition-related  charges                      36              0.02                  --                  --  
    Amortization  of  intangible                                                                                                
      assets                                                                1                  --                  14              0.01  
    Non-operating  retirement-                                                                                                  
      related  credits                                          (67)          (0.04)              (80)          (0.05)
    Defined  benefit  plan                                                                                                            
      settlement  charges                                        3                  --                  --                  --  
    Tax  indemnification  credits                    (14)                --                  (8)                --  
    Adjustments  for  taxes                                  (1)                --                  (9)          (0.01)
                                                                  ---------    ---------    ---------    ---------  
Non-GAAP  net  earnings                        $      1,331    $        0.78    $      1,347    $        0.77  
                                                                  =========    =========    =========    =========  
                                                                                                                                                        
GAAP  earnings  from  continuing                                                                                              
  operations                                            $      1,674                          $      1,769                        
Non-GAAP  adjustments:                                                                                                              
    Restructuring  and  other                                                                                                      
      charges                                                          203                                      120                        
    Acquisition-related  charges                      36                                        --                        
    Amortization  of  intangible                                                                                                
      assets                                                                1                                        14                        
    Non-operating  retirement-                                                                                                  
      related  credits                                          (67)                                    (80)                      
    Defined  benefit  plan                                                                                                            
      settlement  charges                                        3                                        --                        
                                                                  ---------                          ---------                        
Non-GAAP  earnings                                $      1,850                          $      1,823                        
                                                                  =========                          =========                        
                                                                                                                                                        
GAAP  operating  margin  from                                                                                                    
  continuing  operations                                      6%                                        7%                      
Non-GAAP  adjustments                                          1%                                        1%                      
                                                                  ---------                          ---------                        
Non-GAAP  operating  margin                                7%                                        8%                      
                                                                  =========                          =========                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                      CONSOLIDATED  CONDENSED  BALANCE  SHEETS                                        
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                        As  of                      
                                                                                                  --------------------------  
                                                                                                      April  30,        October  31,  
                                                                                                          2017                    2016          
                                                                                                  ------------    ------------  
ASSETS                                                                                                                                            
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                            $            6,223    $            6,288  
    Accounts  receivable                                                                      3,771                  4,114  
    Inventory                                                                                          4,756                  4,484  
    Other  current  assets                                                                    3,552                  3,582  
                                                                                                  ------------    ------------  
        Total  current  assets                                                              18,302                18,468  
                                                                                                  ------------    ------------  
Property,  plant  and  equipment                                                      1,661                  1,736  
Goodwill                                                                                                5,622                  5,622  
Other  non-current  assets(a)                                                          3,101                  3,161  
                                                                                                  ------------    ------------  
Total  assets                                                                          $          28,686    $          28,987  
                                                                                                  ============    ============  
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  DEFICIT                                                                              
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                $                110    $                  78  
    Accounts  payable                                                                          11,079                11,103  
    Employee  compensation  and  benefits                                            665                      759  
    Taxes  on  earnings                                                                              221                      231  
    Deferred  revenue                                                                                980                      919  
    Other  accrued  liabilities                                                          5,549                  5,718  
                                                                                                  ------------    ------------  
        Total  current  liabilities                                                    18,604                18,808  
                                                                                                  ------------    ------------  
Long-term  debt(a)                                                                              6,710                  6,735  
Other  non-current  liabilities                                                      7,327                  7,333  
Stockholders'  deficit                                                                    (3,955)              (3,889)
                                                                                                  ------------    ------------  
Total  liabilities  and  stockholders'  deficit            $          28,686    $          28,987  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  Pursuant  to  the  adoption  of  Accounting  Standard  Update  2015-03                    
        "Simplifying  the  Presentation  of  Debt  Issuance  Costs"  in  Q1  FY17,  debt    
        issuance  costs  has  been  reclassified  from  other  non-current  assets  to      
        long-term  debt.  The  change  has  been  adopted  including  prior  comparative  
        periods.                                                                                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                              Three  months  ended  April  30,  
                                                                                              ----------------------------  
                                                                                                        2017                      2016          
                                                                                              -------------    -------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:(a)                                                                        
    Net  earnings                                                                  $                  559    $                  629  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                                  89                          85  
        Stock-based  compensation  expense                                            48                          40  
        Restructuring  and  other  charges                                            140                        100  
        Deferred  taxes  on  earnings                                                      138                          74  
        Other,  net                                                                                          2                        (76)
        Changes  in  operating  assets  and                                                                                  
          liabilities,  net  of  acquisitions:                                                                            
            Accounts  receivable                                                              (325)                      190  
            Inventory                                                                                  (203)                      520  
            Accounts  payable                                                                      142                          41  
            Taxes  on  earnings                                                                  (102)                        29  
            Restructuring  and  other                                                        (46)                      (37)
            Other  assets  and  liabilities                                                13                        (16)
                                                                                              -------------    -------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                            455                    1,579  
                                                                                              -------------    -------------  
Cash  flows  from  investing  activities:                                                                              
    Investment  in  property,  plant  and  equipment                        (75)                      (86)
    Purchases  of  available-for-sale  securities                                                                
      and  other  investments                                                                  (80)                    (122)
    Maturities  and  sales  of  available-for-sale                                                                
      securities  and  other  investments                                              --                            3  
    Proceeds  from  business  divestiture                                            --                          61  
                                                                                              -------------    -------------  
                Net  cash  used  in  investing  activities                      (155)                    (144)
                                                                                              -------------    -------------  
Cash  flows  from  financing  activities:                                                                              
    Short-term  borrowings  with  original                                                                              
      maturities  less  than  90  days,  net                                            39                          13  
    Payment  of  debt                                                                                (17)                        (3)
    Settlement  of  cash  flow  hedges                                                    (5)                        17  
    Net  payments  related  to  stock-based  award                                                                  
      activities                                                                                          22                            4  
    Repurchase  of  common  stock                                                        (223)                    (305)
    Cash  dividends  paid                                                                      (224)                    (213)
                                                                                              -------------    -------------  
                Net  cash  used  in  financing  activities                      (408)                    (487)
                                                                                              -------------    -------------  
(Decrease)  increase  in  cash  and  cash                                                                                
  equivalents                                                                                        (108)                      948  
Cash  and  cash  equivalents  at  beginning  of                                                                      
  period                                                                                                6,331                    3,688  
                                                                                              -------------    -------------  
Cash  and  cash  equivalents  at  end  of  period          $              6,223    $              4,636  
                                                                                              =============    =============  
                                                                                                                                                        
(a)  Pursuant  to  the  adoption  of  Accounting  Standard  Update  2016-09                    
        "Improvements  to  Employee  Share-Based  Payment  Accounting"  in  Q1  FY17,      
        excess  income  tax  benefit  from  stock-based  compensation  expense  is  no      
        longer  separated  from  operating  income  tax  cash  flows  and  reported  as      
        financing  activity.  In  addition,  income  taxes  paid  on  shares  withheld  is
        now  required  to  be  presented  as  financing  activity  as  opposed  to                
        operating  activity.  The  change  has  been  adopted  including  prior                  
        comparative  periods.                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Six  months  ended  April  30,  
                                                                                                  --------------------------  
                                                                                                          2017                    2016          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:(a)                                                                        
    Net  earnings                                                                      $            1,170    $            1,221  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                                  173                      164  
        Stock-based  compensation  expense                                            123                      101  
        Restructuring  and  other  charges                                              203                      120  
        Deferred  taxes  on  earnings                                                        205                      600  
        Other,  net                                                                                          21                      (46)
        Changes  in  operating  assets  and  liabilities,                                                        
          net  of  acquisitions:                                                                                                      
            Accounts  receivable                                                                  289                      894  
            Inventory                                                                                    (272)                    722  
            Accounts  payable                                                                          26                (1,063)
            Taxes  on  earnings                                                                    (177)                  (505)
            Restructuring  and  other                                                          (97)                    (68)
            Other  assets  and  liabilities                                              (442)                  (663)
                                                                                                  ------------    ------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                          1,222                  1,477  
                                                                                                  ------------    ------------  
Cash  flows  from  investing  activities:                                                                              
    Investment  in  property,  plant  and  equipment                        (176)                  (206)
    Proceeds  from  sale  of  property,  plant  and                                                                  
      equipment                                                                                              69                        --  
    Purchases  of  available-for-sale  securities  and                                                        
      other  investments                                                                          (136)                  (122)
    Maturities  and  sales  of  available-for-sale                                                                
      securities  and  other  investments                                                  2                        12  
    Proceeds  from  business  divestiture                                              --                        61  
                                                                                                  ------------    ------------  
                Net  cash  used  in  investing  activities                        (241)                  (255)
                                                                                                  ------------    ------------  
Cash  flows  from  financing  activities:                                                                              
    Short-term  borrowings  with  original  maturities                                                        
      less  than  90  days,  net                                                                    74                        39  
    Proceeds  from  debt,  net  of  issuance  costs                                  5                          4  
    Payment  of  debt                                                                                  (44)              (2,158)
    Settlement  of  cash  flow  hedges                                                      (9)                        6  
    Net  transfer  of  cash  and  cash  equivalents  to                                                            
      Hewlett  Packard  Enterprise  Company                                            --              (10,375)
    Net  payments  related  to  stock-based  award                                                                  
      activities                                                                                          (12)                        1  
    Repurchase  of  common  stock                                                          (609)              (1,102)
    Cash  dividends  paid                                                                        (451)                  (434)
                                                                                                  ------------    ------------  
                Net  cash  used  in  financing  activities                    (1,046)            (14,019)
                                                                                                  ------------    ------------  
Decrease  in  cash  and  cash  equivalents                                          (65)            (12,797)
Cash  and  cash  equivalents  at  beginning  of  period                6,288                17,433  
                                                                                                  ------------    ------------  
Cash  and  cash  equivalents  at  end  of  period              $            6,223    $            4,636  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  Pursuant  to  the  adoption  of  Accounting  Standard  Update  2016-09                    
        "Improvements  to  Employee  Share-Based  Payment  Accounting"  in  Q1  FY17,      
        excess  income  tax  benefit  from  stock-based  compensation  expense  is  no      
        longer  separated  from  operating  income  tax  cash  flows  and  reported  as      
        financing  activity.  In  addition,  income  taxes  paid  on  shares  withheld  is
        now  required  to  be  presented  as  financing  activity  as  opposed  to                
        operating  activity.  The  change  has  been  adopted  including  prior                  
        comparative  periods.                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Three  months  ended                  
                                                                                -----------------------------------  
                                                                                  April  30,    January  31,      April  30,  
                                                                                      2017                  2017                2016        
                                                                                ----------    -----------    ----------  
Net  revenue:(a)                                                                                                                          
    Personal  Systems                                            $        7,662    $          8,224    $        6,990  
    Printing                                                                      4,743                4,483              4,637  
    Corporate  Investments                                                    3                        2                      3  
                                                                                ----------    -----------    ----------  
        Total  segments                                                    12,408              12,709            11,630  
    Intersegment  net  revenue  eliminations                                                                          
      and  other                                                                      (23)                  (25)                (42)
                                                                                ----------    -----------    ----------  
    Total  net  revenue                                          $      12,385    $        12,684    $      11,588  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
Earnings  from  continuing  operations                                                                                  
  before  taxes:(a)                                                                                                                      
    Personal  Systems                                            $            244    $              313    $            242  
    Printing                                                                          825                    716                  801  
    Corporate  Investments                                                (26)                  (23)                  (8)
                                                                                ----------    -----------    ----------  
        Total  segment  earnings  from                                                                                          
          operations                                                            1,043                1,006              1,035  
    Corporate  costs  and  eliminations                          (48)                  (28)                (88)
    Stock-based  compensation  expense                          (48)                  (75)                (40)
    Restructuring  and  other  charges                          (140)                  (63)              (100)
    Acquisition-related  charges                                    (20)                  (16)                  --  
    Amortization  of  intangible  assets                          (1)                    --                    (6)
    Defined  benefit  plan  settlement                                                                                      
      charges                                                                            (3)                    --                    --  
    Non-operating  retirement-related                                                                                    
      credits                                                                            35                      32                    40  
    Interest  and  other,  net                                            (64)                  (81)                  (5)
                                                                                ----------    -----------    ----------  
        Total  earnings  from  continuing                                                                                    
          operations  before  taxes                        $            754    $              775    $            836  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  year  2017,  HP  
        implemented  an  organizational  change  to  align  its  business  unit                  
        financial  reporting  more  closely  with  its  current  business  structure.      
        The  organizational  change  resulted  in  transfer  of  a  portion  of  LaserJet  
        printers  from  Commercial  to  Consumer  within  the  Printing  segment.  HP        
        reflected  this  change  to  its  business  unit  information  in  prior                  
        reporting  periods  on  an  as-if  basis  which  resulted  in  reclassification    
        of  revenues  between  the  Commercial  and  Consumer  business  units  of              
        Printing.  The  reporting  change  had  no  impact  to  previously  reported          
        segment  net  revenue,  consolidated  net  revenue,  earnings  from  continuing  
        operations,  net  earnings  or  net  earnings  per  share.                                          
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Six  months  ended  April  30,  
                                                                                                  --------------------------  
                                                                                                          2017                    2016          
                                                                                                  ------------    ------------  
Net  revenue:(a)                                                                                                                          
    Personal  Systems                                                              $          15,886    $          14,457  
    Printing                                                                                            9,226                  9,279  
    Corporate  Investments                                                                          5                          6  
                                                                                                  ------------    ------------  
        Total  segments                                                                          25,117                23,742  
    Intersegment  net  revenue  eliminations  and                                                                  
      other                                                                                                    (48)                      92  
                                                                                                  ------------    ------------  
    Total  net  revenue                                                            $          25,069    $          23,834  
                                                                                                  ============    ============  
                                                                                                                                                        
Earnings  from  continuing  operations  before                                                                    
  taxes:(a)                                                                                                                                    
    Personal  Systems                                                              $                557    $                471  
    Printing                                                                                            1,541                  1,588  
    Corporate  Investments                                                                      (49)                    (31)
                                                                                                  ------------    ------------  
        Total  segment  earnings  from  operations                            2,049                  2,028  
    Corporate  costs  and  eliminations                                                (76)                  (104)
    Stock-based  compensation  expense                                              (123)                  (101)
    Restructuring  and  other  charges                                                (203)                  (120)
    Acquisition-related  charges                                                          (36)                      --  
    Amortization  of  intangible  assets                                                (1)                    (14)
    Defined  benefit  plan  settlement  charges                                    (3)                      --  
    Non-operating  retirement-related  credits                                  67                        80  
    Interest  and  other,  net                                                                (145)                    (99)
                                                                                                  ------------    ------------  
        Total  earnings  from  continuing  operations                                                              
          before  taxes                                                                $            1,529    $            1,670  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  year  2017,  HP  
        implemented  an  organizational  change  to  align  its  business  unit                  
        financial  reporting  more  closely  with  its  current  business  structure.      
        The  organizational  change  resulted  in  transfer  of  a  portion  of  LaserJet  
        printers  from  Commercial  to  Consumer  within  the  Printing  segment.  HP        
        reflected  this  change  to  its  business  unit  information  in  prior                  
        reporting  periods  on  an  as-if  basis  which  resulted  in  reclassification    
        of  revenues  between  the  Commercial  and  Consumer  business  units  of              
        Printing.  The  reporting  change  had  no  impact  to  previously  reported          
        segment  net  revenue,  consolidated  net  revenue,  earnings  from  continuing  
        operations,  net  earnings  or  net  earnings  per  share.                                          
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                  HP  INC.  AND  SUBSIDIARIES                                                      
                                          SEGMENT/BUSINESS  UNIT  INFORMATION                                            
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                    Three  months  ended                      Change  (%)      
                                                    ---------------------------------    -------------    
                                                    April  30,    January  31,    April  30,                                  
                                                          2017                2017                2016          Q/Q          Y/Y      
                                                    ---------    -----------    ---------    -----      -----    
Net  revenue:(a)                                                                                                                          
Personal  Systems                                                                                                                        
    Notebooks                              $      4,493    $          4,890    $      3,838          (8)%        17%  
    Desktops                                        2,377                2,534            2,402          (6)%        (1)%
    Workstations                                    495                    491                461            1%            7%  
    Other                                                  297                    309                289          (4)%          3%  
                                                    ---------    -----------    ---------                                  
        Total  Personal  Systems        7,662                8,224            6,990          (7)%        10%  
                                                    ---------    -----------    ---------                                  
Printing                                                                                                                                        
    Supplies                                        3,157                3,007            3,099            5%            2%  
    Commercial  Hardware                      982                    886                957          11%            3%  
    Consumer  Hardware                          604                    590                581            2%            4%  
                                                    ---------    -----------    ---------                                  
        Total  Printing                        4,743                4,483            4,637            6%            2%  
                                                    ---------    -----------    ---------                                  
Corporate  Investments                          3                        2                    3          50%          --    
                                                    ---------    -----------    ---------                                  
        Total  segments                      12,408              12,709          11,630          (2)%          7%  
                                                    ---------    -----------    ---------                                  
Intersegment  net  revenue                                                                                                        
  eliminations  and  other(b)            (23)                  (25)              (42)        NM            NM    
                                                    ---------    -----------    ---------                                  
Total  net  revenue                  $    12,385    $        12,684    $    11,588          (2)%          7%  
                                                    =========    ===========    =========                                  
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  year  2017,  HP  
        implemented  an  organizational  change  to  align  its  business  unit                  
        financial  reporting  more  closely  with  its  current  business  structure.      
        The  organizational  change  resulted  in  transfer  of  a  portion  of  LaserJet  
        printers  from  Commercial  to  Consumer  within  the  Printing  segment.  HP        
        reflected  this  change  to  its  business  unit  information  in  prior                  
        reporting  periods  on  an  as-if  basis  which  resulted  in  reclassification    
        of  revenues  between  the  Commercial  and  Consumer  business  units  of              
        Printing.  The  reporting  change  had  no  impact  to  previously  reported          
        segment  net  revenue,  consolidated  net  revenue,  earnings  from  continuing  
        operations,  net  earnings  or  net  earnings  per  share.                                          
                                                                                                                                                        
(b)  "NM"-  Not  Meaningful.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                  HP  INC.  AND  SUBSIDIARIES                                                      
                                          SEGMENT/BUSINESS  UNIT  INFORMATION                                            
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                          Six  months  ended                              
                                                                                                April  30,              Change  (%)    
                                                                                    --------------------------------    
                                                                                          2017              2016                Y/Y          
                                                                                    ---------    ----------  ----------    
Net  revenue:(a)                                                                                                                          
Personal  Systems                                                                                                                        
    Notebooks                                                              $      9,383    $        8,043                  17%  
    Desktops                                                                        4,911              4,929                  --%  
    Workstations                                                                    986                  905                    9%  
    Other                                                                                  606                  580                    4%  
                                                                                    ---------    ----------                          
        Total  Personal  Systems                                      15,886            14,457                  10%  
                                                                                    ---------    ----------                          
Printing                                                                                                                                        
    Supplies                                                                        6,164              6,200                  (1)%
    Commercial  Hardware                                                  1,868              1,921                  (3)%
    Consumer  Hardware                                                      1,194              1,158                    3%  
                                                                                    ---------    ----------                          
        Total  Printing                                                        9,226              9,279                  (1)%
                                                                                    ---------    ----------                          
Corporate  Investments                                                          5                      6                (17)%
                                                                                    ---------    ----------                          
        Total  segments                                                      25,117            23,742                    6%  
                                                                                    ---------    ----------                          
Intersegment  net  revenue  eliminations  and                                                                      
  other(b)                                                                              (48)                  92                  NM    
                                                                                    ---------    ----------                          
Total  net  revenue                                                  $    25,069    $      23,834                    5%  
                                                                                    =========    ==========                          
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  year  2017,  HP  
        implemented  an  organizational  change  to  align  its  business  unit                  
        financial  reporting  more  closely  with  its  current  business  structure.      
        The  organizational  change  resulted  in  transfer  of  a  portion  of  LaserJet  
        printers  from  Commercial  to  Consumer  within  the  Printing  segment.  HP        
        reflected  this  change  to  its  business  unit  information  in  prior                  
        reporting  periods  on  an  as-if  basis  which  resulted  in  reclassification    
        of  revenues  between  the  Commercial  and  Consumer  business  units  of              
        Printing.  The  reporting  change  had  no  impact  to  previously  reported          
        segment  net  revenue,  consolidated  net  revenue,  earnings  from  continuing  
        operations,  net  earnings  or  net  earnings  per  share.                                          
                                                                                                                                                        
(b)  "NM"-  Not  Meaningful.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                        SEGMENT  OPERATING  MARGIN  SUMMARY  DATA                                      
                                                                  (Unaudited)                                                                
                                                                                                                                                        
                                                                                                                              Change  in        
                                                                                                                              Operating        
                                                                  Three  months  ended                      Margin  (pts)    
                                                    -------------------------------    -----------------
                                                    April  30,  January  31,  April  30,                                      
                                                          2017              2017              2016              Q/Q            Y/Y    
                                                    ---------  -----------  ---------    --------  --------
Segment  operating                                                                                                                      
  margin:(a)                                                                                                                                  
                                                                                                                            (0.6)        (0.3)
  Personal  Systems                            3.2%                3.8%            3.5%              pts            pts
  Printing                                          17.4%              16.0%          17.3%      1.4  pts    0.1  pts
  Corporate  Investments(b)                NM                    NM                NM                NM              NM
                                                                                                                                              (0.5)
    Total  segments                              8.4%                7.9%            8.9%      0.5  pts            pts
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  year  2017,  HP  
        implemented  an  organizational  change  to  align  its  business  unit                  
        financial  reporting  more  closely  with  its  current  business  structure.      
        The  organizational  change  resulted  in  transfer  of  a  portion  of  LaserJet  
        printers  from  Commercial  to  Consumer  within  the  Printing  segment.  HP        
        reflected  this  change  to  its  business  unit  information  in  prior                  
        reporting  periods  on  an  as-if  basis  which  resulted  in  reclassification    
        of  revenues  between  the  Commercial  and  Consumer  business  units  of              
        Printing.  The  reporting  change  had  no  impact  to  previously  reported          
        segment  net  revenue,  consolidated  net  revenue,  earnings  from  continuing  
        operations,  net  earnings  or  net  earnings  per  share.                                          
                                                                                                                                                        
(b)  "NM"-  Not  Meaningful.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                CALCULATION  OF  DILUTED  NET  EARNINGS  PER  SHARE                              
                                                                  (Unaudited)                                                                
                                      (In  millions,  except  per  share  amounts)                                    
                                                                                                                                                        
                                                                                                    Three  months  ended                
                                                                                  -----------------------------------
                                                                                    April  30,    January  31,    April  30,  
                                                                                          2017                2017                2016      
                                                                                  -----------  -----------  -----------
Numerator:                                                                                                                                    
    GAAP  net  earnings  from  continuing                                                                                  
      operations                                                        $              559  $              611  $              660
                                                                                  ===========  ===========  ===========
    Non-GAAP  net  earnings                                    $              685  $              646  $              702
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to                                                                                      
      compute  basic  net  earnings  per  share                1,688              1,704              1,720
    Dilutive  effect  of  employee  stock                                                                                  
      plans(a)                                                                              21                    17                    11
                                                                                  -----------  -----------  -----------
    Weighted-average  shares  used  to                                                                                      
      compute  diluted  net  earnings  per                                                                                  
      share                                                                              1,709              1,721              1,731
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
GAAP  diluted  net  earnings  per  share  from                                                                        
  continuing  operations                                      $            0.33  $            0.36  $            0.38
                                                                                  ===========  ===========  ===========
Non-GAAP  diluted  net  earnings  per  share    $            0.40  $            0.38  $            0.41
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
(a)  Includes  any  dilutive  effect  of  restricted  stock  units,  stock  options      
        and  performance-based  awards.                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    HP  INC.  AND  SUBSIDIARIES                                                    
                                CALCULATION  OF  DILUTED  NET  EARNINGS  PER  SHARE                              
                                                                  (Unaudited)                                                                
                                      (In  millions,  except  per  share  amounts)                                    
                                                                                                                                                        
                                                                                                    Six  months  ended  April  30,
                                                                                                  ---------------------------
                                                                                                            2017                    2016        
                                                                                                  -------------  -------------
Numerator:                                                                                                                                    
    GAAP  net  earnings  from  continuing  operations      $              1,170  $              1,310
                                                                                                  =============  =============
    Non-GAAP  net  earnings                                                    $              1,331  $              1,347
                                                                                                  =============  =============
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to  compute  basic                                                          
      net  earnings  per  share                                                                1,696                  1,748
    Dilutive  effect  of  employee  stock  plans(a)                                20                        10
                                                                                                  -------------  -------------
    Weighted-average  shares  used  to  compute                                                                      
      diluted  net  earnings  per  share                                                1,716                  1,758
                                                                                                  =============  =============
                                                                                                                                                        
GAAP  diluted  net  earnings  per  share  from                                                                        
  continuing  operations                                                      $                0.68  $                0.75
                                                                                                  =============  =============
Non-GAAP  diluted  net  earnings  per  share                    $                0.78  $                0.77
                                                                                                  =============  =============
                                                                                                                                                        
(a)  Includes  any  dilutive  effect  of  restricted  stock  units,  stock  options      
        and  performance-based  awards.                                                                                      
                                                                                                                                                        
                                                                                                                                                        
 

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