More information on HP’s quarterly 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 Q2 FY09 earnings conference call is accessible via an audio webcast at www.hp.com/investor/q22009webcast.

About HP

HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP is available at http://www.hp.com/.

Use of non-GAAP financial information

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management’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 management compensates for those limitations, and the substantive reasons why HP 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 operating profit, operating margin, net earnings, diluted earnings per share, or cash and cash equivalents prepared in accordance with GAAP.

EDS acquisition

HP completed its acquisition of Electronic Data Services Corporation on August 26, 2008. Results of, and comparisons to, the three and six months ended April 30, 2008 do not include the results of operations of EDS for those prior periods.

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 revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, share repurchases, acquisition synergies, currency exchange rates or other financial items; any statements of the plans, strategies, and objectives of management for future operations, including execution of cost reduction programs and restructuring and integration plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; execution and performance of contracts by HP and its suppliers, customers and partners; the challenge of managing asset levels, including inventory; the difficulty of aligning expense levels with revenue changes; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring and integration plans; the possibility that the expected benefits of business combination transactions may not materialize as expected; 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, 2008 and HP’s other filings with the Securities and Exchange Commission, including HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2009. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2009. In particular, determining HP’s actual tax balances and provisions as of April 30, 2009 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP’s Form 10-Q. HP assumes no obligation and does not intend to update these forward-looking statements.

Note to editors: More news from HP, including links to RSS feeds, is available at http://www.hp.com/hpinfo/newsroom/.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
		Three months ended
		April 30, 2009					January 31, 2009					April 30, 2008
Net revenue			$	27,351				$	28,800				$	28,262
Costs and expenses (a) :
Cost of sales				20,919					22,069					21,205	(c)
Research and development				716					732					908
Selling, general and administrative				2,880					2,893					3,331	(c)
Amortization of purchased intangible assets				380					412					211
In-process research and development charges				-					6					13
Restructuring charges				94					146					4
Acquisition-related charges				75					48					-
Total costs and expenses				25,064					26,306					25,672
Earnings from operations				2,287					2,494					2,590
Interest and other, net				(180	)				(232	)				3
Earnings before taxes				2,107					2,262					2,593
Provision for taxes (b)				391					408					536
Net earnings			$	1,716				$	1,854				$	2,057
Net earnings per share:
Basic			$	0.72				$	0.77				$	0.83
Diluted			$	0.70				$	0.75				$	0.80
Cash dividends declared per share			$	-				$	0.16				$	-
Weighted-average shares used to compute net earnings per share:
Basic				2,394					2,410					2,473
Diluted				2,438					2,464					2,557
(a) Stock-based compensation expense included under SFAS 123(R) was as follows:
Cost of sales			$	48				$	52				$	36
Research and development				18					17					19
Selling, general and administrative				109					85					97
Acquisition-related charges				16					6					-
Total costs and expenses			$	191				$	160				$	152
(b) Tax benefit from stock-based compensation			$	(59	)			$	(48	)			$	(45	)
(c) Certain pursuit-related costs previously reported as Cost of sales have been realigned retroactively to Selling, general and administrative expenses due to the organizational realignments occurring within HP’s service offerings portfolio.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
		Six months ended
		April 30, 2009					April 30, 2008
Net revenue			$	56,151				$	56,729
Costs and expenses (a) :
Cost of sales				42,988					42,649	(c)
Research and development				1,448					1,806
Selling, general and administrative				5,773					6,627	(c)
Amortization of purchased intangible assets				792					417
In-process research and development charges				6					13
Restructuring charges				240					14
Acquisition-related charges				123					-
Total costs and expenses				51,370					51,526
Earnings from operations				4,781					5,203
Interest and other, net				(412	)				75
Earnings before taxes				4,369					5,278
Provision for taxes (b)				799					1,088
Net earnings			$	3,570				$	4,190
Net earnings per share:
Basic			$	1.49				$	1.67
Diluted			$	1.46				$	1.61
Cash dividends declared per share			$	0.16				$	0.16
Weighted-average shares used to compute net earnings per share:
Basic				2,402					2,516
Diluted				2,448					2,603
(a) Stock-based compensation expense included under SFAS 123(R) was as follows:
Cost of sales			$	100				$	72
Research and development				35					39
Selling, general and administrative				194					198
Acquisition-related charges				22					-
Total costs and expenses			$	351				$	309
(b) Tax benefit from stock-based compensation			$	(107	)			$	(92	)
(c) Certain pursuit-related costs previously reported as Cost of sales have been realigned retroactively to Selling, general and administrative expenses due to the organizational realignments occurring within HP’s service offerings portfolio.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Three months ended April 30, 2009					Diluted earnings per share					Three months ended January 31, 2009					Diluted earnings per share					Three months ended April 30, 2008					Diluted earnings per share
GAAP net earnings			$	1,716				$	0.70				$	1,854				$	0.75				$	2,057				$	0.80
Non-GAAP adjustments:
Amortization of purchased intangible assets				380					0.16					412					0.17					211					0.08
In-process research and development charges				-					-					6					-					13					0.01
Restructuring charges				94					0.04					146					0.06					4					-
Acquisition-related charges				75					0.03					48					0.02					-					-
Adjustments for taxes				(167	)				(0.07	)				(181	)				(0.07	)				(56	)				(0.02	)
Non-GAAP net earnings			$	2,098				$	0.86				$	2,285				$	0.93				$	2,229				$	0.87
GAAP earnings from operations			$	2,287									$	2,494									$	2,590
Non-GAAP adjustments:
Amortization of purchased intangible assets				380										412										211
In-process research and development charges				-										6										13
Restructuring charges				94										146										4
Acquisition-related charges				75										48										-
Non-GAAP earnings from operations			$	2,836									$	3,106									$	2,818
GAAP operating margin				8	%									9	%									9	%
Non-GAAP adjustments				2	%									2	%									1	%
Non-GAAP operating margin				10	%									11	%									10	%

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Six months ended April 30, 2009					Diluted earnings per share					Six months ended April 30, 2008					Diluted earnings per share
GAAP net earnings			$	3,570				$	1.46				$	4,190				$	1.61
Non-GAAP adjustments:
Amortization of purchased intangible assets				792					0.32					417					0.16
In-process research and development charges				6					-					13					-
Restructuring charges				240					0.10					14					0.01
Acquisition-related charges				123					0.05					-					-
Adjustments for taxes				(348	)				(0.14	)				(114	)				(0.04	)
Non-GAAP net earnings			$	4,383				$	1.79				$	4,520				$	1.74
GAAP earnings from operations			$	4,781									$	5,203
Non-GAAP adjustments:
Amortization of purchased intangible assets				792										417
In-process research and development charges				6										13
Restructuring charges				240										14
Acquisition-related charges				123										-
Non-GAAP earnings from operations			$	5,942									$	5,647
GAAP operating margin				9	%									9	%
Non-GAAP adjustments				2	%									1	%
Non-GAAP operating margin				11	%									10	%

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
		April 30, 2009					October 31, 2008
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	12,851				$	10,153
Short-term investments				65					93
Accounts receivable				14,666					16,928
Financing receivables				2,352					2,314
Inventory				5,746					7,879
Other current assets				11,506					14,361
Total current assets				47,186					51,728
Property, plant and equipment				10,807					10,838
Long-term financing receivables and other assets				10,410					10,468
Goodwill and purchased intangible assets				40,112					40,297
Total assets			$	108,515				$	113,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings			$	5,702				$	10,176
Accounts payable				11,421					14,917	(a)
Employee compensation and benefits				3,233					4,159
Taxes on earnings				546					869
Deferred revenue				6,342					6,287
Other accrued liabilities				14,339					16,531	(a)
Total current liabilities				41,583					52,939
Long-term debt				12,978					7,676
Other liabilities				13,412					13,774
Stockholders' equity				40,542					38,942
Total liabilities and stockholders' equity			$	108,515				$	113,331
(a) In the second quarter of fiscal 2009, HP reclassified certain activity from Other accrued liabilities to Accounts payable as this better represents the nature of the activity. All prior periods have been revised to conform to current presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
		Three months ended April 30, 2009					Six months ended April 30, 2009
Cash flows from operating activities:
Net earnings			$	1,716				$	3,570
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization				1,153					2,367
Stock-based compensation expense				191					351	(a)
Provision for bad debt and inventory				180					348
In-process research and development charges				-					6
Restructuring charges				94					240
Deferred taxes on earnings				115					52
Excess tax benefit from stock-based compensation				(15	)				(28	)
Other, net				14					(3	)
Changes in assets and liabilities:
Accounts and financing receivables				(4	)				1,776
Inventory				1,831					1,987
Accounts payable				(417	)				(3,506	) (a)
Taxes on earnings				680					980
Restructuring				(339	)				(548	)
Other assets and liabilities				(235	)				(1,502	) (a)
Net cash provided by operating activities				4,964					6,090
Cash flows from investing activities:
Investment in property, plant and equipment				(842	)				(1,658	) (a)
Proceeds from sale of property, plant and equipment				98					250
Purchases of available-for-sale securities and other investments				(55	)				(55	)
Maturities and sales of available-for-sale securities and other investments				57					103
Payments made in connection with business acquisitions, net				(3	)				(348	)
Net cash used in investing activities				(745	)				(1,708	)
Cash flows from financing activities:
Repayment of commercial paper and notes payable, net				(4,506	)				(4,449	)
Issuance of debt				2,774					4,778	(a)
Payment of debt				(41	)				(110	)
Issuance of common stock under employee stock plans				194					493
Repurchase of common stock				(801	)				(2,039	)
Excess tax benefit from stock-based compensation				15					28
Dividends				(192	)				(385	)
Net cash used in financing activities				(2,557	)				(1,684	)
Increase in cash and cash equivalents				1,662					2,698
Cash and cash equivalents at beginning of period				11,189					10,153
Cash and cash equivalents at end of period			$	12,851				$	12,851
(a) Certain adjustments have been made to prior quarter amounts in order to conform to the current quarter presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
		Three months ended
		April 30, 2009					January 31, 2009					April 30, 2008 (a)
Net revenue:
Services			$	8,488				$	8,746				$	4,262
Enterprise Storage and Servers				3,456					3,948					4,780
HP Software				880					878					1,039
Technology Solutions Group				12,824					13,572					10,081
Personal Systems Group				8,191					8,787					10,071
Imaging and Printing Group				5,916					5,981					7,644
HP Financial Services				641					636					685
Corporate Investments				188					196					230
Total Segments				27,760					29,172					28,711
Eliminations of intersegment net revenue and other				(409	)				(372	)				(449	)
Total HP Consolidated			$	27,351				$	28,800				$	28,262
Earnings from operations:
Services			$	1,172				$	1,123				$	507
Enterprise Storage and Servers				250					405					655
HP Software				157					140					104
Technology Solutions Group				1,579					1,668					1,266
Personal Systems Group				374					435					544
Imaging and Printing Group				1,074					1,105					1,220
HP Financial Services				46					41					47
Corporate Investments				(19	)				(19	)				6
Total Segments				3,054					3,230					3,083
Corporate and unallocated costs and eliminations				(62	)				24					(134	)
Unallocated costs related to stock-based compensation expense				(156	)				(148	)				(131	)
Amortization of purchased intangible assets				(380	)				(412	)				(211	)
In-process research and development charges				-					(6	)				(13	)
Restructuring charges				(94	)				(146	)				(4	)
Acquisition-related charges				(75	)				(48	)				-
Interest and other, net				(180	)				(232	)				3
Total HP Consolidated Earnings Before Taxes			$	2,107				$	2,262				$	2,593
(a) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
		Six months ended
		April 30, 2009					April 30, 2008 (a)
Net revenue:
Services			$	17,234				$	8,314
Enterprise Storage and Servers				7,404					9,600
HP Software				1,758					1,986
Technology Solutions Group				26,396					19,900
Personal Systems Group				16,978					20,862
Imaging and Printing Group				11,897					15,001
HP Financial Services				1,277					1,327
Corporate Investments				384					448
Total Segments				56,932					57,538
Eliminations of intersegment net revenue and other				(781	)				(809	)
Total HP Consolidated			$	56,151				$	56,729
Earnings from operations:
Services			$	2,295				$	1,006
Enterprise Storage and Servers				655					1,328
HP Software				297					153
Technology Solutions Group				3,247					2,487
Personal Systems Group				809					1,172
Imaging and Printing Group				2,179					2,362
HP Financial Services				87					90
Corporate Investments				(38	)				14
Total Segments				6,284					6,125
Corporate and unallocated costs and eliminations				(38	)				(223	)
Unallocated costs related to stock-based compensation expense				(304	)				(255	)
Amortization of purchased intangible assets				(792	)				(417	)
In-process research and development charges				(6	)				(13	)
Restructuring charges				(240	)				(14	)
Acquisition-related charges				(123	)				-
Interest and other, net				(412	)				75
Total HP Consolidated Earnings Before Taxes			$	4,369				$	5,278
(a) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
		Three months ended
		April 30, 2009					January 31, 2009					April 30, 2008 (a)
Net revenue:
Infrastructure technology outsourcing			$	3,836				$	3,960				$	1,312
Technology services				2,441					2,451					2,568
Application services				1,502					1,592					342
Business process outsourcing				709					743					40
Services (b)				8,488					8,746					4,262
Industry standard servers				1,988					2,322					2,818
Storage				818					913					1,043
Business critical systems				650					713					919
Enterprise Storage and Servers				3,456					3,948					4,780
Business technology optimization				568					594					670
Other				312					284					369
HP Software				880					878					1,039
Technology Solutions Group				12,824					13,572					10,081
Notebooks				4,697					4,907					5,373
Desktops				2,967					3,303					3,925
Workstations				287					333					490
Handhelds				47					57					102
Other				193					187					181
Personal Systems Group				8,191					8,787					10,071
Supplies				4,103					4,050					4,768
Commercial hardware				1,193					1,239					1,975
Consumer hardware				620					692					901
Imaging and Printing Group				5,916					5,981					7,644
HP Financial Services				641					636					685
Corporate Investments				188					196					230
Total Segments				27,760					29,172					28,711
Eliminations of intersegment net revenue and other				(409	)				(372	)				(449	)
Total HP Consolidated			$	27,351				$	28,800				$	28,262
(a) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments.
(b) Infrastructure technology outsourcing, Application services, Business process outsourcing and Other business units were added to the Services business segment. In addition, Outsourcing services, Consulting and integration and EDS business units within Services were disintegrated in fiscal 2009.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
		Six months ended
		April 30, 2009					April 30, 2008 (a)
Net revenue:
Infrastructure technology outsourcing			$	7,796				$	2,564
Technology services				4,892					5,026
Application services				3,094					648
Business process outsourcing				1,452					76
Services (b)				17,234					8,314
Industry standard servers				4,310					5,806
Storage				1,731					2,020
Business critical systems				1,363					1,774
Enterprise Storage and Servers				7,404					9,600
Business technology optimization				1,162					1,288
Other				596					698
HP Software				1,758					1,986
Technology Solutions Group				26,396					19,900
Notebooks				9,604					11,037
Desktops				6,270					8,331
Workstations				620					952
Handhelds				104					191
Other				380					351
Personal Systems Group				16,978					20,862
Supplies				8,153					9,137
Commercial hardware				2,432					3,858
Consumer hardware				1,312					2,006
Imaging and Printing Group				11,897					15,001
HP Financial Services				1,277					1,327
Corporate Investments				384					448
Total Segments				56,932					57,538
Eliminations of intersegment net revenue and other				(781	)				(809	)
Total HP Consolidated			$	56,151				$	56,729
(a) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments.
(b) Infrastructure technology outsourcing, Application services, Business process outsourcing and Other business units were added to the Services business segment. In addition, Outsourcing services, Consulting and integration and EDS business units within Services were disintegrated in fiscal 2009.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Three months ended
		April 30, 2009					January 31, 2009					April 30, 2008
Numerator:
Net earnings			$	1,716				$	1,854				$	2,057
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes				-					-					1
Net earnings, adjusted			$	1,716				$	1,854				$	2,058
Denominator:
Weighted-average shares used to compute basic EPS				2,394					2,410					2,473
Effect of dilutive securities:
Dilution from employee stock plans				44					54					79
Zero-coupon subordinated convertible notes				-					-					5
Dilutive potential common shares				44					54					84
Weighted-average shares used to compute diluted EPS				2,438					2,464					2,557
Net earnings per share:
Basic (a)			$	0.72				$	0.77				$	0.83
Diluted (b)			$	0.70				$	0.75				$	0.80
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Six months ended
		April 30, 2009					April 30, 2008
Numerator:
Net earnings			$	3,570				$	4,190
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes				-					3
Net earnings, adjusted			$	3,570				$	4,193
Denominator:
Weighted-average shares used to compute basic EPS				2,402					2,516
Effect of dilutive securities:
Dilution from employee stock plans				46					81
Zero-coupon subordinated convertible notes				-					6
Dilutive potential common shares				46					87
Weighted-average shares used to compute diluted EPS				2,448					2,603
Net earnings per share:
Basic (a)			$	1.49				$	1.67
Diluted (b)			$	1.46				$	1.61
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NON-GAAP NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Three months ended
		April 30, 2009					January 31, 2009					April 30, 2008
Numerator:
Non-GAAP net earnings			$	2,098				$	2,285				$	2,229
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes				-					-					1
Non-GAAP net earnings, adjusted			$	2,098				$	2,285				$	2,230
Denominator:
Weighted-average shares used to compute basic EPS				2,394					2,410					2,473
Effect of dilutive securities:
Dilution from employee stock plans				44					54					79
Zero-coupon subordinated convertible notes				-					-					5
Dilutive potential common shares				44					54					84
Weighted-average shares used to compute diluted EPS				2,438					2,464					2,557
Non-GAAP net earnings per share:
Basic (a)			$	0.88				$	0.95				$	0.90
Diluted (b)			$	0.86				$	0.93				$	0.87
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NON-GAAP NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Six months ended
		April 30, 2009					April 30, 2008
Numerator:
Non-GAAP net earnings			$	4,383				$	4,520
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes				-					3
Non-GAAP net earnings, adjusted			$	4,383				$	4,523
Denominator:
Weighted-average shares used to compute basic EPS				2,402					2,516
Effect of dilutive securities:
Dilution from employee stock plans				46					81
Zero-coupon subordinated convertible notes				-					6
Dilutive potential common shares				46					87
Weighted-average shares used to compute diluted EPS				2,448					2,603
Non-GAAP net earnings per share:
Basic (a)			$	1.82				$	1.80
Diluted (b)			$	1.79				$	1.74
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.

Use of Non-GAAP Financial Measures