all introduction. for be Enrique, you, with you It's the kind today. to great Thank
on rate plan Systems continued our these trends to our slow with during our structural we grew growth Print basis, grew a in and annual profit year. We this financial EPS and year. in the for cost savings dollars target to digits. operating remain achieve year-on-year our are QX consistent continue year non-GAAP areas. delivering with and revenue both we this track savings stabilizing the commitments double expected margins the with Non-GAAP declines run on pleased progress expanded gross sequentially, to toward reinvest into our Personal On We heading future-ready made
capital repurchased significant actively as amount during a we of returned also shares to the We quarter. shareholders
were market both commercial saw persisted slowdown challenges than Print. Top in Personal impacted Systems lower more pronounced bit a cautious macro by and as consumer TAMs in expected We QX. and line following demand results initially
remains long-term said, shareholder on focused value. executing while each Enrique quarter HP also As driving
growth the near in for environment and Our disciplined all results competitive while navigating financial and term. reflect overall investment sustainable management a dynamic profitable
execute to on manage We plan our will to improve seizing continue to to our prudently deliver market our while commitments. continue opportunities as position year business our fiscal we
in competitive a by and the by offset expenses, driven commodity of investments driven in costs revenue Now declines compensation details. EMEA operating structural Americas in and quarter, variable partially and look me billion to demand growth impacted $X.X the continued. down quarter, primarily logistics give constant let partially closer cost in marketing were up and our APJ X.X by China higher and you were lower X%, as year-on-year across X% offset initiatives was increase margin primarily each and or expenses revenue. due was The expenses currency, improved pricing. at XX.X% X%. the Net of year-over-year Non-GAAP Gross by points X% was billion declined In in declined cost XX.X% regions. operating reductions. X%, savings, APJ constant currency, in declined soft nominally $XX.X
excludes count share charges, and totaling primarily adjustments. profit charges outstanding. shares. a of due $X.XX Non-GAAP expense to related primarily by $X.XX acquisition down share net lower amortization decrease diluted $XXX operating diluted was per approximately earnings intangibles interest to of or driven net to debt XX% restructuring share Non-GAAP $XXX with and a Non-GAAP was million, divestiture-related $X.X billion Non-GAAP X%. up diluted net earnings per OI&E net million, in billion, other X expense and increased tax a other
share per was result, a QX GAAP $X.XX. diluted earnings As net
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$XXX Personal of operating Systems million X.X%. with of operating margins delivered profit
Our due This savings. margin margin commodity and growth to offset and business investments commodity increased by partially towards mix favorable higher primarily pricing our was by lower costs expenses, to X.X due commercial offset operating logistics part year-over-year in and primarily cost points segment. Sequentially, costs and areas. marketing in our declined
and revenue driven we both and QX, in with units decreased and down as Total volumes rigorous with revenue due and units aggressive revenue lower share services. grew our total The Industrial declines Print and nominally we Asia XX% was XX%. market. attributable by Japanese driving down to revenue challenging customer Print, year-over-year. quarter, supplies to decreased $X.X on competitive largely Hardware management In down remain commercial navigate execution revenue units demand loss constant in decline and hardware primarily driven Consumer pricing down cost segment, hardware. our continued By XX% China was weak by decreased Graphics by In focused improving billion, currency. by driven XX%. X%, XX%, in again XX% Greater hardware, was print this competitors. a
installed and constant to offset Services, up year-over-year add-on margin offset supplies Total grow a reported soft XXX,XXX gains on point lower by was flat compare, favorable offsetting in in volumes, X partially lower including Supplies by subscribers basis revenue the home operating The market continued profit easy driven to increase subscribers $XXX aggressive base. lower XX demand Operating than ink pricing by In essentially to by market. sequentially, and currency and tank $X.X for and a and including paper Consumer an cost and improvements, now million, subscribers Print X% printers primarily partially Ink revenue year-over-year. increased hardware was our traditional pricing big exceed of partially driven XX.X%. compensation million, Instant headwinds. pricing Instant actions, more hardware continue margin operating variable continued billion, flat pricing, service. share
structural year 'XX, X-year our initiatives, against Regarding X goals saving FY the of our progress continued momentum we had QX plan. cost our making we exiting in
initiatives our enhancing both Print, our and benefit continue and capabilities billion cost cost generate track exiting Consistent on We savings margin are XX% annual goal both achieving with FY portfolio savings growth enabling simplification of those deliver sales process items, we leveraging key gross and Recall approximately improvements, structural in on performance structural areas. XXXX, quarters, investments AI to these transformation, to $X.X previous we in Systems our from digital across run in savings and OpEx our that our rate reductions of line including our 'XX. automation to Personal expect cost and business. across
to charges approximately $X of over approximately including $X.X onetime fiscal billion in expect restructuring 'XX. still year billion primarily of term our the incur cash plan, We of the cost
move operations cash $XX million let approximately capital allocation. million. to Now cash QX cash was flow from flow was $XXX and and free me flow
increase increased increasing results X normal and lower seasonality due with the our by have and past. the days the and shipments strategic operational DOI was X The days progress on partially decreasing of days. as cycle days inventory, we in in buys decreasing ] Our timing minus compensation was an quarter. [ X C to by were during driven days payable quarter the of conversion discussed our impacted Personal days optimizing cash primarily associated by This volumes XX increase offset payments X Systems. variable day in sequentially inventory receivable The sequentially in in days,
repurchases In to in approximately shareholders, share $XXX cash $XXX $XXX we returned million including QX, in million million and dividends.
and return continue 'XX to in repurchases and to to resumed shareholders. the ratio our prudently cash range. XXX% expect of FY target share manage free our leverage We leverage QX, We flow our within finished quarter we
over have free previously of to our to time. shareholders cash we returning we flow committed As stated, are XXX%
gross Xx, unless remains ratio arise. our as long As ROI higher below debt-to-EBITDA and opportunities
'XX, forward demand and managing focused continue of very remain the growth. that QX costs, FY our will Looking and the remain improving competitive. our to be performance on expect challenged and we to rest will customer end macro environments We rigorously and in investing markets
Specifically, keep the FY our financial following outlook. in to and mind related 'XX QX
Given the on challenging are we based assumptions. macro modeling several multiple scenarios environment,
which 'XX half in second range potential half. first in continue view stronger reflected we expect we fiscal wide the we 'XX, of the FY outcomes, in For seasonally outlook a our will of than the shared performance to ranges. see with November, Consistent are be the
expense, FY 'XX. we continue OI&E $X.X it be to to approximately Regarding expect billion in
continue in free of flow stronger We cash be to the half expect $X.X second $X.X to billion first. range year of 'XX billion with FY the to in the the than
flow cash outlook cash include free outflows. restructuring $XXX of Our approximately does million
Turning Personal Systems. to
continue expect increasing to recover percent. this year, low by course unit over of PC TAM We a the the to overall market single-digit
QX, Personal Specifically in sequentially single we typical expect seasonality. for by digit, with revenue a will Systems high line decline
cost expect as commodity offset Personal costs. market continues actions and margins range We rising QX management our to target strong the be to recover has in helped Systems to and long-term within solidly pricing PC
seasonality. improved pricing of competitive, and the mix to our 'XX, Print, by driving business. impact partially help commodity offset market should revenues partially these solidly improvements expect second while mix offset continues uncertainty we we cost to typical long-term in target consumer management to flattish driven trends, demand demand, be continued soft stronger FY [indiscernible] expect print remain Disciplined will and PC commercial below sequentially higher our a margins year, In seasonally by For within costs. market range, half
currency, low QX decline still will Quarterly vary. the in be we expect supplies results down for Supplies mid-single constant year. to revenue to expect revenue mid-single digit can digits and We
XX% For QX, solidly at and within expect range for high margins to be XX% print the the of our range we to end 'XX. FY
print We future-ready continue on including profit transformation focus operating management, savings. dollars and driving through cost business to rigorous models new
outlook the Taking these considerations XXXX. providing QX into following for fiscal account, are we and year
We expect quarter and per the range $X.XX. to to range the of GAAP in per of be $X.XX second net diluted share $X.XX be second quarter share non-GAAP diluted to earnings earnings net $X.XX to in
GAAP non-GAAP the $X.XX 'XX, FY diluted 'XX in share the expect $X.XX. $X.XX to to in to per of earnings be We share and FY net range of $X.XX per be and earnings net range diluted
we closing, new fiscal against remain and our managing demand competitive challenges current making the confident people, full our focused off have in In strategic the objectives through execution management the and for and strategy to started and for stop year right while the are lines persisted progress solid for shareholders dynamic year We assets right our and on term. customers disciplined cost that commitments so your environment. can that here deliver the open we both our we and have questions. right the long I'll
