Strong Revenue Growth Across the Business
HPQ grew Q2 FY2026 revenue to $14.4B, up 9.0% YoY from $13.2B, reflecting solid demand momentum. Gross profit rose 10.1% to $3.0B, slightly outpacing revenue growth and nudging gross margin up ~21 basis points to 20.9%.
Operating Income Declined Despite Revenue Growth
Despite the top-line expansion, operating income fell 6.4% YoY to $612M from $654M, as SG&A expenses of $1.51B (+2.3% YoY) and R&D of $432M (+7.7% YoY) together consumed a larger share of gross profit. Operating margin compressed to 4.2% from 4.9% in the prior-year period.
Net Income and EPS Outperformed Operating Income Trend
Net income grew 10.8% YoY to $450M, and diluted EPS rose 16.7% to $0.49 from $0.42, suggesting below-the-line items (e.g., lower interest expense or tax benefits) provided a meaningful tailwind that offset the operating-level weakness.