HP Inc has reported signs of improving conditions in the office print market as its Printing division delivered stable revenue and profitability in the second quarter of FY2026.
Printing revenue in the three months to April 30 was flat year on year at $4.2 billion, although sales declined by 2% in constant currency terms as volume declines outpaced price increases. Operating profit came in at $767 million, equating to an operating margin of 18.3%, down 0.9 percentage points from last year due mainly to trade-related costs and promotional investments.
HP said revenue performance was driven by “continued improvement” in the office market and sequential share gains in Big Tank and A4 office categories, partly offset by lower hardware unit volumes.
Supplies revenue—which accounted for 66% of Printing sales—increased by 1% year on year and was flat in constant currency. Meanwhile, total hardware units declined by 7%, with consumer printing revenue down 10% and commercial printing revenue remaining flat.
On the earnings call, interim CEO Bruce Broussard said office print trends had improved versus previous quarters and highlighted “pretty strong” print usage levels. He added that enterprise customers are currently prioritizing spending on PCs over print hardware, although HP believes the overall office environment is stabilizing.
Growth areas for the printing business included Industrial Graphics, 3D printing and consumer subscription services. HP said revenue from Instant Ink, Instant Paper and its All-In Plan subscription offering all grew at a double-digit rate during the quarter. The company also confirmed plans to expand the All-In Plan internationally.
Looking ahead, HP warned that printing margins in the third quarter are likely to move towards the lower end of the company’s long-term target range due to higher resin and transportation costs as well as ongoing promotional activity in Big Tank. However, management said it expects profitability to improve again in Q4.
Longer term, there are no changes in the printing outlook, with supplies revenue and hardware units expected to decline steadily in the low single digits. HP said the strategy is to manage these underlying trends by targeting growth in areas such as subscriptions and industrial use cases.
Overall, HP generated Q2 revenue of $14.4 billion, an increase of 9% year on year (6.3% in constant currency), while adjusted earnings per share of $0.86 came in ahead of guidance.
The Personal Systems division performed strongly, with revenue up 13%, driven by higher-value unit placements, services expansion and continued momentum in AI PCs—which now account for 44% of HP’s total PC shipments. The Windows 11 refresh cycle was also a tailwind, especially in the Asia-Pacific region.
Meanwhile, HP provided a further update on its search for a permanent CEO following the departure of Enrique Lores earlier this year. Broussard said the board continues to evaluate both internal and external candidates, but he declined to give a timeline for an appointment.
This story was originally published as premium content by our sister publication OPI.
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