What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-12-10 compared with 2024-12-13 · 307 added, 280 removed, 1620 unchanged (27% of the section changed)

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generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated December 12, 2024 expressed an adverse opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated December 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

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Estimated variable consideration is presented within other current liabilities on the consolidated balance sheet and totaled $3.1 billion at October 31, 2025.

Auditing the Company’s measurement of variable consideration is especially challenging because the calculation is complex and reflects management’s assumptions about expected future claims activity and changes in those assumptions can have a material effect on the amount of variable consideration recognized.

How We Addressed the Matter in Our Audit Our audit procedures included, among others, developing an independent estimate of the variable consideration and comparing our estimate to the recorded balance.

Auditing the Company’s measurement of certain variable consideration is especially challenging because the calculation is complex and reflects management's assumptions about expected customer behavior, considering historical experience.

Changes in those assumptions can have a material effect on the amount of variable consideration recognized.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over its measurement of variable consideration, including management’s evaluation of the significant assumptions that have a material effect on the variable consideration.

Our audit procedures included, among others, developing an independent estimate of the variable consideration and comparing our estimate to the recorded balance.

We performed this predictive analysis at both an aggregated and disaggregated level.

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and subsidiaries’ internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, HP Inc.

and subsidiaries (the Company) has not maintained effective internal control over financial reporting as of October 31, 2024, based on the COSO criteria.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

The following material weakness has been identified and included in management’s assessment.

Management has identified a material weakness related to ineffective design and operation of information technology (“IT”) general controls in the areas of user access, change management and job schedule monitoring IT operations for certain IT applications supporting the company’s internal control over financial reporting.

As a result, the application controls and IT dependent manual controls that rely upon information from the impacted IT applications were also deemed ineffective.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of October 31, 2024 and 2023, the related consolidated statements of earnings, comprehensive income, stockholders’ deficit and cash flows for each of the three years in the period ended October 31, 2024, and the related notes.

This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2024 consolidated financial statements, and this report does not affect our report dated December 12, 2024, which expressed an unqualified opinion thereon.

In our opinion, HP Inc.

and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of October 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of October 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive income, stockholders’ deficit and cash flows for each of the three years in the period ended October 31, 2025, and the related notes and our report dated December 10, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

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As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024, we identified a material weakness in internal control over financial reporting.

The material weakness resulted from undue reliance on information generated from certain software solutions affecting net revenue without effectively designed and operating information technology (“IT”) general controls, specifically around user access and change management.

As of October 31, 2024, the Company has concluded that the previously identified material weakness was not remediated and that IT general control deficiencies exist in the areas of user access, change management and job schedule monitoring IT operations for certain IT applications affecting various financial statement line items as well as net revenue.

As a result of the material weakness, the application controls and IT dependent manual controls that rely upon information from affected IT applications were also deemed ineffective.

This material weakness did not result in any material misstatement of our financial statements.

While this material weakness did not result in a material misstatement of our financial statements, this control deficiency was not remediated as of October 31, 2024 and there is a reasonable possibility that it could have resulted in a material misstatement in the Company's annual or interim consolidated financial statements that would not be detected.

Accordingly, we determined that this control deficiency constituted a material weakness.

As a result of this material weakness, management has concluded that we did not maintain effective internal control over financial reporting as of October 31, 2024.

The material weakness resulted from undue reliance on information generated from certain software solutions affecting various financial statement line items as well as net revenue without effectively designed information technology (“IT”) general controls specifically around user access and change management and job schedule monitoring IT operations.

As of October 31, 2025, the Company has concluded that the previously identified material weakness was remediated.

Based on the assessment by HP’s management, we determined that HP’s internal control over financial reporting was effective as of October 31, 2025.

The effectiveness of HP’s internal control over financial reporting as of October 31, 2025 has been audited by Ernst & Young LLP, HP’s independent registered public accounting firm, as stated in their report which appears in Part II, Item 8 of this Annual Report on Form 10-K.

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Total cost of net revenue 43,903 41,741 42,210

Gross margin 11,818 11,508 12,263

11,392 11,818 11,508

Research and development 1,602 1,640 1,578

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Amortization of intangible assets 345 318 350

Russia exit charges — — 23

Total costs and expenses 8,000 8,052 7,704

Total operating expenses 8,218 8,000 8,052

Earnings from operations 3,174 3,818 3,456

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Net earnings $ 2,529 $ 2,775 $ 3,263

Other comprehensive (loss) income before taxes:

Other comprehensive loss before taxes:

Change in unrealized components of available-for-sale debt securities:

Unrealized gains (losses) arising during the period

Unrealized gains arising during the period

Change in unrealized components of cash flow hedges:

Unrealized gains (losses) arising during the period

Unrealized (losses) gains arising during the period

( 211 ) 51 ( 427 )

Gains reclassified into earnings

Losses (gains) reclassified into earnings

98 ( 274 ) ( 84 )

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Change in unrealized components of defined benefit plans:

Losses arising during the period

Unrealized gains (losses) arising during the period

30 ( 76 ) ( 141 )

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Change in cumulative translation adjustment 12 24 23

Other comprehensive (loss) income before taxes

( 257 ) ( 627 ) 639

Benefit from (provision for) taxes

Other comprehensive loss before taxes

( 28 ) ( 257 ) ( 627 )

Other comprehensive (loss) income, net of taxes

Benefit from taxes

Other comprehensive loss, net of taxes

( 23 ) ( 211 ) ( 508 )

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Cash, cash equivalents and restricted cash $ 3,705 $ 3,253

Accounts receivable, net of allowance for credit losses of $ 83 and $ 93 , respectively

Accounts receivable, net of allowance for credit losses of $ 83 as of October 31, 2025 and 2024

Inventory 8,512 7,720

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Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 830 850 780

Depreciation, amortization and impairment 916 830 850

Stock-based compensation expense 522 452 438

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Accounts payable 1,142 2,840 ( 1,240 )

Net investment in leases from integrated financing

Net investment in leases related to integrated financing

( 131 ) ( 165 ) ( 110 )

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Cash flows from investing activities:

Investment in property, plant and equipment, net

Investment in property, plant, equipment and purchased intangibles, net

( 897 ) ( 592 ) ( 593 )

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Payments made in connection with business acquisitions, net of cash acquired ( 116 ) ( 58 ) ( 7 )

Proceeds from business divestitures

Net cash used in investing activities ( 1,177 ) ( 646 ) ( 590 )

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Payments of short-term borrowings with original maturities less than 90 days, net

— ( 10 ) ( 400 )

Proceeds from debt, net of issuance costs 1,385 380 255

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Cash dividends paid ( 1,088 ) ( 1,075 ) ( 1,037 )

Collateral (returned) withdrawn for derivative instruments

— ( 200 ) 200

Collateral returned for derivative instruments

Settlement of cash flow hedges 6 — ( 3 )

Net cash used in financing activities ( 2,060 ) ( 3,082 ) ( 2,894 )

Increase (decrease) in cash, cash equivalents and restricted cash

21 87 ( 1,154 )

Increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period 3,253 3,232 3,145

Cash, cash equivalents and restricted cash at end of period (1)

$ 3,713 $ 3,253 $ 3,232

Supplemental cash flow disclosures:

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Interest expense paid $ 437 $ 441 $ 548

(1) Includes cash held for sale of $ 8 million recorded within Other current assets

The accompanying notes are an integral part of these Consolidated Financial Statements.

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Net earnings 3,263 3,263

Other comprehensive income, net of taxes 530 530

Other comprehensive loss, net of taxes

( 508 ) ( 508 )

Comprehensive income 2,755

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Stock-based compensation expense 438 438

Business acquisitions 9 9

Balance as of October 31, 2023

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dollars are recorded in U.S.

dollars at monthly average exchange rates prevailing during the period.

dollars at exchange rates in effect during each period.

HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings.

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Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services are required to disclose information about those programs to allow users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude.

HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which will be adopted in fiscal year 2025, in line with the effective adoption dates prescribed by the FASB.

HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which was adopted for its annual period ending October 31, 2025, in line with the effective adoption dates prescribed by the FASB.

See Note 7, “Supplementary Financial Information,” for additional disclosure related to HP’s supplier finance programs.

In November 2023, the FASB issued guidance that updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance on an annual and interim basis.

HP adopted this guidance for its annual period ending October 31, 2025.

While the adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements, the new guidance resulted in increased disclosures on reportable segments in Note 2 of the Notes to the Consolidated Financial Statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

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In December 2023, the FASB issued guidance that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid.

HP is required to adopt this guidance for its annual period ending October 31, 2026.

Early adoption is permitted.

HP is currently evaluating the impact of this guidance on its disclosures.

HP is required to adopt this guidance for its annual period ending October 31, 2025 and all interim periods thereafter.

Early adoption is permitted.

HP is currently evaluating the impact of this guidance on its disclosures.

HP is required to adopt this guidance for its annual period ending October 31, 2026, which will result in increased disclosures in the Notes to its Consolidated Financial Statements.

AND SUBSIDIARIES

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If the transaction price includes a variable amount, HP estimates the amount it expects to be entitled to using either the expected value or the most likely amount method.

HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, other volume-based incentives and expected returns.

HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, and other volume-based incentives.

HP uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected consumer behavior and market conditions.

HP has elected the practical expedient of not accounting for significant financing components if the period between revenue recognition and when the customer pays for the product or service is one year or less.

Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates revenue to each performance obligation in proportion to their selling price.

The selling price for each performance obligation is based on its Standalone Selling Price (“SSP”).

Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates the transaction price to each performance obligation in proportion to its Standalone Selling Price (“SSP”).

HP establishes SSP using the price charged for a performance obligation when sold separately (“observable price”) and, in some instances, using the price established by management having the relevant authority.

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HP generally invoices the customer upon delivery of the goods or services and the payments are due as per contract terms.

For fixed price support or maintenance contracts that are in the nature of stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over the duration of the contract.

For fixed price support or maintenance contracts that are stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over the duration of the contract.

HP reports revenue net of any taxes collected from customers and remitted to government authorities, and the collected taxes are recorded as other current liabilities until remitted to the relevant government authority.

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HP records revenue on a gross basis when HP is a principal in the transaction and on a net basis when HP is acting as an agent between the customer and the vendor.

HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks.

HP transfers control of the products to the customer at the time the product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations to the customer remain unfulfilled.

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These costs generate or enhance resources of HP that will be used in satisfying the performance obligation in the future and are capitalized and amortized over the expected period of the benefit, provided such costs are recoverable.

See Note 7, “Supplementary Financial Information” for details on net revenue by region, cost to obtain a contract and fulfillment cost, contract liabilities and value of remaining performance obligations.

At the inception of a contract, HP assesses whether the contract is, or contains, a lease.

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The loss of a single source supplier, the deterioration of HP’s relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP’s net revenue, cash flows and gross margins.

HP records inventory at the lower of cost or market (net realizable value) on a first-in, first-out basis.

HP records inventory at the lower of cost or net realizable value on a first-in, first-out basis.

Cost is computed using standard cost which approximates actual cost.

Adjustments, if required, to reduce the cost of inventory to market are made for estimated excess, obsolete or impaired balances after considering judgments related to future demand and market conditions.

Adjustments, if required, to reduce the cost of inventory to net realizable value are made for estimated excess, obsolete or impaired balances after considering judgments related to future demand and market conditions.

Property, Plant and Equipment, Net

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See Note 14, “Litigation and Contingencies” for a full description of HP’s loss contingencies and related accounting policies.

Government Assistance

HP recognizes government assistance in its financial statements when there is reasonable assurance that the assistance will be received and HP will comply with the specified conditions thereof.

Government assistance related to capital expenditures are deducted from property, plant and equipment, net and recognized in the Consolidated Statements of Earnings as a reduction to depreciation and amortization expense over the remaining useful life of the associated assets.

Government assistance related to income are recognized in the Consolidated Statements of Earnings as a reduction to the related expenses, in the period the expenses are incurred, based on the underlying nature and purpose of the assistance .

AND SUBSIDIARIES

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Personal Systems, Printing, and Corporate Investments.

HP’s organizational structure is based on many factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology.

The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”).

HP’s organizational structure is based on many factors that the CODM uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology.

The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results.

The CODM uses earnings from operations to evaluate the performance of the overall business and to allocate resources to each of the segments.

The CODM uses earnings from operations to evaluate the performance of the overall business and to allocate resources to each of the segments, primarily through budgeting and segment performance reviews.

The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements.

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HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments.

These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and Russia exit charges.

Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Significant Segment Expenses and Operating Results

For the fiscal years ended October 31

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Total net revenue $ 55,295 $ 53,559 $ 53,718

Cost of net revenue

Personal Systems

$ 32,877 $ 30,385 $ 30,267

10,871 11,233 11,847

Corporate Investments

Total segment cost of net revenue

$ 43,806 $ 41,666 $ 42,124

Operating expenses

Personal Systems

$ 3,601 $ 3,557 $ 3,288

2,713 2,815 2,783

Corporate Investments

Total segment operating expenses

$ 6,448 $ 6,481 $ 6,210

Earnings before taxes

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Amortization of intangible assets ( 345 ) ( 318 ) ( 350 )

Russia exit charges — — ( 23 )

Certain litigation charges ( 140 ) ( 58 ) —

Interest and other, net (1)

( 506 ) ( 539 ) ( 519 )

Total earnings before taxes $ 2,668 $ 3,279 $ 2,937

(1) Fiscal year 2025 includes Certain litigation benefits from a single litigation matter that does not relate to HP's ongoing business operations

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Effective at the beginning of its first quarter of fiscal year 2024, HP realigned its business unit financial reporting more closely with its customer market segmentation.

The realignment resulted in the transfer of LaserJet printers net revenues from Consumer Printing to Commercial Printing.

HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of net revenues from Consumer Printing to Commercial Printing.

The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share (“EPS”).

Segment Assets

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Major Customers

No single customer represented 10% or more of HP’s net revenue in any fiscal year presented.

One customer, TD Synnex Corp, accounted for 12 % of HP’s net revenue for fiscal year 2025.

No single customer represented 10% or more of HP’s net revenue in fiscal year 2024 or 2023.

Geographic Information

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$ 873 $ 118 $ 878 $ 1,869

Reflected in Consolidated Balance Sheets:

Reflected in Consolidated Balance Sheet:

Other current liabilities $ 160 $ 3 $ 4 $ 167

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HP does not expect any further material activity associated with these plans.

(2) Includes reclassification of liability related to the EER plan of $ 139 for certain healthcare and medical savings account benefits to pension and post-retirement plans.

(2) Includes reclassification of liability related to the Enhanced Early Retirement ("EER") plan of $ 139 for certain healthcare and medical savings account benefits to pension and post-retirement plans.

See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information .

Fiscal 2026 Plan

On November 18, 2022, HP’s Board of Directors approved the Future Ready Plan intended to enable digital transformation, portfolio optimization and operational efficiency which HP expects will be implemented through fiscal year 2025.

HP expects workforce reductions of approximately 7,000 employees.

HP estimates that it will incur pre-tax charges of approximately $ 1.0 billion of which approximately $ 0.7 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges.

On November 25, 2025, HP’s Board of Directors approved the Fiscal 2026 Plan intended to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement that HP expects will be implemented through fiscal 2028.

HP expects to reduce global headcount by approximately 4,000 to 6,000 employees.

HP estimates that it will incur pre-tax charges of approximately $ 650 million relating to labor and non-labor actions.

HP expects to incur approximately $ 400 million in labor costs related to workforce reductions and expects the remaining costs to relate to non-labor actions and other charges.

Fiscal 2023 Plan

On November 18, 2022, HP’s Board of Directors approved the Fiscal 2023 Plan intended to enable digital transformation, portfolio optimization and operational efficiency that HP implemented through fiscal 2025.

The Fiscal 2023 Plan is substantially complete.

HP does not expect any further significant costs associated with the plan.

Approximately 9,500 employees departed as part of the plan through a combination of employee exits and voluntary EER.

HP incurred $ 873 million in severance costs and $ 347 million in infrastructure costs related to non-labor and other charges.

Other Charges

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HP incurred $ 78 million, $ 68 million and $ 83 million of other charges in fiscal year 2025, 2024 and 2023, respectively.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Retirement and Post-Retirement Benefit Plans

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Pension Plan (“Pension Plan”) is a frozen plan in the United States.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

HP reduces the benefit payable to certain U.S.

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Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits.

Effective January 1, 2026, Medicare-eligible retirees will receive the capped subsidy and enroll in individual market options through an exchange.

Certain employees not grandfathered for partially subsidized medical coverage under the above programs, and employees hired after 2002 but before August 2008, are eligible for credits under the HP Inc.

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$ 2 $ 10 $ 82 $ 48 $ 39 $ 36 $ ( 22 ) $ ( 24 ) $ 9

The components of net periodic benefit (credit) cost other than the service cost component are included in Interest and other, net in the Consolidated Statements of Earnings.

The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The components of net periodic benefit (credit) cost other than the service cost component are included in Interest and other, net in the Consolidated Statements of Earnings.

The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows:

For the fiscal years ended October 31

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Benefits paid ( 250 ) ( 258 ) ( 38 ) ( 54 ) ( 48 ) ( 48 )

Plan amendments — — — 4 — —

Settlement ( 2 ) ( 1 ) ( 35 ) ( 28 ) — —

Special termination benefit cost — 105 — — — 34

Currency impact — — 79 26 — —

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Notes to Consolidated Financial Statements (Continued)

The cumulative net actuarial losses for our defined pension plans and retiree welfare plans increased year over year.

These loss increases were primarily due to decreases in discount rates and other assumption changes.

The increase in losses was partially offset due to higher than expected return on assets.

The cumulative net actuarial losses for our defined pension plans and retiree welfare plans decreased year over year.

These loss decreases were primarily due to higher than expected return on assets and increases in discount rates.

The decrease in losses was partially offset due to plan experience and other assumption changes.

The weighted-average assumptions used to calculate the projected benefit obligations were as follows:

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Aggregate accumulated benefit obligation $ 270 $ 277 $ 900 $ 859

Fair Value of Plan Assets

The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2024.

Total Plan Assets

The table below sets forth the total value of plan assets as of October 31, 2025.

Refer to Note 9, “Fair Value” for details on fair value hierarchy.

Certain investments that are measured at fair value using the Net Asset Value (“NAV”) per share as a practical expedient have not been categorized in the fair value hierarchy.

The fair value amounts presented in this table provide a reconciliation of the fair value hierarchy to the total value of plan assets.

Certain investments that are measured using the Net Asset Value (“NAV”) per share as a practical expedient have not been categorized in the fair value hierarchy.

As of October 31, 2025

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— 1,264 — 1,264 — 136 — 136 — 88 — 88

Real estate funds — — — — — 16 — 16 — — — —

Insurance contracts — — — — — 79 — 79 — — — —

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( 129 ) ( 11 ) — ( 140 ) — 9 — 9 ( 3 ) — ( 3 )

Net plan assets subject to leveling $ ( 224 ) $ 3,498 $ — $ 3,274 $ 29 $ 730 $ — $ 759 $ 37 $ 245 $ — $ 282

Net plan assets subject to leveling at fair value

$ ( 93 ) $ 3,565 $ — $ 3,472 $ 34 $ 820 $ — $ 854 $ 40 $ 236 $ — $ 276

Investments using NAV as a practical expedient (7)

Investments at fair value $ 4,218 $ 1,085 $ 317

Total plan assets

$ 4,306 $ 1,204 $ 314

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2023.

The table below sets forth the total plan assets as of October 31, 2024.

As of October 31, 2024

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( 251 ) ( 147 ) — ( 398 ) — 116 — 116 ( 8 ) — ( 8 )

Net plan assets subject to leveling $ ( 57 ) $ 2,975 $ — $ 2,918 $ 29 $ 621 $ — $ 650 $ 66 $ 314 $ — $ 380

Net plan assets subject to leveling at fair value

$ ( 224 ) $ 3,498 $ — $ 3,274 $ 29 $ 730 $ — $ 759 $ 37 $ 245 $ — $ 282

Investments using NAV as a practical expedient (7)

Investments at fair value $ 3,853 $ 959 $ 382

Total plan assets

$ 4,218 $ 1,085 $ 317

(1) Investments in publicly traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded.

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Asset Category U.S.

Defined Benefit Plans Non-U.S.

Benefit Plans

Benefit Plans Post-Retirement

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Employees meeting certain employment qualifications are eligible to receive stock-based awards.

The aggregate number of shares of HP’s stock authorized for issuance under the principal equity plan is 668.8 million.

As of October 31, 2025, the aggregate number of shares of HP’s stock authorized for issuance under the principal equity plan is 668.8 million.

AND SUBSIDIARIES

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Outstanding at end of year 34,623 $ 32 31,868 $ 30 30,209 $ 31

The total grant date fair value of restricted stock units vested in fiscal years 2024, 2023 and 2022 was $ 471 million, $ 442 million and $ 314 million, respectively.

As of October 31,2024, total unrecognized pre-tax stock-based compensation expense related to non-

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

vested restricted stock units was $ 414 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.4 years .

The total grant date fair value of restricted stock units vested in fiscal years 2025, 2024 and 2023 was $ 465 million, $ 471 million and $ 442 million, respectively.

As of October 31, 2025, total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units was $ 438 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.4 years .

Employee Stock Purchase Plan

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Impact of foreign earnings including GILTI and FDII, net ( 2.9 ) % ( 1.0 ) % ( 1.1 ) %

Research and development (“R&D”) credit ( 2.3 ) % ( 1.1 ) % ( 1.0 ) %

Valuation allowances ( 2.5 ) % ( 7.1 ) % ( 7.3 ) %

Uncertain tax positions and audit settlements ( 10.2 ) % 1.0 % 2.4 %

Changes in tax laws or rates enacted

1.4 % 0.3 % ( 0.3 ) %

Impact of internal reorganization — % — % ( 27.4 ) %

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5.2 % 15.4 % ( 11.1 ) %

The effective tax rate differs from the U.S.

federal statutory rate of 21% for fiscal year 2024 primarily due to impacts of changes in valuation allowances and favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world.

In fiscal year 2025, HP recorded $ 415 million of net income tax benefits related to non-recurring items in the provision for taxes.

This amount included $ 198 million related to changes in valuation allowances, $ 60 million related to restructuring charges, $ 14 million related to the filing of tax returns in various jurisdictions, and $ 11 million related to acquisition charges.

These benefits were partially offset by $ 39 million of uncertain tax position charges and $ 25 million related to changes in tax rates.

This amount included $ 273 million related to changes in uncertain tax positions, $ 80 million related to restructuring charges, $ 44 million related to changes in valuation allowances, $ 28 million related to the filing of tax returns in various jurisdictions, $ 22 million related to audit settlements in various jurisdictions, and $ 16 million related to litigation charges.

These benefits were partially offset by $ 69 million of charges related to changes in tax rates.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

In fiscal year 2024, HP recorded $ 214 million of net income tax benefits related to non-recurring items in the provision for taxes.

These benefits were partially offset by $ 39 million of uncertain tax position charges and $ 25 million related to changes in tax rates.

In fiscal year 2023, HP recorded $ 1.1 billion of net income tax benefits related to non-recurring items in the provision for taxes.

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These benefits were partially offset by income tax charges of $ 60 million related to audit settlements in various jurisdictions, $ 27 million of uncertain tax position charges, and $ 25 million related to extinguishment of debt.

In fiscal year 2022, HP recorded $ 456 million of net income tax charges related to non-recurring items in the provision for taxes.

This amount included $ 649 million of tax effects related to internal reorganization, $ 107 million of uncertain tax position charges, $ 55 million related to withholding taxes on undistributed foreign earnings, $ 51 million related to audit settlements in various jurisdictions and $ 26 million of other net tax charges.

These charges were partially offset by income tax benefits of $ 189 million related to the filing of tax returns in various jurisdictions, $ 156 million related to changes in valuation allowances, $ 44 million related to restructuring charges, and $ 43 million related to Poly acquisition charges.

In fiscal year 2022, HP recorded excess tax benefits of $ 33 million associated with stock options, restricted stock units and performance-adjusted restricted stock.

As a result of certain employment actions and capital investments HP has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates, and in some cases is wholly exempt from taxes, through 2029.

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Balance at end of year $ 865 $ 1,217 $ 1,137

As of October 31, 2024, the amount of gross unrecognized tax benefits was $ 1.2 billion, of which up to $ 853 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits increased by $ 80 million for the twelve months ended October 31, 2024.

As of October 31, 2025, the amount of gross unrecognized tax benefits was $ 865 million, of which up to $ 656 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits decreased by $ 352 million for the twelve months ended October 31, 2025.

HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Statements of Earnings.

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In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities.

The IRS is conducting an audit of HP’s 2018 and 2019 income tax returns.

The Internal Revenue Service (“IRS”) is conducting an audit of HP’s 2018 and 2019 income tax returns.

With respect to major state and foreign tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 2007.

1 unchanged sentence

HP believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits.

HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP’s

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Notes to Consolidated Financial Statements (Continued)

tax provision.

HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP’s tax provision.

HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit.

However, income tax audits are inherently unpredictable and there can be no assurance that HP will accurately predict the outcome of these audits.

The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows.

The amounts ultimately paid on resolution of an audit

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows.

HP has not provided for U.S.

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Carryforward Valuation

Allowance Initial

Allowance Initial Year of Expiration

Tax credits in state and foreign jurisdictions $ 307 $ ( 61 ) 2026

R&D and other credits 52 — 2045

Balance at end of year $ 359 $ ( 61 )

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Gross deferred tax assets as of October 31, 2025, 2024, and 2023 were reduced by valuation allowances of $ 6.5 billion, $ 6.7 billion and $ 7.0 billion, respectively.

In fiscal year 2025, the deferred tax asset valuation allowance decreased by $ 209 million primarily due to changes in tax rates in foreign jurisdictions.

In fiscal year 2024, the deferred tax asset valuation allowance decreased by $ 306 million primarily due to an increase in the expected utilization of foreign net operating losses.

1 unchanged sentence

deferred tax assets that are anticipated to be realized at a lower effective rate than the federal statutory rate.

In fiscal year 2022, the deferred tax asset valuation allowance decreased by $ 157 million primarily due to a reduction in the expected utilization of foreign net operating losses, U.S.

deferred tax assets that are anticipated to be realized at a lower effective tax rate than the federal statutory tax rate, and the impact of the acquisition of Poly on the company’s deferred tax assets.

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31 unchanged sentences

(1) Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Balance Sheets.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31

2 unchanged sentences

$ 8,512 $ 7,720

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Notes to Consolidated Financial Statements (Continued)

Other Current Assets

50 unchanged sentences

( 125 ) ( 155 ) ( 136 )

Certain litigation benefits

Net (loss) gain on debt extinguishment

Non-operating retirement-related credits 13 14 51

Tax indemnifications — — ( 1 )

Other, net ( 16 ) 57 7

$ ( 506 ) $ ( 539 ) $ ( 519 )

(1) Factoring costs for fiscal year 2022 were included in Selling, general and administrative and were not material.

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22 unchanged sentences

As of October 31, 2025 and 2024, HP’s contract liabilities balances were $ 3.2 billion and $ 2.9 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets.

The increase in the contract liabilities balance for the fiscal year 2024 was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 1.4 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2023.

The increase in the contract liabilities balance for fiscal year 2025 was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 1.5 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2024.

As of October 31, 2024 and 2023, HP’s contract liabilities balances were $ 2.9 billion and $ 2.7 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets.

The increase in the contract liabilities balance for the fiscal year 2023 was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 1.3 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2022.

The increase in the contract liabilities balance for fiscal year 2024 was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 1.4 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2023.

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HP facilitates voluntary supplier finance programs to provide certain suppliers the opportunity to sell their right to HP’s payment obligations to participating financial institutions.

Under this program, HP agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices.

Under these programs, HP agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices.

Participation by suppliers in these programs have no impact on the payment terms and amounts due from HP.

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As of October 31, 2025 and October 31, 2024, HP had $ 8.9 billion and $ 7.8 billion, respectively, in obligations outstanding (i.e., unpaid invoices) that were confirmed as valid under the supplier finance programs.

Of the amounts confirmed as valid under the program and outstanding, the amounts owed to participating financial institutions were $ 0.9 billion as of both October 31, 2024 and October 31, 2023, respectively.

These obligations are included within the Accounts payable line item of HP’s Consolidated Balance Sheet .

These obligations are included within the Accounts payable line item of HP’s Consolidated Balance Sheets .

As of both October 31, 2025 and October 31, 2024 the Company’s outstanding payment obligations that suppliers elected to sell to participating financial institutions were $ 0.1 billion.

The following table is a rollforward of the obligations confirmed under the program for fiscal year 2025:

Confirmed obligations outstanding at the beginning of the year

Invoices confirmed during the year

Confirmed invoices paid during the year

Foreign currency translation

Confirmed obligations outstanding at the end of the year

Government Assistance

HP receives assistance under legally enforceable agreements with governments in support of certain business activities, including expansion of operations, production or shipment of products from specific jurisdictions, research and development etc.

These grants are generally received in the form of cash and require compliance with certain conditions specified in each grant agreement.

The duration of the grant agreements are usually for a period of three to five years .

HP recognized $ 196 million, $ 126 million and $ 117 million of government assistance in the Consolidated Statement of Earnings in fiscal year 2025, 2024, and 2023, respectively, of which $ 130 million, $ 111 million and $ 95 million, respectively, was reported as a reduction of Cost of net revenue .

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9 unchanged sentences

Foreign currency translation and other

( 24 ) 24 — —

Balance as of October 31, 2025 (1)

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As of October 31, 2025 As of October 31, 2024

Gross Accumulated Amortization Net Gross Accumulated Amortization Net

Accumulated Amortization (1)

Net Gross (1)

Accumulated Amortization (1)

Customer contracts, customer lists and distribution agreements $ 726 $ 428 $ 298 $ 783 $ 372 $ 411

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Total intangible assets $ 2,570 $ 1,558 $ 1,012 $ 2,667 $ 1,348 $ 1,319

As of October 31, 2024, estimated future amortization expense related to intangible assets was as follows:

(1) Excludes the original cost and accumulated depreciation of fully amortized intangibles.

During fiscal year 2025, the Company incurred impairment charges of $ 65 million related to acquired customer contracts, customer lists and distribution agreements within the Printing segment and $ 27 million of technology and patents within the Corporate Investment segment which were recorded within Amortization of intangible assets in the Consolidated Statement of Earnings.

As of October 31, 2025, estimated future amortization expense related to acquired intangible assets was as follows:

Fiscal year In millions

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Cash Equivalents

Corporate debt $ — $ 1,012 $ — $ 1,012 $ — $ 589 $ — $ 589

Government debt (1)

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Foreign currency contracts — 182 — 182 — 225 — 225

Other derivatives — 1 — 1 — — — —

Total assets $ 1,887 $ 308 $ — $ 2,195 $ 1,386 $ 362 $ — $ 1,748

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Total liabilities $ — $ 244 $ — $ 244 $ — $ 182 $ — $ 182

(1) Money market funds invested in government debt and traded in active markets are included in Level 1.

Government debt includes instruments such as U.S.

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government bonds.

Money market funds invested in government debt and traded in active markets are included in Level 1.

(2) As of October 31, 2024, $ 78 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan.

(2) As of October 31, 2025 and 2024, $ 63 million and $ 78 million, respectively, of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan.

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2 unchanged sentences

Cash Equivalents and Investments:

HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents.

HP holds money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents.

HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs.

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Cash Equivalents:

Corporate debt $ 1,012 $ — $ — $ 1,012 $ 589 $ — $ — $ 589

Government debt (1)

1,878 — — 1,878 1,332 — — $ 1,332

Total cash equivalents 1,878 — — 1,878 1,332 — — 1,332

5 unchanged sentences

Total cash equivalents and available-for-sale investments $ 1,985 $ 27 $ — $ 2,012 $ 1,450 $ 69 $ — $ 1,519

(1) As of October 31, 2024, $ 78 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan.

(1) Money market funds invested in government debt and traded in active markets are included in Level 1.

Government debt includes instruments such as U.S.

treasury notes, U.S.

agency securities and non-U.S.

government bonds

All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents.

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HP reports the changes in the fair value of the derivative instrument in the same financial statement line item as changes in the fair value of the hedged item.

During fiscal 2024, HP entered into a series of forward starting swap agreements with notional amounts totaling $ 500 million to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of long-term debt.

These agreements were designated as cash flow hedges.

Other Derivatives

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For foreign currency options, forward contracts and forward starting swaps designated as cash flow hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates.

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Notes to Consolidated Financial Statements (Continued)

During fiscal year 2025 and 2024, no portion of the hedging instruments’ gain or loss was excluded from the assessment of effectiveness for fair value and cash flow hedges.

Fair Value of Derivative Instruments in the Consolidated Balance Sheets

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Notes to Consolidated Financial Statements (Continued)

The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets were as follows:

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(1) Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2) Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

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Notes to Consolidated Financial Statements (Continued)

(2) Represents the collateral posted by HP including any excess or re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Effect of Derivative Instruments in the Consolidated Statements of Earnings

The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship were as follows:

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Notes to Consolidated Financial Statements (Continued)

Derivative Instrument Hedged Item Location For the fiscal years ended October 31 Gain/(loss) recognized in earnings on derivative instruments Gain/(loss) recognized in earnings on hedged item

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$ ( 98 ) $ 274 $ 84

As of October 31, 2024, HP expects to reclassify an estimated accumulated other comprehensive gain of approximately $ 21 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions.

As of October 31, 2025, HP expects to reclassify an estimated accumulated other comprehensive loss of approximately $ 41 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions.

The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive loss based on the change of market rate, and therefore could have different impact on earnings.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Statements of Earnings was as follows:

13 unchanged sentences

Current portion of long-term debt $ 788 3.2 % $ 1,358 5.0 %

Notes payable to banks, lines of credit and other 48 — % 51 — %

Notes payable to banks and other

57 — % 48 — %

Total notes payable and short-term borrowings

3 unchanged sentences

Dollar Global Notes (1)

$ 1,200 issued at discount to par at a price of 99.863 % at 6.0 %, due September 2041

Maturity Date

Stated Interest Rate

$ 1,150 issued June 2020

99.769 % 2.20 % $ — $ 1,150

$ 1,150 issued at discount to par at a price of 99.769 % at 2.2 %, due June 2025

$ 1,000 issued at discount to par at a price of 99.718 % at 3.00 %, due June 2027

$ 850 issued at discount to par at a price of 99.790 % at 3.4 %, due June 2030

$ 1,000 issued at discount to par at a price of 99.808 % at 1.45 %, due June 2026

$ 1,000 issued at discount to par at a price of 99.573 % at 2.65 %, due June 2031 (2)

$ 1,000 issued at discount to par at a price of 99.767 % at 4.00 %, due April 2029

$ 1,000 issued at discount to par at a price of 99.966 % at 4.20 %, due April 2032

$ 900 issued at discount to par at a price of 99.841 % at 4.75 %, due January 2028

$ 1,100 issued at discount to par at a price of 99.725 % at 5.50 %, due January 2033

$ 500 issued at par at a price of 100 % at 4.75 %, due March 2029

$ 1,000 issued June 2021

99.808 % 1.45 % 522 521

$ 1,000 issued June 2020

99.718 % 3.00 % 999 999

$ 900 issued June 2022

99.841 % 4.75 % 899 899

$ 1,000 issued March 2022

99.767 % 4.00 % 999 999

$ 500 issued April 2025

99.732 % 5.40 % 499 —

$ 850 issued June 2020

99.790 % 3.40 % 503 503

$ 1,000 issued June 2021

99.573 % 2.65 % 998 997

$ 1,000 issued March 2022

99.966 % 4.20 % 676 676

$ 1,100 issued June 2022

99.725 % 5.50 % 1,098 1,098

$ 500 issued April 2025

99.778 % 6.10 % 499 —

$ 1,200 issued September 2011

September 2041

99.863 % 6.00 % 1,199 1,199

$ 500 issued August 2022 (2)

100.000 % 4.75 % — 3

Other borrowings at 1.47 %- 7.07 %, due in fiscal years 2026-2032

6 unchanged sentences

Dollar Global Notes are senior unsecured debt.

(2) HP allocated an amount equal to the net proceeds to finance or refinance, in whole or in part, environmentally and socially responsible eligible projects in the following eight areas:

renewable energy;

green buildings;

energy efficiency;

clean transportation;

pollution prevention and control;

eco-efficient and/or circular economy products, production technologies and processes;

environmentally sustainable management of living natural resources and land use;

and socioeconomic advancement and empowerment.

As disclosed in Note 10, “Financial Instruments”, HP uses interest rate swaps to mitigate some of the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates.

Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.

(2) During the quarter ended October 31, 2025, HP redeemed and settled $ 3.4 million of the pending March 2029 Notes related to the August 2022 Poly acquisition.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

In April 2025, HP completed its offering of $ 1.0 billion aggregate principal amount of senior unsecured notes, consisting of $ 500 million of 5.40 % notes due April 2030 and $ 500 million of 6.10 % notes due April 2035.

HP incurred issuance costs of $ 9 million.

HP is required to pay interest semi-annually on each series of the notes on April 25 and October 25, beginning October 25, 2025.

In April 2025, a series of forward starting swaps and a treasury rate lock totaling $ 825 million notional amount were settled to mitigate the treasury rates volatility associated with this debt issuance.

HP used the net proceeds from the offering of the notes for general corporate purposes, including, together with cash on hand, the repayment of the Global Notes due June 2025 upon maturity.

Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.

As of October 31, 2025, aggregate future maturities of debt at face value (excluding unamortized debt issuance cost of $ 46 million, discounts on debt issuance of $ 10 million and fair value adjustment related to hedged debt of $ 1 million), including other borrowings were as follows:

7 unchanged sentences

The principal amount outstanding under this program and certain short-term borrowings at any time cannot exceed a $ 6.0 billion authorization by HP’s Board of Directors.

Credit Facilities

As of October 31, 2024, HP maintained a $ 5.0 billion 5-year sustainability-linked senior unsecured committed revolving credit facility (the “New Revolving Facility”), which HP entered into on August 1, 2024.

Commitments under the New Revolving Facility will be available until August 1, 2029.

Commitment fees, interest rates and other terms of borrowing under the New Revolving Facility vary based on HP’s external credit ratings and certain sustainability metrics.

Funds borrowed under the New Revolving Facility may be used for general corporate purposes.

As of October 31, 2023, HP had maintained a $ 5.0 billion sustainability-linked senior unsecured committed revolving credit facility for general corporate purposes.

As of October 31, 2025 and October 31, 2024, no commercial paper was outstanding under the program.

Credit Facility

As of October 31, 2024 and 2025, HP maintained a $ 5.0 billion 5-year sustainability-linked senior unsecured committed revolving credit facility, which HP entered into on August 1, 2024.

Commitments under the revolving credit facility will be available until August 1, 2029.

Commitment fees, interest rates and other terms of borrowing under the revolving credit facility vary based on HP’s external credit ratings and certain sustainability metrics.

Funds borrowed under the revolving credit facility may be used for general corporate purposes.

I n March 2024, the $ 1.0 billion senior unsecured committed 364 -day revolving credit facility matured in accordance with its terms.

Additionally, commitments under the previous $ 5.0 billion sustainability-linked senior unsecured committed revolving credit facility were terminated concurrently with the execution of the New Revolving Facility.

As of October 31, 2025, HP was in compliance with the covenants in the credit agreement governing the revolving credit facility.

12 unchanged sentences

As of October 31, 2025, HP had approximately $ 8.4 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Taxes related to Other Comprehensive (Loss) Income

For the fiscal years ended October 31

2024 2023 2022

Tax effect on change in unrealized components of available-for-sale debt securities:

Tax (provision) benefit on unrealized gains (losses) arising during the period

$ ( 1 ) $ ( 1 ) $ 2

Tax effect on change in unrealized components of cash flow hedges:

Tax (provision) benefit on unrealized gains (losses) arising during the period

( 13 ) 75 ( 328 )

Tax provision on (gains) losses reclassified into earnings

40 93 ( 133 )

Tax effect on change in unrealized components of defined benefit plans:

Tax benefit on unrealized gains (losses) arising during the period

Tax benefit (provision) on amortization of actuarial loss and prior service benefit

Tax provision on curtailments, settlements and other

( 1 ) — ( 1 )

Tax effect on change in cumulative translation adjustment — — 3

Tax benefit (provision) on other comprehensive income (loss)

$ 46 $ 119 $ ( 109 )

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes

Changes and reclassifications related to Accumulated Other Comprehensive Loss, net of taxes

For the years ended October 31

2025 2024 2023

Other comprehensive (loss) income, net of taxes:

Change in unrealized components of available-for-sale debt securities:

Unrealized gains (losses) arising during the period

$ 7 $ 1 $ ( 9 )

Change in unrealized components of cash flow hedges:

Unrealized gains (losses) arising during the period

38 ( 352 ) 1,213

Gains reclassified into earnings

Other comprehensive loss, net of taxes:

Unrealized components of available-for-sale debt securities

Balance at the beginning of period $ 14 $ 7 $ 6

Unrealized gains arising during the period 16 8 2

Tax effects on change in unrealized components of available-for-sale securities ( 1 ) ( 1 ) ( 1 )

Unrealized components of available-for-sale debt securities, net of taxes 15 7 1

Balance at the end of period $ 29 $ 14 $ 7

Unrealized components of cash flow hedges

Balance at the beginning of period $ 47 $ 230 $ 648

Unrealized (losses) gains arising during the period

( 211 ) 51 ( 427 )

Losses (gains) reclassified into earnings

98 ( 274 ) ( 84 )

Change in unrealized components of defined benefit plans:

Unrealized losses arising during the period

Tax effects on change in unrealized components of cash flow hedges 18 40 93

Unrealized components of cash flow hedges, net of taxes ( 95 ) ( 183 ) ( 418 )

Balance at the end of period $ ( 48 ) $ 47 $ 230

Unrealized components of defined benefit plans

Balance at the beginning of period $ ( 496 ) $ ( 437 ) $ ( 323 )

Unrealized gains (losses) arising during the period

30 ( 76 ) ( 141 )

1 unchanged sentence

Curtailments, settlements and other 6 2 —

( 59 ) ( 114 ) ( 15 )

Tax effects on change in unrealized components of defined benefit plans ( 11 ) 7 27

Unrealized components of defined benefit plans, net of taxes 46 ( 59 ) ( 114 )

Balance at the end of period $ ( 450 ) $ ( 496 ) $ ( 437 )

Cumulative translation adjustment

Balance at the beginning of period $ 1 $ ( 23 ) $ ( 46 )

Change in cumulative translation adjustment 12 24 23

Other comprehensive (loss) income, net of taxes

$ ( 211 ) $ ( 508 ) $ 530

(1) These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans” .

The components of Accumulated other comprehensive (loss) income, net of taxes as of October 31, 2024 and changes during fiscal year 2024 were as follows:

Net unrealized gains on available-for-sale securities Net unrealized gains (losses) on cash flow hedges Unrealized components of defined benefit plans Change in cumulative translation adjustment Accumulated other comprehensive loss

Balance at beginning of period $ 7 $ 230 $ ( 437 ) $ ( 23 ) $ ( 223 )

Other comprehensive gains (losses) before reclassifications

7 38 ( 68 ) 24 1

Reclassifications of (losses) gains into earnings

Tax effect on change in cumulative translation adjustment ( 1 ) — —

Cumulative translation adjustment, net of taxes 11 24 23

Balance at the end of period $ 12 $ 1 $ ( 23 )

Other comprehensive loss

$ ( 23 ) $ ( 211 ) $ ( 508 )

Reclassifications of curtailments, settlements and other into earnings — — 1 — 1

Balance at end of period $ 14 $ 47 $ ( 496 ) $ 1 $ ( 434 )

Accumulated other comprehensive loss $ ( 457 ) $ ( 434 ) $ ( 223 )

AND SUBSIDIARIES

17 unchanged sentences

The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost.

The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.

The assumed proceeds of a restricted stock unit represent average unrecognized compensation cost.

AND SUBSIDIARIES

32 unchanged sentences

On January 20, 2021, the Customs Tribunal held a virtual hearing during which the judge allowed HP’s application for a physical hearing on the merits as soon as practicable, which will be scheduled when physical hearings resume at court.

Pursuant to the separation and distribution agreement, Hewlett Packard Enterprise has agreed to indemnify HP in part, base d on the extent to which any liability arises from the products and spare parts of Hewlett Packard Enterprise’s businesses.

In unrelated, third-party proceedings, the Supreme Court of India has resolved certain jurisdictional questions to the authority of the Directorate of Revenue Intelligence, issues which HP also raised in its appeal to the Customs Tribunal.

In late 2024, those jurisdictional questions were resolved.

Between late April and June 18, 2025, the Customs Tribunal held three weeks of hearings on the appeals.

The matter is presently pending a decision.

If the decision is adverse, HP should be entitled to appeal on the merits to the Supreme Court of India, although HP may be required to make additional deposits.

Pursuant to the

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Philips Patent Litigation .

separation and distribution agreement, Hewlett Packard Enterprise has agreed to indemnify HP in part, base d on the extent to which any liability arises from the products and spare parts of Hewlett Packard Enterprise’s businesses.

Media Content Protection LLC Patent Litigation (formerly Philips Patent Litigation) .

In September 2020, Koninklijke Philips N.V.

8 unchanged sentences

On July 1, 2024, the district court denied the motion without prejudice to renew.

Philips conveyed the patents asserted in the district court action to Media Content Protection LLC (“MCP”), and MCP was substituted as plaintiff in place of Philips.

As of November 25, 2025, the district court has ruled that all patents asserted against HP are invalid under 35 U.S.C.

§ 101, subject to appeal.

York County on behalf of the County of York Retirement Fund v.

12 unchanged sentences

On August 8, 2024, the Court of Appeals for the Ninth Circuit granted HP’s petition for permission to appeal.

On October 28, 2024, HP filed its appeal.

On October 28, 2024, HP filed its appeal, which is awaiting appellate court oral argument that has not yet been scheduled.

On July 28, 2025, the parties executed a binding term sheet containing the material terms of a proposed settlement.

On August 19, 2025, the parties filed a stipulation of settlement and motion for preliminary approval of settlement in the district court.

On September 22, 2025, the district court entered an order preliminarily approving the settlement.

On May 17, 2021, stockholder Scott Franklin filed a derivative complaint against certain current and former officers and directors in federal court in the District of Delaware.

14 unchanged sentences

Certain of these proceedings in the United States, Italy, the Netherlands, Israel, Australia and New Zealand have been resolved, have concluded, or have concluded subject only to HP’s pending appeal.

Civil litigation filed by Digital Revolution B.V.

(trading as 123Inkt) against HP Nederlands B.V., et al.

(Netherlands) in March 2020, including its competition claim, remains pending.

Both parties appealed, and the court of appeal issued a judgment on November 19, 2024, rejecting competition claims against HP and providing that use of Dynamic Security by HP is not unlawful.

In addition, two putative class actions have been filed against HP in federal court in California, in December 2020, April 2022, and one in federal court in Illinois, in January 2024, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers, in HP Inkjet printers, and in both, respectively.

Plaintiffs in these cases seek compensatory damages, restitution, injunctive relief against alleged unfair and anticompetitive business practices, and other relief.

In the April 2022 case, plaintiffs have filed a stipulation on October 30, 2024 to have the case dismissed with prejudice for their individual claims and without prejudice for the class claims.

In the December 2020 case, the parties have finalized a settlement agreement, which plaintiffs submitted to the court on October 31, 2024 along with a motion seeking preliminary approval.

The January 2024 case is in its early stages.

Digital Revolution B.V.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

123Inkt) filed civil litigation, including competition claims, against HP Nederlands B.V., et al.

(Netherlands) in March 2020, HP substantially prevailed before the trial court, and both parties appealed.

On November 19, 2024, the court of appeal issued a decision rejecting competition claims against HP and providing that use of Dynamic Security by HP is not unlawful.

On February 18, 2025, Digital Revolution filed a cassation appeal against the decision before the Dutch Supreme Court.

In addition, a putative class action was filed against HP in federal court in Illinois in January 2024, arising out of the use of Dynamic Security firmware updates in HP printers.

Plaintiffs seek compensatory damages, restitution, injunctive relief against alleged unfair and anticompetitive business practices, and other relief.

On September 30, 2025, the court dismissed the complaint in its entirety but gave plaintiffs leave to file an amended complaint.

The case is in its early stages.

Autonomy-Related Legal Proceedings.

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In May 2022, the court issued its liability judgment, finding that the Claimants had succeeded on substantially all claims and that Messrs.

Lynch and Hussein engaged in fraud, and dismissing a counterclaim filed by Mr.

Lynch and Hussain engaged in fraud, and dismissing a counterclaim filed by Mr.

The court deferred the issue of damages to further proceedings, but indicated that damages awarded may be substantially less than was claimed.

In February 2024, the court held a two-week trial on damages, the Claimants sought recovery for $ 4 billion in losses, and the court took the issue under advisement.

Litigation is unpredictable, and there can be no assurance of a recovery of damages or as to how any award of damages will compare with the amount claimed.

The amount ultimately awarded, if any, would be recorded in the period received.

No adjustment has been recorded in the financial statements in relation to this potential award.

In May 2025, Claimants reached an agreement with Mr.

Hussain to resolve claims against him.

On July 22, 2025, the court issued its ruling on the quantum of damages, finding that the Lynch estate owed approximately 740 million pounds.

The court set a hearing for the week of November 17, 2025, to address additional matters, including attorneys’ fees, pre-judgment interest, and the relevant date to use for the exchange rate to convert the recovery from pounds to dollars.

The damages award is also subject to a set-off for prior settlements.

Litigation is unpredictable, and there can be no assurance of a recovery.

Any amount ultimately recovered would be recorded in the period received.

No adjustment has been recorded in the financial statements in relation to this potential recovery.

Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise will share equally in any recovery.

Nokia Patent Litigation .

On October 31, 2023, Nokia filed a complaint for patent infringement against HP in federal court for the District of Delaware asserting ten patents and filed two companion complaints with the U.S.

International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act against HP, asserting seven of the ten patents asserted in the federal court case.

The complaints allege that HP products that are compliant with certain video coding technology standards, including Advanced Video Coding (H.264) or High Efficiency Video Coding (H.265) standards, infringe Nokia’s patents.

In November 2023, the ITC instituted investigations on Nokia’s complaints.

On December 11, 2023, HP filed counterclaims against Nokia in the Delaware action, including claims that Nokia violated its commitments to license standard-essential patents on fair, reasonable, and non-discriminatory (“FRAND”) terms, and seeking a court determination of the proper FRAND rate.

Nokia’s patent litigation against HP also includes a lawsuit filed in November 2023 against HP and six of its subsidiaries in the European Unified Patent Court (“UPC”) in Germany, 2 lawsuits filed in November 2023 but served in January 2024 against HP and its German subsidiary in state court in Munich, Germany, and a lawsuit filed on December 1, 2023, against a subsidiary, HP Brasil Indústria e Comércio de Equipamentos Eletrônicos Ltda.

(“HP Brazil”), in the state court in Rio de Janeiro in Brazil.

In Brazil, Nokia alleged that HP’s products contain “skip mode” technology compatible with H.264 video standards that infringes one of Nokia’s Brazilian patents.

On December 4, 2023, before HP had received service of the lawsuit, the court granted Nokia an ex parte preliminary injunction against HP Brazil’s commercialization of such products in Brazil.

HP appealed the injunction and asked the appellate court to suspend its enforcement.

On August 14, 2024, the Brazilian appellate court denied HP’s interlocutory appeal of the preliminary injunction, leaving it unchanged because HP allegedly faces no immediate harm.

On January 31, 2024, HP Brazil filed its defense and separately filed a nullity action to invalidate the patent.

From July 24-31, 2024, the ITC held the hearing in the first investigation.

In the second ITC investigation, the hearing was held September 9-13, 2024.

In October, Nokia and HP reached agreement to resolve all patent litigation between the parties, and all pending proceedings are in the process of being dismissed.

R2 Semiconductor Patent Litigation.

In November 2022, R2 Semiconductor, Inc.

(“R2”) filed a lawsuit in the Dusseldorf Regional Court in Germany against Intel Deutschland GmbH, HP Deutschland GmbH and certain other Intel customers.

R2 asserts one European patent is infringed by HP’s products that contain certain Intel processors.

R2 seeks an injunction prohibiting the sale of the alleged infringing products.

Intel has agreed to defend and indemnify HP and its affiliates against certain losses incurred by HP in connection with the alleged infringement.

The Dusseldorf Regional Court conducted a trial on December 7, 2023 and issued an adverse judgment on February 7, 2024.

The Court’s judgment imposes an injunction prohibiting sales of the accused products in Germany, an order to stop all other infringing actions, and an order to issue a communication to commercial customers recalling the relevant products sold since March 5, 2020, which could take effect upon notice of R2’s payment of the required sureties and remain in place unless stayed or overturned on appeal or the parties reach an agreement.

On February 8, 2024, HP filed an appeal and request for a stay of the judgment pending appeal.

On April 3, 2024, R2 filed a lawsuit in France in the first instance court in Paris (Tribunal judiciare de Paris) against Intel Corporation, Intel Corporation SAS, Intel Deutschland GmbH, HP France SAS and certain other Intel customers.

R2 asserts the same European patent is infringed.

In August 2024, Intel finalized agreements with R2 and related parties resolving all litigation.

All pending litigation against HP has been dismissed.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Litigation with Access Advance Patent Pool regarding video codecs.

Access Advance LLC (“Access Advance”) is an independent licensing administrator formed to license allegedly essential patents for standards-based video codecs, which it licenses through various licensing pools.

In late 2023, three members of Access Advance’s HEVC Advance patent pool, Dolby, Mitsubishi Electric (“Mitsubishi”) and Konikijke Philips N.V.

(“Philips”), each filed patent infringement lawsuits against HP and various affiliates in Germany and Europe.

The complaints alleged that HP products that are compliant with the High Efficiency Video Coding (H.265) standard infringe the pool members' respective patents, sought an injunction, and alleged that HP has failed to act as a willing licensee of HEVC essential patents based on HP's negotiations with Access Advance.

In July 2024, HP filed a countersuit against Access Advance, Mitsubishi, Philips, and Dolby in Massachusetts state court alleging that they breached their obligations to license their patents on reasonable and nondiscriminatory terms and asked the court to order the defendants to offer a license to their patents on such terms.

In October 2024, Access Advance and HP reached agreement to resolve all pending litigation, which is in the process of being dismissed.

An immaterial issue with Access Advance will be decided by a third party.

Litigation with Wilus Institute of Standards and Technology, Inc.

and Sisvel International S.A.

Since September 13, 2024, Wilus Institute of Standards and Technology, Inc.

(“Wilus”) has filed three patent infringement lawsuits against HP in the Eastern District of Texas seeking monetary damages, injunctions and other relief.

The complaints allege that HP products, that are compliant with the Wi-Fi 6 (801.11.ax) standard, infringe patents owned by Wilus.

Wilus is a member of the Wi-Fi 6 patent pool administered by Sisvel International S.A.

(“Sisvel”), and the patents at issue in the lawsuits are in the Sisvel Wi-Fi 6 patent pool.

In December 2024, HP answered the complaints and filed counterclaims against Wilus and Sisvel, alleging that Wilus and Sisvel violated their obligations to license standard-essential patents on fair, reasonable and non-discriminatory (“FRAND”) terms, and seeking a court determination of the proper FRAND rate.

As of August 8, 2025, another Sisvel Wi-Fi 6 pool member Koniklijke Philips N.V.

and its affiliate Philips GmbH (together, “Philips”) filed three lawsuits against HP Inc., HP Deutschland GmbH and HP International SARL, in the State Court in Munich, Germany asserting pool patents related to Wi-Fi 6 standards.

Philips seeks an injunction, reporting, damages and product recall in two of its claims and hearings are scheduled on May 21, 2026 and June 11, 2026.

The third claim relates to an expired patent for which Philips seeks damages, and a hearing is scheduled on July 30, 2026.

As of August 26, 2025, another pool member, Huawei Technologies Co.

Ltd (“Huawei”), filed two lawsuits against HP Inc.

and HP Deutschland GmbH in the State Court in Munich, Germany, asserting pool patents related to Wi-Fi 6 standards.

Relief sought includes an injunction, reporting, damages, product recall and/or destruction of inventory, and a hearing has been set in one case for March 26, 2026.

In October, Sisvel and HP reached agreement to resolve all patent litigation with Sisvel and Sisvel Wi-Fi 6 pool members related to Wi-Fi 6, and all pending proceedings are in the process of being dismissed.

Environmental

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HP is also conducting environmental investigations or remediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with environmental agencies.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Guarantees, Indemnifications and Warranties

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however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

HP’s aggregate product warranty liabilities and changes were as follows:

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Adjustments related to pre-existing warranties (including changes in estimates) ( 4 ) 30

Settlements made (in cash or in kind) ( 907 ) ( 876 )

Settlements made

( 764 ) ( 907 )

Balance at end of year $ 452 $ 550

Unconditional Purchase Obligations

As of October 31, 2024, HP had unconditional purchase obligations of $ 1.4 billion.

These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price and volume provisions and the approximate timing of the transaction.

HP’s unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price and volume provisions and the approximate timing of the transaction.

These unconditional purchase obligations are primarily related to inventory and service support.

Unconditional purchase obligations exclude agreements that are cancellable without penalty.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31, 2025, unconditional purchase obligations were as follows:

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Substantially all of HP’s leases are considered operating leases.

Finance leases, short-term leases and sub-lease income were not material as of October 31, 2024 and 2023 or for the fiscal years ended October 31, 2024 and 2023, respectively.

Finance leases, short-term leases and sub-lease income were not material as of October 31, 2025 and 2024 or for fiscal years ended October 31, 2025 and 2024, respectively.

Lease terms include options to extend or terminate the lease when it is reasonably certain that HP will exercise such options.

6 unchanged sentences

HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

HP has elected the practical expedient to combine lease and non-lease components as a single lease element for its real estate leases and certain outsourced warehousing contracts in calculating the ROU assets and lease liabilities.

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These costs are not included in the lease liability and are recognized in the period in which they are incurred.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The following table presents supplemental information relating to the cash flows arising from lease transactions.

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The following maturity analysis presents expected undiscounted cash outflows for operating leases on an annual basis for the next five years:

AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Fiscal year In millions

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data