Name: HP Inc. (NYSE:HPQ) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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HP Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jul 31, 2019	Apr 30, 2019	Jan 31, 2019	Oct 31, 2018	Jul 31, 2018	Apr 30, 2018	Jan 31, 2018	Oct 31, 2017	Jul 31, 2017	Apr 30, 2017	Jan 31, 2017	Oct 31, 2016	Jul 31, 2016	Apr 30, 2016	Jan 31, 2016	Oct 31, 2015	Jul 31, 2015	Apr 30, 2015	Jan 31, 2015	Oct 31, 2014	Jul 31, 2014	Apr 30, 2014	Jan 31, 2014	Oct 31, 2013	Jul 31, 2013	Apr 30, 2013	Jan 31, 2013
Net revenue	14,603)	14,036)	14,710)	15,366)	14,586)	14,003)	14,517)	13,927)	13,060)	12,385)	12,684)	12,512)	11,892)	11,588)	12,246)	25,714)	25,349)	25,453)	26,839)	28,406)	27,585)	27,309)	28,154)	29,131)	27,226)	27,582)	28,359)
Cost of revenue	(11,698)	(11,307)	(12,098)	(12,669)	(11,898)	(11,301)	(11,935)	(11,407)	(10,633)	(10,002)	(10,436)	(10,221)	(9,720)	(9,338)	(9,961)	(19,363)	(19,317)	(19,345)	(20,571)	(21,425)	(20,974)	(20,704)	(21,736)	(22,437)	(20,859)	(21,055)	(22,029)
Gross profit	2,905)	2,729)	2,612)	2,697)	2,688)	2,702)	2,582)	2,520)	2,427)	2,383)	2,248)	2,291)	2,172)	2,250)	2,285)	6,351)	6,032)	6,108)	6,268)	6,981)	6,611)	6,605)	6,418)	6,694)	6,367)	6,527)	6,330)
Research and development	(413)	(353)	(344)	(354)	(347)	(356)	(347)	(291)	(289)	(314)	(296)	(318)	(298)	(301)	(292)	(934)	(893)	(850)	(825)	(876)	(887)	(873)	(811)	(729)	(797)	(815)	(794)
Selling, general and administrative	(1,376)	(1,339)	(1,248)	(1,210)	(1,227)	(1,260)	(1,169)	(1,177)	(1,097)	(1,090)	(1,017)	(1,254)	(719)	(1,002)	(1,037)	(3,143)	(3,076)	(3,063)	(3,071)	(3,364)	(3,388)	(3,391)	(3,210)	(3,351)	(3,274)	(3,342)	(3,300)
Restructuring and other charges	(17)	(69)	(55)	(40)	(4)	(57)	(31)	(113)	(46)	(140)	(63)	(49)	(36)	(100)	(20)	(591)	(25)	(255)	(146)	(604)	(649)	(252)	(114)	(371)	(81)	(408)	(130)
Acquisition-related (charges) credits	9)	(11)	(10)	(26)	(10)	(45)	(42)	(49)	(40)	(20)	(16)	(7)	—)	—)	—)	(20)	(47)	(19)	(4)	(3)	(2)	(3)	(3)	(3)	(4)	(11)	(4)
Amortization of intangible assets	(29)	(29)	(29)	(20)	(20)	(20)	(20)	—)	—)	(1)	—)	—)	(2)	(6)	(8)	(246)	(242)	(221)	(222)	(226)	(227)	(264)	(283)	(317)	(356)	(350)	(350)
Separation costs	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(509)	(401)	(269)	(80)	—)	—)	—)	—)	—)	—)	—)	—)
Impairment of data center assets	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(136)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Earnings from operations	1,079)	928)	926)	1,047)	1,080)	964)	973)	890)	955)	818)	856)	663)	1,117)	841)	928)	908)	1,212)	1,431)	1,920)	1,908)	1,458)	1,822)	1,997)	1,923)	1,855)	1,601)	1,752)
Interest and other, net	(831)	(45)	(26)	(40)	(62)	(881)	(68)	(42)	(56)	(64)	(81)	347)	(36)	(5)	(94)	(318)	(108)	(139)	(174)	(146)	(145)	(174)	(163)	(103)	(146)	(193)	(179)
Earnings from continuing operations before taxes	248)	883)	900)	1,007)	1,018)	83)	905)	848)	899)	754)	775)	1,010)	1,081)	836)	834)	590)	1,104)	1,292)	1,746)	1,762)	1,313)	1,648)	1,834)	1,820)	1,709)	1,408)	1,573)
(Provision for) benefit from taxes	931)	(101)	(97)	444)	(138)	975)	1,033)	(188)	(203)	(195)	(164)	(497)	(238)	(176)	(184)	733)	(250)	(281)	(380)	(432)	(328)	(375)	(409)	(406)	(319)	(331)	(341)
Net earnings from continuing operations	1,179)	782)	803)	1,451)	880)	1,058)	1,938)	660)	696)	559)	611)	513)	843)	660)	650)	1,323)	854)	1,011)	1,366)	1,330)	985)	1,273)	1,425)	1,414)	1,390)	1,077)	1,232)
Net loss from discontinued operations, net of taxes	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(21)	(60)	(31)	(58)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net earnings	1,179)	782)	803)	1,451)	880)	1,058)	1,938)	660)	696)	559)	611)	492)	783)	629)	592)	1,323)	854)	1,011)	1,366)	1,330)	985)	1,273)	1,425)	1,414)	1,390)	1,077)	1,232)

A significant structural shift in financial performance is evident starting in the first quarter of 2016, characterized by a substantial reduction in net revenue, operating expenses, and the overall scale of operations. Following this transition, the company shifted from a high-revenue, high-cost model to a leaner operational structure with more stabilized earnings from operations.

Revenue and Scale Transition: Net revenue experienced a sharp decline between October 31, 2015, and January 31, 2016, dropping from approximately 25.7 billion US dollars to 12.2 billion US dollars. Subsequent to this contraction, revenue remained relatively stable, fluctuating between 12.3 billion and 15.3 billion US dollars through July 31, 2019. A gradual recovery trend is observable from 2017 onwards, with quarterly revenues peaking at 15.3 billion US dollars in October 2018.
Operating Expense Management: A proportional reduction in operating expenditures coincided with the revenue decline in early 2016. Research and development spending decreased from a range of 800 million to 900 million US dollars per quarter to approximately 300 million US dollars. Similarly, selling, general, and administrative expenses fell from approximately 3.1 billion to 3.4 billion US dollars per quarter to a range of 1.0 billion to 1.3 billion US dollars. This suggests a strategic realignment of the cost structure to match the reduced revenue base.
Operational Profitability: Earnings from operations demonstrated surprising resilience despite the contraction in revenue. While pre-2016 operating earnings typically ranged between 1.4 billion and 2.0 billion US dollars, post-transition earnings stabilized between 663 million and 1.1 billion US dollars. The ability to maintain operating earnings near 1 billion US dollars on a significantly smaller revenue base indicates an improvement in operational efficiency and a reduction in the break-even point.
Net Earnings and Non-Operating Volatility: Net earnings exhibit high volatility, primarily driven by fluctuations in tax provisions and interest expenses rather than core operational performance. Significant anomalies are noted in the tax line, such as the substantial tax benefit of 1.03 billion US dollars in January 2018, which contributed to a peak net earnings figure of 1.9 billion US dollars for that period. Similarly, a large tax benefit in July 2019 contributed to net earnings of 1.1 billion US dollars, despite a lower earnings-before-tax figure of 248 million US dollars.
Gross Profit Trends: Gross profit margins shifted following the 2016 transition. Prior to the shift, gross profits were consistently above 6 billion US dollars per quarter. Post-transition, gross profits settled into a range of 2.1 billion to 2.9 billion US dollars. The trend from 2016 to 2019 shows a steady upward trajectory in gross profit, rising from 2.2 billion US dollars in early 2016 to 2.9 billion US dollars by July 2019, reflecting improved pricing power or cost of revenue management.

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HP Inc. (NYSE:HPQ)

Income StatementQuarterly Data

Income Statement
Quarterly Data