HP Inc. Announces Fiscal 2024 Financial Outlook

At HP’s 2023 Securities Analyst Meeting (SAM), the company provided details on its strategy and opportunities for long-term growth, along with its financial outlook for fiscal 2024.

“HP is very well positioned to deliver long-term sustainable growth,” said Enrique Lores, president and CEO, HP Inc. “Our Future Ready plan is strengthening our core business, accelerating our expansion in services, building new operational capabilities, and improving our structural costs. Most importantly, we are innovating to meet the changing needs of our customers and we see attractive opportunities to drive profitable growth across our business.”

For fiscal 2024, the company estimates GAAP diluted net EPS to be in the range of $2.75 to $3.15 and estimates non-GAAP diluted net EPS to be in the range of $3.25 to $3.65. Fiscal 2024 non-GAAP diluted net EPS estimates exclude $0.50 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items. 

The company also expects a $200 million increase in its Future Ready plan annualized gross run rate structural cost savings, to $1.6 billion by the end of fiscal 2025, with no change to estimated restructuring and other charges of approximately $1.0 billion.

Based on the current environment, HP anticipates generating free cash flow of $3.1 to $3.6 billion for fiscal 2024.

For fiscal 2024, the company indicated that it expects to return approximately 100% of free cash flow through dividends and share repurchases. The HP Board of Directors has approved an increase to the planned annual dividend amount to $1.1024 per share, reflecting a 5% increase from the prior dividend. The balance is expected to be returned to shareholders through share repurchases.

“Our financial outlook reflects continued progress against our strategic priorities,” said Marie Myers, CFO, HP Inc. “We’re accelerating our three-year annualized gross structural cost savings target, and we’re confident in our plans to grow non-GAAP diluted net EPS and free cash flow in FY24 and beyond. Our disciplined financial plan and capital allocation strategy is designed to maximize growth and value creation.”