Second quarter GAAP diluted net EPS was $0.64, up from $0.33 in the prior-year period and above the previously provided outlook of $0.42 to $0.46. Second quarter non-GAAP diluted net EPS was $0.48, up from $0.40 in the prior-year period and within the previously provided outlook of $0.45 to $0.49.
“We delivered another quarter of double digit year over year revenue and profit growth, strong EPS and impressive free cash flow and performed well across segments and regions,” said Dion Weisler, president and CEO, HP Inc. “Our sharp focus on innovation, combined with operational excellence and driving profitable growth is paying off.”
HP’s dividend payment of $0.1393 per share in the second quarter resulted in cash usage of $0.2 billion. HP also utilized $0.8 billion of cash during the quarter to repurchase approximately 35.4 million shares of common stock in the open market. As a result, HP returned 110% of its free cash flow to shareholders in the second quarter of fiscal 2018. HP exited the quarter with $5.3 billion in gross cash, which includes cash and cash equivalents and short-term investments of $1.1 billion included in other current assets.
Personal Systems net revenue was up 14% year over year (up 11% in constant currency) with a 3.8% operating margin. Commercial net revenue increased 16% and Consumer net revenue increased 10%. Total units were up 7% with Notebooks units up 7% and Desktops units up 7%.
Printing net revenue was up 11% year over year (up 9% in constant currency) with a 16.0% operating margin. Total hardware units were up 13% with Commercial hardware units up 88% and Consumer hardware units up 4%. Supplies net revenue was up 8% (up 6% in constant currency).