Second quarter GAAP diluted net earnings per share (EPS) was $0.53, above the previously provided outlook of $0.46 to $0.50 per share.
“The strength of HP’s diversified portfolio, go-to-market capabilities and balance sheet position us well to navigate macroeconomic challenges and drive long-term value creation,” said Enrique Lores, HP’s president and CEO. “We are seeing strong demand from our customers in notebook PC orders and Instant Ink subscriptions, as well as growing interest in 3D printing and digital manufacturing in key verticals such as healthcare. The current environment will be a catalyst for transformation and innovation across HP.”
HP’s net cash used in operating activities in the second quarter of fiscal 2020 was $(0.5) billion. HP generated $(0.6) billion of free cash flow in the second quarter. Free cash flow includes net cash used in operating activities of $(0.5) billion adjusted for net investment in leases of $51 million and net investment in property, plant and equipment of $146 million.
Personal Systems net revenue was down 7% year over year (down 6% in constant currency) with a 6.6% operating margin. Commercial net revenue decreased 7% and Consumer net revenue decreased 7%. Total units were down 5% with Notebooks units up 5% and Desktops units down 23%.
Printing net revenue was down 19% year over year (down 18% in constant currency) with a 13.2% operating margin. Total hardware units were down 23% with Commercial hardware units down 25% and Consumer hardware units down 22%. Supplies net revenue was down 15% (down 15% in constant currency).