...June 14, 2024 SAN FRANCISCO (S&P Global Ratings) June 14, 2024--S&P Global Ratings said today that it expects gradual recovery in HP Inc.'s PC business to support its credit profile. HP's revenues fell 1% year over year during the second quarter of fiscal 2024 (ended April 30), with early signs of a modest PC recovery. Its Personal Systems (PS) segment revenue increased year over year for the first time in two years, with commercial sales in particular at 6%. Consumer demand remained weak, with revenues declining 3%. Print revenues fell 8% year over year due to competitive pricing and soft demand from China and Europe. Despite the weak top line, HP's profit margin continues to hold up. PS was near 6% during the quarter, and we expect it to remain in the 5%-7% range as HP continues to execute its Future Ready Savings plan. The company's printing margin has been strong at about 19%, and we expect it will remain near this through fiscal 2024. HP generated $462 million in free cash flow for...
