HP Inc.

In PC markets, HP maintains solid no. 2 global share and has improved its position (about 23.6%) over the past few years despite intense competition from Lenovo and Dell. While we expect mature PC market conditions to persist (flat to slightly down in 2019), HP has been able to drive revenue growth and expand profits thanks to premium product introductions and cost management. S&P Global Ratings' stable outlook on HP reflects its expectation that the company will maintain a leadership position in the global printing and personal computing markets, and will continue generating substantial free cash flow of more than $3.5 billion annually over the next two fiscal years. These factors should continue to support a conservative credit profile with

...While we acknowledge mature printer and PC market conditions, the company benefits from a strong market position in core PC and printer markets. HP Inc. maintains strong global market positions in its core PC and printer markets, but also invests in new printer strategies like A3 printers through its acquisition of Samsung's printer business and 3D and digital printing to advance its market leadership over the long term. We believe HP has a strong position in the A4 printer market, while smaller than A3, has better growth prospects. While we believe the company may face challenges ramping new printer technologies and experience competitive threats from ongoing document digitalization and alternative printer supplies, HP's substantial cash flow generation and more conservative financial policy provide greater operational flexibility than competitors in this area. In PC markets, HP maintains solid no. 2 global share and has improved its position (about 23.6%) over the past few years despite...

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