HP Reports Fiscal 2015 First Quarter Results

Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a generally accepted accounting principles (GAAP) basis, HP provides revenue on a constant currency basis, as well as non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP's management uses these non-GAAP measures to evaluate its business, the substance behind HP's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP's management compensates for those limitations, and the substantive reasons why HP's management believes that these non-GAAP measures provide useful information to investors is included under "Use of non-GAAP financial measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted net earnings per share, cash and cash equivalents, cash flow from operations, capital expenditures, or total company debt prepared in accordance with GAAP.

Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, including the previously announced separation transaction and the future performances of the post-separation companies if the separation is completed, as well as the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy, including the planned separation transaction; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and the delivery of HP's services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of the separation transaction or restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of implementing the separation transaction and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2014, and HP's other filings with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2015. HP assumes no obligation and does not intend to update these forward-looking statements.

                                                                            
                  HEWLETT-PACKARD COMPANY AND SUBSIDIARIES                  
               CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS                
                                (Unaudited)                                 
                  (In millions, except per share amounts)                   
                                                                            
                                                                            
                                                Three months ended          
                                      ------------------------------------- 
                                      January 31,  October 31,  January 31, 
                                          2015         2014         2014    
                                      -----------  -----------  ----------- 
                                                                                   
Net  revenue                                                      $        26,839    $        28,406    $        28,154  
                                                                                                                                                        
Costs  and  expenses:                                                                                                                  
    Cost  of  sales                                                        20,571              21,425              21,736  
    Research  and  development                                        825                    876                    811  
    Selling,  general  and  administrative              3,071                3,364                3,210  
    Amortization  of  intangible  assets                      222                    226                    283  
    Restructuring  charges                                              146                    604                    114  
    Acquisition-related  charges                                      4                        3                        3  
    Separation  costs                                                          80                        -                        -  
                                                                            -----------    -----------    -----------  
        Total  costs  and  expenses                              24,919              26,498              26,157  
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Earnings  from  operations                                        1,920                1,908                1,997  
                                                                                                                                                        
Interest  and  other,  net                                            (174)                (146)                (163)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Earnings  before  taxes                                              1,746                1,762                1,834  
                                                                                                                                                        
Provision  for  taxes                                                    (380)                (432)                (409)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Net  earnings                                                    $          1,366    $          1,330    $          1,425  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                              $            0.75    $            0.71    $            0.75  
    Diluted                                                          $            0.73    $            0.70    $            0.74  
                                                                                                                                                        
Cash  dividends  declared  per  share          $            0.32    $                  -    $            0.29  
                                                                                                                                                        
                                                                                                                                                        
Weighted-average  shares  used  to                                                                                          
  compute  net  earnings  per  share:                                                                                        
    Basic                                                                          1,833                1,862                1,907  
    Diluted                                                                      1,861                1,896                1,935  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                ADJUSTMENTS  TO  GAAP  NET  EARNINGS,  EARNINGS  FROM  OPERATIONS,                  
                        OPERATING  MARGIN  AND  DILUTED  NET  EARNINGS  PER  SHARE                          
                                                                (Unaudited)                                                                  
                                    (In  millions,  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                                                                        
                                          Three                            Three                            Three                        
                                        months      Diluted      months      Diluted      months      Diluted    
                                        ended            net          ended            net          ended            net        
                                        January    earnings    October    earnings    January    earnings  
                                      31,  2015  per  share  31,  2014  per  share  31,  2014  per  share  
                                      --------  ---------  --------  ---------  --------  ---------  
                                                                                                                                                        
GAAP  net  earnings    $    1,366  $        0.73  $    1,330  $        0.70  $    1,425  $        0.74  
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible                                                                                                                              
      assets                              222            0.12            226            0.12            283            0.15  
    Restructuring                                                                                                                          
      charges                            146            0.08            604            0.32            114            0.06  
    Acquisition-                                                                                                                            
      related  charges                4                  -                3                  -                3                  -  
    Separation  costs              80            0.04                -                  -                -                  -  
    Adjustments  for                                                                                                                      
      taxes                              (113)        (0.05)        (149)        (0.08)          (83)        (0.05)
                                      --------  ---------  --------  ---------  --------  ---------  
Non-GAAP  net                                                                                                                                
  earnings                    $    1,705  $        0.92  $    2,014  $        1.06  $    1,742  $        0.90  
                                      ========  =========  ========  =========  ========  =========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  operations                $    1,920                      $    1,908                      $    1,997                      
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible                                                                                                                              
      assets                              222                                226                                283                      
    Restructuring                                                                                                                          
      charges                            146                                604                                114                      
    Acquisition-                                                                                                                            
      related  charges                4                                    3                                    3                      
    Separation  costs              80                                    -                                    -                      
                                      --------                      --------                      --------                      
Non-GAAP  earnings                                                                                                                      
  from  operations      $    2,372                      $    2,741                      $    2,397                      
                                      ========                      ========                      ========                      
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin                                      7%                                  7%                                  7%                    
Non-GAAP                                                                                                                                        
  adjustments                            2%                                  3%                                  2%                    
                                      --------                      --------                      --------                      
Non-GAAP  operating                                                                                                                    
  margin                                      9%                                10%                                  9%                    
                                      ========                      ========                      ========                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        CONSOLIDATED  CONDENSED  BALANCE  SHEETS                                      
                                                                (In  millions)                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                        As  of                      
                                                                                                  ---------------------------
                                                                                                    January  31,      October  31,  
                                                                                                            2015                    2014        
                                                                                                  -------------  -------------
                                                                                                    (Unaudited)                              
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                            $            12,919  $            15,133
    Accounts  receivable                                                                      12,295                13,832
    Financing  receivables                                                                    2,907                  2,946
    Inventory                                                                                            6,575                  6,415
    Other  current  assets                                                                    13,502                11,819
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  current  assets                                                                48,198                50,145
                                                                                                  -------------  -------------
                                                                                                                                                        
Property,  plant  and  equipment                                                      11,030                11,340
                                                                                                                                                        
Long-term  financing  receivables  and  other  assets                  8,619                  8,454
                                                                                                                                                        
Goodwill  and  intangible  assets                                                    33,014                33,267
                                                                                                  -------------  -------------
                                                                                                                                                        
Total  assets                                                                          $          100,861  $          103,206
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                $              3,509  $              3,486
    Accounts  payable                                                                            14,873                15,903
    Employee  compensation  and  benefits                                          2,900                  4,209
    Taxes  on  earnings                                                                            1,565                  1,017
    Deferred  revenue                                                                              6,241                  6,143
    Other  accrued  liabilities                                                          13,441                12,977
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  current  liabilities                                                      42,529                43,735
                                                                                                  -------------  -------------
                                                                                                                                                        
Long-term  debt                                                                                    15,552                16,039
                                                                                                                                                        
Other  liabilities                                                                              15,876                16,305
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    HP  stockholders'  equity                                                              26,507                26,731
    Non-controlling  interests                                                                397                      396
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  stockholders'  equity                                                    26,904                27,127
                                                                                                  -------------  -------------
                                                                                                                                                        
Total  liabilities  and  stockholders'  equity              $          100,861  $          103,206
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                          Three  months  ended  January  31,  
                                                                                          ------------------------------  
                                                                                                    2015                        2014            
                                                                                          --------------    --------------  
Cash  flows  from  operating  activities:                                                                              
    Net  earnings                                                              $                1,366    $                1,425  
    Adjustments  to  reconcile  net  earnings  to                                                                    
      net  cash  provided  by  operating                                                                                      
      activities:                                                                                                                            
        Depreciation  and  amortization                                          1,028                      1,117  
        Stock-based  compensation  expense                                        187                          170  
        Provision  for  doubtful  accounts  and                                                                          
          inventory                                                                                      62                            57  
        Restructuring  charges                                                              146                          114  
        Deferred  taxes  on  earnings                                                  (173)                            9  
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                            (109)                        (27)
        Other,  net                                                                                    138                          (33)
                                                                                                                                                        
        Changes  in  operating  assets  and                                                                                  
          liabilities  (net  of  acquisitions):                                                                          
            Accounts  receivable                                                          1,540                      2,391  
            Financing  receivables                                                          222                          296  
            Inventory                                                                                (224)                        (19)
            Accounts  payable                                                                  (852)                  (1,165)
            Taxes  on  earnings                                                                  293                          170  
            Restructuring                                                                        (483)                      (381)
            Other  assets  and  liabilities                                      (2,397)                  (1,134)
                                                                                          --------------    --------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                          744                      2,990  
                                                                                          --------------    --------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
        Investment  in  property,  plant  and                                                                              
          equipment                                                                                  (947)                      (997)
        Proceeds  from  sale  of  property,  plant                                                                      
          and  equipment                                                                            130                          450  
        Purchases  of  available-for-sale                                                                                  
          securities  and  other  investments                                      (50)                      (135)
        Maturities  and  sales  of  available-for-                                                                    
          sale  securities  and  other  investments                              30                          465  
        Payments  made  in  connection  with                                                                                
          business  acquisitions                                                              (1)                            -  
                                                                                          --------------    --------------  
                Net  cash  used  in  investing                                                                                    
                  activities                                                                        (838)                      (217)
                                                                                          --------------    --------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
        Short-term  borrowings  with  original                                                                          
          maturities  less  than  90  days,  net                                      77                              2  
        Issuance  of  debt                                                                        299                      2,005  
        Payment  of  debt                                                                        (911)                        (45)
        Issuance  of  common  stock  under  employee                                                                  
          stock  plans                                                                                181                            83  
        Repurchase  of  common  stock                                              (1,571)                      (565)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                              109                            27  
        Cash  dividends  paid                                                                (304)                      (278)
                                                                                          --------------    --------------  
                Net  cash  (used  in)  provided  by                                                                            
                  financing  activities                                                (2,120)                    1,229  
                                                                                          --------------    --------------  
                                                                                                                                                        
(Decrease)  increase  in  cash  and  cash                                                                                
  equivalents                                                                                  (2,214)                    4,002  
Cash  and  cash  equivalents  at  beginning  of                                                                      
  period                                                                                            15,133                    12,163  
                                                                                          --------------    --------------  
Cash  and  cash  equivalents  at  end  of  period      $              12,919    $              16,165  
                                                                                          ==============    ==============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                Three  months  ended                    
                                                                            -------------------------------------  
                                                                            January  31,    October  31,    January  31,  
                                                                                    2015                  2014                  2014        
                                                                            -----------    -----------    -----------  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                        $          8,544    $          8,948    $          8,530  
    Printing                                                                    5,543                5,740                5,815  
                                                                            -----------    -----------    -----------  
        Total  Printing  and  Personal                                                                                          
          Systems  Group                                                  14,087              14,688              14,345  
    Enterprise  Group                                                    6,981                7,248                6,970  
    Enterprise  Services                                              4,993                5,511                5,595  
    Software                                                                        871                1,087                    916  
    HP  Financial  Services                                              803                    906                    870  
    Corporate  Investments                                                16                        5                    288  
                                                                            -----------    -----------    -----------  
            Total  segments                                              27,751              29,445              28,984  
    Elimination  of  intersegment  net                                                                                      
      revenue  and  other                                                  (912)            (1,039)                (830)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
            Total  HP  consolidated  net                                                                                          
              revenue                                                $        26,839    $        28,406    $        28,154  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems                                        $              313    $              355    $              279  
    Printing                                                                    1,067                1,040                    979  
                                                                            -----------    -----------    -----------  
        Total  Printing  and  Personal                                                                                          
          Systems  Group                                                    1,380                1,395                1,258  
    Enterprise  Group                                                    1,090                1,072                1,003  
    Enterprise  Services                                                  148                    377                      60  
    Software                                                                        157                    338                    145  
    HP  Financial  Services                                                90                    110                    101  
    Corporate  Investments                                            (124)                (107)                  121  
                                                                            -----------    -----------    -----------  
            Total  segment  earnings  from                                                                                      
              operations                                                      2,741                3,185                2,688  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and                                                                              
      eliminations                                                            (182)                (316)                (121)
    Stock-based  compensation  expense                      (187)                (128)                (170)
    Amortization  of  intangible  assets                    (222)                (226)                (283)
    Restructuring  charges                                            (146)                (604)                (114)
    Acquisition-related  charges                                    (4)                    (3)                    (3)
    Separation  costs                                                        (80)                      -                        -  
    Interest  and  other,  net                                        (174)                (146)                (163)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
            Total  HP  consolidated  earnings                                                                                
              before  taxes                                      $          1,746    $          1,762    $          1,834  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2015,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  This                
        organizational  change  resulted  in  the  transfer  of  third  party  multi-        
        vendor  support  arrangements  from  the  Technology  Services  business  unit    
        within  the  Enterprise  Group  segment  to  the  Infrastructure  Technology        
        Outsourcing  business  unit  within  the  Enterprise  Services  segment.  HP        
        reflected  this  change  to  its  segment  information  in  prior  reporting          
        periods  on  an  as-if  basis,  which  resulted  in  the  removal  of  intersegment
        revenue  from  the  Technology  Services  business  unit  within  the  Enterprise
        Group  segment  and  the  related  corporate  intersegment  revenue                        
        eliminations,  and  the  transfer  of  operating  profit  from  the  Technology    
        Services  business  unit  within  the  Enterprise  Group  segment  to  the              
        Infrastructure  Technology  Outsourcing  business  unit  within  the                    
        Enterprise  Services  segment.  This  change  had  no  impact  on  HP's                    
        previously  reported  consolidated  net  revenue,  earnings  from  operations,  
        net  earnings  or  net  earnings  per  share.                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                  HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                      
                                          SEGMENT/BUSINESS  UNIT  INFORMATION                                            
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                      Change      
                                                                        Three  months  ended                            (%)          
                                                    -------------------------------------    ---------    
                                                    January  31,    October  31,    January  31,                          
                                                            2015                  2014                  2014          Q/Q      Y/Y    
                                                    -----------    -----------    -----------    ---      ---    
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Printing  and  Personal                                                                                                          
      Systems  Group                                                                                                                        
        Personal  Systems                                                                                                                
            Notebooks                      $          4,724    $          4,869    $          4,335      (3%)      9%  
            Desktops                                    2,949                3,185                3,274      (7%)  (10%)
            Workstations                                526                    558                    533      (6%)    (1%)
            Other                                              345                    336                    388        3%    (11%)
                                                    -----------    -----------    -----------                          
                Total  Personal                                                                                                            
                  Systems                                8,544                8,948                8,530      (5%)      0%  
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Printing                                                                                                                                
            Supplies                                    3,601                3,596                3,795        0%      (5%)
            Commercial  Hardware              1,316                1,567                1,347    (16%)    (2%)
            Consumer  Hardware                      626                    577                    673        8%      (7%)
                                                    -----------    -----------    -----------                          
                Total  Printing                    5,543                5,740                5,815      (3%)    (5%)
                                                    -----------    -----------    -----------                          
                    Total  Printing                                                                                                        
                      and  Personal                                                                                                          
                      Systems  Group              14,087              14,688              14,345      (4%)    (2%)
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Enterprise  Group                                                                                                                
            Industry  Standard                                                                                                          
              Servers                                    3,387                3,370                3,178        1%        7%  
            Technology  Services              1,987                2,093                2,100      (5%)    (5%)
            Storage                                          837                    878                    834      (5%)      0%  
            Networking                                    562                    669                    630    (16%)  (11%)
            Business  Critical                                                                                                          
              Systems                                        208                    238                    228    (13%)    (9%)
                                                    -----------    -----------    -----------                          
                Total  Enterprise                                                                                                        
                  Group                                    6,981                7,248                6,970      (4%)      0%  
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Enterprise  Services                                                                                                          
            Infrastructure                                                                                                                
              Technology                                                                                                                      
              Outsourcing                            3,132                3,446                3,501      (9%)  (11%)
            Application  and                                                                                                              
              Business  Services                1,861                2,065                2,094    (10%)  (11%)
                                                    -----------    -----------    -----------                          
                Total  Enterprise                                                                                                        
                  Services                              4,993                5,511                5,595      (9%)  (11%)
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Software                                            871                1,087                    916    (20%)    (5%)
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        HP  Financial  Services                  803                    906                    870    (11%)    (8%)
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Corporate  Investments                                                                                                      
          (b)                                                      16                        5                    288      NM      (94%)
                                                    -----------    -----------    -----------                          
                Total  segments                  27,751              29,445              28,984      (6%)    (4%)
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
        Elimination  of                                                                                                                    
          intersegment  net                                                                                                              
          revenue  and  other                      (912)            (1,039)                (830)  (12%)    10%  
                                                    -----------    -----------    -----------                          
                                                                                                                                                        
            Total  HP                                                                                                                            
              consolidated  net                                                                                                          
              revenue                        $        26,839    $        28,406    $        28,154      (6%)    (5%)
                                                    ===========    ===========    ===========                          
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2015,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  This                
        organizational  change  resulted  in  the  transfer  of  third  party  multi-        
        vendor  support  arrangements  from  the  Technology  Services  business  unit    
        within  the  Enterprise  Group  segment  to  the  Infrastructure  Technology        
        Outsourcing  business  unit  within  the  Enterprise  Services  segment.  HP        
        reflected  this  change  to  its  segment  information  in  prior  reporting          
        periods  on  an  as-if  basis,  which  resulted  in  the  removal  of  intersegment
        revenue  from  the  Technology  Services  business  unit  within  the  Enterprise
        Group  segment  and  the  related  corporate  intersegment  revenue                        
        eliminations.  This  change  had  no  impact  on  HP's  previously  reported          
        consolidated  net  revenue,  earnings  from  operations,  net  earnings  or  net  
        earnings  per  share.                                                                                                          
                                                                                                                                                        
(b)  "NM"  represents  not  meaningful.                                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                      SEGMENT  OPERATING  MARGIN  SUMMARY  DATA                                        
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                  Three  months      Change  in  Operating  
                                                                                          ended                  Margin  (pts)          
                                                                                  ------------    --------------------  
                                                                                  January  31,                                                
                                                                                          2015                  Q/Q                Y/Y        
                                                                                  ------------    ---------    ---------  
                                                                                                                                                        
Segment  operating  margin:(a)                                                                                                
    Personal  Systems                                                                3.7%    (0.3  pts)      0.4  pts  
    Printing                                                                              19.2%      1.1  pts        2.4  pts  
        Total  Printing  &  Personal  Systems                          9.8%      0.3  pts        1.0  pts  
                                                                                                                                                        
    Enterprise  Group                                                              15.6%      0.8  pts        1.2  pts  
    Enterprise  Services                                                          3.0%    (3.8  pts)      1.9  pts  
    Software                                                                              18.0%  (13.1  pts)      2.2  pts  
    HP  Financial  Services                                                    11.2%    (0.9  pts)    (0.4  pts)
    Corporate  Investments(b)                                                  NM                  NM                  NM  
        Total  segments                                                                9.9%    (0.9  pts)      0.6  pts  
                                                                                                                                                        
                                                                                                                                                        
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2015,  HP            
        implemented  an  organizational  change  to  align  its  segment  financial          
        reporting  more  closely  with  its  current  business  structure.  This                
        organizational  change  resulted  in  the  transfer  of  third  party  multi-        
        vendor  support  arrangements  from  the  Technology  Services  business  unit    
        within  the  Enterprise  Group  segment  to  the  Infrastructure  Technology        
        Outsourcing  business  unit  within  the  Enterprise  Services  segment.  HP        
        reflected  this  change  to  its  segment  information  in  prior  reporting          
        periods  on  an  as-if  basis,  which  resulted  in  the  removal  of  intersegment
        revenue  from  the  Technology  Services  business  unit  within  the  Enterprise
        Group  segment  and  the  related  corporate  intersegment  revenue                        
        eliminations,  and  the  transfer  of  operating  profit  from  the  Technology    
        Services  business  unit  within  the  Enterprise  Group  segment  to  the              
        Infrastructure  Technology  Outsourcing  business  unit  within  the                    
        Enterprise  Services  segment.  This  change  had  no  impact  on  HP's                    
        previously  reported  consolidated  net  revenue,  earnings  from  operations,  
        net  earnings  or  net  earnings  per  share.                                                                  
                                                                                                                                                        
(b)  "NM"  represents  not  meaningful.                                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                CALCULATION  OF  DILUTED  NET  EARNINGS  PER  SHARE                              
                                                                  (Unaudited)                                                                
                                      (In  millions,  except  per  share  amounts)                                    
                                                                                                                                                        
                                                                                                                                                        
                                                                                                    Three  months  ended                
                                                                                  -----------------------------------
                                                                                  January  31,  October  31,  January  31,
                                                                                          2015                2014                2014      
                                                                                  -----------  -----------  -----------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                            $          1,366  $          1,330  $          1,425
                                                                                  ===========  ===========  ===========
    Non-GAAP  net  earnings                                    $          1,705  $          2,014  $          1,742
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  outstanding                                                                              
      during  the  reporting  period                                  1,833              1,862              1,907
    Dilutive  effect  of  employee  stock                                                                                  
      plans(a)                                                                              28                    34                    28
                                                                                  -----------  -----------  -----------
        Weighted-average  shares  used  to                                                                                  
          compute  diluted  net  earnings  per                                                                              
          share                                                                          1,861              1,896              1,935
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
GAAP  diluted  net  earnings  per  share            $            0.73  $            0.70  $            0.74
                                                                                  ===========  ===========  ===========
Non-GAAP  diluted  net  earnings  per  share    $            0.92  $            1.06  $            0.90
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
(a)  Includes  any  dilutive  effect  of  restricted  stock  units,  restricted            
        stock,  stock  options  and  performance-based  restricted  stock  units.            
                                                                                                                                                        
 

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