A：The company's focus areas include pre-execution of mitigation plans to offset the impact of memory costs, accelerating company-wide cost actions, and continuing to execute against their future of work strategy.

A：The company acknowledges the challenging memory cost situation and is not backing away from longstanding commitments despite headwinds. They are managing this challenge by focusing on securing supply, shaping demand and product configuration, implementing targeted cost reductions, and taking pricing actions within their control and continuing these efforts in future quarters.

A：HP is pleased with its first quarter results and solid progress in delivering against financial commitments. It achieved better-than-expected top-line growth, with year-over-year revenue growth of 7% and an increase in constant currency. The company drove non-GAAP EPS at the top of its guidance range, maintained strong expense management, and saw non-GAAP operating expenses decrease year over year. Additionally, HP grew revenue across all regions, with strength in personal systems and key growth areas, and improved its non-GAAP operating margin.

A：The company expects to drive revenue growth in the fiscal year through pricing actions, share gains in premium categories, and increased attach of higher-margin offerings. For the second quarter, it anticipates above-seasonal revenue performance due to pricing actions, with revenue growth moderating in the back half of the year. The company models a range of outcomes factoring in the potential doubling of memory prices and expects the PSO rate to be below its long-term range. In print, it expects the market to decline but aims to drive growth in big tanks and industrial print. The company expects non-GAAP diluted net earnings per share for Q2 to be in the range of 70 to 76 cents, and annual non-GAAP earnings per share guidance remains between $2.90 and $3.20.

A：The projected increase in memory costs is significant, with a 100% sequential increase forecasted for the fiscal year. To offset these costs, the company has taken measures such as product cost actions, company-wide cost actions, and price increases to recover the full impact over time.

A：Higher memory costs are expected to result in Ps Op margins being below the company's long-standing range for the remainder of the year. To manage this, the company is implementing a combination of product cost actions, company-wide cost actions, and price increases. The strategies also include demand shaping and the introduction of low-memory configurations to align with available supply and offer customers the best value within their budgetary needs.

A：The company is addressing the potential for demand destruction and margin protection by continuing to provide strong value to the customer and protecting margins. This is being done through managing supply and portfolio with long-term agreements (LTAs) to protect supply coverage, leveraging a broad portfolio for silicon diversity, introducing low-memory configurations, and reducing costs across commodity baskets. Additionally, they are implementing a strong design for cost initiative and pricing actions to drive a favorable mix. The company is also focusing on demand shaping and optimizing platform and configuration options to ensure customers get the best value within their budgetary needs.

A：The company expects PC units to decline by double digits for the year, in line with industry trends. While specific segments that will decline more significantly were not quantified, the general expectation is for a double-digit decline across the board.

A：Given the uncertainty of memory costs beyond the current quarter, the company is taking a prudent view by assuming that the revenue strength from the first half of the fiscal year will moderate. The full-year guidance incorporates an expected sequential increase in memory costs, higher mitigations, and an expectation of print margins at the high end of the long-standing range. The company aims to offset headwinds by executing its playbooks and pulling all levers. They also consider the time it takes for price increases to fully implement and expected unit demand. Despite these challenges, the company anticipates being at the lower end of its guidance range.

A：The company remains committed to returning 100% of its free cash flow to shareholders over time, subject to maintaining gross leverage below two times and having higher return opportunities. With leverage currently slightly above two times, the company has managed to return a significant amount to shareholders, including $600 million in the first quarter, with $300 million in share repurchase. The company ensures it can repay debt as it comes due and continues to return capital to shareholders as long as it does not exceed its leverage targets.

A：The company expects its margins for the rest of the year to be below its long-standing range, but it is not changing its long-standing guidance range for margins and anticipates returning to those long-standing range over time. However, the timeline for this return is uncertain due to the fluid environment.

A：The actual memory cost increases in the first quarter were roughly in line with expectations outlined at the beginning of the year. The significant price increases are more forward-looking than backward, and the quarter saw prices up 100% sequentially, from Q1 to Q2.

A：The company notes that current prices are up about 100% sequentially, from Q1 to Q2, and expects further increases in the latter part of the year, although it does not expect to reach peak pricing by Q1 to Q2.

A：The company has good relationships with longstanding suppliers and believes it has the necessary supply to meet plans and execute strategy. Negotiations for pricing with suppliers are ongoing on a rolling basis to lock in prices and help shape demand and pricing strategy.

A：The company has secured the necessary supply for the remainder of the year and is working to add new suppliers while maintaining good relationships with existing ones. It is also accelerating engineering efforts to qualify new commodities across different platforms, focusing on regulatory and compliance needs, and seeking to maximize available supply for customers.

A：The company uses different pricing strategies for various business segments and adjusts prices accordingly, reflecting market conditions. It is sensitive to demand elasticity, works with customers to find optimal configurations, and utilizes workforce experience and management software to inform decisions on pricing.

A：The free cash flow generation target is supported by a strong performance in the first quarter and expectations for decent free cash flow in the second quarter as well. Growth from the PS business, which has a negative cash conversion cycle, and offsetting increases in inventory with the growth in PS are key factors.

A：Print margins are expected to expand by operating at the high end of the long-standing range and focusing on profitable growth, such as shifting to a business model with upfront profits, increasing subscriptions, gaining share in high-value categories, and reducing the cost structure.

A：A search committee has been established, the board is looking for a CEO who can advance the company's strategy, with a proven track record of shareholder value delivery, ability to navigate complex environments, and experience in global and multi-state business operations.

A：35% of the PSC GP dollars for the year of fiscal 2026 are anticipated to be from memory, up from the typical 15 to 18 percent.

A：A third of the P margins come from businesses not reliant on memory, including higher-margin attached business and workforce solutions.

A：Factors influencing the demand include customer use case, customer type, Windows 11 and AI PCs, productivity gains, seamless collaboration, reliable security, compliance, and an increasing number of ISVs developing applications using local AI. HP is ensuring the price increase does not impact demand by adjusting the demand to price elasticity constant and tailwinds such as Windows 11 and AI PCs.

A：Post-refresh cycles, especially with Windows 11, there is a historical correlation between PC refresh cycles and the peripheral business. This is due to budgetary needs from previous years being used for PC buying, leading to an opportunity for growth in the attachment peripheral business.

A：HP feels confident in share gains in print in developed markets and has been regaining share in high-value office categories. They are focused on product innovation, cost reduction, and driving strong growth in identified categories. They aim to remain true to their strategy and focus on value and AI PC share gains.

A：HP is managing expenses by focusing on driving expense reductions to offset investments. They expect Opex for FY 26 to be roughly flat year over year in dollars, with a transformation program aimed at delivering gross run rate savings. Efforts are being made to accelerate the program and drive additional cost actions to mitigate increasing headwinds.

A：Memory costs are higher now, and the company is focused on mitigating impacts through various actions. Given the volatility, they are not quantifying the impacts, but the current assessment has been included in their outlook.

A：For the fiscal second quarter, TCS revenue is expected to be higher than seasonal due to the company's plans to take share in premium categories, increasing contributions from the peripherals and solutions business, and price increases to offset the rising impact of memory. Win 11 refresh continues to drive demand, and overall P revenue is expected to be stronger than normal, to moderate in the back half.