Net revenue and EPS results
HP announced fiscal 2020 net revenue of $56.6 billion, down 3.6% (down 2.3% in constant currency) from the prior-year period.  

Fiscal 2020 GAAP diluted net EPS was $2.00, down from $2.07 in the prior-year period and above the previously provided outlook of $1.83 to $1.87. Fiscal 2020 non-GAAP diluted net EPS was $2.28, up from $2.24 in the prior-year period and above the previously provided outlook of $2.16 to $2.20. Fiscal 2020 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $390 million, or $0.28 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, defined benefit plan settlement charges, non-operating retirement-related (credits)/charges, debt extinguishment costs and tax adjustments.  

Fourth quarter net revenue was $15.3 billion, down 1.0% (up 0.1% in constant currency) from the prior-year period and up 7% sequentially.  

Fourth quarter GAAP diluted net EPS was $0.49, up from $0.26 in the prior-year period and above the previously provided outlook of $0.32 to $0.36. Fourth quarter non-GAAP diluted net EPS was $0.62, up from $0.60 in the prior-year period and above previously provided outlook of $0.50 to $0.54. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after tax adjustments of $167 million, or $0.13 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, defined benefit plan settlement charges, non-operating retirement-related (credits)/charges, and tax adjustments.

“We closed out a strong quarter with a beat on the top and bottom line. The strength of our innovation with the rigor of our execution drove sequential growth in revenue, operating profit, non-GAAP EPS and cash flow,” said Enrique Lores, President and CEO, HP Inc. “We had record unit shipments in the quarter, reflecting the important role HP technology is playing in the lives of our customers. Our results give us great confidence in our ability to drive long-term growth and shareholder value in 2021 and beyond.”

Asset management
HP generated $4.3 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2020. Free cash flow includes net cash provided by operating activities of $4.3 billion adjusted for net investments in leases of $152 million and net investments in property, plant and equipment of $577 million. HP utilized $3,107 million of cash during fiscal 2020 to repurchase approximately 166 million shares of common stock in the open market. When combined with the $997 million of cash used to pay dividends, HP returned 105% of its free cash flow to shareholders in fiscal 2020.  

HP's net cash provided by operating activities in the fourth quarter of fiscal 2020 was $1.9 billion. Accounts receivable ended the quarter at $5.4 billion, down 1 day quarter over quarter to 32 days. Inventory ended the quarter at $6.0 billion, down 2 days quarter over quarter to 43 days. Accounts payable ended the quarter at $14.7 billion, down 3 days quarter over quarter to 105 days.  

HP generated $1.8 billion of free cash flow in the fourth quarter. Free cash flow includes net cash provided by operating activities of $1.9 billion adjusted for net investments in leases of $40 million and net investments in property, plant and equipment of $116 million.  

In the fourth quarter, HP returned $1.6 billion to shareholders. HP utilized $1,340 million of cash during the quarter to repurchase approximately 71 million shares of common stock in the open market and paid a cash dividend of $238 million. As a result, HP returned 88% of its fourth quarter free cash flow to shareholders. HP exited the quarter with $5.1 billion in gross cash, which includes cash and cash equivalents and short-term investments of $0.3 billion included in other current assets.

The HP board of directors has declared a quarterly cash dividend of $0.1938 per share on the company’s common stock, payable on January 6, 2021. This is an increase of 10% from the prior dividend and consistent with HP’s previously stated objective to increase the dividend at least in-line with earnings growth over time.

Fiscal 20 20 fourth quarter segment results

• Personal Systems net revenue was $10.4 billion, flat year over year (up 1% in constant currency) with a 5.1% operating margin. Consumer net revenue increased 24% and Commercial net revenue decreased 12%. Total units were up 7% with Notebooks units up 25% and Desktops units down 31%.
• Printing net revenue was $4.8 billion, down 3% year over year (down 2% in constant currency) with a 14.8% operating margin. Total hardware units were up 14% with Consumer hardware units up 18% and Commercial hardware units down 10%. Supplies net revenue was down 1% (flat in constant currency).

Outlook
For the fiscal 2021 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.58 to $0.64 and non-GAAP diluted net EPS to be in the range of $0.64 to $0.70. Fiscal 2021 first quarter non-GAAP diluted net EPS estimates exclude $0.06 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at investor.hp.com.

HP's FY20 Q4 earnings conference call is accessible via audio webcast at www.hp.com/investor/2020Q4Webcast.

About HP Inc.
HP Inc. (NYSE: HPQ) creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze. More information about HP Inc. is available at hp.com.

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 net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS and free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are 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 net revenue, operating expense, operating profit, operating margin, tax rate, net earnings, diluted net EPS, cash (used in)/ provided by operating activities or cash and cash equivalents prepared in accordance with GAAP.

Forward-looking statements
This document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its consolidated subsidiaries 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 statements regarding the potential impact of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation; projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements or other financial impacts; 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, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms.