HP (HPQ) Morgan Stanley Technology, Media & Telecom Conference summary

Macroeconomic and geopolitical environment

• Rapid global changes and unpredictability are prompting scenario planning and supply chain diversification, especially away from China.

• Tariffs and US-China relations are key variables, with flexibility to shift production mitigating risks.

• Federal government exposure is relatively small, with both risks and opportunities depending on policy shifts and productivity investments.

Supply chain and cost management

• Supply chain has been redesigned for resiliency, with less than 90% of North America products sourced from China by year-end.

• New factories in Southeast Asia and other regions provide flexibility to respond to tariffs.

• The Future Ready program targets $2 billion in annualized cost savings, with recent incremental savings from IT, headcount, and management simplification.

Strategic initiatives and M&A

• Acquisition of AI startup Humane accelerates AI integration across the portfolio, bringing patents, software, and talent.

• Focus remains on adjacent M&A that enhances solutions and margins, as seen with Poly and Humane.

• Print industry consolidation is expected to continue, but growth-focused M&A is prioritized over consolidation deals.