This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is organized as follows:

•Overview. A discussion of our business and other highlights affecting the Company to provide context for the remainder of this MD&A.

•Liquidity and Capital Resources. An analysis of changes in our cash flows and a discussion of our liquidity and financial condition.

•In Personal Systems, our strategic focus is on:

•profitable growth through innovation and market segmentation

•enhanced innovation in multi-operating systems, multi-architecture, geography, customer segments and other key attributes;

•investing in endpoint services and solutions. We are focused on services, including Device as a Service, as the market begins to shift to contractual solutions, and accelerating in attractive adjacencies such as peripherals; and

•driving innovation to enable productivity and collaboration with the PC becoming essential for hybrid work, learn and play.

We believe that we are well positioned due to our competitive product lineup along with our recent acquisitions in peripherals and remote-computing solutions.

•In Printing, our strategic focus is on:

•providing digital printing solutions for graphics segments and applications including commercial publishing, labels, packaging, and textiles; and

•expanding our footprint in 3D printing across digital manufacturing and strategic applications.

In addition to growing our subscription business, we are also focused on rebalancing system profitability to more profit upfront units through our product offerings including HP+ and Big Tank.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

A detailed discussion of the factors contributing to the changes in segment net revenue is included in "Segment Information" below.

For the three months ended July 31, 2022, gross margin decreased by 2.4 percentage points, primarily driven by the reduction in previously estimated sales and marketing program incentives in the prior-year period and foreign currency impacts.

A detailed discussion of the factors contributing to the changes in segment gross margin is included under "Segment Information" below.

Research and Development ("R&D")

Selling, General and Administrative ("SG&A")

SG&A expense decreased 18.8% and 4.5% for the three and nine months ended July 31, 2022, respectively, primarily due to lower spend on go-to-market initiatives and variable compensation.

Three months ended July 31, 2022 compared with three months ended July 31, 2021

Consequently, net revenue decreased 10.3% in Notebooks, increased 13.0% in Desktops and 38.5% in Workstations.

Nine months ended July 31, 2022 compared with nine months ended July 31, 2021

lower Chromebook sales and softening consumer demand, partially offset by increases in Desktops and Workstations. In addition, units were impacted due to the continued supply chain challenges and overall macroeconomic environment.

Consequently, net revenue increased 2.5% in Notebooks, 19.3% in Desktops and 33.0% in Workstations.

Earnings from operations as a % of net 19.9 % 17.6 %

Three months ended July 31, 2022 compared with three months ended July 31, 2021

Nine months ended July 31, 2022 compared with nine months ended July 31, 2021

The loss from operations in Corporate Investments for the three and nine months ended July 31, 2022, was primarily due to expenses associated with our incubation projects and investments in digital enablement.

Our cash and cash equivalents balances are held in numerous locations throughout the world. We utilize a variety of planning and financing strategies in an effort to ensure that our worldwide cash is available when and where it is needed. Amounts held outside of the United States are generally utilized to support non-U.S. liquidity needs and may from time to time

Our cash and cash equivalents and total debt were as follows:

Our key cash flow metrics were as follows:

July 31, 2022 as compared to July 31, 2021

DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average cost of revenue. The decrease in DPO was primarily due to lower purchasing volumes.

For more information on our share repurchases, see Note 10, "Stockholders' Deficit," to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.

In June 2022, we issued senior unsecured notes of $2.0 billion in aggregate principal amount and in March 2022, we issued senior unsecured notes of $2.0 billion in aggregate principal amount across various maturities. For more information on the new notes, see Note 9, "Borrowings," to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.

one or more offerings, $1.0 billion, in the aggregate, of debt securities, common stock, preferred stock, depository shares and warrants. For more information on our borrowings, see Note 9, "Borrowings," to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.

Principal and Interest payments on debt

Retirement and Post-Retirement Benefit Plan Contributions

As part of our ongoing business, we have not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose

entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

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