Net Earnings Per Share

9 Months Ended

Jul. 31, 2023

HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan.

A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows:


	Three months ended July 31				Nine months ended July 31
	2023		2022		2023		2022
	In millions, except per share amounts
Numerator:
Net earnings	$	766	$	1,122	$	2,289	$	3,155
Denominator:
Weighted-average shares used to compute basic net EPS	993		1,024		991		1,052
Dilutive effect of employee stock plans	9		11		8		12
Weighted-average shares used to compute diluted net EPS	1,002		1,035		999		1,064
Net earnings per share:
Basic	$	0.77	$	1.10	$	2.31	$	3.00
Diluted	$	0.76	$	1.08	$	2.29	$	2.97
Anti-dilutive weighted-average stock-based compensation awards(1)	3		5		5		4

(1)HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.