v3.25.3
Taxes on Earnings
 12 Months Ended
Oct. 31, 2025
Income Tax Disclosure [Abstract]  
Taxes on Earnings Taxes on Earnings
Provision for Taxes
The domestic and foreign components of earnings before taxes were as follows:
 For the fiscal years ended October 31
h202520242023
 In millions
U.S.$107 $537 $650 
Non-U.S.2,561 2,742 2,287 
 $2,668 $3,279 $2,937 
The provision for (benefit from) taxes on earnings was as follows:
For the fiscal years ended October 31
 202520242023
 In millions
U.S. federal taxes:   
Current$(188)$245 $226 
Deferred(121)34 (549)
Non-U.S. taxes:
Current328 357 337 
Deferred95 (193)(305)
State taxes:
Current(13)33 42 
Deferred38 28 (77)
 $139 $504 $(326)
 
The differences between the U.S. federal statutory income tax rate and HP’s effective tax rate were as follows:
 For the fiscal years ended October 31
 202520242023
U.S. federal statutory income tax rate from continuing operations21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit2.4 %2.2 %1.7 %
Impact of foreign earnings including GILTI and FDII, net(2.9)%(1.0)%(1.1)%
Research and development (“R&D”) credit(2.3)%(1.1)%(1.0)%
Valuation allowances(2.5)%(7.1)%(7.3)%
Uncertain tax positions and audit settlements(10.2)%1.0 %2.4 %
Changes in tax laws or rates enacted
1.4 %0.3 %(0.3)%
Impact of internal reorganization— %— %(27.4)%
Other, net(1.7)%0.1 %0.9 %
 5.2 %15.4 %(11.1)%
 
In fiscal year 2025, HP recorded $415 million of net income tax benefits related to non-recurring items in the provision for taxes. This amount included $273 million related to changes in uncertain tax positions, $80 million related to restructuring charges, $44 million related to changes in valuation allowances, $28 million related to the filing of tax returns in various jurisdictions, $22 million related to audit settlements in various jurisdictions, and $16 million related to litigation charges. These benefits were partially offset by $69 million of charges related to changes in tax rates.
In fiscal year 2024, HP recorded $214 million of net income tax benefits related to non-recurring items in the provision for taxes. This amount included $198 million related to changes in valuation allowances, $60 million related to restructuring charges, $14 million related to the filing of tax returns in various jurisdictions, and $11 million related to acquisition charges. These benefits were partially offset by $39 million of uncertain tax position charges and $25 million related to changes in tax rates.
In fiscal year 2023, HP recorded $1.1 billion of net income tax benefits related to non-recurring items in the provision for taxes. This amount included $726 million of tax effects related to internal reorganization, $255 million related to changes in valuation allowances, $101 million related to restructuring charges, $58 million related to the filing of tax returns in various jurisdictions, and $42 million related to acquisition charges. These benefits were partially offset by income tax charges of $60 million related to audit settlements in various jurisdictions, $27 million of uncertain tax position charges, and $25 million related to extinguishment of debt.
As a result of certain employment actions and capital investments HP has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates, and in some cases is wholly exempt from taxes, through 2029. The gross income tax benefits attributable to these actions and investments were estimated to be $153 million ($0.16 diluted net EPS) in fiscal year 2025, $217 million ($0.22 diluted net EPS) in fiscal year 2024 and $190 million ($0.19 diluted net EPS) in fiscal year 2023.

Uncertain Tax Positions
A reconciliation of unrecognized tax benefits is as follows:
 For the fiscal years ended October 31
 202520242023
 In millions
Balance at beginning of year$1,217 $1,137 $1,045 
Increases:  
For current year’s tax positions85 82 61 
For prior years’ tax positions14 52 186 
Decreases:
For prior years’ tax positions(79)(9)(35)
Statute of limitations expirations(338)(33)(8)
Settlements with taxing authorities(34)(12)(112)
Balance at end of year$865 $1,217 $1,137 
 
As of October 31, 2025, the amount of gross unrecognized tax benefits was $865 million, of which up to $656 million would affect HP’s effective tax rate if realized. Total gross unrecognized tax benefits decreased by $352 million for the twelve months ended October 31, 2025. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Statements of Earnings. As of October 31, 2025, 2024 and 2023, HP had accrued $122 million, $135 million and $102 million, respectively, for interest and penalties.
HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions. HP expects complete resolution of certain tax years with various tax authorities within the next 12 months. HP believes it is reasonably possible that its existing gross unrecognized tax benefits may be reduced by up to $42 million within the next 12 months, affecting HP’s effective tax rate if realized.
HP is subject to income tax in the United States and approximately 60 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The Internal Revenue Service (“IRS”) is conducting an audit of HP’s 2018 and 2019 income tax returns.
With respect to major state and foreign tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 2007. No material tax deficiencies have been assessed in major state or foreign tax jurisdictions related to ongoing audits as of October 31, 2025.
HP believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP’s tax provision. HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that HP will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit
could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows.
HP has not provided for U.S. federal income and foreign withholding taxes on $5.1 billion of undistributed earnings from non-U.S. operations as of October 31, 2025 because HP intends to reinvest such earnings indefinitely outside of the United States. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.
Deferred Income Taxes
 The significant components of deferred tax assets and deferred tax liabilities were as follows:
 As of October 31
 20252024
 In millions
Deferred tax assets:
Loss and credit carryforwards$6,792 $7,050 
Intercompany transactions—excluding inventory208 357 
Fixed assets107 113 
Warranty81 100 
Employee and retiree benefits226 242 
Deferred revenue244 240 
Capitalized research and development1,187 1,014 
Operating lease liabilities244 272 
Investment in partnership672 710 
Other393 395 
Gross deferred tax assets10,154 10,493 
Valuation allowances(6,479)(6,688)
Total deferred tax assets3,675 3,805 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries(36)(107)
Right-of-use assets from operating leases(211)(235)
Intangible assets(121)(159)
Cash flow hedges(5)(24)
Total deferred tax liabilities(373)(525)
Net deferred tax assets$3,302 $3,280 
Deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows:
 As of October 31
 20252024
 In millions
Deferred tax assets$3,318 $3,311 
Deferred tax liabilities(16)(31)
Total$3,302 $3,280 
 As of October 31, 2025, HP had recorded deferred tax assets for net operating loss (“NOL”) carryforwards as follows:
 Gross NOLsDeferred Taxes on NOLsValuation allowanceInitial Year of Expiration
 In millions
Federal$33 $7 $(1)2026
State1,817 97 (23)2026
Foreign24,134 6,471 (6,027)2028
Balance at end of year$25,984 $6,575 $(6,051)

As of October 31, 2025, HP had recorded deferred tax assets for various tax credit carryforwards as follows:
 CarryforwardValuation
Allowance		Initial Year of Expiration
 In millions
Tax credits in state and foreign jurisdictions$307 $(61)2026
U.S. R&D and other credits52 — 2045
Balance at end of year$359 $(61) 
 
Deferred Tax Asset Valuation Allowance
 
The deferred tax asset valuation allowance and changes were as follows:
 For the fiscal years ended October 31
 202520242023
 In millions
Balance at beginning of year$6,688 $6,994 $7,592 
Income tax (benefit) expense (230)(300)(650)
Goodwill, other comprehensive loss (income), currency translation and charges to other accounts21 (6)52 
Balance at end of year$6,479 $6,688 $6,994 
 
Gross deferred tax assets as of October 31, 2025, 2024, and 2023 were reduced by valuation allowances of $6.5 billion, $6.7 billion and $7.0 billion, respectively. In fiscal year 2025, the deferred tax asset valuation allowance decreased by $209 million primarily due to changes in tax rates in foreign jurisdictions. In fiscal year 2024, the deferred tax asset valuation allowance decreased by $306 million primarily due to an increase in the expected utilization of foreign net operating losses. In fiscal year 2023, the deferred tax asset valuation allowance decreased by $598 million primarily due to internal reorganization impacting foreign net operating losses and U.S. deferred tax assets that are anticipated to be realized at a lower effective rate than the federal statutory rate.