Company also sells 51% stake in H3C Technologies.
HP has reported a 7% drop in second quarter revenues to $25.5bn, managing to beat Wall Street predictions.
According to generally accepted accounting principles (GAAP), HP’s net earnings dropped by 21% to $1bn.
The company’s earnings per share were forecast at 86 cents, but the company managed to beat those estimates by making 87 cents per share.
HP’s overall revenue slumped by 7% in a year-on-year comparison.
Revenue of its overall PC unit was down by 5% to $7.7bn when compared to last year. Sales from its consumer PC unit fell by 2%, and a 7% drop was recorded in sales of its commercial PCs.
However, the company achieved a 19% increase in Notebook sales on a unit basis.
When compared to Q2 2014, revenue of HP’s Enterprise Group fell by 1% to $6.6bn, and revenue of its Printing unit also fell by 7% to $5.5bn.
Back in October 2014, the company announced its intention to split in two, with Hewlett-Packard Enterprise responsible for cloud, server, and software, while HP Inc will focus on personal computers and printers.
Separately, HP has also announced the sale of its 51% stake in China-based H3C Technologies to Tsinghua Unigroup for $2.3bn. H3C will operate as a subsidiary of Unisplendour, a publicly traded operating subsidiary of Tsinghua Holdings.
The company will form a partnership with Tsinghua Holdings to make it a leading server business in the country.
According to HP, H3C is expected to become one of the leading converged infrastructure solutions and technology service providers in China, offering IT solutions including networking, servers, storage and services.
HP CEO Meg Whitman said: "HP is making a bold move to win in today’s China.
"Partnering with Tsinghua, one of China’s most respected institutions, the new H3C will be able to drive even greater innovation for China, in China.
"The combined company will build upon an extensive and valuable patent portfolio, best-in-class products and customer focus, and Tsinghua’s world-class research capability."