The company said it intends to repurchase shares "opportunistically as a means of returning cash to its shareholders, as well as offsetting dilution from the issuance of shares under employee benefit plans."
"HP continues to generate strong cash flow from operations, with over $2.6 billion in the second quarter alone," Bob Wayman, executive VP and CFO, said in a statement. "This new authorization represents a strong vote of confidence in HP's future."
HP's board also declared a regular cash dividend of 8 cents per share on the company's common stock. The dividend, the third in the current fiscal year, is payable on July 7, to shareholders of record as of the close of business on June 16. HP has approximately 3 billion shares of common stock outstanding.