The decision follows an initial $8bn share repurchase plan announced in November 2007, of which $3bn remains unused.
The move comes at a time when the global crisis in the financial markets has dragged down share prices, while the credit crunch has left companies holding on to cash reserves, making such a scheme attractive.
Bloomberg reports that HP's cash assets jumped 19% across the past year to $14.8bn.
The repurchase plan is equivalent to around 6.8% of outstanding stock, as of the company's 19 September closing price.
HP green lights $8bn share buy back scheme
HP's board has announced an $8bn (4.30bn) stock buy back plan to stave off share dilution by staff stock benefits and make the most of the current financial climate.
