Our three pillars
|Revitalize consumer and drive commercial|
|Lead commercial and grow premium|
|Disrupt the copier market and accelerate graphics|
|Drive commercial transformation|
|Lead 3D printing|
|Create new immersive categories|
Our journey to keep reinventing
It was just two years ago that we began our reinvention journey, anchored by three key pillars: core, growth and future. We committed to compete and win in our core, enter new growth markets and natural adjacencies and invest in our future where we can disrupt industries and create new categories. We also committed to a relentless focus on productivity to take cost out of the business.
Our goal was to create a company with the heart and the energy of a start-up but the brains and muscle of a Fortune 100 corporation. We set out to reinvent a new kind of technology company with a mission to engineer experiences that amaze for everyone everywhere. The great products and services that we are creating for our diverse customer needs show that our reinvention strategy is paying off, and we are humbled by our success and optimistic about our future. We are more competitive, more fixated on the customer, more innovative and more focused on operational excellence today than ever before.
We have never been as well positioned to execute on our core, expand into growth opportunities and to capture the future.
Executing on our strategy and driving financial returns
For our stockholders, we are doing what we said we would do, delivering operational excellence, predictable stockholder returns and building a business for the long-term. We have proven in fiscal 2017 that we can deliver reliable earnings and cash flow, take profitable share, and drive productivity.
We drove impressive top line growth in fiscal 2017, with net revenue up 8% year-over-year to $52.1 billion. We grew non-GAAP diluted net earnings per share year-over-year for three consecutive quarters in fiscal 2017. For fiscal 2017, we set a goal of $1 billion in productivity improvements for the year and have achieved that savings goal for the second year in a row.
We committed to delivering 50% to 75% of free cash flow to stockholders through share repurchases and dividends. Our initial outlook free cash flow was $2.3 to $2.6 billion dollars, which we increased to at least $3 billion in the third quarter. We ultimately delivered $3.3 billion of free cash flow in fiscal 2017, and we returned 69% of that free cash flow to stockholders through $2.3 billion in share repurchases and dividends.
There are a few important drivers on how we plan to deliver long term profitable growth and stockholder value. It all starts with leadership in the core and predictable earnings and cash flows that are generated by these incredible businesses. Our cash flows are supported by business fundamentals, including a strong annuity-like print supplies business, a growing percentage of contractual business and a focus on shifting our mix to higher margin categories.
We manage the company for the long term by investing in design and innovation, and then listening to our customers and building relevant products, not just technology for technology’s sake. Our solutions are grounded in quality and security and real value that our customers are depending on. We are also evolving our business models to stay ahead. During fiscal 2017, we began to successfully shift our print supplies model to a healthier demand-based model. We are also shifting towards more service and subscription based models in both print and personal systems. We are well positioned to continue to generate robust cash flow and evolve our business to allow us to deliver long-term results.