Hewlett-Packard said it would split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.
HP said its shareholders would own a stake in both businesses through a tax-free transaction next year.
Shares of the company, which has struggled to adapt to the new era of mobile and online computing, rose almost 8 percent in premarket trading on Monday. (Get the latest quote here.)
Each of the two businesses contribute about half of HP's current revenue and profit.