The company plans to announce the move as early as Monday, the Journal said in a report on its web site that cited people familiar with the matter. The division would be made through a tax-free distribution of shares to stockholders next year, according to the report.
A company spokeswoman declined to comment on the report.
HP and some of its investors have long considered such a move, the newspaper noted. As one of the older big computer companies, for several years HP directors have discussed ways to restructure to keep up with technology upstarts.
Company split-ups in which shares of new divisions were spun off to stockholders in the past have resulted in higher stock market returns for investors.