Financial Data and Key Metrics Changes - The company reported a book-to-bill ratio of over 1.0, indicating a positive revenue trajectory is being established [11] - The guidance for free cash flow is set at $600 million, reflecting a reduction from the previous year's range of $680 million to $690 million due to a decrease in after-tax EBIT and an increase in restructuring costs [54][58] Business Line Data and Key Metrics Changes - The company is focusing on strategic projects, which have shown strength in the pipeline, while shorter-term project-based services have seen a slowdown [31][32] - The average contract value (ACV) for bookings has increased, with longer-term durations compared to the previous year, indicating a shift in the mix of work won [37] Market Data and Key Metrics Changes - The company has observed varying impacts across different industries due to macroeconomic factors, with some industries experiencing more turbulence than others [27][28] - There is a noted increase in customer engagement, with clients expressing a desire to expand their use of the company's services [22][25] Company Strategy and Development Direction - The company is undergoing a turnaround focused on four pillars: people, process, culture, and scale, aiming to unify operations and improve efficiency [5][10] - The management is prioritizing AI-centric work and modernization in financial services as key growth areas [11][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the execution risk associated with changes but believes the risk of not making changes is greater, especially given the history of revenue decline [19][20] - The outlook remains cautious due to economic uncertainties, but there is confidence in the company's ability to execute on its pipeline and achieve positive revenue growth [61] Other Important Information - The company has initiated a $150 million share repurchase program for 2026, with plans to deploy it opportunistically throughout the year [62] - There is an emphasis on maintaining a solid foundation before considering mergers and acquisitions, ensuring any future deals are beneficial for both parties involved [65][68] Q&A Session Summary Question: What is the company's outlook on client demand? - The company has seen strong engagement from clients, with many expressing a desire to utilize more of its services, indicating a positive demand environment [22][25] Question: How does the company plan to sustain its book-to-bill ratio above 1? - The company is focusing on improving its go-to-market strategy and ensuring a robust pipeline of strategic projects, which are expected to drive sustained growth [31][33] Question: What are the expectations for revenue guidance in fiscal 2026? - The company has guided for a revenue decline of 3% to 5%, accounting for economic uncertainties and the impact of project-based services [40][41]

Core Insights - DXC Technology has entered into a multi-year IT services agreement with Vibracoustic to transform its SAP environment and modernize global IT operations [1][2] - The five-year agreement positions DXC as Vibracoustic's strategic partner for SAP services, covering 17 countries and over 30 manufacturing facilities, aiming to streamline operations and improve service delivery for more than 5,000 users [2][3] Company Overview - DXC Technology is a leading global technology services provider with over 15,000 SAP professionals and supports more than 5 million SAP users worldwide [4][5] - The company has over 35 years of experience in delivering SAP solutions and supports nearly 850 SAP customers across 60 countries [5] Vibracoustic Overview - Vibracoustic is a global expert in automotive Noise, Vibration, and Harshness (NVH) solutions, with approximately 12,000 employees and operations in 17 countries [6] - In 2024, Vibracoustic recorded total sales of €2.6 billion, serving all major automotive manufacturers [6]

ASHBURN, Va., May 16, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, has been named to the prestigious Forbes World's Best Management Consulting Firms 2025 list for the third year in a row. Out of 955,000 consulting firms in the U.S., fewer than 0.02% made the ranking, which is based on a rigorous survey of 2,350 clients and peers across 33 categories."This recognition highlights DXC's deep industry expertise and unwavering commitment to driving bu ...

DXC Technology, Inc. (DXC) reported better-than-expected bottom-line results for the fourth quarter of fiscal 2025. The company reported non-GAAP earnings of 84 cents per share, beating the Zacks Consensus Estimate by 10.5%. However, the bottom line decreased 13.4% year over year.DXC reported revenues of $3.17 billion for the fiscal fourth quarter, which beat the Zacks Consensus Estimate by 1.2% but decreased 6.4% year over year. On an organic basis, revenues declined 4.2% year over year.DXC’s Q4 Results in ...

Company Overview - DXC Technology operates with over 120,000 employees across more than 60 countries, serving a global client base including many Fortune 500 companies[21]. - The company is structured into two segments: Global Business Services (GBS) and Global Infrastructure Services (GIS), focusing on modernizing operations and driving innovation[23]. Financial Performance - Total revenues for fiscal 2025 were $12.87 billion, a decline of 5.8% compared to the prior year, primarily driven by a 4.6% decline in organic revenue[200]. - Adjusted diluted earnings per share increased by 10.6% to $3.43, compared to $3.10 in fiscal 2024[200]. - Cash generated from operations was $1.398 billion, resulting in free cash flow of $687 million after capital expenditures of $711 million[200]. - Revenue for fiscal 2025 was $6.6 billion, down 2.6% year-over-year, with an organic decline of 1.0%[209]. - Segment profit decreased to $797 million, down 4.6% year-over-year, resulting in a margin of 12.0%[209]. - Costs of services decreased by 7.6% to $9.77 billion, primarily due to lower revenue levels and cost optimization efforts[203]. - Gross margin improved to 24.1%, an increase of 150 basis points compared to the prior fiscal year[205]. - Selling, general and administrative expenses rose to $1.348 billion, an increase of 8.4% from the previous year[206]. - The effective tax rate for fiscal 2025 was 37.1%, compared to 21.1% in fiscal 2024[218]. Strategic Initiatives - In fiscal 2023, DXC completed the sale of its German financial services subsidiary to the FNZ Group, part of its strategy to divest insignificant businesses[25]. - The company emphasizes the importance of employee engagement, implementing initiatives based on feedback from regular engagement surveys to enhance the employee experience[41]. - DXC's consulting and engineering services leverage AI and data analytics to help businesses improve operations and accelerate digital transformation[23]. - The integration of generative AI into services is a focus, with substantial investments made and anticipated for future development to maintain competitiveness[73]. Sustainability and Compliance - DXC has set ambitious emissions reduction targets validated by the Science Based Targets initiative (SBTi), reflecting its commitment to sustainability[35]. - The company has been a signatory of the United Nations Global Compact since its inception in 2017, aligning with responsible business practices[35]. - Compliance with privacy and data handling regulations is critical, as failure to comply could adversely affect the company's financial condition and results[65]. - The company is subject to evolving regulatory landscapes that require additional investments in compliance programs, impacting strategies for new technologies like AI[68]. - Increased scrutiny and evolving expectations regarding ESG initiatives could lead to higher costs and reputational risks for the company[102]. Risks and Challenges - The company faces vulnerabilities to security breaches and cyber-attacks, which could disrupt operations and lead to significant costs and liabilities[58]. - The company is exposed to risks related to climate change and natural disasters, which could impact its operations and financial performance[54]. - The company may face challenges in maintaining and growing customer relationships, which are essential for revenue generation[56]. - The company is subject to various risks that could affect its credit rating and ability to raise capital, impacting its financial stability[54]. - The company is vulnerable to fluctuations in exchange rates due to its international operations, which could impact financial results[54]. - The company must continuously invest in cybersecurity measures to protect against evolving threats, which could incur significant costs[63]. - The company is experiencing higher employee attrition rates, which may impact its ability to provide competitive services and meet customer needs[104]. - Future economic downturns could lead to reduced demand for services and increased credit defaults, negatively affecting financial health[90]. Corporate Governance and Management - Leadership changes and management transitions may create uncertainty and hinder strategic planning and execution[106]. - The company has a history of restructuring plans that may not yield the expected benefits, potentially affecting its business operations[56]. - The company may engage in strategic transactions, including acquisitions, which could materially affect financial performance if not successfully executed[145]. Debt and Liquidity - The company has total indebtedness of approximately $3.9 billion as of March 31, 2025, which may adversely affect its business and financial condition[91]. - Future cash flow generation is uncertain and dependent on various external factors, which may impact the company's ability to meet debt obligations[93]. - Maintaining investment-grade credit ratings is crucial, as downgrades could increase borrowing costs and limit access to capital markets[82]. - The company indefinitely suspended its cash dividend payments beginning in the first quarter of fiscal 2021 and does not intend to reinstate them as of March 31, 2025[185]. Operational Efficiency - The company owns or leases approximately 340 locations worldwide, optimizing its data center footprint and reducing space capacity at low utilization sites[178]. - The company aims to sell, lease, or sublease excess space that is not needed for future expansion[179]. - The company is exposed to risks associated with supply chain disruptions, which could harm customer relationships and financial performance[125]. - The company may face significant costs related to maintaining effective internal controls over financial reporting, impacting investor confidence[126].

Core Insights - DXC Technology Company reported revenue of $3.17 billion for the quarter ended March 2025, reflecting a year-over-year decline of 6.4% [1] - The earnings per share (EPS) for the quarter was $0.84, down from $0.97 in the same quarter last year, but exceeded the consensus estimate of $0.76 by 10.53% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $3.13 billion by 1.20% [1] Financial Performance Metrics - Global Business Service (GBS) revenue was $1.63 billion, a year-over-year decrease of 4.8%, slightly below the average estimate of $1.65 billion [4] - Global Infrastructure Services (GIS) revenue was reported at $1.54 billion, representing an 8.1% decline year-over-year, but exceeded the average estimate of $1.50 billion [4] - Total revenues for DXC Technology showed a year-over-year change of -6.4%, which was better than the average estimate of -7.1% [4] Stock Performance - Over the past month, shares of DXC Technology have returned +14.3%, outperforming the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

DXC Technology shares have lost about 15.2% since the beginning of the year versus the S&P 500's gain of 0.1%. DXC Technology Company. (DXC) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this company would post earnings of $0.77 per share ...

Financial Data and Key Metrics Changes - Total revenue for the fourth quarter was $3.2 billion, a decline of 4.2% year-over-year on an organic basis, slightly above expectations [15] - Adjusted EBIT margin was 7.3%, down 110 basis points year-over-year, but also slightly above expectations [16] - Non-GAAP EPS was $0.84, down from $0.97 in the fourth quarter of the previous year, driven by lower adjusted EBIT [17] - Full year bookings increased by 7% year-over-year, with a book-to-bill ratio of 1.28 in the second half of the year [21][22] - Non-GAAP diluted EPS for the full year was $3.43, up 11% year-over-year, primarily driven by a lower share count and higher adjusted EBIT [23] Business Line Data and Key Metrics Changes - GBS, representing 51% of total revenue, declined 2.4% year-over-year organically, with a profit margin decrease to 10.9% [17] - GIS, representing 49% of total revenue, declined 6% year-over-year organically, with fourth quarter bookings growing 33% year-over-year [20] - Consulting and Engineering Services (CES) saw a 3.9% decline in organic revenue year-over-year, but bookings were up 9% year-over-year [19] Market Data and Key Metrics Changes - The pipeline for consumer industries and retail has dropped, particularly in project-based services, while banking, capital markets, manufacturing, and public sector remain robust [32][33] - The insurance business grew at mid-single-digit rates through the first three quarters, with confidence in continued performance [19] Company Strategy and Development Direction - The company is focused on achieving sustainable profitable revenue growth, with a strong emphasis on rebuilding operational capabilities and leadership stability [5][6] - Investments are being made in sales and marketing to enhance capabilities and drive growth [89] - The company plans to restart its share repurchase program, indicating confidence in future performance [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and emphasized the importance of a strong pipeline and execution capabilities [27][55] - The impact of AI is seen as a significant opportunity, with increasing spending expected from clients [9][44] - Management acknowledged the challenges in converting bookings to revenue due to longer contract durations but remains optimistic about future growth [51][74] Other Important Information - The company will report financial results under a new segment structure starting in the first quarter of fiscal 2026, which includes Insurance Services and Software, Consulting and Engineering Services, and GIS [28][80] - Total cash on the balance sheet increased by approximately $570 million year-over-year to $1.8 billion, driven by free cash flow generation [25] Q&A Session Summary Question: Demand and Industry Dynamics - Management noted good progress in large deals but identified softness in project-based services within consumer industries and retail [32][33] Question: Free Cash Flow Guidance - The $600 million target for free cash flow in fiscal 2026 is based on fiscal 2025 results adjusted for EBIT guidance and increased restructuring spending [34] Question: Macroeconomic Outlook - The guidance for fiscal 2026 reflects uncertainty, with room for potential deterioration in conditions [38] Question: Pricing Environment - The pricing environment has been stable, with improvements noted in mega deals and project-based services [39] Question: Gen AI Spending - Gen AI spending has been primarily in smaller pilot projects, with significant potential for growth as companies assess their readiness [43][44] Question: Revenue Growth Conditions - Management emphasized the importance of a qualified pipeline and execution capabilities for future revenue growth [52][55] Question: Carnival Cruise Line Deal - The company won the Carnival deal based on capability rather than price, highlighting its proven partnership and technical foundation [58] Question: Cross-Selling Opportunities - Client engagement forums have been initiated to enhance understanding of DXC's offerings, leading to increased demand for GBS from GIS clients [64] Question: Investment Plans - The company is focusing on replicable capabilities and internal optimization to drive growth, with significant investments planned in sales and marketing [89]

Financial Data and Key Metrics Changes - Total revenue for the fourth quarter was $3.2 billion, a decline of 4.2% year-over-year on an organic basis, slightly above expectations [15] - Adjusted EBIT margin was 7.3%, down 110 basis points year-over-year, but slightly above expectations [16] - Non-GAAP EPS was $0.84, down from $0.97 in the fourth quarter of the previous year, driven by lower adjusted EBIT [17] - Full year bookings increased by 7% year-over-year, with a book-to-bill ratio of 1.28 in the second half of the year [21][22] - Non-GAAP diluted EPS for the full year was $3.43, up 11% year-over-year, primarily driven by a lower share count and higher adjusted EBIT [23] Business Line Data and Key Metrics Changes - GBS, representing 51% of total revenue, declined 2.4% year-over-year organically, with a profit margin decrease to 10.9% [17] - GIS, representing 49% of total revenue, declined 6% year-over-year organically, with fourth quarter bookings growing 33% year-over-year [20] - Consulting and Engineering Services (CES) saw bookings up 9% year-over-year, with a book-to-bill ratio of 1.22 [18] Market Data and Key Metrics Changes - The pipeline in consumer industries and retail has dropped, particularly in project-based services, while banking, capital markets, manufacturing, public sector, and insurance remain robust [32][33] - The insurance business grew at mid-single-digit rates through the first three quarters, with confidence in maintaining this growth rate for fiscal 2026 [19] Company Strategy and Development Direction - The company is focused on achieving sustainable profitable revenue growth and reversing eight consecutive years of revenue decline [5] - Investments are being made in sales and marketing to improve capabilities and drive growth [90] - The company plans to restart its share repurchase program, underscoring its commitment to delivering long-term value to shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the importance of leadership stability and the recruitment of new talent [6][7] - The impact of AI is beginning to accelerate within the client base, with increasing AI spending year-over-year [9] - Fiscal 2026 is expected to be a year of continued disciplined execution to sharpen operations and drive efficiencies despite near-term uncertainties [13] Other Important Information - The company will report financial results under a new segment structure starting in the first quarter of fiscal 2026, which includes Insurance Services and Software, Consulting and Engineering Services, and GIS [28] - Total cash on the balance sheet increased by approximately $570 million year-over-year to $1.8 billion, driven by free cash flow generation and asset sale proceeds [25] Q&A Session Summary Question: Demand and Industry Insights - Management noted good progress in large deals, but some softness in project-based services in consumer industries and retail [32][33] Question: Free Cash Flow Guidance - The $600 million target for free cash flow in fiscal 2026 is based on fiscal 2025 results adjusted for after-tax EBIT guidance and increased restructuring spending [34] Question: Macroeconomic Outlook - The guidance for fiscal 2026 accounts for uncertainty, with a wider range provided for the first quarter to reflect potential conditions [39] Question: Pricing Environment - The pricing environment has been stable, with improvements noted in mega deals and project-based services [40] Question: Gen AI Spending - Gen AI spending has been increasing, primarily in smaller pilot projects, with significant potential for future growth [43][45] Question: Revenue Growth Conditions - Management emphasized the importance of a qualified pipeline and effective execution to achieve revenue growth [52][54] Question: Investment Plans - The company is focusing on replicable capabilities and investing in sales and marketing to drive positive growth [89][90]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $3.2 billion, a decline of 4.2% year-over-year on an organic basis [16] - Adjusted EBIT margin was 7.3%, down 110 basis points year-over-year [17] - Non-GAAP EPS was $0.84, down from $0.97 in the same quarter last year [18] - Full year total revenue was $12.9 billion, down 4.6% year-over-year on an organic basis [24] - Non-GAAP diluted EPS for the full year was $3.43, up 11% year-over-year [24] Business Line Data and Key Metrics Changes - GBS (Global Business Services) revenue, which represents 51% of total revenue, declined 2.4% year-over-year organically [19] - GIS (Global Infrastructure Services) revenue, representing 49% of total revenue, declined 6% year-over-year organically [22] - Within GBS, consulting and engineering services saw bookings up 9% year-over-year with a book-to-bill ratio of 1.22 [20] - Insurance Services and Software business grew 1% year-over-year organically, while BPS (Business Process Services) organic revenue grew 2.7% year-over-year [21] Market Data and Key Metrics Changes - Bookings increased by more than 20% year-over-year, resulting in a book-to-bill ratio of 1.2 for Q4 [5] - The second half of the year saw a bookings growth rate of 24% [5] - The pipeline in consumer industries and retail has dropped, particularly in project-based services [34] Company Strategy and Development Direction - The company is focused on achieving sustainable profitable revenue growth and reversing eight consecutive years of revenue decline [5] - Investments are being made in sales capabilities and marketing to deepen customer relationships and expand the pipeline [7] - The company plans to restart its share repurchase program, indicating confidence in future growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and emphasized the importance of operational discipline [14] - The impact of AI is seen as a significant opportunity for growth, with increasing spending from clients [10] - Management noted that while there are challenges in certain sectors, overall demand remains strong in banking, capital markets, and insurance [35] Other Important Information - The company will report financial results under a new segment structure starting in Q1 2026, which includes Insurance Services and Software, Consulting and Engineering Services, and GIS [30] - The company generated $687 million of free cash flow for the fiscal year, driven by better working capital management [25] Q&A Session Summary Question: Demand trends and industry impacts - Management noted good progress in large contracts but identified softness in consumer industries and retail [34][35] Question: Free cash flow guidance - The $600 million target for free cash flow was explained as adjusted for after-tax EBIT guidance and increased restructuring spending [36] Question: Macroeconomic outlook for revenue guidance - Management indicated that the guidance accounts for uncertainty and potential economic deterioration [40] Question: Pricing environment - The pricing environment has been stable, with improvements noted in mega deals [41] Question: Gen AI spending and project growth - Management highlighted that Gen AI spending has been primarily in smaller pilot projects, with significant potential for growth [45][46] Question: Revenue growth conditions - Management emphasized the importance of a qualified pipeline and execution capabilities for future growth [55][56] Question: Insurance segment reporting - The company will break out insurance as a separate segment starting in 2026, reflecting internal management structures [83] Question: Investment priorities - Investments will focus on replicable capabilities and sales and marketing to drive growth [92][94]