DXC Technology Company (NYSE:DXC) Q3 2026 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsBrendan Biles - Equity Research AssociatePaul Obrecht - Equity Research AssociateRaul Fernandez - President and CEORob Del Bene - CFORod Bourgeois - Managing Partner and Head of ResearchRoger Sachs - VP of Investor RelationsConference Call ParticipantsAntonio Jaramillo - Equity Research AnalystBryan Bergin - Managing Director and Senior Equity Research AnalystJamie Friedman - Financial Analyst and Valuat ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2026 was $3.2 billion, a decline of 4.3% year-over-year, consistent with guidance [15] - Adjusted EBIT margin was 8.2%, slightly above the high end of guidance, but down 70 basis points year-over-year [16][17] - Non-GAAP EPS was $0.96, up from $0.92 in the same quarter last year, driven by a lower share count and net interest expense [17] Business Line Data and Key Metrics Changes - CES revenues, representing 40% of total revenue, declined 3.6% year-over-year, with a book-to-bill ratio of 1.2 [17][18] - GIS, which accounts for 50% of total revenue, saw a decline of 6.2% year-over-year, with a book-to-bill ratio of 1.09 [18] - Insurance revenue, making up 10% of total revenue, grew 3.2% year-over-year, primarily due to growth in the software business [18][19] Market Data and Key Metrics Changes - The U.S. market experienced declining performance, while the rest of the world showed improvement [15][18] - The company noted a pronounced difference in performance between the U.S. and other regions, with Europe and APAC on an improving trajectory [85] Company Strategy and Development Direction - The company is pursuing a dual-track strategy to stabilize heritage businesses while building new AI-native revenue streams [4] - Fast-Track initiatives are focused on AI-infused solutions and are expected to achieve 10% of run rate revenue by the end of Q2 Fiscal 2029 [11] - The strategy emphasizes connecting legacy systems to AI rather than replacing them, allowing for faster deployment and innovation [10][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for Q4, driven by corporate spinouts and restructurings [46] - The company anticipates total organic revenue to decline by 4%-5% in Q4, with CES and GIS revenues expected to decline at similar rates [22][23] - Management highlighted the importance of AI in driving future growth and operational efficiency [12][41] Other Important Information - Free cash flow for Q3 was $266 million, bringing the year-to-date total to $603 million, on track to meet the full-year guidance of approximately $650 million [19][21] - The company repurchased $190 million worth of shares year-to-date, with plans to repurchase an additional $60 million in Q4 [20][21] Q&A Session Questions and Answers Question: Insights on Fast-Track attributes and services - Management discussed the importance of leveraging existing value in legacy systems like Hogan to create new, scalable offerings [28][29] Question: Drivers and assumptions behind growth rates in segments - Management noted strong bookings in CES for long-term projects but delays in short-term project bookings impacted revenue expectations [38][39] Question: Pricing environment across business segments - Pricing dynamics vary by segment, with stable pricing observed across GIS, CES, and insurance [63] Question: Capital allocation priorities and M&A considerations - The company remains open to accretive acquisitions that align with business goals while prioritizing internal growth investments [76][77]

JANUARY 29, 2026 1 3RD QUARTER FISCAL YEAR 2026 EARNINGS PRESENTATION DXC Public © 2026 DXC Technology Company. All rights reserved. DXC Public © 2026 DXC Technology Company. All rights reserved. AGENDA 1 Q3 Business Update 2 Detailed Review of Q3 Results and Guidance Update 3 Q&A FORWARD-LOOKING STATEMENTS Except for the historical information and discussions contained herein, statements contained in this document may constitute "forward-looking statements" that are based on the Company's current assumptio ...

Exhibit 99.1 DXC Technology Reports Third Quarter Fiscal Year 2026 Results ASHBURN, VA, January 29, 2026 – DXC Technology (NYSE: DXC) today reported results for the third quarter fiscal 2026. "We delivered third quarter results with solid profit margins, continued strong free cash flow generation and improved bookings. This reflects disciplined execution across our business," said DXC Technology President and CEO Raul Fernandez. "We are investing across our offerings to energize our Core business while also ...

ASHBURN, Va., Jan. 29, 2026 /PRNewswire/ - DXC Technology (NYSE: DXC) today reported results for the third quarter fiscal 2026. Financial Highlights - Third Quarter Fiscal Year 2026 (1) Segment Highlights - Third Quarter Fiscal Year 2026 Consulting and Engineering Services ("CES") "We delivered third quarter results with solid profit margins, continued strong free cash flow generation and improved bookings. This reflects disciplined execution across our business," said DXC Technology President and CEO Raul ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Insights - Euronet Worldwide, Inc. (EEFT) has formed a strategic partnership with DXC Technology to enhance global issuing, revolving credit, and payment capabilities for financial institutions [1][9] - The collaboration integrates DXC's Hogan core banking platform with Euronet's Ren issuing and payments solution, aiming to expedite the launch of card and credit programs while simplifying back-end operations [1][3] Partnership Details - The initial phase will focus on pre-integrated solutions for credit, debit, and revolving credit programs, as well as payment acceptance gateways [2] - Over time, the partnership is expected to expand into broader issuing and transaction services, allowing EEFT to deepen its integration into client workflows across various regions and use cases [2][5] Market Positioning - This partnership reinforces Euronet's position as a comprehensive payments provider, moving beyond being a standalone processor [3] - By leveraging Ren's technology and DXC's established banking platform presence, EEFT aims to engage more directly with financial institutions modernizing their legacy systems [3] Industry Trends - As digital-first competitors expand their card-based and embedded payment offerings, banks are reassessing their issuing and payments infrastructure to enhance speed, flexibility, and consistency [4] - This trend is driving interest in integrated issuing and processing frameworks that facilitate quicker product launches and smoother customer onboarding [4] Future Outlook - The partnership positions EEFT to strengthen its role in the evolving payments ecosystem, potentially supporting higher recurring transaction volumes and unlocking new market opportunities without significant incremental investment [5]

Core Insights - XRP price surged nearly 3% to $1.96, approaching the significant $2 level amid Ripple's expansion efforts [1][2] - Ripple's collaboration with DXC Technology aims to integrate digital asset solutions into traditional banking systems [3][4] Ripple's Strategic Moves - Ripple President Monica Long provided strong forecasts for 2026, coinciding with the recent price surge [3] - CEO Brad Garlinghouse's participation at the World Economic Forum in Davos highlighted Ripple's growing influence [3] Partnership with DXC Technology - DXC Technology will integrate Ripple's digital asset custody and payment solutions into its Hogan core banking platform, which manages over 300 million deposit accounts valued at over $5 trillion [4] - The integration aims to enable financial institutions to offer digital asset custody, tokenization, and cross-border payment services without disrupting existing systems [4][5] Benefits of the Collaboration - The partnership is designed to provide secure custody and seamless payment capabilities for institutions, facilitating their entry into the digital asset ecosystem [5] - Ripple Payments and Ripple Custody will be embedded into DXC's banking infrastructure, allowing banks and fintechs to adopt digital asset capabilities while ensuring regulatory compliance [6]

Core Insights - DXC Technology has announced a strategic partnership with Euronet Worldwide to enhance issuing, revolving credit, and payment capabilities for financial institutions globally [1][5] - The collaboration aims to integrate DXC's Hogan core banking platform, which manages over 300 million deposit accounts and $5 trillion in deposits, with Euronet's Ren platform for modern issuing and payment solutions [2][5] Company Overview - DXC Technology is a leading enterprise technology partner that provides software, services, and solutions to global enterprises, focusing on modernizing and securing complex technology environments [6] - Euronet Worldwide is a global leader in payment processing and cross-border transactions, offering a wide range of services including money transfers, credit and debit processing, and ATM services across more than 200 countries [7] Partnership Objectives - The partnership will enable mutual clients to adopt pre-integrated issuing and payment solutions that support various credit and debit programs, enhancing operational efficiency and reducing time to market for new products [3][4] - The collaboration is designed to help banks and fintechs modernize their payment infrastructures, allowing them to compete effectively and expand their market offerings [5][6] Market Context - As competition in financial services intensifies, issuing and payments have become critical growth areas for banks, prompting investments in modern capabilities to meet rising consumer expectations for speed and flexibility [4][5] - The partnership is positioned to address the fragmented nature of current issuing and payment processes, enabling faster deployment and scalability for financial institutions [5][6]

Core Insights - DXC Technology Company is identified as one of the most undervalued tech stocks to buy in 2026, with a focus on its new automotive software platform, AMBER [1] Group 1: AMBER Platform Launch - The AMBER platform is designed to enhance in-vehicle infotainment systems developed by DXC Luxoft, utilizing embedded AI to simplify development for automakers [2] - AMBER enables automakers to reduce development time by 50% and achieve 30% cost savings through a standardized approach [2] - The platform was launched at CES 2026 and developed in collaboration with leading industry players, offering modular software components with ready-to-use services [2] Group 2: Financial Performance Expectations - DXC Technology is expected to release its fiscal Q3 2026 results on January 29, with anticipated revenue between $3.18 billion and $3.22 billion, slightly above Wall Street estimates of $3.18 billion [3] Group 3: Company Overview - DXC Technology is a global provider of IT services and solutions, specializing in areas such as digital transformation, IT modernization, cloud computing, cybersecurity, analytics, and business process outsourcing [4]