Core Insights - DXC Technology has been recognized as a Leader in the ISG Provider Lens AWS Ecosystem Partners study, receiving 16 awards globally, highlighting its leadership in cloud transformation and AWS managed services [1][2][4] Group 1: Awards and Recognition - DXC was named AWS Innovation Partner of the Year for 2024 in the APAC region, showcasing its deep technical expertise in AWS [2] - The ISG Provider Lens study evaluated providers in various categories, with DXC recognized as a Rising Star and Leader, reflecting its strengths in AWS Professional Services, Managed Services, Enterprise Data Modernization, AI Services, and SAP Workloads [4] Group 2: Strategic Partnerships and Services - DXC's strategic partnership with AWS combines cloud expertise and joint innovation, enabling the delivery of strategy, migration, and managed services for cloud, applications, and analytics [4] - The company offers a modular managed services portfolio that supports hybrid and multicloud environments, facilitating seamless deployment of services within clients' cloud environments [6] Group 3: Industry Impact and Future Directions - DXC aims to transform complex mainframes into AWS-native architectures, driving measurable business outcomes and optimizing operations for enterprise clients [4] - The company is focused on integrating AI-driven operations and SRE principles into its managed services, redefining the approach to AWS [3]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article suggests that users may face access issues if they have an ad-blocker enabled [1] - It advises users to disable their ad-blocker and refresh the page to proceed [1]

Financial Performance - Revenues for the three months ended September 30, 2025, were $3,161 million, a decrease of 2.5% compared to $3,241 million for the same period in 2024[10]. - Net income for the six months ended September 30, 2025, was $58 million, down 17.1% from $70 million for the same period in 2024[10]. - As of September 30, 2025, DXC Technology Company reported a net income of $36 million, compared to $42 million for the same period in 2024, reflecting a decrease of approximately 14.3% year-over-year[19]. - The company experienced a comprehensive loss attributable to DXC common stockholders of $44 million for the three months ended September 30, 2025[14]. - DXC's total comprehensive loss for the three months ended September 30, 2025, was $(80) million, compared to a comprehensive income of $64 million for the same period in 2024[19]. - Net income attributable to DXC common shareholders for the three months ended September 30, 2025, was $36 million, compared to $42 million for the same period in 2024, representing a decrease of 14.3%[30]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.20, down from $0.23 in the same period of 2024, a decline of 13.0%[30]. - Diluted earnings per share were $0.20, down from $0.23 in the same period a year ago; adjusted diluted earnings per share were $0.84, down from $0.93[137]. - Net income for the six months ended September 30, 2025, was $276 million, compared to $308 million for the same period in 2024, reflecting a decrease of 10.4%[170]. Assets and Liabilities - Total current assets increased to $5,439 million as of September 30, 2025, compared to $5,363 million as of March 31, 2025[16]. - Total liabilities increased to $10,246 million as of September 30, 2025, compared to $9,715 million as of March 31, 2025[16]. - Goodwill increased slightly to $531 million as of September 30, 2025, from $526 million as of March 31, 2025[16]. - The total debt of the Company as of September 30, 2025, was $3.982 billion, compared to $3.876 billion as of March 31, 2025[69]. - The estimated fair value of the Company's long-term debt, excluding finance lease liabilities, was $3.6 billion as of September 30, 2025[70]. - The company had total liquidity of $5.1 billion as of September 30, 2025, including $1.9 billion in cash and cash equivalents and $3.2 billion in available borrowings[187]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended September 30, 2025, was $595 million, compared to $433 million for the same period in 2024[18]. - Year-to-date cash generated from operations was $595 million, resulting in free cash flow of $337 million, compared to $93 million in the prior year[137]. - Cash paid for interest during the six months ended September 30, 2025, was $102 million, compared to $137 million in the same period of 2024[105]. - The company reported a total of $508 million in capital expenditures in accounts payable and accrued expenses for the six months ended September 30, 2025[105]. - The cash conversion cycle improved to 9 days for the three months ended September 30, 2025, down from 15 days in the prior year[177]. Shareholder Actions - The company repurchased 5,318 thousand shares under its share repurchase program, resulting in a treasury stock acquisition of $76 million during the three months ended September 30, 2025[19]. - For the first six months of fiscal 2026, the company repurchased a total of 8,593,166 shares at an average price of $14.55, totaling $125 million[95]. - During the quarter ended September 30, 2025, DXC repurchased a total of 5,317,898 shares at an average price of $14.12 per share[200]. - As of September 30, 2025, approximately $467 million worth of shares remained available for repurchase under the company's share repurchase plans[200]. - The company announced an incremental $1.0 billion share repurchase authorization on May 18, 2023[200]. Segment Performance - Segment revenues for the three months ended September 30, 2025, were $3,161 million, a decrease from $3,241 million in the same period of 2024[111]. - Segment profit for the six months ended September 30, 2025, was $530 million, down from $600 million in the same period of 2024[112]. - Revenues for the CES segment for the six months ended September 30, 2025, were $2,501 million, a decrease from $2,560 million in the same period of 2024[112]. Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 69.5%, compared to 51.6% for the same period in 2024[81]. - The effective tax rate for the six months ended September 30, 2025, was 38.0%, down from 56.5% in the same period of 2024[170]. - The company has a deferred tax liability of $23 million related to undistributed earnings from foreign subsidiaries as of September 30, 2025[82]. - The company expects to resolve tax return years 2014 through 2021 no earlier than fiscal year 2027[93]. Restructuring and Costs - The company reported restructuring costs of $35 million for the three months ended September 30, 2025, compared to $42 million for the same period in 2024[10]. - Restructuring liabilities totaled $36 million as of September 30, 2025, down from $39 million as of March 31, 2025[76]. - The company expects to incur restructuring costs associated with global cost savings initiatives during fiscal 2026[77]. - Corporate expenses for the three months ended September 30, 2025, were $41 million, down from $53 million in the same period of 2024, reflecting a reduction of 22.6%[113]. Market and Economic Factors - The company was awarded a total of $194 million in a lawsuit against Tata Consultancy Services, including $56 million in compensatory damages and $112 million in punitive damages[119]. - The Inflation Reduction Act imposes a 1% excise tax on share repurchases completed after December 31, 2022, which is reflected within equity[201]. - There have been no material changes to the risk factors affecting the company as of September 30, 2025[197].

Core Insights - DXC Technology reported revenue of $3.16 billion for the quarter ended September 2025, reflecting a year-over-year decline of 2.5% [1] - The earnings per share (EPS) for the quarter was $0.84, down from $0.93 in the same quarter last year, but exceeded the consensus estimate of $0.71 by 18.31% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.18 billion, resulting in a surprise of -0.58% [1] Revenue Performance - Total revenues decreased by 2.5% year-over-year, compared to an average estimate of -1.9% from three analysts [4] - Global Infrastructure Services (GIS) revenue also declined by 4.2% year-over-year, against an estimated decline of 1% [4] - GIS revenues were reported at $1.59 billion, slightly above the three-analyst average estimate of $1.58 billion, showing a year-over-year increase of 1.7% [4] Stock Performance - Over the past month, DXC Technology's shares have returned -4.6%, contrasting with a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - DXC Technology Company reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, but down from $0.93 per share a year ago, resulting in an earnings surprise of +18.31% [1] - The company posted revenues of $3.16 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.58% and down from $3.24 billion year-over-year [2] - DXC Technology shares have declined approximately 34.1% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $3.21 billion, and for the current fiscal year, it is $3.14 on revenues of $12.76 billion [7] - The estimate revisions trend for DXC Technology was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computers - IT Services industry, to which DXC Technology belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $3.2 billion, a decline of 4.2% year-over-year on an organic basis, consistent with previous quarters [14] - Adjusted EBIT margin was 8%, above the high end of guidance, but down 60 basis points year-over-year due to productivity savings and higher investment levels [15] - Non-GAAP EPS was $0.84, down from $0.93 in the same quarter last year, primarily due to lower adjusted EBIT and higher taxes [16] - Free cash flow generated was $240 million, significantly up from $48 million last year, bringing first-half free cash flow to $337 million, an increase of $244 million year-over-year [18][20] Business Line Data and Key Metrics Changes - Consulting and Engineering Services (CES) revenue declined 3.4% year-over-year, with a book-to-bill ratio of 0.92 [16] - Global Infrastructure Services (GIS) revenue declined 6.3% year-over-year, with a book-to-bill ratio of 0.82 [17] - Insurance Services revenue grew 3.6% year-over-year, driven by software growth and volume increases in existing accounts [18] Market Data and Key Metrics Changes - The trailing 12-month book-to-bill ratio for CES improved to 1.15, indicating potential revenue growth in the latter part of the year [16] - The trailing 12-month book-to-bill ratio for GIS remained at approximately 1.1, reflecting a strong pipeline despite longer closing cycles [17] Company Strategy and Development Direction - The company is focusing on a two-track approach: Core Track for existing business and Fast Track for new AI-native solutions [4][5] - Fast Track solutions aim to become 10% of the business within 36 months, targeting large and growing markets with measurable results [6] - The company is enhancing its offerings with AI-enabled solutions and has plans to pilot new products like Oasis in the coming months [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in revenue and bookings but remains focused on building a predictable and growing company [4] - The company anticipates a book-to-bill ratio greater than one in the third quarter, supported by a robust pipeline of new large opportunities [14] - Management is confident in the ability to close large deals based on strong customer interest and the deployment of new tools [43] Other Important Information - The company has reduced total debt by approximately $107 million, bringing it to around $4 billion, while increasing cash balance to $1.9 billion [20][21] - The full-year revenue guidance has been narrowed to a decline of 3.5% to 4.5%, with expectations for adjusted EBIT margin between 7% and 8% [22][23] Q&A Session Summary Question: Update on CES performance under new leadership - Management highlighted targeted goals and go-to-market plans to improve CES performance, leveraging strong SAP capabilities [26][27] Question: Trends in GIS business and Hogan - Management noted improved customer-related metrics in GIS and emphasized the importance of new product development for revenue generation [36][38] Question: Free cash flow sustainability - Management indicated that the improved free cash flow performance is expected to be sustainable moving forward [33][70] Question: Headcount strategy in light of AI integration - Management discussed the evolving labor model, emphasizing the need for workforce skills to adapt to AI deployment [62][63] Question: Fast Track solution plans and milestones - Management attributed the pivot to new talent acquisition and the development of a product framework for Fast Track opportunities [68]

Q&A 3 2 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 assumptions regarding future operating or financial performance. These statements involve numerous risks, uncertainties and other important factors that could cause actual results to differ materially from those described in forward-looking statements, many of which are outside of o ...

Financial Performance - Total revenue for Q2 FY26 was $3.16 billion, down 2.5% year-over-year and down 4.2% on an organic basis[5]. - Non-GAAP diluted earnings per share was $0.84, down 9.7% year-over-year[5]. - Segment profit for Consulting and Engineering Services was $145 million, down 17.1% year-over-year[7]. - Revenues for the three months ended September 30, 2025, were $3,161 million, a decrease of 2.5% compared to $3,241 million for the same period in 2024[23]. - Net income attributable to DXC common stockholders for the six months ended September 30, 2025, was $52 million, down 23.5% from $68 million in the same period of 2024[23]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.20, compared to $0.23 for the same period in 2024, reflecting a decrease of 13.0%[23]. - For the six months ended September 30, 2025, net income attributable to DXC common stockholders was $276 million, compared to $308 million for the same period in 2024, reflecting a decrease of 10.4%[28]. - The company reported a net income of $58 million for the three months ended September 30, 2025, compared to $174 million for the same period in 2024[28]. - Net income for Q3 2025 was $40 million, a decrease of 11.1% from $45 million in Q3 2024[33]. Cash Flow and Capital Management - Free cash flow increased to $240 million, up $192 million year-over-year[6]. - The company repurchased $75 million of shares, returning capital to shareholders[6]. - Cash and cash equivalents at the end of the period were $1,888 million, an increase from $1,796 million at the beginning of the year, marking a rise of 5.1%[25]. - Net cash provided by operating activities for the six months ended September 30, 2025, was $595 million, an increase of 37.5% compared to $433 million for the same period in 2024[25]. Guidance and Projections - Revenue guidance for FY26 is projected between $12.67 billion and $12.81 billion, reflecting a decline of 4.5% to 3.5% year-over-year on an organic basis[7]. - Non-GAAP diluted EPS guidance for Q3 FY26 is estimated to be between $0.75 and $0.85[8]. Operational Metrics - Bookings totaled $2.7 billion, with a trailing twelve-month book to bill ratio of 1.08x[5]. - The company plans to implement a two-track approach to business operations, focusing on core and fast track initiatives[2]. - Organic revenue growth for the three months ended September 30, 2025, was reported at (4.2)%, an improvement from (5.6)% in the same period of 2024[30]. - Total revenue growth for the six months ended September 30, 2025, was (2.4)%, compared to (5.9)% for the same period in 2024[30]. Balance Sheet and Liabilities - Total assets increased to $13,582 million as of September 30, 2025, up from $13,205 million as of March 31, 2025, representing a growth of 2.8%[24]. - Total liabilities rose to $10,246 million as of September 30, 2025, compared to $9,715 million as of March 31, 2025, indicating an increase of 5.5%[24]. Tax and Interest Expenses - The effective tax rate for the three months ended September 30, 2025, was 69.5%, compared to 37.7% for the same period in 2024[26]. - The effective tax rate for the six months ended September 30, 2025, was 38.0%, compared to 33.2% for the same period in 2024[28]. - Interest expense for the three months ended September 30, 2025, was $53 million, a decrease of 23.2% from $69 million in the same period of 2024[23]. - Interest income for Q3 2025 was $46 million, a decrease of 9.8% from $51 million in Q3 2024[33]. Segment Performance - GIS organic revenue growth for the three months ended September 30, 2025, was (6.3)%, compared to (9.0)% in the same period of 2024[30]. - Insurance organic revenue growth for the six months ended September 30, 2025, was 3.6%, consistent with the same period in 2024[30]. - CES profit for Q3 2025 was $145 million, a decrease of 17.1% from $175 million in Q3 2024[33]. - GIS profit for Q3 2025 was $122 million, an increase of 1.7% from $120 million in Q3 2024[33]. - Insurance profit for Q3 2025 was $28 million, a decrease of 24.3% from $37 million in Q3 2024[33]. Other Financial Metrics - Adjusted EBIT margin was 8.0%, while EBIT margin was 4.4%[6]. - Adjusted EBIT for Q3 2025 was $254 million, down 8.9% from $279 million in Q3 2024[33]. - Total Company adjusted EBIT margin for Q3 2025 was 8.0%, compared to 8.6% in Q3 2024[33]. - Income before income tax for Q3 2025 was $131 million, an increase of 40.9% from $93 million in Q3 2024[33]. - Corporate expenses for Q3 2025 were $(41) million, a decrease of 22.6% from $(53) million in Q3 2024[33].

Core Insights - DXC Technology reported strong financial performance for the second quarter of fiscal 2026, exceeding guidance in adjusted EBIT margin and non-GAAP diluted EPS, while generating robust free cash flow [2][8] - The company is implementing a strategic plan to adapt to the evolving AI global economy, which includes a two-track business approach and the launch of the Xponential AI framework [2] Financial Highlights - Total revenue for the quarter was $3.16 billion, a decrease of 2.5% year-over-year, and down 4.2% on an organic basis [8] - Adjusted EBIT was $254 million, down 9.0% year-over-year, with an adjusted EBIT margin of 8.0% [8] - Non-GAAP diluted earnings per share was $0.84, down 9.7% year-over-year, while diluted earnings per share was $0.20, down 13.0% year-over-year [8] - Free cash flow increased to $240 million, up $192 million year-over-year [8] Segment Performance - Consulting and Engineering Services (CES) revenue was $1,255 million, down 1.9% year-over-year, with a segment profit of $145 million [8] - Global Infrastructure Services (GIS) revenue was $1,586 million, down 4.2% year-over-year, but segment profit increased by 1.7% to $122 million [8] - Insurance Services revenue was $320 million, up 4.6% year-over-year, with bookings increasing by 24.9% [8] Guidance - Full year fiscal 2026 revenue guidance is projected between $12.67 billion and $12.81 billion, reflecting a decline of 4.5% to 3.5% year-over-year on an organic basis [8] - Third quarter fiscal 2026 revenue guidance is expected to be between $3.18 billion and $3.22 billion, with an organic decline of 5.0% to 4.0% year-over-year [8]

Core Insights - DXC Technology has launched Xponential, a next-generation AI orchestration blueprint aimed at simplifying large-scale AI adoption for enterprises [1][2] - The framework integrates people, processes, and technology to deliver measurable results and accelerate modernization while ensuring secure and responsible AI operationalization [1][2] Company Overview - DXC Technology is a leading global provider of information technology services, recognized as a trusted partner for innovative organizations [6] - The company employs a global team of 50,000 full-stack engineers and operates AI-first facilities across six continents to support AI deployment and scaling [3] Xponential Framework - Xponential consists of five interdependent pillars: Insight, Accelerators, Automation, Approach, and Process, designed to facilitate AI orchestration across enterprises [4] - The framework emphasizes embedded governance, compliance, and observability to ensure responsible AI usage from the outset [4] Case Studies - At Textron, DXC implemented AI-powered automation, resulting in a 20% reduction in service desk tickets and proactive resolution of network issues for 32,000 employees [4] - The European Space Agency is collaborating with DXC to develop ASK ESA, an AI platform that enhances data unification and research acceleration [4] - Singapore General Hospital partnered with DXC to create the AI2D solution, achieving 90% accuracy in guiding antibiotic choices for respiratory infections [4] - Ferrovial is utilizing DXC's AI Workbench to enhance operations for over 25,500 employees through generative AI solutions [4]