Core Insights - DXC Technology reported Q1 FY2026 GAAP revenue of $3.16 billion and non-GAAP EPS of $0.68, both exceeding analyst expectations [1][5] - Year-over-year, GAAP revenue declined by 2.4%, and non-GAAP EPS fell by 9.3% [5][10] - The company experienced strong bookings growth, reaching $2.8 billion, up 14% year-over-year, marking the third consecutive quarter of double-digit growth [6][10] Financial Performance - GAAP revenue for Q1 FY2026 was $3.16 billion, surpassing estimates by $80.9 million, while non-GAAP EPS was $0.68, exceeding estimates by $0.01 [1][5] - Free cash flow (non-GAAP) increased significantly to $97 million, up from $45 million in Q1 FY2025, reflecting a 115.6% increase [2][7] - Net income on a GAAP basis was $16 million, down from $26 million in Q1 FY2025, with GAAP diluted EPS decreasing from $0.14 to $0.09 [5][9] Business Segments - Consulting and Engineering Services saw a 32% increase in bookings but a 2.7% decline in revenue, with profit margin dropping from 9.6% to 8.4% [6][9] - Global Infrastructure Services bookings grew by 4%, while revenue fell by 3.5% year-over-year [6] - Insurance Services revenue increased by 5.4% year-over-year, but segment profit fell by 25%, reducing the margin to 10.5% [6][9] Strategic Focus - The company is focusing on integrating AI and advanced data analytics into its services, enhancing cybersecurity capabilities, and expanding its talent pool [4][8] - Management emphasized the importance of building a stronger client pipeline and streamlining sales processes [4][10] - A major contract was secured with Carnival Cruise Line for technology management across its fleet, showcasing the company's capabilities in infrastructure [8] Future Outlook - Management raised full-year guidance for non-GAAP diluted EPS to a range of $2.85–$3.35 for FY2026, while expecting organic revenue to decline by 3.0% to 5.0% [10][11] - For Q2 FY2026, non-GAAP EPS is projected between $0.65 and $0.75, with revenue expected to be approximately $3.15–$3.18 billion [10] - The company aims for approximately $600 million in free cash flow (non-GAAP) for FY2026 and plans to continue share repurchases [11]

Core Insights - DXC Technology, Inc. reported better-than-expected financial results for Q1 of fiscal 2026, with shares rising 4% in extended trading after reporting non-GAAP earnings of 68 cents per share, exceeding the Zacks Consensus Estimate by 6.3% despite a 10.5% year-over-year decline in earnings [1][9] - The company has a strong track record of beating earnings estimates, surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 22.3% [2] Financial Performance - DXC reported revenues of $3.16 billion for Q1, beating the Zacks Consensus Estimate by 2.9%, but showing a 2.5% decline year over year; on an organic basis, revenues decreased by 4.3% [2] - The new reporting segment structure includes Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services, effective April 1, 2025, to better align financial disclosures with operational organization [3] - CES revenues declined 2.7% year over year to $1.25 billion, while GIS revenues were $1.6 billion, down 3.5% year over year; Insurance Services saw a 5.4% increase to $313 million [4] Margins and Cash Flow - The non-GAAP gross margin increased by 140 basis points, while non-GAAP operating income was $216 million, down 3.6% year over year; the non-GAAP operating margin contracted by 10 basis points to 6.8% [5] - DXC ended Q1 with $1.79 billion in cash and cash equivalents, with long-term debt increasing to $3.1 billion; operating cash flow was $186 million, and free cash flow was $97 million [6] Guidance and Outlook - DXC updated its fiscal 2026 revenue guidance to between $12.61 billion and $12.87 billion, up from the previous range of $12.18 billion to $12.44 billion; the Zacks Consensus Estimate for revenue is $12.29 billion, indicating a 4.5% decline [7] - The company projects an adjusted EBIT margin of 7%-8% and adjusted EPS in the range of $2.85-$3.35, compared to the previous guidance of $2.75-$3.25; the consensus for fiscal 2025 EPS is $3.05, suggesting an 11.1% increase [8] Q2 Expectations - For Q2, DXC anticipates revenues between $3.15 billion and $3.18 billion, with an adjusted EBIT margin of approximately 6.5% to 7.5%; adjusted EPS is projected to be between 65 cents and 75 cents [10]

Core Insights - DXC Technology has been selected by Banco Sabadell to enhance the accessibility of its digital services through a new testing framework that incorporates manual testing, automation, and AI-driven analysis [1][2][3] Group 1: Partnership Details - The initiative aims to create a more inclusive experience for Banco Sabadell's 12 million customers in Spain by addressing accessibility barriers, which is expected to reduce user drop-off and improve customer satisfaction [2][3] - DXC will provide 350,000 hours of advanced testing annually to support this initiative [2] Group 2: Methodology and Compliance - DXC and Banco Sabadell have developed a methodology that integrates accessibility testing throughout the product development lifecycle, including a real-time monitoring system for evaluating issues based on business impact [3] - The approach ensures compliance with accessibility standards set by Spanish and EU regulations, helping Banco Sabadell meet regulatory obligations and broader inclusion goals [3] Group 3: Industry Expertise - DXC Technology has over 45 years of experience in banking and capital markets, providing the necessary technology and expertise for financial institutions to remain competitive [4] - The collaboration is seen as a significant step towards a more equitable digital future for all citizens [4]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) DXC Technology reported Q1 FY2026 revenues of $3.16 billion, a 2.4% decrease, with net income of $18 million, and implemented a new three-segment structure [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (unaudited, in millions, except EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | $3,159 | $3,236 | | Income before income taxes | $67 | $68 | | **Net income** | $18 | $25 | | Net income attributable to DXC | $16 | $26 | | **Diluted EPS** | $0.09 | $0.14 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (unaudited, in millions) | Metric | As of June 30, 2025 | As of March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,792 | $1,796 | | **Total Assets** | $13,438 | $13,205 | | Total current liabilities | $4,497 | $4,411 | | Long-term debt | $3,100 | $2,996 | | **Total Liabilities** | $10,008 | $9,715 | | **Total Equity** | $3,430 | $3,490 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (unaudited, in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $186 | $238 | | Net cash used in investing activities | $(77) | $(188) | | Net cash (used in) provided by financing activities | $(110) | $41 | | **Net (decrease) increase in cash** | $(4) | $93 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In Q1 fiscal 2026, the company implemented a new segment structure with three reportable segments: Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services[18](index=18&type=chunk)[49](index=49&type=chunk)[88](index=88&type=chunk) - Following a segment realignment, the company reallocated goodwill and recorded a full impairment of **$14 million** for the goodwill balance allocated to the GIS segment[51](index=51&type=chunk)[53](index=53&type=chunk) Segment Revenue and Profit (Q1 FY2026, in millions) | Segment | Revenues | Segment Profit | | :--- | :--- | :--- | | Consulting & Engineering Services (CES) | $1,246 | $105 | | Global Infrastructure Services (GIS) | $1,600 | $97 | | Insurance Services | $313 | $33 | - As of June 30, 2025, the company has approximately **$16.7 billion** in remaining performance obligations, with about **32%** expected to be recognized as revenue in fiscal 2026[57](index=57&type=chunk) - The company is involved in ongoing tax disputes with the IRS, with potential unreserved federal and state tax expense of approximately **$552 million** if the company does not prevail[68](index=68&type=chunk)[73](index=73&type=chunk) - In the TCS litigation, a court affirmed a jury verdict in DXC's favor, awarding a total of **$194 million** plus attorney's fees and costs. The decision is pending appeal and has not been recognized in the financial statements[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 2.4% revenue decline to $3.16 billion for Q1 FY2026, with varied segment performance and total liquidity of $5.0 billion Q1 FY2026 Financial Highlights vs. Q1 FY2025 (in millions, except EPS and ratios) | Metric | Q1 FY2026 | Change (YoY) | | :--- | :--- | :--- | | Revenues | $3,159 | -2.4% | | Organic Revenue | N/A | -4.3% | | Adjusted EBIT | $216 | -3.6% | | Adjusted Diluted EPS | $0.68 | -9.3% | | Free Cash Flow | $97 | +115.6% | | Book-to-bill ratio | 0.90x | +0.13x | Segment Performance (YoY Change) | Segment | Revenue Change | Organic Revenue Change | Segment Profit Change | | :--- | :--- | :--- | :--- | | CES | -2.7% | -4.4% | -14.6% | | GIS | -3.5% | -5.7% | -4.0% | | Insurance | +5.4% | +3.6% | -25.0% | - The decrease in operating cash flow was primarily due to lower net income and an unfavorable change in working capital. The cash conversion cycle increased from **14 days** to **17 days** year-over-year[149](index=149&type=chunk) - Total liquidity as of June 30, 2025, was **$5.0 billion**, consisting of **$1.8 billion** in cash and **$3.2 billion** available under the revolving credit facility. The company continues to suspend dividend payments to maintain financial flexibility[156](index=156&type=chunk)[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed since the end of the previous fiscal year, March 31, 2025 - There have been no material changes to the company's market risk exposure since March 31, 2025[161](index=161&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - Based on an evaluation as of the end of the quarter, the CEO and CFO concluded that disclosure controls and procedures were effective[162](index=162&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[163](index=163&type=chunk) [PART II – OTHER INFORMATION](index=50&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 of the financial statements for details on legal proceedings, including a securities class action settlement and ongoing TCS litigation - For information regarding legal proceedings, the report directs readers to Note 17 – "Commitments and Contingencies" in the financial statements[165](index=165&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to the risk factors disclosed in its Annual Report on Form 10-K - There have been no material changes in the three months ended June 30, 2025, to the risk factors described in the company's most recent Form 10-K[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 FY2026, the company repurchased approximately 3.28 million shares for $50 million, with $542 million remaining for future repurchases Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | — | | May 2025 | 1,010,414 | $15.14 | | June 2025 | 2,264,854 | $15.32 | - As of June 30, 2025, approximately **$542 million** remained available for repurchase under the company's share repurchase programs[170](index=170&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[174](index=174&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including various agreements, plan amendments, and CEO/CFO certifications - The report includes exhibits such as executive compensation agreements, amendments to the receivables purchase agreement, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[175](index=175&type=chunk)

Core Insights - DXC Technology Company reported $3.16 billion in revenue for the quarter ended June 2025, reflecting a year-over-year decline of 2.4% [1] - The earnings per share (EPS) for the same period was $0.68, down from $0.74 a year ago, but exceeded the consensus EPS estimate of $0.64 by 6.25% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $3.07 billion by 2.92% [1] Revenue Performance - Total revenues experienced a year-over-year change of -2.4%, which was better than the three-analyst average estimate of -5.1% [4] - Global Infrastructure Services (GIS) revenues were reported at $1.6 billion, showing a year-over-year change of +2.6%, compared to the three-analyst average estimate of $1.47 billion [4] - The year-over-year change for GIS was -3.5%, which also outperformed the average estimate of -6.1% based on three analysts [4] Stock Performance - Shares of DXC Technology have returned -14% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance against the broader market in the near term [3]

DXC Technology Company. (DXC) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.25%. A quarter ago, it was expected that this company would post earnings of $0.76 per share when it actually produced earnings of $0.84, delivering a surprise of +10.53%. Over the last four quarters, th ...

Financial Data and Key Metrics Changes - The company reported total revenue of $3.2 billion, a decline of 4.3% year-over-year on an organic basis, which was at the high end of guidance [20][5] - Adjusted EBIT margin was 6.8%, down modestly by 10 basis points year-over-year [21] - Non-GAAP diluted EPS was $0.68, down from $0.75 in the first quarter of the previous year, primarily due to lower adjusted EBIT and higher taxes [22] - Free cash flow generated was $97 million, compared to $45 million in the same quarter last year [25] Business Line Data and Key Metrics Changes - Consulting and Engineering Services (CES), representing 39% of total revenue, declined 4.4% year-over-year on an organic basis, but bookings grew by 32% year-over-year with a strong book-to-bill ratio of 1.2 [22][23] - Global Infrastructure Services (GIS), which accounts for 51% of total revenue, declined 5.7% year-over-year organically, with a book-to-bill ratio of 0.7 due to deferred large deals [23] - Insurance, representing 10% of total revenue, grew 3.6% year-over-year organically, driven by growth in software and volume-based increases in existing accounts [24] Market Data and Key Metrics Changes - Strong bookings were observed in Europe and Asia Pacific, with book-to-bill ratios well above one, driven by public sector strength and solid deal flow in manufacturing and retail [6] - The company expects to maintain a trailing twelve-month book-to-bill ratio above one, supported by a healthy pipeline and steady deal inflows [6] Company Strategy and Development Direction - The company is focusing on integrating AI into client operations, ensuring it is a core component of business strategy [10] - A strategic partnership with Boomi was announced to enhance AI-driven integration automation, aiming to streamline operations and improve decision-making [13][14] - The leadership team is being strengthened with experienced talent to drive growth and sharpen market focus [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite economic uncertainties, with expectations for narrowing declines in CES as larger contracts ramp up [42][43] - The company is committed to sustainable profitable growth and is taking deliberate steps to strengthen its balance sheet while minimizing new financial lease originations [25][26] - Management acknowledged the need for improvement in organic revenue growth and is focused on driving consistent bookings growth [16][17] Other Important Information - The company has been recognized by Gartner as an emerging leader in generative AI consulting and implementation services [11] - The company is investing in training over 50,000 engineers in generative AI to enhance its capabilities [10] Q&A Session Summary Question: Can you discuss free cash flow expectations for fiscal 2026? - Management expressed confidence in the guidance provided, noting improvements in working capital and potential benefits from new tax legislation [32][34] Question: What are the expectations for bookings in Q2? - The pipeline for Q2 is strong, with solid growth expected in non-mega deals, particularly in CES [36][37] Question: Can you elaborate on the fiscal 2026 revenue growth outlook? - Management maintained a cautious outlook due to economic uncertainty but expects narrowing declines in CES and solid performance in insurance [40][43] Question: How is AI impacting competitive positioning? - AI presents a significant opportunity for the company, enhancing its ability to deliver value to clients and improve operational efficiency [50][51] Question: What is the company's strategy regarding low-margin contracts? - The company aims to negotiate better terms during renewals rather than exiting contracts, focusing on mutual benefits [68] Question: How is the company approaching AI investments? - The company is pursuing both organic and inorganic strategies, focusing on learning and scaling AI applications across operations [70][71] Question: What is the readiness of enterprises to leverage AI solutions? - Many enterprises are still in the early stages of readiness, requiring significant work on data and processes before fully leveraging AI [86][89]

1st Quarter Fiscal Year 2026 Earnings Presentation July 31, 2025 Agenda for Today 1 Q1 Performance Highlights and Business Update 2 Detailed Review of Q1 Results and Guidance Update Q&A 3 2 We believe EBIT, adjusted EBIT, Non-GAAP income before income taxes, Non-GAAP net income, Non-GAAP net income attributable to DXC common stockholders, and Non-GAAP EPS provide investors with useful supplemental information about our operating performance after excluding certain categories of expenses as well as gains and ...

Exhibit 99.1 DXC Technology Reports First Quarter Fiscal Year 2026 Results ASHBURN, VA, July 31, 2025 – DXC Technology (NYSE: DXC) today reported results for the first quarter fiscal 2026. "We delivered first quarter results at the high end of our guidance for both organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations. For the third straight quarter, we reported double digit bookings growth, a clear sign we are connecting better with clients," said DXC Technology Presiden ...

Exhibit 99.1 ASHBURN, Va., July 31, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC) today reported results for the first quarter fiscal 2026. "We delivered first quarter results at the high end of our guidance for both organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations. For the third straight quarter, we reported double digit bookings growth, a clear sign we are connecting better with clients," said DXC Technology President and CEO, Raul Fernandez. "We're embedding AI a ...