DXC Technology (DXC) Q4 2025 Earnings Call May 14, 2025 05:00 PM ET Company Participants Roger Sachs - Vice President, Investor RelationsRaul Fernandez - President & CEORob Del Bene - CFOJonathan Lee - Managing Director, Equity ResearchPaul Obrecht - Equity Research AssociateRod Bourgeois - Head of Research Conference Call Participants Bryan Bergin - AnalystJames Faucette - AnalystKeith Bachman - Senior Research AnalystTyler DuPont - AnalystJamie Friedman - Senior FinTech and IT Services Research Analyst Op ...

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]

4th Quarter Fiscal Year 2025 Earnings Presentation May 14, 2025 Agenda for Today 1 Q4 Performance Highlights and Business Update 2 Detailed Review of Q4 Results and Guidance Update 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 ris ...

Exhibit 99.1 DXC Technology Reports Fourth Quarter and Full Year Fiscal 2025 Results ASHBURN, VA, May 14, 2025 – DXC Technology (NYSE: DXC) today reported results for the fourth quarter and full year fiscal 2025. "Our fourth quarter results represent continued progress toward our goal of achieving sustained, profitable revenue growth," said DXC Technology President and CEO, Raul Fernandez. "For the second consecutive quarter, we reported bookings growth of more than 20% and book to bill ratios of greater th ...

Core Insights - DXC Technology has launched DXC Complete with SAP and Microsoft to facilitate modernization for SAP customers, providing a streamlined approach to adopting RISE with SAP and GROW with SAP journeys on Microsoft Azure [1][2][3] - The offering includes flexible pricing models and a single contract, enabling enterprises to optimize operations and achieve sustainable growth through transformation to SAP S/4HANA Cloud [1][3] Company Overview - DXC Technology is recognized as a leading global technology services provider, helping businesses modernize IT and optimize data architectures while ensuring security and scalability across various cloud environments [7] - The company has a global team of over 50,000 engineers and consultants, delivering tailored SAP solutions that address industry-specific challenges and drive measurable results [6] Collaboration Highlights - The collaboration between DXC, SAP, and Microsoft aims to simplify technology landscapes, reduce technical debt, and accelerate innovation for clients [2][3] - Microsoft Azure integration with SAP Business AI enhances intelligent automation, predictive insights, and streamlined processes, creating a more connected enterprise [6] Awards and Recognition - DXC Technology has been named a 2025 SAP Pinnacle Awards Winner in the "Partner Learning and Skills Growth" category, highlighting its excellence in co-innovation and customer success [4]

（全球TMT2025年5月6日讯）近期，OPPO、荣耀、小米、蚂蚁集团、中手游、苹果、英特尔、Meta、Oklo、恩智浦、Discord、华纳音乐、 Quantum Computing、DXC Technology等公司高管变动。 OPPO内部消息，原中国区总裁刘波因脱产参加高管学习计划卸任该职位。高级副总裁段要辉直接负责中国市场，对中国区整体业务负责。另 外，此次调整还涉及线下销售板块，由原Reno与A系列GTM部长汤杰负责中国区线下销售工作 ，向段要辉汇报。2024年1月，段要辉升任公司高 级副总裁后分管中国区，刘波向其汇报。 赵明卸任两家荣耀终端公司董事长 北京荣耀终端有限公司、西安荣耀终端有限公司发生工商变更，赵明卸任董事长职务。其中，北京公司由方飞接任董事长职务，西安公司由刘洋 接任。此前，荣耀内部宣布，赵明因身体原因，向公司提出辞去CEO等相关职务，董事会决定由李健任CEO职务。 雷军在小米之家改任董事 小米之家商业有限公司发生工商变更，雷军由执行董事改任董事，同时经营范围新增智能家庭消费设备销售、美发饰品销售。该公司成立于2017 年6月，法定代表人为孙波，注册资本1亿人民币，由小米通讯技术有限 ...

ASHBURN, Va., May 1, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced ISG, a leading global technology research and advisory firm, recognized DXC as a leader in its annual Provider Lens™ study for Mainframes – Services and Solutions. DXC was recognized as a leader in all categories within Europe and the United States, specifically: Mainframe Optimization Services – DXC provides deep mainframe expertise and support across the entire ma ...

Core Insights - DXC Technology has been recognized as a top provider in Everest Group's "Individual Life Insurance Core Technology Products PEAK Matrix® Assessment 2025: North America," highlighting its leadership in modernizing insurance operations to enhance customer experience and reduce costs [1][2] - The report emphasizes DXC's flexible software-as-a-service models as a key differentiator, serving over 1,000 insurance clients and processing more than one billion policies, which accounts for 10% of global premiums [2][5] - DXC's Assure suite, including the cloud-native Assure Life+ offering, supports product deployment across various life, annuity, and savings products, showcasing its commitment to innovation and operational excellence [5][3] Industry Position - The PEAK Matrix® framework evaluates technology providers based on market impact, vision, and capability, with DXC being recognized as a leader among 14 evaluated providers [4] - DXC has over 40 years of experience in the insurance industry, with 21 of the world's top 25 insurers relying on its solutions to address critical business challenges [5] - The company is trusted by 80% of insurers in Fortune's Global 500, indicating its strong position in helping insurance companies navigate disruptions and achieve operational excellence [5][7]

Core Insights - DXC Technology has launched the DXC AI Workbench, a generative AI solution designed to help businesses integrate and scale responsible AI into their operations [1][3] - Ferrovial is utilizing the AI Workbench to enhance operational efficiency and safety for its 24,000 employees, employing over 30 AI agents for real-time decision-making [1][4] Company Overview - DXC Technology is a leading global technology services provider, helping organizations modernize IT and optimize data architectures while ensuring security and scalability across various cloud environments [6] - Ferrovial is a prominent global infrastructure company operating in over 15 countries with a workforce exceeding 25,000, recognized for its commitment to sustainability and compliance with UN Global Compact principles [7] AI Workbench Features - The AI Workbench offers a pre-built scalable solution with necessary safeguards and governance for secure deployment, enabling clients to address unique challenges effectively [3][4] - The platform integrates seamlessly with Ferrovial's back-office systems, such as Workday, ServiceNow, and Microsoft Teams, facilitating automation and data-driven decision-making [4] Client Benefits - Ferrovial reports that the integration of AI into core business processes has significantly reduced operational costs and improved decision-making capabilities, providing a competitive edge in the industry [4] - DXC's expertise in both industry and AI positions it uniquely to assist organizations in adopting and scaling AI solutions to achieve tangible business outcomes [5]

Core Insights - DXC Technology has opened its first sales center in Toronto, Canada, marking a significant step in its growth strategy and commitment to innovation and customer success in the region [1][2] - The Toronto office will enhance DXC's ability to serve clients and foster collaboration, joining its global network of collaboration spaces [2][3] - The company has been operating in Canada for over 20 years, with more than 1,800 employees supporting over 350 customers across various sectors [1][3] Company Expansion - The new office in Toronto is part of DXC's strategic initiatives across the Americas and UKI, with additional expansions planned in New York City, Miami, and London [3] - The Toronto location is positioned in Canada's largest technology hub, providing access to top-tier talent and a thriving innovation ecosystem [1][3] Client Engagement - DXC serves as a trusted partner for significant brands in financial services, healthcare, automotive, and public sectors, helping them modernize operations and implement AI-driven solutions [1][4] - The company emphasizes collaborative innovation and strengthening relationships with clients in critical markets [2][3]