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]

Core Insights - DXC Technology has opened a new office in downtown Detroit, focusing on AI-first innovation and collaboration with employees, partners, and customers [1] - The Detroit office is located in the historic Fowler Building and aims to enhance Detroit's status as a technology hub [1] - DXC has over 500 employees in Michigan and a 40-year presence in the area, serving various industries including automotive, advanced manufacturing, energy, and finance [1] Company Expansion - The new office is part of DXC's global network of collaboration spaces designed to accelerate innovation for customers [1] - DXC is committed to investing in early career talent and upskilling experts in AI technology to support digital transformation [1] Industry Impact - The opening of the Detroit office aligns with the city's historical drive for innovation and the growing importance of AI technology [1] - DXC provides AI-powered solutions and a comprehensive suite of technology services, including application, cloud, infrastructure, and cybersecurity [1]

Core Insights - DXC Technology and Splitit have formed a strategic collaboration to enable banks to offer card-linked installment plans to their account holders, enhancing checkout flexibility and consumer trust [1][2][3] - The partnership aims to help banks regain market share lost to Buy Now, Pay Later (BNPL) providers by integrating installment capabilities directly into existing bank accounts and debit cards [2][3] Company Overview - DXC Technology is a leading global provider of information technology services, managing over 300 million accounts and $5 trillion in deposits across more than 40 major banks through its Hogan core banking platform [1][4] - Splitit specializes in embedded card-linked installment payments, allowing consumers to use existing credit for flexible payment options, and is operational in over 100 countries [6] Market Dynamics - The installment payment solution market is projected to grow from $2.23 billion in 2024 to $3.44 billion by 2031, with a compound annual growth rate (CAGR) of 6.4% [3] - Research indicates that 72% of merchants prefer card-linked installments due to their simplicity and reach, which positions the partnership favorably in the market [3] Strategic Benefits - The collaboration allows banks to quickly deploy branded installment offers without requiring third-party accounts or new loan applications, thus maintaining control over customer relationships [4] - By enabling debit-first lending, the partnership targets a broader customer base, particularly among Gen Z and millennial consumers who prefer debit cards but seek flexible payment options [3][4]

Core Insights - DXC Technology has appointed Anthony Pappas as Chief Marketing Officer to lead the next phase of brand transformation [1][2] - Pappas has over 30 years of global marketing experience and has previously transformed DMI's Global Brand Marketing and Customer Experience division into a top-performing profit center [2] - The company aims to redefine its brand around AI capabilities to deliver tangible business outcomes for customers [3] Company Overview - DXC Technology is a leading global provider of information technology services, focusing on simplifying, optimizing, and modernizing systems and processes for clients [3] - The company integrates AI-powered intelligence into operations and prioritizes security and trust in its offerings [3] Leadership and Strategy - Under Pappas's leadership, DXC is positioned to expand its market presence and accelerate innovation in AI-driven enterprise solutions [2] - Pappas's previous experience includes founding a creative agency and working with major brands such as AARP, Discovery Channel, and Toyota [2]

Core Insights - DXC Technology has launched DXC Assure Smart Apps, a suite of AI-powered applications aimed at transforming the insurance industry by enhancing customer engagement and operational efficiency [1][2][3] Group 1: Product Features and Benefits - Assure Smart Apps integrate seamlessly with insurers' core systems using cloud capabilities from Amazon Web Services (AWS) and APIs from the DXC Assure Platform, enabling efficient implementation of AI-driven solutions [2][3] - The applications are designed to address common challenges in the insurance sector, providing features such as self-service capabilities, AI-driven customer support, and intelligent insights for decision-making [7] - The partnership with ServiceNow enhances the workflow technology and AI capabilities of the Assure BPM platform, resulting in an approximate 80% reduction in process design time [4] Group 2: Market Position and Expertise - DXC Technology has over 40 years of industry experience and is a trusted partner for 21 of the top 25 insurers, processing more than 1 billion policies on its software [5] - The modular approach of Assure Smart Apps allows insurers to innovate at their own pace without disrupting existing operations or investments [3]

Core Insights - The report indicates that 83% of organizations adopting Zero Trust have successfully reduced security incidents, highlighting its effectiveness in enhancing cybersecurity [2][4] - Despite the rise in cyber threats, only 30% of organizations are utilizing AI-driven authentication tools, indicating a significant opportunity for improvement in security practices [2][4] - The Zero Trust model is increasingly recognized as essential for organizations to navigate the evolving threat landscape, particularly with the rise of AI-driven attacks [2][3] Adoption and Implementation - 66% of organizations cite legacy systems as the biggest challenge to Zero Trust adoption, emphasizing the need for modernization [7] - 72% of enterprises indicate that new threats are the primary driver for continuously improving their Zero Trust policies and practices [7] - The report suggests that Zero Trust is an ongoing journey requiring cultural change, continuous monitoring, and strong partnerships [4] Strategic Partnerships and Tools - Most enterprises rely on Microsoft Entra ID and Microsoft 365 as the backbone of their IT environments, which can enhance the integration of Zero Trust solutions [4] - Organizations are encouraged to take a phased approach to Zero Trust, starting with identity management and leveraging trusted partners for integration and optimization [4][3] - More than 50% of organizations have discovered unexpected value in Zero Trust's ability to improve user experience alongside security [7]

Financial Results Announcement - DXC Technology will release its fiscal 2026 second quarter financial results on October 30, 2025, at approximately 4:15 p.m. ET [1] - Following the release, a conference call and webcast will be hosted by senior management at 5:00 p.m. ET [2] Conference Call Details - Domestic callers can dial 888-330-2455, while international callers should use +1-240-789-2717, with a passcode of 4164760 for all participants [2] - A replay of the conference call will be available until November 6, 2025, at 800-770-2030, using the same passcode [3] Company Overview - DXC Technology assists global companies in running mission-critical systems and operations, modernizing IT, optimizing data architectures, and ensuring security and scalability across various cloud environments [4] - The company is trusted by the world's largest companies and public sector organizations to enhance performance, competitiveness, and customer experience across their IT estates [4]

Core Insights - DXC Technology has launched Assure Broking Essentials, an AI-powered multi-tenant SaaS solution aimed at enhancing operations for small and mid-sized insurance brokers [1][2] - The solution addresses challenges in the insurance industry, including the need for digitization, compliance with regulatory requirements, and meeting customer expectations [1][2] - Assure Broking Essentials integrates with partners like ServiceNow and AWS to provide a secure, scalable platform that improves productivity and customer service [2][3] Industry Context - The insurance industry is facing pressures from legacy technology, skills shortages, and outdated processes, necessitating modern solutions [2] - DXC's solution is designed to replace legacy processes with an AI-first operating model, facilitating fast onboarding and integration [1][2] - The platform adheres to evolving regulatory frameworks, including ACORD GRLC standards, ensuring compliance and security [1][2] Company Positioning - DXC Technology has over 40 years of experience in the insurance sector and processes over 50% of transactions in the London insurance market [4] - The company aims to modernize the global insurance ecosystem and expand its portfolio to support brokers of all sizes [3][4] - DXC continues to innovate in core insurance systems, managing over one billion policies processed on its software [4]