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DXC Technology(DXC) - 2026 Q1 - Earnings Call Transcript
2025-07-31 22:00
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]
DXC Technology(DXC) - 2026 Q1 - Earnings Call Presentation
2025-07-31 21:00
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 ...
DXC Technology(DXC) - 2026 Q1 - Quarterly Results
2025-07-31 20:19
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 ...
DXC Technology Reports First Quarter Fiscal Year 2026 Results
Prnewswire· 2025-07-31 20:15
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 ...
黄质潘出任星纪魅族集团CEO;苹果二号人物威廉姆斯将退休;清华校友赵晟佳入职Meta
Sou Hu Cai Jing· 2025-07-31 05:01
Group 1: Executive Changes - Huang Zhipan has been appointed as the CEO of Xingji Meizu Group, previously serving as the Executive Vice President and President of the Mobile Division [4] - Zhang Yue, a product manager at Xingji Meizu, has left the company after five months [5] - Yang Jianchao, head of ByteDance's visual large model, announced a temporary break from work [6] - Alibaba's Vice President Ye Jun has left the company following the return of DingTalk's founder Chen Hang [7] - Baidu has announced a new round of organizational adjustments, appointing He Haijian as CFO [8] - Huawei's He Tingbo will also serve as the head of the Senior Talent Compensation Department [9] - Wang Xiaoyan has been promoted to Senior Vice President at Xiaomi [10] - Apple COO Jeff Williams will retire, with Sabih Khan set to succeed him [12][14] - Ruoming Pang, a prominent engineer at Apple, will join Meta [15] - Meta has appointed Shengjia Zhao as the Chief Scientist of its newly established Superintelligence Labs [16] - Fidji Simo will join OpenAI as the CEO of a new department [17] - Ian Yang, former Intel China President, has joined AMD as Vice President [18] - Linda Yaccarino has resigned as CEO of social media company X [19] - Cisco has appointed Ben Dawson as the new President for APJC [20] - Huitong Technology has formed a new strategic committee and appointed new directors [21] - Ubisoft has appointed Christophe Derennes and Charlie Guillemot as co-CEOs of a new subsidiary [22] - WPP has appointed Cindy Rose as CEO, effective September 1, 2025 [23] - Equinix has appointed Shane Paladin as Chief Customer and Revenue Officer [24][26] - Kenny Sng has been appointed as CTO of Super X AI Technology [27] - Gaia has appointed Kiersten Medvedich as its first female CEO [29] - Ramnath Venkataraman has joined DXC Technology as President of Consulting and Engineering Services [30] - AccessFintech has appointed Sarah Shenton as CEO [33]
Introducing DXC Assure Risk Management: AI-Powered Claims Solution for Self-Insured Organizations
Prnewswire· 2025-07-29 04:01
Core Insights - DXC Technology has launched DXC Assure Risk Management, a solution that integrates AI and human expertise to assist self-insured organizations in managing employee care, controlling healthcare costs, and improving return-to-work outcomes [1][2][3] Company Overview - DXC Technology is a leading global provider of information technology services, recognized as a trusted partner for many innovative organizations [5] - The company has over 40 years of industry expertise and is the preferred partner for 21 of the top 25 insurers, processing more than 1 billion policies on its software [3][5] Product Features - DXC Assure Risk Management offers a comprehensive platform that addresses challenges faced by self-insured organizations, including effective employee care and managing healthcare costs [2][3] - The solution includes AI-enabled processes for claims workflows, operational risk mitigation, and integrated health and safety management tools [6] - It features a specialized team with deep insurance knowledge to support the full claims lifecycle, including sentiment analysis and proactive claims prevention [6] - The platform is a modern, end-to-end, persona-driven system with document automation, real-time dashboards, and generative AI capabilities [6]
UIS vs. DXC: Which IT Services Stock is the Better Buy Now?
ZACKS· 2025-07-25 15:36
Core Insights - Unisys Corporation (UIS) and DXC Technology Company (DXC) are legacy players in the global IT services sector, both undergoing transformations to remain relevant amid digital modernization, cloud migration, and AI-driven solutions [1][2] Case for Unisys (UIS) - Unisys has shown significant business development momentum, with total contract value increasing by 50% sequentially and over 80% year-over-year in Q1 2025, driven by new client acquisitions and demand for device subscription services (DSS) [3][4] - The company secured a major contract to manage 380,000 devices for a global tech firm, which is expected to enhance revenue over time [4] - Demand for cybersecurity and application modernization is boosting the Cloud, Applications & Infrastructure segment, with the launch of a post-quantum cryptography solution and a notable security services deal in Latin America [5][6] - Unisys is advancing AI adoption through agentic AI and a service experience accelerator, enhancing its position as a solution-oriented partner for enterprise and government clients [6] - The "Clear Path Forward 2050" strategy focuses on expanding software capabilities, modernizing infrastructure, and delivering specialized consulting services, resulting in a growing backlog of $2.9 billion [7] - Despite positive long-term prospects, Unisys faces short-term revenue challenges due to delays in its license and support business and reduced discretionary spending [8] Case for DXC Technology (DXC) - DXC Technology is experiencing a turnaround under CEO Raul Fernandez, with a strong book-to-bill ratio of 1.2 in Q4 fiscal 2025 and a 20% year-over-year increase in bookings [9][10] - The company is integrating GenAI into its modernization, testing, and automation offerings, providing tangible value to clients and enhancing its competitive position [10] - Financially, DXC ended fiscal 2025 with $1.8 billion in cash and $687 million in free cash flow, with plans for share repurchases indicating confidence in its strategic direction [11] - DXC's disciplined financial management and commitment to shareholder returns reflect growing internal confidence, making it an attractive option for investors seeking stability and long-term growth potential [21] Earnings Estimates - The Zacks Consensus Estimate for Unisys' 2025 EPS indicates a year-over-year increase of 28.9%, with estimates unchanged over the past 60 days [12] - In contrast, DXC's fiscal 2026 EPS estimate suggests an 11.1% year-over-year decline, although 2025 estimates have seen upward revisions of 0.7% in the past 60 days [13] Price Performance & Valuation - UIS stock has declined by 30% year-to-date, while DXC shares have dropped by 27% [14] - UIS is trading at a forward P/E ratio of 4.54X, below its one-year median of 10.29X, while DXC's forward sales multiple is at 4.79X, below its median of 6.27X [17] Conclusion - DXC Technology is currently viewed as the more compelling investment choice due to its clearer trajectory toward operational stabilization and strategic execution, particularly in high-value segments [20] - While Unisys has promising growth drivers, its near-term revenue headwinds make DXC's improving fundamentals more attractive for investors [21] - DXC currently holds a Zacks Rank 2 (Buy), whereas UIS has a Zacks Rank 3 (Hold) [22]
Analysts Estimate DXC Technology Company. (DXC) to Report a Decline in Earnings: What to Look Out for
ZACKS· 2025-07-24 15:08
Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for DXC Technology in its upcoming earnings report, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - DXC Technology is expected to report quarterly earnings of $0.64 per share, reflecting a year-over-year decrease of 13.5% [3]. - Revenues are projected to be $3.07 billion, down 5.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for DXC Technology is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.13%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - DXC Technology currently holds a Zacks Rank of 2, but the negative Earnings ESP complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, DXC Technology exceeded the expected earnings of $0.76 per share by delivering $0.84, resulting in a surprise of +10.53% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Comparison - Fair Isaac (FICO), another player in the IT Services industry, is expected to report earnings of $7.73 per share, indicating a year-over-year increase of 23.7% [18]. - Fair Isaac's revenues are anticipated to be $518.78 million, up 15.8% from the previous year, although it has a negative Earnings ESP of -1.71% [19].
Unicaja Partners with DXC to Drive AI-Powered Transformation of Banking Operations
Prnewswire· 2025-07-15 13:00
Core Insights - DXC Technology has entered into a 10-year agreement with Unicaja to modernize its banking operations, leveraging advanced technologies like Artificial Intelligence to enhance customer interactions and operational efficiency [1][2][4]. Group 1: Agreement Details - The partnership aims to transform Unicaja's banking operations, focusing on automation, agility, and personalized customer experiences [2][3]. - This initiative aligns with Unicaja's strategic plan for 2025-2027, which emphasizes innovation, customer service enhancement, and operational agility [3][4]. Group 2: Technological Impact - DXC's expertise in advanced technologies will help Unicaja drive efficiency and boost productivity, positioning the bank as a leader in digital banking innovation [2][4]. - The agreement includes a focus on secure banking systems that comply with evolving European regulations [3][4]. Group 3: Leadership and Experience - DXC Technology's Managing Director for Spain & Portugal highlighted the company's extensive experience in the banking sector, supporting major financial institutions in Spain [4][5]. - The partnership will also involve DXC acquiring FK2, a Unicaja Group company, to enhance its banking and technology expertise [4]. Group 4: Operational Enhancements - Unicaja's leadership emphasized that the partnership will equip the bank with new tools and capabilities, optimizing the work of existing teams [5]. - DXC has over 45 years of experience in banking and capital markets, providing the necessary technology and expertise for financial institutions to remain competitive [5][6].
DXC Technology to Report Fiscal 2026 First Quarter Results on Thursday July 31, 2025
Prnewswire· 2025-07-10 12:15
ASHBURN, Va., July 10, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC) today announced that it will release its fiscal 2026 first quarter financial results on Thursday, July 31, 2025, at approximately 4:15 p.m. Eastern Time (ET).Following the release, DXC Technology's senior management will host a conference call and webcast at 5:00 p.m. ET. The dial-in number for domestic callers is 888-330-2455. Callers who reside outside of the United States should dial +1-240-789-2717. The passcode for all participants i ...