1 Q3 Performance Highlights and Business Update 3rd Quarter Fiscal Year 2025 Earnings Presentation February 4, 2025 Agenda for Today 2 Detailed Review of Q3 Results and Guidance Update Q&A 3 2 Forward-Looking Statements All statements and assumptions contained in this earnings presentation that do not directly and exclusively relate to historical facts constitute "forward-looking statements." Forward-looking statements often include words such as "anticipates," "believes," "estimates," "expects," "forecast, ...

Core Viewpoint - DXC Technology Company reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.87 per share a year ago, representing an earnings surprise of 19.48% [1][2] Financial Performance - The company posted revenues of $3.23 billion for the quarter ended December 2024, which was a miss against the Zacks Consensus Estimate by 0.69%, and a decrease from $3.4 billion year-over-year [2] - Over the last four quarters, DXC Technology has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - DXC Technology shares have increased approximately 10.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.74 on revenues of $3.23 billion, and for the current fiscal year, it is $3.17 on revenues of $12.95 billion [7] Industry Context - The Computers - IT Services industry, to which DXC Technology belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Total revenue for Q3 FY2025 was $3.23 billion, down 5.1% year-over-year and down 4.2% on an organic basis[6]. - Revenues for the three months ended December 31, 2024, were $3,225 million, a decrease of 5.1% compared to $3,399 million for the same period in 2023[27]. - Global Business Services revenue was $1.67 billion, down 1.8% year-over-year, while Global Infrastructure Services revenue was $1.56 billion, down 8.5% year-over-year[9]. - Total revenue growth for the nine months ended December 31, 2024, was down 5.6%, compared to a decline of 5.1% in the previous year[38]. - Consulting & Engineering Services revenue for Q3 FY25 was $1,270 million, a slight decrease from $1,281 million in Q2 FY25[41]. - Cloud, ITO & Security revenue remained stable at $1,184 million in Q3 FY25, compared to $1,188 million in Q2 FY25[41]. - Insurance Software & BPS revenue was consistent at $396 million for both Q3 FY25 and Q2 FY25[41]. Profitability Metrics - EBIT margin was 4.5%, with adjusted EBIT margin at 8.9%, reflecting a year-over-year increase of 11.7%[7]. - Diluted earnings per share decreased to $0.31, down 61.7% year-over-year, while non-GAAP diluted EPS increased by 7.0% to $0.92[7]. - Segment profit for Global Business Services (GBS) for the three months ended December 31, 2024, was $224 million, representing a profit margin of 13.4%[31]. - Segment profit for Global Infrastructure Services (GIS) for the three months ended December 31, 2024, was $101 million, with a profit margin of 6.5%[31]. - Adjusted EBIT for the nine months ended December 31, 2024, increased to $789 million, up 8.8% from $725 million in the same period of 2023[39]. - Basic EPS for the quarter was reported at $0.94, while diluted EPS was $0.92, showing a positive trend in earnings per share[33]. Cash Flow and Financial Position - Cash generated from operations was $650 million, down 7.9% year-over-year, with free cash flow at $483 million compared to $585 million in Q3 FY2024[7]. - Free cash flow for the nine months ended December 31, 2024, was $1,083 million, slightly up from $1,081 million for the same period in 2023[29]. - Cash and cash equivalents at the end of the period on December 31, 2024, were $1,723 million, an increase from $1,224 million at the beginning of the year[29]. - Total assets as of December 31, 2024, were $13,033 million, a decrease from $13,871 million as of March 31, 2024[28]. - Total liabilities as of December 31, 2024, were $9,781 million, down from $10,805 million as of March 31, 2024[28]. Guidance and Future Outlook - Full-year adjusted EBIT margin guidance increased to approximately 7.9%, up from previous guidance of 7.0% to 7.5%[9]. - Full-year non-GAAP diluted EPS guidance raised to approximately $3.35, compared to prior guidance of $3.00 to $3.25[9]. - Free cash flow guidance for the full year increased to approximately $625 million, up from prior guidance of $550 million[9]. - The company is focused on strategic changes to improve bookings performance and drive sustainable revenue growth[4]. - Future outlook includes continued focus on mergers, acquisitions, and strategic investments to drive growth[34]. Restructuring and Costs - The company reported restructuring costs of $43 million for the three months ended December 31, 2024, compared to $36 million in the same period of 2023[27]. - The company incurred $43 million in restructuring costs, primarily related to workforce and real estate optimization[34]. - Transaction, separation, and integration-related costs amounted to $87 million, reflecting ongoing strategic initiatives[34]. - Amortization of acquired intangible assets was $12 million, indicating continued investment in acquired technologies[34]. - The company reported impairment losses of $12 million for the nine months ended December 31, 2024, compared to $5 million in the same period of 2023[39]. Tax and Income - The effective tax rate for the period was 35.1%, down from 51.9% in the prior year, indicating improved tax efficiency[33]. - The effective tax rate for the three months ended December 31, 2023, was 54.5%, compared to 33.9% in the previous year[36]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $57 million, down 63.5% from $156 million in the same period of 2023[27]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $170 million, reflecting a significant increase compared to previous periods[33]. - Net income for Q3 FY25 was $63 million, a decrease of 55% compared to $140 million in Q3 FY24[39].

DXC Technology (DXC) is scheduled to report third-quarter fiscal 2025 results on Feb. 4, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fiscal third quarter, DXC Technology anticipates revenues between $3.2 billion and $3.3 billion. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $3.25 billion, indicating a year-over-year decline of 4.3%.DXC projects adjusted earnings per share between 75 cents and 80 cents for the fiscal third q ...

DXC Technology Company. (DXC) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

DXC Technology Company. (DXC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The ...

DXC software powers the infotainment system of the F80 – Ferrari's new supercarASHBURN, Va., Jan. 9, 2025 /PRNewswire/ - DXC (NYSE: DXC) has announced an agreement with Ferrari to extend their partnership to develop the next generations of Ferrari's in-vehicle infotainment systems enabling drivers to be closer to the high-performance functionality of Ferrari vehicles.With its extensive experience in the automotive industry, DXC will help ensure that Ferrari infotainment systems are engineered to provide a s ...

DXC Technology Company (DXC) shares have gained 10.3% over the past six months and outperformed the broader Zacks Computer and Technology sector’s return of 4.9%, reflecting investor confidence. The company has made significant strides in its operational performance, innovation capabilities and financial stability, making it an attractive investment opportunity. Here are three compelling reasons to consider adding DXC stock to investors’ portfolios right now.DXC’s Transformation EffortsDXC’s sustained effor ...

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AI Impact leverages DXC's combined consulting, engineering, and secure enterprise servicesASHBURN, Va., Jan. 6, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced AI Impact, an approach designed to help solve customers' most pressing challenges. By combining DXC consulting, engineering and secure enterprise services, DXC will help clients across industries securely innovate and drive real business outcomes with AI.DXC takes a pragmatic ...