Q1 FY26 Performance - DXC reported a YoY organic revenue decline of 43%[23] - The adjusted EBIT margin was 68%[23], within the guidance range of 60% - 70%[23] - Bookings increased by 14% YoY[23] - Non-GAAP diluted EPS was $068[24], exceeding the guidance range of $055 - $065[24] Segment Results - CES (Consulting & Engineering Services) revenue was $1246 million with a YoY organic revenue decline of 44%[25] and bookings increased by 32%[25] - GIS (Global Infrastructure Services) revenue was $1600 million with a YoY organic revenue decline of 57%[25] and bookings increased by 4%[25] - Insurance segment revenue was $313 million with a YoY organic revenue growth of 36%[25] and bookings decreased by 19%[25] Financial Position - Gross debt was $4029 million, while cash was $1792 million, resulting in net debt of $2237 million[27] - Gross debt reduction from capital leases since the start of FY25 was $322 million[28], with capital lease originations of $25 million and payments of $347 million[28] FY26 Guidance - Full fiscal year 2026 organic revenue growth is projected to be between -30% and -50%[30], with an adjusted EBIT margin of 70% - 80%[30] and Non-GAAP diluted EPS of $285 - $335[30] and free cash flow of ~$600 million[30] - Q2 fiscal year 2026 organic revenue growth is expected to be between -35% and -45%[31], with an adjusted EBIT margin of 65% - 75%[31] and Non-GAAP diluted EPS of $065 - $075[31]

Financial Performance - Total revenue for Q1 FY2026 was $3.16 billion, down 2.4% year-over-year and down 4.3% on an organic basis[7] - Adjusted EBIT margin was 6.8%, with adjusted EBIT of $216 million, down 3.6% year-over-year[8] - Non-GAAP diluted earnings per share was $0.68, a decrease of 9.3% year-over-year, while diluted earnings per share was $0.09, down 35.7% year-over-year[7] - Net income attributable to DXC common stockholders was $16 million, down from $26 million year-over-year, representing a decline of 38.5%[25] - Basic and diluted earnings per share (EPS) were both $0.09 for the three months ended June 30, 2025, compared to $0.14 for the same period in 2024, reflecting a decrease of 35.7%[25] - Total revenue growth for the three months ended June 30, 2025, was reported at (2.4)%, an improvement from (6.1)% in the same period of 2024[31] - Organic revenue growth for the three months ended June 30, 2025, was (4.3)%, slightly better than (4.4)% in the previous year[31] Segment Performance - Consulting and Engineering Services segment revenue was $1,246 million, down 2.7% year-over-year, with bookings increasing by 32%[9] - Global Infrastructure Services segment revenue was $1,600 million, down 3.5% year-over-year, with bookings up 4%[9] - Insurance Services segment revenue was $313 million, up 5.4% year-over-year, but bookings declined by 19%[9] - CES profit for the three months ended June 30, 2025, was $105 million, down from $123 million in the same period last year[33] - GIS profit for the three months ended June 30, 2025, was $97 million, compared to $101 million in the previous year[33] - Insurance profit for the three months ended June 30, 2025, was $33 million, a decrease from $44 million in the same period last year[33] Cash Flow and Assets - Free cash flow for the quarter was $97 million, compared to $45 million in the same quarter of the previous fiscal year[8] - Total assets increased to $13,438 million as of June 30, 2025, up from $13,205 million as of March 31, 2025, indicating a growth of 1.8%[26] - Total liabilities rose to $10,008 million as of June 30, 2025, compared to $9,715 million as of March 31, 2025, marking an increase of 3.0%[26] - Cash and cash equivalents at the end of the period were $1,792 million, slightly down from $1,796 million at the beginning of the year[27] - Net cash provided by operating activities was $186 million for the three months ended June 30, 2025, a decrease of 21.8% from $238 million in the same period of 2024[27] Guidance and Projections - Full year FY2026 revenue guidance is projected between $12.61 billion and $12.87 billion, indicating a decline of 5.0% to 3.0% year-over-year on an organic basis[9] - Q2 FY2026 revenue guidance is estimated between $3.15 billion and $3.18 billion, reflecting a decline of 4.5% to 3.5% year-over-year on an organic basis[10] Tax and Restructuring - The effective tax rate for the period was 73.1%, compared to 38.5% for the previous year, indicating a significant increase[28] - Restructuring costs for the period included $37 million, down from $39 million in the previous year[25] - Non-GAAP net income attributable to DXC common stockholders was $126 million for the three months ended June 30, 2025, compared to $128 million in the same period of 2024[28] - The effective tax rate for the three months ended June 30, 2024, was 63.2%, compared to 33.0% in the previous year[30]

Core Insights - DXC Technology reported first quarter results for fiscal year 2026, achieving results at the high end of guidance for organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations [2][6] - The company emphasized its focus on embedding AI across solutions to enhance client engagement and drive outcomes, indicating a strong foundation for future growth [2] Financial Highlights - Total revenue for the quarter was $3.16 billion, a decrease of 2.4% year-over-year, and down 4.3% on an organic basis [6] - EBIT margin was 2.4%, with adjusted EBIT margin at 6.8%, reflecting a decline in both metrics compared to the previous year [6][31] - Diluted earnings per share were $0.09, down 35.7% year-over-year, while non-GAAP diluted EPS was $0.68, down 9.3% year-over-year [6][31] - Bookings totaled $2.8 billion, representing a 14% increase year-over-year, with a book-to-bill ratio of 0.90x [6] Segment Performance - Consulting and Engineering Services (CES) revenue was $1,246 million, down 2.7% year-over-year, with a segment profit margin of 8.4% [7][31] - Global Infrastructure Services (GIS) revenue was $1,600 million, down 3.5% year-over-year, with a segment profit margin of 6.1% [7][31] - Insurance Services revenue increased by 5.4% year-over-year, with a segment profit margin of 10.5% [7][31] Guidance - For the full fiscal year 2026, total revenue is expected to be in the range of $12.61 billion to $12.87 billion, reflecting a decline of 5.0% to 3.0% year-over-year on an organic basis [5][7] - Adjusted EBIT margin is projected to be between 7.0% and 8.0%, with non-GAAP diluted EPS expected to range from $2.85 to $3.35 [5][7] Cash Flow and Shareholder Returns - Cash generated from operations was $186 million, down 21.8% year-over-year, while free cash flow was $97 million, an increase from $45 million in the same quarter last year [6][23] - The company repurchased $50 million of shares during the quarter, returning capital to shareholders [6]

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]

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]

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]

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].

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].

Core Points - DXC Technology will release its fiscal 2026 first quarter financial results on July 31, 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, with specific dial-in numbers provided for domestic and international callers [2] - A replay of the conference call will be available until August 7, 2025, and a transcript will be posted on the Investor Relations website [3] Company Overview - DXC Technology assists global companies in running mission-critical systems and operations while modernizing IT and optimizing data architectures across various cloud environments [4]

Core Insights - DXC Technology has appointed Ramnath Venkataraman as President of Consulting & Engineering Services, highlighting the company's focus on leadership to drive growth and innovation [1][2][3] Leadership Appointment - Ramnath Venkataraman brings nearly three decades of experience from Accenture, where he was involved in enterprise-wide modernization and advanced technology solutions [1][4] - His role will involve enhancing customer innovation and value through DXC's expertise in AI, application modernization, and data analytics [2][3] Strategic Focus - The CES division, comprising 50,000 engineers and consultants, is crucial for DXC's mission to modernize operations and address complex technology challenges for clients [3] - Ramnath's leadership is expected to strengthen DXC's offerings and drive performance, aligning with the company's strategic priorities [2][3] Industry Impact - Ramnath's experience includes overseeing global technology sales and large-scale transformations across various industries, which will benefit DXC's client base [4] - His focus on leveraging AI for tangible business outcomes aims to solidify DXC's position as a leader in innovative technology services [4]