[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) DXC Technology reported Q1 FY2026 revenues of $3.16 billion, a 2.4% decrease, with net income of $18 million, and implemented a new three-segment structure [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (unaudited, in millions, except EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | $3,159 | $3,236 | | Income before income taxes | $67 | $68 | | **Net income** | $18 | $25 | | Net income attributable to DXC | $16 | $26 | | **Diluted EPS** | $0.09 | $0.14 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (unaudited, in millions) | Metric | As of June 30, 2025 | As of March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,792 | $1,796 | | **Total Assets** | $13,438 | $13,205 | | Total current liabilities | $4,497 | $4,411 | | Long-term debt | $3,100 | $2,996 | | **Total Liabilities** | $10,008 | $9,715 | | **Total Equity** | $3,430 | $3,490 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (unaudited, in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $186 | $238 | | Net cash used in investing activities | $(77) | $(188) | | Net cash (used in) provided by financing activities | $(110) | $41 | | **Net (decrease) increase in cash** | $(4) | $93 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In Q1 fiscal 2026, the company implemented a new segment structure with three reportable segments: Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services[18](index=18&type=chunk)[49](index=49&type=chunk)[88](index=88&type=chunk) - Following a segment realignment, the company reallocated goodwill and recorded a full impairment of **$14 million** for the goodwill balance allocated to the GIS segment[51](index=51&type=chunk)[53](index=53&type=chunk) Segment Revenue and Profit (Q1 FY2026, in millions) | Segment | Revenues | Segment Profit | | :--- | :--- | :--- | | Consulting & Engineering Services (CES) | $1,246 | $105 | | Global Infrastructure Services (GIS) | $1,600 | $97 | | Insurance Services | $313 | $33 | - As of June 30, 2025, the company has approximately **$16.7 billion** in remaining performance obligations, with about **32%** expected to be recognized as revenue in fiscal 2026[57](index=57&type=chunk) - The company is involved in ongoing tax disputes with the IRS, with potential unreserved federal and state tax expense of approximately **$552 million** if the company does not prevail[68](index=68&type=chunk)[73](index=73&type=chunk) - In the TCS litigation, a court affirmed a jury verdict in DXC's favor, awarding a total of **$194 million** plus attorney's fees and costs. The decision is pending appeal and has not been recognized in the financial statements[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 2.4% revenue decline to $3.16 billion for Q1 FY2026, with varied segment performance and total liquidity of $5.0 billion Q1 FY2026 Financial Highlights vs. Q1 FY2025 (in millions, except EPS and ratios) | Metric | Q1 FY2026 | Change (YoY) | | :--- | :--- | :--- | | Revenues | $3,159 | -2.4% | | Organic Revenue | N/A | -4.3% | | Adjusted EBIT | $216 | -3.6% | | Adjusted Diluted EPS | $0.68 | -9.3% | | Free Cash Flow | $97 | +115.6% | | Book-to-bill ratio | 0.90x | +0.13x | Segment Performance (YoY Change) | Segment | Revenue Change | Organic Revenue Change | Segment Profit Change | | :--- | :--- | :--- | :--- | | CES | -2.7% | -4.4% | -14.6% | | GIS | -3.5% | -5.7% | -4.0% | | Insurance | +5.4% | +3.6% | -25.0% | - The decrease in operating cash flow was primarily due to lower net income and an unfavorable change in working capital. The cash conversion cycle increased from **14 days** to **17 days** year-over-year[149](index=149&type=chunk) - Total liquidity as of June 30, 2025, was **$5.0 billion**, consisting of **$1.8 billion** in cash and **$3.2 billion** available under the revolving credit facility. The company continues to suspend dividend payments to maintain financial flexibility[156](index=156&type=chunk)[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed since the end of the previous fiscal year, March 31, 2025 - There have been no material changes to the company's market risk exposure since March 31, 2025[161](index=161&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025 - Based on an evaluation as of the end of the quarter, the CEO and CFO concluded that disclosure controls and procedures were effective[162](index=162&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[163](index=163&type=chunk) [PART II – OTHER INFORMATION](index=50&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 of the financial statements for details on legal proceedings, including a securities class action settlement and ongoing TCS litigation - For information regarding legal proceedings, the report directs readers to Note 17 – "Commitments and Contingencies" in the financial statements[165](index=165&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to the risk factors disclosed in its Annual Report on Form 10-K - There have been no material changes in the three months ended June 30, 2025, to the risk factors described in the company's most recent Form 10-K[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 FY2026, the company repurchased approximately 3.28 million shares for $50 million, with $542 million remaining for future repurchases Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | — | | May 2025 | 1,010,414 | $15.14 | | June 2025 | 2,264,854 | $15.32 | - As of June 30, 2025, approximately **$542 million** remained available for repurchase under the company's share repurchase programs[170](index=170&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[174](index=174&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including various agreements, plan amendments, and CEO/CFO certifications - The report includes exhibits such as executive compensation agreements, amendments to the receivables purchase agreement, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[175](index=175&type=chunk)

Core Insights - DXC Technology Company reported $3.16 billion in revenue for the quarter ended June 2025, reflecting a year-over-year decline of 2.4% [1] - The earnings per share (EPS) for the same period was $0.68, down from $0.74 a year ago, but exceeded the consensus EPS estimate of $0.64 by 6.25% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $3.07 billion by 2.92% [1] Revenue Performance - Total revenues experienced a year-over-year change of -2.4%, which was better than the three-analyst average estimate of -5.1% [4] - Global Infrastructure Services (GIS) revenues were reported at $1.6 billion, showing a year-over-year change of +2.6%, compared to the three-analyst average estimate of $1.47 billion [4] - The year-over-year change for GIS was -3.5%, which also outperformed the average estimate of -6.1% based on three analysts [4] Stock Performance - Shares of DXC Technology have returned -14% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance against the broader market in the near term [3]

分组1 - DXC Technology reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, but down from $0.74 per share a year ago, representing an earnings surprise of +6.25% [1] - The company achieved revenues of $3.16 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.92%, although this is a decrease from year-ago revenues of $3.24 billion [2] - DXC Technology has outperformed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed the market, losing about 31.3% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - 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 upcoming quarter is $0.77 on revenues of $3.07 billion, and for the current fiscal year, it is $3.05 on revenues of $12.29 billion [7] 分组3 - The Computers - IT Services industry, to which DXC Technology belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for DXC Technology was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

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]

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]