DXC Technology(DXC) - 2025 Q3 - Quarterly Results

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].