DXC Technology(DXC) - 2026 Q1 - Quarterly Results

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]