DXC Technology(US:DXC)2025-10-30 20:18Financial Performance - Total revenue for Q2 FY26 was $3.16 billion, down 2.5% year-over-year and down 4.2% on an organic basis[5]. - Non-GAAP diluted earnings per share was $0.84, down 9.7% year-over-year[5]. - Segment profit for Consulting and Engineering Services was $145 million, down 17.1% year-over-year[7]. - Revenues for the three months ended September 30, 2025, were $3,161 million, a decrease of 2.5% compared to $3,241 million for the same period in 2024[23]. - Net income attributable to DXC common stockholders for the six months ended September 30, 2025, was $52 million, down 23.5% from $68 million in the same period of 2024[23]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.20, compared to $0.23 for the same period in 2024, reflecting a decrease of 13.0%[23]. - For the six months ended September 30, 2025, net income attributable to DXC common stockholders was $276 million, compared to $308 million for the same period in 2024, reflecting a decrease of 10.4%[28]. - The company reported a net income of $58 million for the three months ended September 30, 2025, compared to $174 million for the same period in 2024[28]. - Net income for Q3 2025 was $40 million, a decrease of 11.1% from $45 million in Q3 2024[33]. Cash Flow and Capital Management - Free cash flow increased to $240 million, up $192 million year-over-year[6]. - The company repurchased $75 million of shares, returning capital to shareholders[6]. - Cash and cash equivalents at the end of the period were $1,888 million, an increase from $1,796 million at the beginning of the year, marking a rise of 5.1%[25]. - Net cash provided by operating activities for the six months ended September 30, 2025, was $595 million, an increase of 37.5% compared to $433 million for the same period in 2024[25]. Guidance and Projections - Revenue guidance for FY26 is projected between $12.67 billion and $12.81 billion, reflecting a decline of 4.5% to 3.5% year-over-year on an organic basis[7]. - Non-GAAP diluted EPS guidance for Q3 FY26 is estimated to be between $0.75 and $0.85[8]. Operational Metrics - Bookings totaled $2.7 billion, with a trailing twelve-month book to bill ratio of 1.08x[5]. - The company plans to implement a two-track approach to business operations, focusing on core and fast track initiatives[2]. - Organic revenue growth for the three months ended September 30, 2025, was reported at (4.2)%, an improvement from (5.6)% in the same period of 2024[30]. - Total revenue growth for the six months ended September 30, 2025, was (2.4)%, compared to (5.9)% for the same period in 2024[30]. Balance Sheet and Liabilities - Total assets increased to $13,582 million as of September 30, 2025, up from $13,205 million as of March 31, 2025, representing a growth of 2.8%[24]. - Total liabilities rose to $10,246 million as of September 30, 2025, compared to $9,715 million as of March 31, 2025, indicating an increase of 5.5%[24]. Tax and Interest Expenses - The effective tax rate for the three months ended September 30, 2025, was 69.5%, compared to 37.7% for the same period in 2024[26]. - The effective tax rate for the six months ended September 30, 2025, was 38.0%, compared to 33.2% for the same period in 2024[28]. - Interest expense for the three months ended September 30, 2025, was $53 million, a decrease of 23.2% from $69 million in the same period of 2024[23]. - Interest income for Q3 2025 was $46 million, a decrease of 9.8% from $51 million in Q3 2024[33]. Segment Performance - GIS organic revenue growth for the three months ended September 30, 2025, was (6.3)%, compared to (9.0)% in the same period of 2024[30]. - Insurance organic revenue growth for the six months ended September 30, 2025, was 3.6%, consistent with the same period in 2024[30]. - CES profit for Q3 2025 was $145 million, a decrease of 17.1% from $175 million in Q3 2024[33]. - GIS profit for Q3 2025 was $122 million, an increase of 1.7% from $120 million in Q3 2024[33]. - Insurance profit for Q3 2025 was $28 million, a decrease of 24.3% from $37 million in Q3 2024[33]. Other Financial Metrics - Adjusted EBIT margin was 8.0%, while EBIT margin was 4.4%[6]. - Adjusted EBIT for Q3 2025 was $254 million, down 8.9% from $279 million in Q3 2024[33]. - Total Company adjusted EBIT margin for Q3 2025 was 8.0%, compared to 8.6% in Q3 2024[33]. - Income before income tax for Q3 2025 was $131 million, an increase of 40.9% from $93 million in Q3 2024[33]. - Corporate expenses for Q3 2025 were $(41) million, a decrease of 22.6% from $(53) million in Q3 2024[33].