DXC Technology(US:DXC)2025-10-31 00:37Financial Performance - 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[10]. - Net income for the six months ended September 30, 2025, was $58 million, down 17.1% from $70 million for the same period in 2024[10]. - As of September 30, 2025, DXC Technology Company reported a net income of $36 million, compared to $42 million for the same period in 2024, reflecting a decrease of approximately 14.3% year-over-year[19]. - The company experienced a comprehensive loss attributable to DXC common stockholders of $44 million for the three months ended September 30, 2025[14]. - DXC's total comprehensive loss for the three months ended September 30, 2025, was $(80) million, compared to a comprehensive income of $64 million for the same period in 2024[19]. - Net income attributable to DXC common shareholders for the three months ended September 30, 2025, was $36 million, compared to $42 million for the same period in 2024, representing a decrease of 14.3%[30]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.20, down from $0.23 in the same period of 2024, a decline of 13.0%[30]. - Diluted earnings per share were $0.20, down from $0.23 in the same period a year ago; adjusted diluted earnings per share were $0.84, down from $0.93[137]. - Net income for the six months ended September 30, 2025, was $276 million, compared to $308 million for the same period in 2024, reflecting a decrease of 10.4%[170]. Assets and Liabilities - Total current assets increased to $5,439 million as of September 30, 2025, compared to $5,363 million as of March 31, 2025[16]. - Total liabilities increased to $10,246 million as of September 30, 2025, compared to $9,715 million as of March 31, 2025[16]. - Goodwill increased slightly to $531 million as of September 30, 2025, from $526 million as of March 31, 2025[16]. - The total debt of the Company as of September 30, 2025, was $3.982 billion, compared to $3.876 billion as of March 31, 2025[69]. - The estimated fair value of the Company's long-term debt, excluding finance lease liabilities, was $3.6 billion as of September 30, 2025[70]. - The company had total liquidity of $5.1 billion as of September 30, 2025, including $1.9 billion in cash and cash equivalents and $3.2 billion in available borrowings[187]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended September 30, 2025, was $595 million, compared to $433 million for the same period in 2024[18]. - Year-to-date cash generated from operations was $595 million, resulting in free cash flow of $337 million, compared to $93 million in the prior year[137]. - Cash paid for interest during the six months ended September 30, 2025, was $102 million, compared to $137 million in the same period of 2024[105]. - The company reported a total of $508 million in capital expenditures in accounts payable and accrued expenses for the six months ended September 30, 2025[105]. - The cash conversion cycle improved to 9 days for the three months ended September 30, 2025, down from 15 days in the prior year[177]. Shareholder Actions - The company repurchased 5,318 thousand shares under its share repurchase program, resulting in a treasury stock acquisition of $76 million during the three months ended September 30, 2025[19]. - For the first six months of fiscal 2026, the company repurchased a total of 8,593,166 shares at an average price of $14.55, totaling $125 million[95]. - During the quarter ended September 30, 2025, DXC repurchased a total of 5,317,898 shares at an average price of $14.12 per share[200]. - As of September 30, 2025, approximately $467 million worth of shares remained available for repurchase under the company's share repurchase plans[200]. - The company announced an incremental $1.0 billion share repurchase authorization on May 18, 2023[200]. Segment Performance - Segment revenues for the three months ended September 30, 2025, were $3,161 million, a decrease from $3,241 million in the same period of 2024[111]. - Segment profit for the six months ended September 30, 2025, was $530 million, down from $600 million in the same period of 2024[112]. - Revenues for the CES segment for the six months ended September 30, 2025, were $2,501 million, a decrease from $2,560 million in the same period of 2024[112]. Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 69.5%, compared to 51.6% for the same period in 2024[81]. - The effective tax rate for the six months ended September 30, 2025, was 38.0%, down from 56.5% in the same period of 2024[170]. - The company has a deferred tax liability of $23 million related to undistributed earnings from foreign subsidiaries as of September 30, 2025[82]. - The company expects to resolve tax return years 2014 through 2021 no earlier than fiscal year 2027[93]. Restructuring and Costs - The company reported restructuring costs of $35 million for the three months ended September 30, 2025, compared to $42 million for the same period in 2024[10]. - Restructuring liabilities totaled $36 million as of September 30, 2025, down from $39 million as of March 31, 2025[76]. - The company expects to incur restructuring costs associated with global cost savings initiatives during fiscal 2026[77]. - Corporate expenses for the three months ended September 30, 2025, were $41 million, down from $53 million in the same period of 2024, reflecting a reduction of 22.6%[113]. Market and Economic Factors - The company was awarded a total of $194 million in a lawsuit against Tata Consultancy Services, including $56 million in compensatory damages and $112 million in punitive damages[119]. - The Inflation Reduction Act imposes a 1% excise tax on share repurchases completed after December 31, 2022, which is reflected within equity[201]. - There have been no material changes to the risk factors affecting the company as of September 30, 2025[197].