DXC Technology(US:DXC)2026-01-30 01:32Financial Performance - Revenues for the three months ended December 31, 2025, were $3,194 million, a decrease of 1% compared to $3,225 million for the same period in 2024[9] - Net income for the three months ended December 31, 2025, was $110 million, compared to $63 million for the same period in 2024, representing a 75% increase[9] - Total revenues reached $9,514 million for the nine months ended December 31, 2025, down from $9,702 million in 2024[107] - The company reported a net income of $110 million for the three months ended December 31, 2025, an increase of $47 million or 74.6% compared to the prior year[167] - The effective tax rate for the three months ended December 31, 2025, was 35.7%, a significant decrease from 51.9% for the same period in 2024[76] Costs and Expenses - Total costs and expenses for the nine months ended December 31, 2025, were $9,145 million, down from $9,410 million in 2024, reflecting a 2.8% decrease[9] - The company incurred restructuring costs of $20 million for the three months ended December 31, 2025, down from $43 million in the same period of 2024[9] - Total costs and expenses for the third quarter were $3.0 billion, a decrease of $71 million (-2.3%) compared to the prior-year period[136] - Selling, general and administrative (SG&A) expenses for the third quarter were $309 million, a decrease of $26 million (-7.8%) compared to the prior-year period[142] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2025, were $1,731 million, a slight decrease from $1,796 million as of March 31, 2025[13] - Net cash provided by operating activities for the nine months ended December 31, 2025, was $1,009 million, compared to $1,083 million for the same period in 2024[14] - The company expects existing cash and cash equivalents, along with cash generated from operations, to be sufficient for normal operating requirements for the next 12 months[184] - Net cash used in investing activities was $365 million for the nine months ended December 31, 2025, an increase of $22 million from $343 million in 2024[178] Shareholder Returns - The company executed a share repurchase program, acquiring 13,087 thousand shares, which resulted in a reduction of additional paid-in capital by $552 million[16] - The company repurchased a total of 4,494,144 shares during the quarter ended December 31, 2025, with an average price of $13.35 per share[200] - As of December 31, 2025, approximately $402 million remained available for share repurchase under the approved $1.0 billion authorization[200] - The company suspended payment of quarterly dividends for fiscal 2026 to maintain financial flexibility[187] Assets and Liabilities - Total assets as of December 31, 2025, were $13,177 million, compared to $13,205 million as of March 31, 2025[13] - The company’s total liabilities as of December 31, 2025, were $9,764 million, compared to $9,715 million as of March 31, 2025[13] - The total debt of the company was $3.624 billion as of December 31, 2025, a decrease from $3.876 billion as of March 31, 2025[62] - The accumulated deficit decreased to $(2,931) million as of December 31, 2025, from $(3,451) million at March 31, 2025[16] Segment Performance - DXC's new segment structure includes Consulting & Engineering Services, Global Infrastructure Services, and Insurance Services, aimed at enhancing operational performance and resource allocation[19] - Segment profit for the CES segment was $144 million, down 12.2% year-over-year, with a margin of 11.4%[132] - Segment profit for the GIS segment was $113 million, up 0.9% year-over-year, with a margin of 7.0%[132] - Segment profit for the Insurance segment was $35 million, down 30.0% year-over-year, with a margin of 10.9%[132] Tax and Regulatory Matters - The effective tax rate (ETR) for the three months ended December 31, 2025, was 35.7%, compared to 33.2% for the non-GAAP results[169] - The company is currently under IRS examination regarding its federal income tax returns for certain fiscal years, with disputes being contested in the U.S. Tax Court[114] - The company recorded a $13 million tax indemnification receivable related to uncertain tax positions as part of its tax matters agreement with Hewlett Packard Enterprise[78] Miscellaneous - The company has not disclosed any new products or technologies in this report[204] - There were no significant legal proceedings reported that could impact the company's financial condition[196] - The company reported no material changes to risk factors affecting its operations and financial results in the three months ended December 31, 2025[197]