DXC Technology Reports First Quarter Fiscal Year 2026 Results

Core Insights - DXC Technology reported first quarter results for fiscal year 2026, achieving results at the high end of guidance for organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations [2][6] - The company emphasized its focus on embedding AI across solutions to enhance client engagement and drive outcomes, indicating a strong foundation for future growth [2] Financial Highlights - Total revenue for the quarter was $3.16 billion, a decrease of 2.4% year-over-year, and down 4.3% on an organic basis [6] - EBIT margin was 2.4%, with adjusted EBIT margin at 6.8%, reflecting a decline in both metrics compared to the previous year [6][31] - Diluted earnings per share were $0.09, down 35.7% year-over-year, while non-GAAP diluted EPS was $0.68, down 9.3% year-over-year [6][31] - Bookings totaled $2.8 billion, representing a 14% increase year-over-year, with a book-to-bill ratio of 0.90x [6] Segment Performance - Consulting and Engineering Services (CES) revenue was $1,246 million, down 2.7% year-over-year, with a segment profit margin of 8.4% [7][31] - Global Infrastructure Services (GIS) revenue was $1,600 million, down 3.5% year-over-year, with a segment profit margin of 6.1% [7][31] - Insurance Services revenue increased by 5.4% year-over-year, with a segment profit margin of 10.5% [7][31] Guidance - For the full fiscal year 2026, total revenue is expected to be in the range of $12.61 billion to $12.87 billion, reflecting a decline of 5.0% to 3.0% year-over-year on an organic basis [5][7] - Adjusted EBIT margin is projected to be between 7.0% and 8.0%, with non-GAAP diluted EPS expected to range from $2.85 to $3.35 [5][7] Cash Flow and Shareholder Returns - Cash generated from operations was $186 million, down 21.8% year-over-year, while free cash flow was $97 million, an increase from $45 million in the same quarter last year [6][23] - The company repurchased $50 million of shares during the quarter, returning capital to shareholders [6]