DXC Technology Reports Second Quarter Fiscal Year 2026 Results

Core Insights - DXC Technology reported strong financial performance for the second quarter of fiscal 2026, exceeding guidance in adjusted EBIT margin and non-GAAP diluted EPS, while generating robust free cash flow [2][8] - The company is implementing a strategic plan to adapt to the evolving AI global economy, which includes a two-track business approach and the launch of the Xponential AI framework [2] Financial Highlights - Total revenue for the quarter was $3.16 billion, a decrease of 2.5% year-over-year, and down 4.2% on an organic basis [8] - Adjusted EBIT was $254 million, down 9.0% year-over-year, with an adjusted EBIT margin of 8.0% [8] - Non-GAAP diluted earnings per share was $0.84, down 9.7% year-over-year, while diluted earnings per share was $0.20, down 13.0% year-over-year [8] - Free cash flow increased to $240 million, up $192 million year-over-year [8] Segment Performance - Consulting and Engineering Services (CES) revenue was $1,255 million, down 1.9% year-over-year, with a segment profit of $145 million [8] - Global Infrastructure Services (GIS) revenue was $1,586 million, down 4.2% year-over-year, but segment profit increased by 1.7% to $122 million [8] - Insurance Services revenue was $320 million, up 4.6% year-over-year, with bookings increasing by 24.9% [8] Guidance - Full year fiscal 2026 revenue guidance 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 [8] - Third quarter fiscal 2026 revenue guidance is expected to be between $3.18 billion and $3.22 billion, with an organic decline of 5.0% to 4.0% year-over-year [8]