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]

Core Insights - DXC Technology has launched DXC Assure Risk Management, a solution that integrates AI and human expertise to assist self-insured organizations in managing employee care, controlling healthcare costs, and improving return-to-work outcomes [1][2][3] Company Overview - DXC Technology is a leading global provider of information technology services, recognized as a trusted partner for many innovative organizations [5] - The company has over 40 years of industry expertise and is the preferred partner for 21 of the top 25 insurers, processing more than 1 billion policies on its software [3][5] Product Features - DXC Assure Risk Management offers a comprehensive platform that addresses challenges faced by self-insured organizations, including effective employee care and managing healthcare costs [2][3] - The solution includes AI-enabled processes for claims workflows, operational risk mitigation, and integrated health and safety management tools [6] - It features a specialized team with deep insurance knowledge to support the full claims lifecycle, including sentiment analysis and proactive claims prevention [6] - The platform is a modern, end-to-end, persona-driven system with document automation, real-time dashboards, and generative AI capabilities [6]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for DXC Technology in its upcoming earnings report, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - DXC Technology is expected to report quarterly earnings of $0.64 per share, reflecting a year-over-year decrease of 13.5% [3]. - Revenues are projected to be $3.07 billion, down 5.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for DXC Technology is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.13%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - DXC Technology currently holds a Zacks Rank of 2, but the negative Earnings ESP complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, DXC Technology exceeded the expected earnings of $0.76 per share by delivering $0.84, resulting in a surprise of +10.53% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Comparison - Fair Isaac (FICO), another player in the IT Services industry, is expected to report earnings of $7.73 per share, indicating a year-over-year increase of 23.7% [18]. - Fair Isaac's revenues are anticipated to be $518.78 million, up 15.8% from the previous year, although it has a negative Earnings ESP of -1.71% [19].

Core Points - DXC Technology will release its fiscal 2026 first quarter financial results on July 31, 2025, at approximately 4:15 p.m. ET [1] - Following the release, a conference call and webcast will be hosted by senior management at 5:00 p.m. ET, with specific dial-in numbers provided for domestic and international callers [2] - A replay of the conference call will be available until August 7, 2025, and a transcript will be posted on the Investor Relations website [3] Company Overview - DXC Technology assists global companies in running mission-critical systems and operations while modernizing IT and optimizing data architectures across various cloud environments [4]

Core Insights - DXC Technology has appointed Ramnath Venkataraman as President of Consulting & Engineering Services, highlighting the company's focus on leadership to drive growth and innovation [1][2][3] Leadership Appointment - Ramnath Venkataraman brings nearly three decades of experience from Accenture, where he was involved in enterprise-wide modernization and advanced technology solutions [1][4] - His role will involve enhancing customer innovation and value through DXC's expertise in AI, application modernization, and data analytics [2][3] Strategic Focus - The CES division, comprising 50,000 engineers and consultants, is crucial for DXC's mission to modernize operations and address complex technology challenges for clients [3] - Ramnath's leadership is expected to strengthen DXC's offerings and drive performance, aligning with the company's strategic priorities [2][3] Industry Impact - Ramnath's experience includes overseeing global technology sales and large-scale transformations across various industries, which will benefit DXC's client base [4] - His focus on leveraging AI for tangible business outcomes aims to solidify DXC's position as a leader in innovative technology services [4]

Core Insights - DXC Technology has officially opened a new office in Farnborough, UK, which will serve as its Aerospace and Defense Hub, marking a significant step in the company's growth strategy [1][3] - The Farnborough location is designed to enhance collaboration and innovation among employees and customers, and it is expected to create job opportunities for the local workforce, including veterans and early-career professionals [2][3] Company Expansion - The Farnborough office is part of a broader series of strategic growth initiatives, including the recent opening of an office in Toronto and expansions in New York City, Miami, and London [4] - DXC has been present in the UK for over 40 years and employs more than 6,500 people nationwide, consolidating teams from Aldershot and Hook into the new location [2][4] Commitment to Innovation - The new Aerospace and Defense Hub is positioned to strengthen partnerships within the sector and will focus on investing in innovation and collaboration for aerospace and defense organizations [3] - DXC's mission-critical solutions have supported various ministries, defense agencies, and armed services globally for over 50 years, emphasizing the company's long-standing commitment to the sector [3]

Core Insights - DXC Technology has been recognized as a leader in all categories of the 2025 Cognitive & Self-Healing IT Infrastructure Management report by NelsonHall, highlighting its advanced AI capabilities in IT issue management [1][2] - The company's AI strategy focuses on intelligence augmentation, embedding Generative AI across its operations and client services, addressing the entire AI lifecycle from consulting to governance [2][3] - DXC's self-healing IT infrastructure combines intelligent automation with human oversight, enabling proactive incident prevention and real-time remediation, which enhances operational efficiency and resilience [3] Company Overview - DXC Technology provides global companies with services to run mission-critical systems, modernize IT, and optimize data architectures across various cloud environments [5] - The company is trusted by the world's largest organizations to enhance performance, competitiveness, and customer experience within their IT operations [5] Industry Context - The recognition from NelsonHall reflects the growing importance of cognitive and self-healing IT infrastructure management as organizations face major disruptions and seek innovative solutions for operational efficiency [2][3] - The vendor-agnostic approach of DXC in AI resonates with clients looking to leverage the best intellectual property and large language model solutions tailored to their specific needs [2]

Core Insights - DXC Technology has been recognized by Newsweek as one of America's Greatest Workplaces for the second consecutive year, highlighting its commitment to a people-first strategy and employee empowerment [1][2]. Company Commitment - The recognition reflects DXC's dedication to creating a supportive workplace for its 120,000 global employees, emphasizing talent development, reskilling, and comprehensive learning programs [2]. - DXC's culture-driven innovation is exemplified by initiatives like the DXC Dandelion Program, which supports neurodivergent individuals in the IT sector [2]. Assessment Methodology - The ranking by Newsweek and Plant-A Insights Group involved a comprehensive assessment that included over 250,000 employee interviews, company reviews, and analysis of over 120 key performance indicators [3].

Core Insights - DXC Technology has partnered with ISA Vías to implement a Digital Twin platform aimed at enhancing road safety on the Ruta del Maipo in Chile, which serves over 7 million vehicles monthly [1][3][4] Group 1: Collaboration and Technology Implementation - The Digital Twin technology creates a real-time virtual model of the roadway, allowing ISA Vías to simulate various emergency scenarios without disrupting traffic [3][4] - This collaboration is seen as a significant advancement in modernizing Chile's infrastructure, improving safety protocols, and optimizing traffic management [4][5] Group 2: Benefits and Future Plans - The Digital Twin platform provides real-time insights for better traffic flow, predictive maintenance, and data-driven decision-making, ultimately enhancing operational efficiency and safety [4][5] - Plans for expansion include additional highways and tunnels, setting a new standard for critical infrastructure protection in Latin America [4][5] Group 3: Company Overview - DXC Technology specializes in helping global companies modernize IT and optimize data architectures while ensuring security and scalability across various cloud environments [6][7] - The company operates with a workforce of over 120,000 professionals across more than 70 countries, delivering innovative solutions that reshape industries [5][6]

Core Insights - DXC Technology has relaunched its DXC Fast RISE with SAP service in Mexico, leveraging Microsoft Azure to enhance cloud migration opportunities for local organizations [1][2] - The initiative is particularly beneficial for highly regulated sectors such as banking, insurance, energy, and government, where local data residency is essential [2][4] - The collaboration between DXC and Microsoft aims to provide Mexican businesses with a streamlined path to migrate to SAP S/4HANA Cloud in under 12 months, while also offering ongoing support for system optimization [3][4] Company and Industry Developments - The Central Mexico data center region is the first to offer RISE with SAP on Azure, facilitating local data hosting and promoting agile business operations [5][6] - DXC's global partnership with SAP spans over 1,000 clients across various industries, including financial services, manufacturing, healthcare, utilities, and the public sector [7] - Successful implementations of DXC Fast RISE with SAP in companies like Energy Harbor and Whitehaven Coal demonstrate the service's effectiveness in reducing implementation times and optimizing processes [8]