[Fiscal 2025 Performance Overview](index=1&type=section&id=Fiscal%202025%20Performance%20Overview) DXC Technology reported a decline in both Q4 and full-year FY2025 revenue, yet achieved bookings growth exceeding 20% and a 1.03x book-to-bill ratio for the full year - CEO Raul Fernandez highlighted continued progress towards sustained, profitable revenue growth, citing **bookings growth of over 20%** for the second consecutive quarter and a **book-to-bill ratio greater than 1**[4](index=4&type=chunk) [Fourth Quarter (Q4) FY2025 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20%28Q4%29%20FY2025%20Financial%20Highlights) Q4 FY25 revenue decreased 6.4% to $3.17 billion, with GAAP diluted EPS at $1.43 and a strong 1.22x book-to-bill ratio Q4 FY2025 Key Financial Metrics | Metric | Q4 FY2025 | YoY Change | Organic Revenue Change | | :--- | :--- | :--- | :--- | | Total Revenue | $3.17 billion | -6.4% | -4.2% | | Adjusted EBIT Margin | 7.3% | - | - | | Diluted EPS (GAAP) | $1.43 | vs. ($1.10) in Q4 FY24 | - | | Diluted EPS (Non-GAAP) | $0.84 | -13.4% | - | | Book-to-Bill Ratio | 1.22x | vs. 0.94x in Q4 FY24 | - | | Free Cash Flow | $111 million | vs. $155 million in Q4 FY24 | - | [Full Year (FY) FY2025 Financial Highlights](index=2&type=section&id=Full%20Year%20%28FY%29%20FY2025%20Financial%20Highlights) Full-year FY2025 revenue was $12.87 billion, down 5.8%, with GAAP diluted EPS significantly up to $2.10 and a 1.03x book-to-bill ratio Full Year FY2025 Key Financial Metrics | Metric | FY2025 | YoY Change | Organic Revenue Change | | :--- | :--- | :--- | :--- | | Total Revenue | $12.87 billion | -5.8% | -4.6% | | Adjusted EBIT Margin | 7.9% | +1.0% (vs. FY24) | - | | Diluted EPS (GAAP) | $2.10 | +356.5% | - | | Diluted EPS (Non-GAAP) | $3.43 | +10.6% | - | | Book-to-Bill Ratio | 1.03x | vs. 0.91x in FY24 | - | | Free Cash Flow | $687 million | vs. $756 million in FY24 | - | [Segment Performance FY2025](index=2&type=section&id=Segment%20Performance%20FY2025) GBS revenue declined 2.6% to $6.65 billion with a 12.0% margin, while GIS revenue fell 9.1% to $6.23 billion with a 7.2% margin, both achieving a 1.03x book-to-bill ratio GBS Full Year FY2025 Performance | Metric | FY2025 | YoY Change | Organic Revenue Change | | :--- | :--- | :--- | :--- | | Revenue | $6.65 billion | -2.6% | -1.0% | | Segment Profit | $797 million | -4.6% | - | | Segment Profit Margin | 12.0% | - | - | | Book-to-Bill Ratio | 1.03x | vs. 0.96x in FY24 | - | GIS Full Year FY2025 Performance | Metric | FY2025 | YoY Change | Organic Revenue Change | | :--- | :--- | :--- | :--- | | Revenue | $6.23 billion | -9.1% | -8.2% | | Segment Profit | $451 million | +4.2% | - | | Segment Profit Margin | 7.2% | - | - | | Book-to-Bill Ratio | 1.03x | vs. 0.86x in FY24 | - | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) DXC projects continued organic revenue declines for Q1 and full-year FY2026, with full-year guidance including a 3.0-5.0% organic decline, 7.0-8.0% adjusted EBIT margin, and $600 million free cash flow [First Quarter (Q1) FY2026 Guidance](index=2&type=section&id=First%20Quarter%20%28Q1%29%20FY2026%20Guidance) Q1 FY2026 guidance anticipates total revenue of $3.04-$3.09 billion, an organic decline of 4.0-5.5%, adjusted EBIT margin of 6.0-7.0%, and non-GAAP diluted EPS of $0.55-$0.65 Q1 FY2026 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $3.04B - $3.09B | | Organic Revenue Decline (YoY) | (5.5)% to (4.0)% | | Adjusted EBIT Margin | 6.0% to 7.0% | | Non-GAAP Diluted EPS | $0.55 to $0.65 | [Full Year (FY) FY2026 Guidance](index=2&type=section&id=Full%20Year%20%28FY%29%20FY2026%20Guidance) Full-year FY2026 guidance projects total revenue of $12.18-$12.44 billion, an organic decline of 3.0-5.0%, adjusted EBIT margin of 7.0-8.0%, non-GAAP diluted EPS of $2.75-$3.25, and approximately $600 million free cash flow Full Year FY2026 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $12.18B - $12.44B | | Organic Revenue Decline (YoY) | (5.0)% to (3.0)% | | Adjusted EBIT Margin | 7.0% to 8.0% | | Non-GAAP Diluted EPS | $2.75 to $3.25 | | Free Cash Flow | ~$600 million | [Consolidated Financial Statements (Preliminary and Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28Preliminary%20and%20Unaudited%29) Preliminary FY2025 consolidated statements show total revenues of $12.87 billion, net income of $389 million, increased cash, and reduced total assets and liabilities [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) FY2025 revenues were $12.87 billion, with income before taxes rising to $630 million and net income attributable to DXC increasing to $389 million, resulting in diluted EPS of $2.10 Fiscal Year Statement of Operations Highlights (in millions, except EPS) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenues | $12,871 | $13,667 | | Income before income taxes | $630 | $109 | | Net income attributable to DXC | $389 | $91 | | Diluted EPS | $2.10 | $0.46 | [Balance Sheet](index=8&type=section&id=Balance%20Sheet) As of March 31, 2025, total assets were $13.21 billion, cash and equivalents increased to $1.80 billion, total liabilities decreased to $9.72 billion, and total equity rose to $3.49 billion Balance Sheet Highlights (in millions) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,796 | $1,224 | | Total Assets | $13,205 | $13,871 | | Total Liabilities | $9,715 | $10,805 | | Total Equity | $3,490 | $3,066 | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) FY2025 net cash from operations was $1.40 billion, with net cash used in investing at $512 million and financing at $317 million, leading to a $572 million net increase in cash Fiscal Year Cash Flow Highlights (in millions) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,398 | $1,361 | | Net cash used in investing activities | ($512) | ($491) | | Net cash used in financing activities | ($317) | ($1,487) | | Net increase (decrease) in cash | $572 | ($634) | [Supplemental Financial Information](index=10&type=section&id=Supplemental%20Financial%20Information) This section details non-GAAP reconciliations, segment profit, organic revenue growth, EBIT to Adjusted EBIT, and revenue by offering, showing FY2025 Adjusted EBIT of $1.019 billion and a 4.6% organic revenue decline [Segment Profit](index=10&type=section&id=Segment%20Profit) For FY2025, GBS segment profit was $797 million (12.0% margin) and GIS segment profit was $451 million (7.2% margin), with reconciliation to GAAP income before taxes - Segment profit is defined as segment revenues less costs of services, SG&A, and depreciation & amortization. Certain corporate-level costs like stock-based compensation, restructuring, and amortization of acquired intangibles are not allocated to the segments[29](index=29&type=chunk) Segment Profit Summary (in millions) | Segment | FY2025 Profit | FY2024 Profit | FY2025 Margin | FY2024 Margin | | :--- | :--- | :--- | :--- | :--- | | GBS | $797 | $835 | 12.0% | 12.2% | | GIS | $451 | $433 | 7.2% | 6.3% | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Detailed reconciliations show FY2025 GAAP net income of $389 million adjusted to $634 million non-GAAP net income, resulting in GAAP diluted EPS of $2.10 and non-GAAP diluted EPS of $3.43 - Key non-GAAP adjustments include **restructuring costs**, **amortization of acquired intangible assets**, **pension actuarial gains/losses**, and **gains/losses on dispositions**[33](index=33&type=chunk) FY2025 GAAP to Non-GAAP EPS Reconciliation | Metric | Amount ($) | | :--- | :--- | | **As Reported Diluted EPS (GAAP)** | **$2.10** | | Restructuring Costs | $0.65 | | Amortization of Acquired Intangible Assets | $1.47 | | Pension and OPEB Actuarial and Settlement Gains | ($0.89) | | Other Adjustments (net) | $0.10 | | **Non-GAAP Diluted EPS** | **$3.43** | [Year-over-Year Organic Revenue Growth](index=14&type=section&id=Year-over-Year%20Organic%20Revenue%20Growth) FY2025 total organic revenue declined 4.6%, with GBS organic revenue declining 1.0% and GIS organic revenue decline moderating to 8.2% Organic Revenue Growth Comparison | Segment | FY2025 | FY2024 | | :--- | :--- | :--- | | Total Organic Revenue Growth | (4.6)% | (4.1)% | | GBS Organic Revenue Growth | (1.0)% | 1.4% | | GIS Organic Revenue Growth | (8.2)% | (9.3)% | [EBIT and Adjusted EBIT](index=15&type=section&id=EBIT%20and%20Adjusted%20EBIT) FY2025 EBIT significantly improved to $696 million (5.4% margin), with Adjusted EBIT reaching $1.019 billion (7.9% margin) EBIT and Adjusted EBIT Comparison (in millions) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | EBIT | $696 | $193 | | EBIT Margin | 5.4% | 1.4% | | Adjusted EBIT | $1,019 | $1,009 | | Adjusted EBIT Margin | 7.9% | 7.4% | [Offerings Details](index=16&type=section&id=Offerings%20Details) Q4 FY25 revenue by offering shows Consulting & Engineering Services as the largest contributor at $1.237 billion, followed by Cloud, ITO & Security at $1.180 billion Q4 FY25 Revenue by Offering (in millions) | Offering | Q4 FY25 Revenue | | :--- | :--- | | Consulting & Engineering Services | $1,237 | | Cloud, ITO & Security | $1,180 | | Insurance Software & BPS | $393 | | Modern Workplace | $359 | | **Subtotal** | **$3,169** | [Other Information](index=3&type=section&id=Other%20Information) This section provides corporate overview, forward-looking statements, and explanations of non-GAAP measures used to clarify core operating performance for investors - DXC Technology uses non-GAAP measures such as **EBIT**, **adjusted EBIT**, **organic revenue**, and **free cash flow** to provide investors with supplemental information, excluding items like amortization of acquired intangibles and restructuring costs to better reflect core operating performance[17](index=17&type=chunk)[18](index=18&type=chunk)[22](index=22&type=chunk) - The report contains forward-looking statements regarding future performance, which are subject to numerous risks and uncertainties, including the inability to succeed in strategic objectives, security breaches, and adverse macroeconomic conditions[15](index=15&type=chunk)

Core Insights - DXC Technology has launched DXC Complete with SAP and Microsoft to facilitate modernization for SAP customers, providing a streamlined approach to adopting RISE with SAP and GROW with SAP journeys on Microsoft Azure [1][2][3] - The offering includes flexible pricing models and a single contract, enabling enterprises to optimize operations and achieve sustainable growth through transformation to SAP S/4HANA Cloud [1][3] Company Overview - DXC Technology is recognized as a leading global technology services provider, helping businesses modernize IT and optimize data architectures while ensuring security and scalability across various cloud environments [7] - The company has a global team of over 50,000 engineers and consultants, delivering tailored SAP solutions that address industry-specific challenges and drive measurable results [6] Collaboration Highlights - The collaboration between DXC, SAP, and Microsoft aims to simplify technology landscapes, reduce technical debt, and accelerate innovation for clients [2][3] - Microsoft Azure integration with SAP Business AI enhances intelligent automation, predictive insights, and streamlined processes, creating a more connected enterprise [6] Awards and Recognition - DXC Technology has been named a 2025 SAP Pinnacle Awards Winner in the "Partner Learning and Skills Growth" category, highlighting its excellence in co-innovation and customer success [4]

Core Insights - DXC Technology has launched its DXC Assure SaaS insurance solutions on AWS Marketplace, enhancing accessibility for AWS customers [1][2] - The collaboration with AWS aims to support insurers in achieving operational efficiencies, security enhancements, and improved customer experiences [2][3] Product Offerings - Initial solutions available include DXC Assure Platform, DXC Assure BPM (powered by ServiceNow), DXC Assure Life+, DXC Assure Claims, DXC Assure Legal, and DXC Assure Legal Insights, with more expected throughout 2025 [2] - These solutions utilize AI-powered tools for claims management, litigation, business process automation, and comprehensive life and annuity insurance workflows [2] Industry Position - DXC manages over 30 million insurance policies through its software built on AWS, marking a significant milestone in its collaboration with AWS [3] - The partnership has facilitated over 200 customer migrations to AWS, showcasing the effectiveness of their joint efforts in the insurance sector [3] - DXC is recognized as a leading provider of core insurance systems, administering 13 million policies and serving 80% of Fortune's Global 500 insurers [4]

Core Insights - DXC Technology has been recognized as a leader in the ISG Provider Lens™ study for Mainframes – Services and Solutions, excelling in all categories in Europe and the United States [1][2] Group 1: Company Recognition - ISG highlighted DXC's strengths in driving business outcomes and integrating GenAI capabilities for optimization and modernization [2] - The recognition reflects DXC's commitment to transforming mainframe systems into agile, future-ready systems [3] Group 2: Service Capabilities - DXC manages over 1.1 million managed mainframe MIPs and executes 10 million automation and AI transactions daily [3] - The company completes 47,000 workload migrations to the cloud annually, showcasing its extensive capabilities in mainframe optimization [3] Group 3: Strategic Focus - DXC emphasizes the importance of its 1,800+ mainframe experts and the investment in its Mainframe Center of Excellence [3] - The company aims to help enterprises modernize and protect their mission-critical infrastructure through its Managed Mainframe Services [3]

Core Insights - DXC Technology has been recognized as a top provider in Everest Group's "Individual Life Insurance Core Technology Products PEAK Matrix® Assessment 2025: North America," highlighting its leadership in modernizing insurance operations to enhance customer experience and reduce costs [1][2] - The report emphasizes DXC's flexible software-as-a-service models as a key differentiator, serving over 1,000 insurance clients and processing more than one billion policies, which accounts for 10% of global premiums [2][5] - DXC's Assure suite, including the cloud-native Assure Life+ offering, supports product deployment across various life, annuity, and savings products, showcasing its commitment to innovation and operational excellence [5][3] Industry Position - The PEAK Matrix® framework evaluates technology providers based on market impact, vision, and capability, with DXC being recognized as a leader among 14 evaluated providers [4] - DXC has over 40 years of experience in the insurance industry, with 21 of the world's top 25 insurers relying on its solutions to address critical business challenges [5] - The company is trusted by 80% of insurers in Fortune's Global 500, indicating its strong position in helping insurance companies navigate disruptions and achieve operational excellence [5][7]

Core Insights - DXC Technology has appointed William Pieroni as Global Strategy and Growth Leader for Insurance Software & Business Process Services, aiming to enhance strategy and growth in the insurance sector [1][3] Company Overview - DXC Technology is a leading global technology services provider, recognized in the Fortune 500, with over 40 years of innovation in the insurance sector [1][6] - The company supports more than 1,000 customers and has processed over 1 billion policies through its solutions, with 21 of the world's top 25 insurers relying on DXC for critical software and services [4] Leadership Appointment - William Pieroni brings over 25 years of experience in insurance, technology, and enterprise transformation, having previously served as CEO of ACORD and held senior roles at Marsh McLennan, Aon, State Farm, IBM, Accenture, and McKinsey & Company [2][3] - His role at DXC will involve defining strategic priorities, guiding global growth initiatives, and enhancing the firm's position within the global insurance ecosystem [3] Strategic Focus - The appointment reflects DXC's commitment to industry leadership, intelligent growth, and long-term value creation, with a focus on delivering competitive differentiation and operational excellence across the insurance value chain [1][3]

Core Viewpoint - The U.S. is experiencing heightened tariff tensions, particularly affecting major trading partners like Canada, Mexico, and China, leading to retaliatory measures and increased trade volatility [1][2]. Group 1: Market Impact - The trade war is expected to create increased volatility and uncertainty in U.S. equity markets, but investors are encouraged to remain engaged with stocks [2]. - A screening process has been developed to identify stocks with improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3]. Group 2: Screening Criteria - The screening criteria include net upgrades in broker ratings, percentage change in earnings estimates, and price-to-sales ratios, focusing on companies in the bottom 10% of this ratio [4][5]. - Additional criteria include a stock price greater than $5, an average daily volume exceeding 100,000 shares, and a market value ranking in the top 3000 [5]. Group 3: Selected Stocks - Cardinal Health (CAH) is a nationwide drug distributor with an expected earnings growth rate of 5.4% for the current year, and its earnings estimates have improved by 1.5% over the last 60 days [6][7]. - DXC Technology is benefiting from its digital business and partnerships, with a 5.4% increase in earnings estimates over the past 60 days and a strong earnings surprise history [7][8]. - Cross Country Healthcare (CCRN) is experiencing growth in its home care staffing business and has a Zacks Rank of 3, with earnings surpassing estimates in three of the last four quarters [9]. - Avnet (AVT) is capitalizing on the defense and data center markets, with a focus on Internet of Things capabilities and a Zacks Rank of 3 [10][11]. - Asbury Automotive Group (ABG) is leveraging its diversified product mix and e-commerce platform for growth, with a recent increase in earnings estimates [11][12].

Core Insights - DXC Technology and ServiceNow have expanded their strategic partnership to modernize the insurance industry by combining DXC's software and expertise with ServiceNow's AI-enabled platform [1][3] - The new offering, DXC Assure BPM powered by ServiceNow, aims to enhance operational efficiency and customer satisfaction while reducing operational costs by up to 40% [3][4] Industry Context - Insurers are under pressure to accelerate growth, streamline operations, and provide faster services, with 45% already investing in technology to align their operations [2] - The partnership is positioned to help insurers drive innovation and reduce process debt through integrated AI, data, and workflows [3] Product Features - DXC Assure BPM supports the full policy lifecycle, including policy administration, billing, underwriting, and claims management [4][7] - The solution features an AI-driven self-service portal for policyholders, enhancing customer experience with faster and more accurate responses [7]

Core Insights - DXC Technology has appointed Pat McClanahan as the Global Leader of Business and Sales Operations for Consulting & Engineering Services - Powered by AI, effective immediately [1][2] - McClanahan will report to Howard Boville, the President of CES, and will focus on driving growth and operational efficiency within the organization [1][2] Group 1: Leadership Background - Pat McClanahan has a strong leadership background, including his recent role as COO and CFO at the Federal Reserve, where he managed critical functions such as financial planning, IT, cybersecurity, HR, and strategy [2][3] - He has over 24 years of service in the U.S. Navy, retiring as a Captain, and held key leadership positions at the Pentagon and Joint Chiefs of Staff [4] Group 2: Responsibilities and Goals - In his new role, McClanahan will oversee global business and sales operations within CES, focusing on enhancing workforce productivity and optimizing sales effectiveness [2][3] - He will also ensure strategic alignment across DXC's AI-powered consulting and engineering services, aiming to spearhead transformation initiatives [2][3]