Core Insights - The discussion features Tien-Tsin Huang from JPMorgan, who has over 20 years of experience covering DXC Technology and its various transformations [1] - Raul Fernandez, the President and CEO of DXC, is highlighted for his extensive background in the industry, including his role as a co-owner of Monumental Sports & Entertainment and his previous experience with Proxicom [1] Company Overview - DXC Technology has undergone significant changes and mergers over the years, reflecting the evolving landscape of the IT services sector [1] - Raul Fernandez became the CEO of DXC in February 2024, indicating a leadership transition that may influence the company's strategic direction [1] Industry Context - The payments and IT services sector is characterized by rapid changes and the need for companies to adapt to new technologies and market demands [1] - The conversation emphasizes the importance of leadership experience in navigating the complexities of the IT services industry [1]

Summary of DXC Technology Company Conference Call Company Overview - **Company**: DXC Technology Company (NYSE:DXC) - **Date of Conference**: November 18, 2025 - **Key Speakers**: Raul Fernandez (President and CEO), Rob Del Bene (CFO) Core Industry Insights - **AI Development**: The company views the current period as still being in "training camp" for AI, with 2026 expected to mark the beginning of significant advancements in AI tools and applications [5][6] - **Cost of Innovation**: The total cost of ownership for businesses to innovate has decreased, allowing for faster idea-to-market processes [6] - **Legacy Systems**: DXC is leveraging its legacy systems, such as Hogan, to build new services without requiring extensive infrastructure changes [13][14] Strategic Initiatives - **Two-Track Business Model**: DXC is managing its business through a "core track" focused on existing services and a "fast track" aimed at innovative AI-driven solutions [7][9] - **Core Ignite**: This initiative is an extension of the Hogan system, allowing banks to add new services without overhauling their existing infrastructure [12][13] - **Revenue Goals**: The company aims for the fast track initiatives to contribute approximately 10% of total revenue over the next 36 months [9][23] Financial Performance and Projections - **Revenue Stabilization**: The company is focused on turning around revenue declines and aims for flat revenue as an initial goal, followed by positive growth [19][24] - **SAP Practice**: DXC plans to double its SAP practice, emphasizing the need for better pricing and deal flow [26][24] - **Investment in AI**: The company is investing in AI capabilities across all business segments, with expectations for these investments to be accretive to margins over time [50][51] Market Position and Competitive Advantage - **Customer Relationships**: DXC is focusing on maintaining existing customer relationships and enhancing service offerings to secure recompetes [44] - **New Client Acquisition**: The company has successfully acquired new clients, such as Carnival Cruise Line, and is looking to replicate this success with other major players [46] - **Understanding Workflows**: DXC's deep understanding of existing workflows provides a competitive advantage over newer entrants in the market [18] Challenges and Considerations - **Macro Environment**: The company acknowledges potential softness in certain segments due to external economic factors but believes it can generate opportunities to offset these challenges [48] - **Employee Impact**: The rapid advancement of AI is expected to impact all job categories within the company, necessitating a focus on employee adaptability and skill development [11][58] Key Metrics to Watch - **Net New Logos**: The growth in acquiring new clients is a critical metric for the company moving forward [64] - **Pipeline Growth**: Monitoring the size and conversion rate of the sales pipeline will be essential for assessing future performance [41] Conclusion DXC Technology is positioning itself for growth through strategic investments in AI and modernization of its legacy systems. The focus on both maintaining existing client relationships and acquiring new ones, alongside a clear revenue stabilization strategy, sets a positive outlook for the company's future performance.

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular stock market outperformance [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1] Group 3: Risk Management - Franke suggests using 10% or 20% stop-loss levels on individual stock choices to manage risk effectively [1]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular stock market outperformance [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing a significant reversal in technical momentum [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1] Group 3: Risk Management - Franke suggests using 10% or 20% stop-loss levels on individual stock choices to manage risk effectively [1]

Core Insights - DXC Technology's Chief People Officer, Jennifer Ragone, has been awarded the 2025 N2Growth Leaders40 Top CHRO Award, recognizing her as one of the most effective HR leaders in the industry [1][2][3] - Jennifer Ragone has been instrumental in shaping DXC's culture through innovative talent strategies and HR expertise, focusing on workforce transformation and employee experience [1][3] - The N2Growth Leaders40 Award, established in partnership with Stanford Graduate School of Business, honors the top 40 CHROs globally, emphasizing excellence in human capital management [2][4] Company Overview - DXC Technology is a leading global provider of information technology services, recognized as a trusted partner for innovative organizations [4] - The company focuses on simplifying, optimizing, and modernizing systems and processes while integrating AI-powered intelligence and prioritizing security [4] Industry Recognition - The N2Growth Leaders40 Award evaluates thousands of nominations and interviews hundreds of executives to select the top CHROs, highlighting the evolving role of HR leadership [3][4] - The award emphasizes qualities such as innovation, strategic perspective, and commitment to advancing both people and performance in the HR profession [4]

Core Insights - DXC Technology has been selected as the Master Vendor to provide BPO services and ERP and Resource Management replacement systems to the Metropolitan Police Service, marking a significant contract awarded after a competitive tender process [1] - The contract spans over 7+1+1 years and aims to modernize resource deployment, enhance internal processes, and deliver substantial cost savings for the Metropolitan Police [1] - The collaboration emphasizes the commitment to smarter, more efficient digital services that support police officers and improve public trust [1] Company Overview - DXC Technology is a leading global provider of information technology services, recognized for its expertise in digital transformation for public sector organizations [1] - The company integrates Oracle Fusion SaaS and AI capabilities into its solutions, aiming to create lasting benefits for the Metropolitan Police and the communities it serves [1] - DXC's leadership in AI services for national civilian government has been acknowledged by IDC MarketScape, highlighting its innovation and commitment to responsible AI solutions [1]

Group 1 - DXC Technology will participate in the J.P. Morgan 2025 Ultimate Services Conference on November 18, 2025, in New York City, with President and CEO Raul Fernandez scheduled to present at 11:40 am ET [1] - The presentation will be available on the "Events and Presentations" section of DXC's investor webpage [1] - DXC Technology is recognized as a leading global technology services provider, helping companies modernize IT and optimize data architectures while ensuring security and scalability across various cloud environments [2][3] Group 2 - DXC Technology has been acknowledged as a leader in the ISG Provider Lens® study regarding AWS ecosystem partners, highlighting its strong position in the technology services market [3][4]

Core Insights - DXC Technology has been recognized as a Leader in the ISG Provider Lens AWS Ecosystem Partners study, receiving 16 awards globally, highlighting its leadership in cloud transformation and AWS managed services [1][2][4] Group 1: Awards and Recognition - DXC was named AWS Innovation Partner of the Year for 2024 in the APAC region, showcasing its deep technical expertise in AWS [2] - The ISG Provider Lens study evaluated providers in various categories, with DXC recognized as a Rising Star and Leader, reflecting its strengths in AWS Professional Services, Managed Services, Enterprise Data Modernization, AI Services, and SAP Workloads [4] Group 2: Strategic Partnerships and Services - DXC's strategic partnership with AWS combines cloud expertise and joint innovation, enabling the delivery of strategy, migration, and managed services for cloud, applications, and analytics [4] - The company offers a modular managed services portfolio that supports hybrid and multicloud environments, facilitating seamless deployment of services within clients' cloud environments [6] Group 3: Industry Impact and Future Directions - DXC aims to transform complex mainframes into AWS-native architectures, driving measurable business outcomes and optimizing operations for enterprise clients [4] - The company is focused on integrating AI-driven operations and SRE principles into its managed services, redefining the approach to AWS [3]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article suggests that users may face access issues if they have an ad-blocker enabled [1] - It advises users to disable their ad-blocker and refresh the page to proceed [1]

Financial Performance - Revenues for the three months ended September 30, 2025, were $3,161 million, a decrease of 2.5% compared to $3,241 million for the same period in 2024[10]. - Net income for the six months ended September 30, 2025, was $58 million, down 17.1% from $70 million for the same period in 2024[10]. - As of September 30, 2025, DXC Technology Company reported a net income of $36 million, compared to $42 million for the same period in 2024, reflecting a decrease of approximately 14.3% year-over-year[19]. - The company experienced a comprehensive loss attributable to DXC common stockholders of $44 million for the three months ended September 30, 2025[14]. - DXC's total comprehensive loss for the three months ended September 30, 2025, was $(80) million, compared to a comprehensive income of $64 million for the same period in 2024[19]. - Net income attributable to DXC common shareholders for the three months ended September 30, 2025, was $36 million, compared to $42 million for the same period in 2024, representing a decrease of 14.3%[30]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.20, down from $0.23 in the same period of 2024, a decline of 13.0%[30]. - Diluted earnings per share were $0.20, down from $0.23 in the same period a year ago; adjusted diluted earnings per share were $0.84, down from $0.93[137]. - Net income for the six months ended September 30, 2025, was $276 million, compared to $308 million for the same period in 2024, reflecting a decrease of 10.4%[170]. Assets and Liabilities - Total current assets increased to $5,439 million as of September 30, 2025, compared to $5,363 million as of March 31, 2025[16]. - Total liabilities increased to $10,246 million as of September 30, 2025, compared to $9,715 million as of March 31, 2025[16]. - Goodwill increased slightly to $531 million as of September 30, 2025, from $526 million as of March 31, 2025[16]. - The total debt of the Company as of September 30, 2025, was $3.982 billion, compared to $3.876 billion as of March 31, 2025[69]. - The estimated fair value of the Company's long-term debt, excluding finance lease liabilities, was $3.6 billion as of September 30, 2025[70]. - The company had total liquidity of $5.1 billion as of September 30, 2025, including $1.9 billion in cash and cash equivalents and $3.2 billion in available borrowings[187]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended September 30, 2025, was $595 million, compared to $433 million for the same period in 2024[18]. - Year-to-date cash generated from operations was $595 million, resulting in free cash flow of $337 million, compared to $93 million in the prior year[137]. - Cash paid for interest during the six months ended September 30, 2025, was $102 million, compared to $137 million in the same period of 2024[105]. - The company reported a total of $508 million in capital expenditures in accounts payable and accrued expenses for the six months ended September 30, 2025[105]. - The cash conversion cycle improved to 9 days for the three months ended September 30, 2025, down from 15 days in the prior year[177]. Shareholder Actions - The company repurchased 5,318 thousand shares under its share repurchase program, resulting in a treasury stock acquisition of $76 million during the three months ended September 30, 2025[19]. - For the first six months of fiscal 2026, the company repurchased a total of 8,593,166 shares at an average price of $14.55, totaling $125 million[95]. - During the quarter ended September 30, 2025, DXC repurchased a total of 5,317,898 shares at an average price of $14.12 per share[200]. - As of September 30, 2025, approximately $467 million worth of shares remained available for repurchase under the company's share repurchase plans[200]. - The company announced an incremental $1.0 billion share repurchase authorization on May 18, 2023[200]. Segment Performance - Segment revenues for the three months ended September 30, 2025, were $3,161 million, a decrease from $3,241 million in the same period of 2024[111]. - Segment profit for the six months ended September 30, 2025, was $530 million, down from $600 million in the same period of 2024[112]. - Revenues for the CES segment for the six months ended September 30, 2025, were $2,501 million, a decrease from $2,560 million in the same period of 2024[112]. Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 69.5%, compared to 51.6% for the same period in 2024[81]. - The effective tax rate for the six months ended September 30, 2025, was 38.0%, down from 56.5% in the same period of 2024[170]. - The company has a deferred tax liability of $23 million related to undistributed earnings from foreign subsidiaries as of September 30, 2025[82]. - The company expects to resolve tax return years 2014 through 2021 no earlier than fiscal year 2027[93]. Restructuring and Costs - The company reported restructuring costs of $35 million for the three months ended September 30, 2025, compared to $42 million for the same period in 2024[10]. - Restructuring liabilities totaled $36 million as of September 30, 2025, down from $39 million as of March 31, 2025[76]. - The company expects to incur restructuring costs associated with global cost savings initiatives during fiscal 2026[77]. - Corporate expenses for the three months ended September 30, 2025, were $41 million, down from $53 million in the same period of 2024, reflecting a reduction of 22.6%[113]. Market and Economic Factors - The company was awarded a total of $194 million in a lawsuit against Tata Consultancy Services, including $56 million in compensatory damages and $112 million in punitive damages[119]. - The Inflation Reduction Act imposes a 1% excise tax on share repurchases completed after December 31, 2022, which is reflected within equity[201]. - There have been no material changes to the risk factors affecting the company as of September 30, 2025[197].