As an example of go-to-market execution, Fernandez cited a new logo win with the London Metropolitan Police, describing it as a “master vendor engagement” for enterprise transformation that includes replacing core ERP and resource management platforms and integrating modern SaaS and AI into mission-critical operations.Fernandez also said DXC established a centralized sales enablement function for the first time, rebuilding onboarding, creating sales plays for priority offerings, and setting baseline metrics ...

DXC Technology Company (NYSE:DXC) Q3 2026 Earnings call January 29, 2026 05:00 PM ET Company ParticipantsBrendan Biles - Equity Research AssociatePaul Obrecht - Equity Research AssociateRaul Fernandez - President and CEORob Del Bene - CFORod Bourgeois - Managing Partner and Head of ResearchRoger Sachs - VP of Investor RelationsConference Call ParticipantsAntonio Jaramillo - Equity Research AnalystBryan Bergin - Managing Director and Senior Equity Research AnalystJamie Friedman - Financial Analyst and Valuat ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2026 was $3.2 billion, a decline of 4.3% year-over-year, consistent with guidance [15] - Adjusted EBIT margin was 8.2%, slightly above the high end of guidance, but down 70 basis points year-over-year [16][17] - Non-GAAP EPS was $0.96, up from $0.92 in the same quarter last year, driven by a lower share count and net interest expense [17] Business Line Data and Key Metrics Changes - CES revenues, representing 40% of total revenue, declined 3.6% year-over-year, with a book-to-bill ratio of 1.2 [17][18] - GIS, which accounts for 50% of total revenue, saw a decline of 6.2% year-over-year, with a book-to-bill ratio of 1.09 [18] - Insurance revenue, making up 10% of total revenue, grew 3.2% year-over-year, primarily due to growth in the software business [18][19] Market Data and Key Metrics Changes - The U.S. market experienced declining performance, while the rest of the world showed improvement [15][18] - The company noted a pronounced difference in performance between the U.S. and other regions, with Europe and APAC on an improving trajectory [85] Company Strategy and Development Direction - The company is pursuing a dual-track strategy to stabilize heritage businesses while building new AI-native revenue streams [4] - Fast-Track initiatives are focused on AI-infused solutions and are expected to achieve 10% of run rate revenue by the end of Q2 Fiscal 2029 [11] - The strategy emphasizes connecting legacy systems to AI rather than replacing them, allowing for faster deployment and innovation [10][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for Q4, driven by corporate spinouts and restructurings [46] - The company anticipates total organic revenue to decline by 4%-5% in Q4, with CES and GIS revenues expected to decline at similar rates [22][23] - Management highlighted the importance of AI in driving future growth and operational efficiency [12][41] Other Important Information - Free cash flow for Q3 was $266 million, bringing the year-to-date total to $603 million, on track to meet the full-year guidance of approximately $650 million [19][21] - The company repurchased $190 million worth of shares year-to-date, with plans to repurchase an additional $60 million in Q4 [20][21] Q&A Session Questions and Answers Question: Insights on Fast-Track attributes and services - Management discussed the importance of leveraging existing value in legacy systems like Hogan to create new, scalable offerings [28][29] Question: Drivers and assumptions behind growth rates in segments - Management noted strong bookings in CES for long-term projects but delays in short-term project bookings impacted revenue expectations [38][39] Question: Pricing environment across business segments - Pricing dynamics vary by segment, with stable pricing observed across GIS, CES, and insurance [63] Question: Capital allocation priorities and M&A considerations - The company remains open to accretive acquisitions that align with business goals while prioritizing internal growth investments [76][77]