Core Insights - DXC Technology, Inc. reported better-than-expected non-GAAP earnings of 96 cents per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate by 12.94% and reflecting a 4.3% year-over-year increase [1] - Despite the earnings beat, shares fell 6.3% in after-hours trading due to revenue shortfalls, with reported revenues of $3.19 billion, missing estimates by 0.31% and decreasing 1% year over year [2] Financial Performance - DXC's non-GAAP operating income (Adjusted EBIT) for Q3 was $263 million, down 8% year over year, with a non-GAAP operating margin of 8.2%, a contraction of 70 basis points [5] - The company generated operating cash flow of $414 million and free cash flow of $266 million in Q3, with share repurchases totaling $65 million during the quarter [7] Revenue Breakdown - Revenues from the Consulting & Engineering Services (CES) segment declined 0.1% year over year to $1.27 billion, with an organic decline of 3.6% [4] - Global Infrastructure Services (GIS) revenues totaled $1.61 billion, down 2.7% year over year, with an organic decline of 6.2% [4] - Insurance Services revenues increased 4.6% year over year to $321 million, with organic growth of 3.2% [4] Guidance Update - DXC updated its fiscal 2026 revenue outlook to approximately $12.69 billion, slightly down from the previous guidance of $12.67-$12.81 billion [8] - The adjusted EBIT margin is now projected to be around 7.5%, with adjusted EPS expected to be about $3.15, up from the previous range of $2.85-$3.35 [9] - For Q4, the company anticipates organic revenue declines of 4-5% and adjusted EPS of 65-75 cents [10] Market Position - DXC Technology currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook compared to other stocks in the Computer and Technology sector [12]

ASHBURN, Va., Jan. 29, 2026 /PRNewswire/ - DXC Technology (NYSE: DXC) today reported results for the third quarter fiscal 2026. Financial Highlights - Third Quarter Fiscal Year 2026 (1) Segment Highlights - Third Quarter Fiscal Year 2026 Consulting and Engineering Services ("CES") "We delivered third quarter results with solid profit margins, continued strong free cash flow generation and improved bookings. This reflects disciplined execution across our business," said DXC Technology President and CEO Raul ...

Q1 FY26 Performance - DXC reported a YoY organic revenue decline of 43%[23] - The adjusted EBIT margin was 68%[23], within the guidance range of 60% - 70%[23] - Bookings increased by 14% YoY[23] - Non-GAAP diluted EPS was $068[24], exceeding the guidance range of $055 - $065[24] Segment Results - CES (Consulting & Engineering Services) revenue was $1246 million with a YoY organic revenue decline of 44%[25] and bookings increased by 32%[25] - GIS (Global Infrastructure Services) revenue was $1600 million with a YoY organic revenue decline of 57%[25] and bookings increased by 4%[25] - Insurance segment revenue was $313 million with a YoY organic revenue growth of 36%[25] and bookings decreased by 19%[25] Financial Position - Gross debt was $4029 million, while cash was $1792 million, resulting in net debt of $2237 million[27] - Gross debt reduction from capital leases since the start of FY25 was $322 million[28], with capital lease originations of $25 million and payments of $347 million[28] FY26 Guidance - Full fiscal year 2026 organic revenue growth is projected to be between -30% and -50%[30], with an adjusted EBIT margin of 70% - 80%[30] and Non-GAAP diluted EPS of $285 - $335[30] and free cash flow of ~$600 million[30] - Q2 fiscal year 2026 organic revenue growth is expected to be between -35% and -45%[31], with an adjusted EBIT margin of 65% - 75%[31] and Non-GAAP diluted EPS of $065 - $075[31]