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 ...

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]

Macro worries are once again pulling attention away from adoption news in the XRP market. XRP traded near $1.89 on January 26 after briefly dipping below $1.90 in the past 24 hours. Traders stayed focused on this week’s Federal Reserve meeting, even as Ripple announced a major partnership with DXC Technology that brings XRP into a leading core banking system. The payments token, which supports Ripple’s cross-border network, moved in a wide intraday range while US rate uncertainty kept pressure on risk ...

ASHBURN, Va, Jan. 21, 2026 /PRNewswire/ - DXC Technology (NYSE: DXC), a global enterprise technology and innovation partner, today announced a strategic partnership with Euronet Worldwide, Inc. (NASDAQ: EEFT), a leading global payments technology company, to expand issuing, revolving credit and payments capabilities for financial institutions worldwide. Through this collaboration, DXC will integrate Hogan, its core banking platform, which powers more than 300 million deposit accounts and over $5 trillion in ...

Financial Data and Key Metrics Changes - Total revenue for the quarter was $3.2 billion, a decline of 4.2% year-over-year on an organic basis, consistent with previous quarters [14] - Adjusted EBIT margin was 8%, above the high end of guidance, but down 60 basis points year-over-year due to productivity savings and higher investment levels [15] - Non-GAAP EPS was $0.84, down from $0.93 in the same quarter last year, primarily due to lower adjusted EBIT and higher taxes [16] - Free cash flow generated was $240 million, significantly up from $48 million last year, bringing first-half free cash flow to $337 million, an increase of $244 million year-over-year [18][20] Business Line Data and Key Metrics Changes - Consulting and Engineering Services (CES) revenue declined 3.4% year-over-year, with a book-to-bill ratio of 0.92 [16] - Global Infrastructure Services (GIS) revenue declined 6.3% year-over-year, with a book-to-bill ratio of 0.82 [17] - Insurance Services revenue grew 3.6% year-over-year, driven by software growth and volume increases in existing accounts [18] Market Data and Key Metrics Changes - The trailing 12-month book-to-bill ratio for CES improved to 1.15, indicating potential revenue growth in the latter part of the year [16] - The trailing 12-month book-to-bill ratio for GIS remained at approximately 1.1, reflecting a strong pipeline despite longer closing cycles [17] Company Strategy and Development Direction - The company is focusing on a two-track approach: Core Track for existing business and Fast Track for new AI-native solutions [4][5] - Fast Track solutions aim to become 10% of the business within 36 months, targeting large and growing markets with measurable results [6] - The company is enhancing its offerings with AI-enabled solutions and has plans to pilot new products like Oasis in the coming months [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in revenue and bookings but remains focused on building a predictable and growing company [4] - The company anticipates a book-to-bill ratio greater than one in the third quarter, supported by a robust pipeline of new large opportunities [14] - Management is confident in the ability to close large deals based on strong customer interest and the deployment of new tools [43] Other Important Information - The company has reduced total debt by approximately $107 million, bringing it to around $4 billion, while increasing cash balance to $1.9 billion [20][21] - The full-year revenue guidance has been narrowed to a decline of 3.5% to 4.5%, with expectations for adjusted EBIT margin between 7% and 8% [22][23] Q&A Session Summary Question: Update on CES performance under new leadership - Management highlighted targeted goals and go-to-market plans to improve CES performance, leveraging strong SAP capabilities [26][27] Question: Trends in GIS business and Hogan - Management noted improved customer-related metrics in GIS and emphasized the importance of new product development for revenue generation [36][38] Question: Free cash flow sustainability - Management indicated that the improved free cash flow performance is expected to be sustainable moving forward [33][70] Question: Headcount strategy in light of AI integration - Management discussed the evolving labor model, emphasizing the need for workforce skills to adapt to AI deployment [62][63] Question: Fast Track solution plans and milestones - Management attributed the pivot to new talent acquisition and the development of a product framework for Fast Track opportunities [68]