DXC Technology Reports First Quarter Fiscal Year 2027 Results
Rhea-AI Summary
DXC Technology (NYSE: DXC) reported Q1 FY27 revenue of $3.00 billion, down 5.1% year-over-year and 6.7% on an organic basis. EBIT was $207 million (6.9% margin), while adjusted EBIT was $150 million with a 5.0% margin, down 30.6% year-over-year.
Diluted EPS was $0.73; non-GAAP diluted EPS was $0.40, down 41.2%. Free cash flow rose to $314 million from $97 million, including $214 million from a litigation judgment. Bookings were $3.0 billion, up 5% with a 0.99x book-to-bill. DXC repurchased $70 million of stock.
By segment, CES revenue fell 1.2%, GIS declined 9.4%, and Insurance grew 1.9%. DXC maintained FY27 guidance, targeting $12.10–$12.35 billion revenue (organic decline 5.0–3.0%), adjusted EBIT margin of 6.0–7.0%, non-GAAP EPS of $2.40–$2.90, and raised FY27 free cash flow guidance to about $685 million.
Positive
- EBIT $207M, up 176.0% YoY with 6.9% margin
- Operating cash flow $418M, up 124.7% YoY; free cash flow $314M
- Bookings $3.0B, up 5% YoY with 0.99x book-to-bill
- FY27 free cash flow guidance raised to ~$685M from ~$600M
- Insurance segment revenue $319M, up 1.9% YoY; margin 10.7%
- GIS bookings up 34.7% YoY with 1.11x book-to-bill
- $70M share repurchase, approximately 6.7 million shares retired
Negative
- Total revenue $3.00B, down 5.1% YoY; organic decline 6.7%
- Adjusted EBIT $150M, down 30.6% YoY; 5.0% margin
- Non-GAAP diluted EPS $0.40, down 41.2% YoY
- CES segment profit $100M, down 4.8% YoY; bookings -18.5%
- GIS segment profit $38M, down 60.8% YoY; 2.6% margin
- FY27 organic revenue guided down 5.0–3.0%; Q2 organic down 6.5–5.5%
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | Q4 FY26 earnings | Negative | -21.5% | Revenue declined while full-year revenue and organic growth remained negative |
| Jan 29 | Q3 FY26 earnings | Neutral | +0.1% | Mixed quarterly results included stronger cash flow and lower non-GAAP EPS |
| Oct 30 | Q2 FY26 earnings | Positive | +9.7% | Cash flow and bookings improved despite revenue and EPS declines |
| Jul 31 | Q1 FY26 earnings | Negative | -5.5% | Revenue declined and diluted EPS fell year over year |
| May 14 | Q4 FY25 earnings | Negative | -3.3% | Revenue declined despite higher EPS and strong bookings |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events averaged a -4.07% reaction, with four aligned reactions and one divergence.
Key Terms
organic basis financial
book to bill ratio financial
adjusted ebit financial
non-gaap financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Total revenue for Q1 FY27 of
$3.00 billion 5.1% YoY, down6.7% on an organic basis(1) - Q1 FY27 Bookings of
$3.0 billion 5% YoY with a book to bill ratio of 0.99x - Q1 FY27 EBIT margin of
6.9% , and adjusted EBIT(2) margin of5.0% - Q1 FY27 Diluted earnings per share of
$0.73 $0.40 41.2% YoY - Free cash flow(4) was
$314 million $97 million - Repurchased
$70 million
"Our first quarter results were in line with our expectations, and we are maintaining our full-year guidance," said DXC Technology President and CEO, Raul Fernandez. "Through our Fast Track approach to innovation, we are bringing a new generation of AI-enabled platforms to market that help customers modernize operations and deliver measurable business outcomes. The momentum we are building is strengthening our capabilities, deepening customer engagement, and creating a clearer path to long-term value creation. The recent addition of Paul Taylor as incoming President further strengthens our leadership team and positions us to execute our strategy with greater speed and focus."
Financial Highlights - First Quarter Fiscal Year 2027
- Total revenue was
$3.00 billion 5.1% year-over-year (down6.7% on an organic basis).(1) - EBIT was
$207 million 176.0% year-over-year with a corresponding margin of6.9% . Adjusted EBIT(2) was$150 million 30.6% year-over-year, with a corresponding margin(2) of5.0% . - Diluted earnings per share was
$0.73 $0.40 41.2% year-over-year. - Cash generated from operations was
$418 million 124.7% year-over-year. Free cash flow(4) was$314 million $97 $214 - Bookings of
$3.0 billion 5% year-over-year, with a book to bill ratio of 0.99x. - Returned
$70 million
(1) | Revenue growth on an organic basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates, adjusted for the impact of acquisitions and divestitures. A reconciliation of GAAP to non-GAAP measure are attached to this release. |
(2) | Adjusted EBIT and Adjusted EBIT margin are non-GAAP measures. Reconciliations of GAAP Net Income to such measures are attached to this release. |
(3) | Non-GAAP diluted earnings per share is a non-GAAP measure. A reconciliation of GAAP diluted earnings per share to non-GAAP diluted per share is attached to this release. |
(4) | Free cash flow is a non-GAAP measure, calculated by subtracting capital expenditures (Purchase of Property, Plant & Equipment, Transition and Transformation Contract Costs and Software Purchased or Developed) from cash flow from operations. |
Segment Highlights - First Quarter Fiscal Year 2027
Consulting and Engineering Services ("CES")
- Revenue was
$1,231 million 1.2% year-over-year (down3.0% on an organic basis).(1) - Segment profit was
$100 million 4.8% year-over-year, with a corresponding margin of8.1% . - Bookings declined
18.5% year-over-year, with a book to bill ratio of 0.98x.
Global Infrastructure Services ("GIS")
- Revenue was
$1,449 million 9.4% year-over-year (down11.1% on an organic basis).(1) - Segment profit was
$38 million 60.8% year-over-year, with a corresponding margin of2.6% . - Bookings increased
34.7% year-over-year, with a book to bill ratio of 1.11x.
Insurance Software & Services ("Insurance")
- Revenue was
$319 million 1.9% year-over-year (up1.4% on an organic basis).(1) - Segment profit was
$34 million 3.0% year-over-year, with a corresponding margin of10.7% . - Bookings increased
3.6% year-over-year, with a book to bill ratio of 0.54x.
Full Year Fiscal 2027 and Second Quarter Fiscal Year 2027 Guidance
Full Year Fiscal 2027
- Total revenue in the range of
$12.10 billion $12.35 billion 5.0% to3.0% year-over-year on an organic basis.(1) - Adjusted EBIT margin(2) in the range of
6.0% to7.0% . - Non-GAAP diluted EPS(3) in the range of
$2.40 $2.90 - Free Cash Flow(4) of
~ compared to the prior guide of$685 million ~ . The increase is the reflection of litigation related matters.$600 million
Second Quarter Fiscal 2027
- Total revenue in the range of
$2.97 billion $3.00 billion 6.5% to5.5% year-over-year on an organic basis.(1) - Adjusted EBIT margin(2) of ~
6.0% . - Non-GAAP Diluted EPS(3) of
~ .$0.55
Additional metrics for the second quarter and full year fiscal 2027 guidance are presented in the table below.
Revenue | Q2 FY27 Guidance | FY27 Guidance | ||||
Low | High | Low | High | |||
YoY Organic Revenue % | (6.5) % | (5.5) % | (5.0) % | (3.0) % | ||
Acquisition & Divestitures Revenues % | — % | — % | ||||
Foreign Exchange Impact on Revenues % | 0.4 % | 0.6 % | ||||
Others | ||||||
Non-GAAP Net Interest Expense ($M)* | ||||||
Non-GAAP Tax Rate | ~ | ~ | ||||
Foreign Exchange Assumptions | Current Estimate | Current Estimate | ||||
$/Euro Exchange Rate | ||||||
$/GBP Exchange Rate | ||||||
$/AUD Exchange Rate | ||||||
*Excludes | ||||||
DXC does not provide reconciliations of non-GAAP measures included in its guidance because certain key information necessary for such reconciliations—most notably the impact of significant non-recurring items—is unavailable without unreasonable effort or may not be available at all. As a result, DXC believes any such reconciliation would not be meaningful.
Earnings Conference Call and Webcast
DXC Technology senior management will host a conference call and webcast to discuss first quarter fiscal 2027 results at 5:00 p.m. ET on July 30, 2026. The dial-in number for domestic callers is 888-596-4144. Callers who reside outside of
A replay of the conference call will be available approximately two hours after its conclusion until 11:59 PM ET on August 6, 2026, at 800-770-2030. The replay passcode is 9664077#. A transcript of the conference call will be posted on DXC Technology's Investor Relations website.
About DXC Technology
DXC Technology (NYSE: DXC) is a leading technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world's most complex technology estates. Learn more at DXC.com.
Forward-Looking Statements
Except for historical information, statements in this document may constitute "forward-looking statements" based on our current assumptions regarding future performance. These statements involve numerous risks, uncertainties, and other factors outside our control that could cause actual results to differ materially, including: inability to effectively manage our sales organization, including execution, pipeline, and talent management; our inability to expand service offerings to address emerging technological trends and competitive pressures; failure to attract and retain key personnel, including artificial intelligence (AI) and technical experts, or maintain partner relationships; risks associated with AI, including adoption, deployment, and governance, reliance on third-party platforms, cybersecurity, privacy, evolving regulations, and competitive displacement; inability to accurately estimate contract costs and timelines, or failure by us or third parties to deliver on commitments; systems failures, catastrophic events, and resulting service interruptions; liability or reputational damage from security breaches, cyber-attacks, or disclosure of confidential or personal data; failure to comply with new or existing laws, regulations, and customer contracts, including those relating to data privacy, economic sanctions, export controls, AI, and environmental, social, and governance (ESG) expectations; failure to maintain our credit rating, manage indebtedness, or raise capital, adversely affecting our liquidity and borrowing costs; risks associated with international operations, including exchange rate fluctuations and geopolitical conflicts (such as in
About Non-GAAP Measures
In an effort to provide investors with supplemental financial information, in addition to the preliminary and unaudited financial information presented on a GAAP basis, we also disclose in this press release preliminary non-GAAP information including: earnings before interest and taxes ("EBIT"), EBIT margin, adjusted EBIT, adjusted EBIT margin, non-GAAP diluted EPS, organic revenues, organic revenue growth, free cash flow, and non-GAAP tax rate.
We believe EBIT, adjusted EBIT, non-GAAP income before income taxes, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS provide investors with useful supplemental information about our operating performance after excluding certain categories of expenses as well as gains and losses on certain dispositions and certain tax adjustments.
We believe constant currency revenues provides investors with useful supplemental information about our revenues after excluding the effect of currency exchange rate fluctuations for currencies other than
One category of expenses excluded from adjusted EBIT, non-GAAP income before income tax, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS, incremental amortization of intangible assets acquired through business combinations, if included, may result in a significant difference in period over period amortization expense on a GAAP basis. We exclude amortization of certain acquired intangible assets as these non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Although DXC management excludes amortization of acquired intangible assets, primarily customer-related intangible assets, from its non-GAAP expenses, we believe it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and support revenue generation. Any future transactions may result in a change to the acquired intangible asset balances and associated amortization expense.
Another category of expenses excluded from adjusted EBIT, non-GAAP income before income tax, non-GAAP net income, non-GAAP net income attributable to DXC common stockholders, and non-GAAP EPS is impairment losses, which, if included, may result in a significant difference in period-over-period expense on a GAAP basis. We exclude impairment losses as these non-cash amounts reflect generally an acceleration of what would be multiple periods of expense and are not expected to occur frequently. Further, assets such as goodwill may be significantly impacted by market conditions outside of management's control.
Selected references are made to revenue growth on an "organic basis" in order that certain financial results can be viewed without the impact of fluctuations in foreign currency rates and without the impacts of acquisitions and divestitures, thereby providing comparisons of operating performance from period to period of the business that we have owned during both periods presented. Organic revenue growth is calculated by dividing the year-over-year change in GAAP revenues attributed to organic growth by the GAAP revenues reported in the prior comparable period. Organic revenue is calculated as constant currency revenue excluding the impact of mergers, acquisitions or similar transactions until the one-year anniversary of the transaction and excluding revenues of divestitures during the reporting period. This approach is used for all results where the functional currency is not the
Free cash flow represents cash flow from operations, less capital expenditures. Free cash flow is utilized by our management, investors, and analysts to evaluate cash available for normal business operations, to pay debt, repurchase shares, and provide further investment in the business.
There are limitations to the use of the non-GAAP financial measures presented in this report. One of the limitations is that they do not reflect complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes between companies. Selected references are made on a "constant currency basis" so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates, thereby providing comparisons of operating performance from period to period. Financial results on a "constant currency basis" are non-GAAP measures calculated by translating current period activity into
Condensed Consolidated Statements of Operations (preliminary and unaudited) | ||||
Three Months Ended | ||||
(in millions, except per-share amounts) | June 30, 2026 | June 30, 2025 | ||
Revenues | $ 2,999 | $ 3,159 | ||
Costs of services | 2,388 | 2,388 | ||
Selling, general and administrative | 328 | 394 | ||
Depreciation and amortization | 267 | 304 | ||
Restructuring costs | 26 | 37 | ||
Interest expense | 55 | 54 | ||
Interest income | (89) | (46) | ||
Other income, net | (217) | (39) | ||
Total costs and expenses | 2,758 | 3,092 | ||
Income before income taxes | 241 | 67 | ||
Income tax expense | 115 | 49 | ||
Net income | 126 | 18 | ||
Less: net income attributable to non-controlling interest, net of tax | 4 | 2 | ||
Net income attributable to DXC common stockholders | $ 122 | $ 16 | ||
Income per common share: | ||||
Basic | $ 0.75 | $ 0.09 | ||
Diluted | $ 0.73 | $ 0.09 | ||
Weighted average common shares outstanding for: | ||||
Basic EPS | 162.86 | 181.10 | ||
Diluted EPS | 166.27 | 184.96 | ||
Selected Condensed Consolidated Balance Sheet Data (preliminary and unaudited) | ||||
As of | ||||
(in millions) | June 30, 2026 | March 31, 2026 | ||
Assets | ||||
Cash and cash equivalents | $ 1,957 | $ 1,737 | ||
Receivables, net | 2,892 | 2,973 | ||
Prepaid expenses | 556 | 526 | ||
Other current assets | 108 | 126 | ||
Total current assets | 5,513 | 5,362 | ||
Intangible assets, net | 1,518 | 1,612 | ||
Operating right-of-use assets, net | 637 | 663 | ||
Goodwill | 527 | 527 | ||
Deferred income taxes, net | 753 | 802 | ||
Property and equipment, net | 1,129 | 1,122 | ||
Other assets | 2,849 | 2,802 | ||
Total Assets | $ 12,926 | $ 12,890 | ||
Liabilities | ||||
Short-term debt and current maturities of long-term debt | $ 501 | $ 520 | ||
Accounts payable | 689 | 561 | ||
Accrued payroll and related costs | 587 | 564 | ||
Operating lease liabilities | 234 | 232 | ||
Accrued expenses and other current liabilities | 1,129 | 1,261 | ||
Deferred revenue and advance contract payments | 715 | 748 | ||
Income taxes payable | 61 | 53 | ||
Total current liabilities | 3,916 | 3,939 | ||
Long-term debt, net of current maturities | 3,003 | 3,032 | ||
Non-current deferred revenue | 559 | 559 | ||
Non-current operating lease liabilities | 436 | 463 | ||
Non-current income tax liabilities and deferred tax liabilities | 500 | 502 | ||
Other long-term liabilities | 1,184 | 1,186 | ||
Total Liabilities | 9,598 | 9,681 | ||
Total Equity | 3,328 | 3,209 | ||
Total Liabilities and Equity | $ 12,926 | $ 12,890 | ||
Condensed Consolidated Statements of Cash Flows (preliminary and unaudited) | ||||
Three Months Ended | ||||
(in millions) | June 30, 2026 | June 30, 2025 | ||
Cash flows from operating activities: | ||||
Net income | $ 126 | $ 18 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 271 | 309 | ||
Goodwill impairment losses | — | 14 | ||
Operating right-of-use expense | 72 | 76 | ||
Share-based compensation | 17 | 22 | ||
Deferred taxes | 49 | (12) | ||
Gain on dispositions | (2) | (1) | ||
Unrealized foreign currency exchange gain | (7) | (47) | ||
Impairment losses and contract write-offs | — | 1 | ||
Other non-cash charges, net | (2) | (3) | ||
Changes in assets and liabilities: | ||||
(Increase) decrease in assets | (20) | 90 | ||
Decrease in operating lease liability | (72) | (76) | ||
Decrease in other liabilities | (14) | (205) | ||
Net cash provided by operating activities | 418 | 186 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (59) | (43) | ||
Payments for transition and transformation contract costs | (23) | (30) | ||
Software purchased and developed | (22) | (16) | ||
Proceeds from sale of assets | 5 | 10 | ||
Other investing activities, net | — | 2 | ||
Net cash used in investing activities | (99) | (77) | ||
Cash flows from financing activities: | ||||
Payments on finance leases and borrowings for asset financing | (38) | (49) | ||
Taxes paid related to net share settlements of share-based compensation awards | (10) | (12) | ||
Repurchase of common stock | (71) | (48) | ||
Other financing activities, net | (1) | (1) | ||
Net cash used in financing activities | (120) | (110) | ||
Effect of exchange rate changes on cash and cash equivalents | 21 | (3) | ||
Net increase (decrease) in cash and cash equivalents | 220 | (4) | ||
Cash and cash equivalents at beginning of year | 1,737 | 1,796 | ||
Cash and cash equivalents at end of period | $ 1,957 | $ 1,792 | ||
Reconciliation of Non-GAAP Financial Measures
Our non-GAAP adjustments include:
- Restructuring costs – includes costs, net of reversals, related to workforce and real estate optimization and other similar charges.
- Transaction, separation and integration-related ("TSI") costs – includes third party costs related to integration, separation, planning, financing and advisory fees and other similar charges associated with mergers, acquisitions, strategic investments, joint ventures, and dispositions and other similar transactions incurred within one year of such transactions closing, except for costs associated with related disputes, which may arise more than one year after closing.
- Amortization of acquired intangible assets – includes amortization of intangible assets acquired through business combinations.
- Merger-related indemnification – represents the Company's estimate of potential net liability for tax related indemnifications.
- Gain on litigation award – reflects a gain related to the TCS Litigation judgment.
- Gains and losses on real estate and facility sales – gains and losses related to dispositions of real property.
- Gains and losses on dispositions – gains and losses related to dispositions of businesses, strategic assets and interests in less than wholly-owned entities.
- Impairment losses – non-cash charges associated with the permanent reduction in the value of the Company's assets (e.g., impairment of goodwill and other long-term assets including fixed assets and impairments to deferred tax assets for discrete changes in valuation allowances). Future discrete reversals of valuation allowances are likewise excluded.
- Tax adjustments – discrete tax adjustments to impair or recognize certain deferred tax assets, adjustments for changes in tax legislation and the impact of merger and divestitures. Income tax expense of all other (non-discrete) non-GAAP adjustments is based on the difference in the GAAP annual effective tax rate (AETR) and overall non-GAAP provision (consistent with the GAAP methodology).
Non-GAAP Results
A reconciliation of reported results to non-GAAP results is as follows:
Three Months Ended June 30, 2026 | ||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Amortization of Acquired Intangible Assets | Gain on Litigation Award | Gains on Dispositions | Non-GAAP Results | ||||||
Income before income taxes | $ 241 | $ 26 | $ 87 | $ (214) | $ (2) | $ 138 | ||||||
Income tax expense | 115 | 12 | 40 | (99) | (1) | 67 | ||||||
Net income | 126 | 14 | 47 | (115) | (1) | 71 | ||||||
Less: net income attributable to non-controlling interest, net of tax | 4 | — | — | — | — | 4 | ||||||
Net income attributable to DXC common stockholders | $ 122 | $ 14 | $ 47 | $ (115) | $ (1) | $ 67 | ||||||
Effective Tax Rate | 47.7 % | 48.6 % | ||||||||||
Basic EPS | $ 0.75 | $ 0.09 | $ 0.29 | $ (0.71) | $ (0.01) | $ 0.41 | ||||||
Diluted EPS | $ 0.73 | $ 0.08 | $ 0.28 | $ (0.69) | $ (0.01) | $ 0.40 | ||||||
Weighted average common shares outstanding for: | ||||||||||||
Basic EPS | 162.86 | 162.86 | 162.86 | 162.86 | 162.86 | 162.86 | ||||||
Diluted EPS | 166.27 | 166.27 | 166.27 | 166.27 | 166.27 | 166.27 | ||||||
Three Months Ended June 30, 2025 | ||||||||||||||||
(in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration- Related Costs | Amortization of Acquired Intangible Assets | Merger Related Indemnification | Impairment Losses | Tax Adjustments | Non-GAAP Results | ||||||||
Income before income taxes | 67 | 37 | 1 | 87 | 2 | 14 | — | 208 | ||||||||
Income tax expense | 49 | 9 | — | 20 | — | 4 | (2) | 80 | ||||||||
Net income | 18 | 28 | 1 | 67 | 2 | 10 | 2 | 128 | ||||||||
Less: net income attributable to non- controlling interest, net of tax | 2 | — | — | — | — | — | — | 2 | ||||||||
Net income attributable to DXC common stockholders | $ 16 | $ 28 | $ 1 | $ 67 | $ 2 | $ 10 | $ 2 | $ 126 | ||||||||
Effective Tax Rate | 73.1 % | 38.5 % | ||||||||||||||
Basic EPS | $ 0.09 | $ 0.15 | $ 0.01 | $ 0.37 | $ 0.01 | $ 0.06 | $ 0.01 | $ 0.70 | ||||||||
Diluted EPS | $ 0.09 | $ 0.15 | $ 0.01 | $ 0.36 | $ 0.01 | $ 0.05 | $ 0.01 | $ 0.68 | ||||||||
Weighted average common shares outstanding for: | ||||||||||||||||
Basic EPS | 181.10 | 181.10 | 181.10 | 181.10 | 181.10 | 181.10 | 181.10 | 181.10 | ||||||||
Diluted EPS | 184.96 | 184.96 | 184.96 | 184.96 | 184.96 | 184.96 | 184.96 | 184.96 | ||||||||
The above tables serve to reconcile the non-GAAP financial measures to the most directly comparable GAAP measures. Please refer to the "About Non-GAAP Measures" section of the press release for further information on the use of these non-GAAP measures.
Year-over-Year Organic Revenue Growth
Three Months Ended | ||||
June 30, 2026 | June 30, 2025 | |||
Total revenue growth | (5.1) % | (2.4) % | ||
Foreign currency | (1.6) % | (2.0) % | ||
Acquisition and divestitures | — % | 0.1 % | ||
Organic revenue growth | (6.7) % | (4.3) % | ||
CES revenue growth | (1.2) % | (2.7) % | ||
Foreign currency | (1.8) % | (2.0) % | ||
Acquisition and divestitures | — % | 0.3 % | ||
CES organic revenue growth | (3.0) % | (4.4) % | ||
GIS revenue growth | (9.4) % | (3.5) % | ||
Foreign currency | (1.7) % | (2.2) % | ||
Acquisition and divestitures | — % | — % | ||
GIS organic revenue growth | (11.1) % | (5.7) % | ||
Insurance revenue growth | 1.9 % | 5.4 % | ||
Foreign currency | (0.5) % | (1.8) % | ||
Acquisition and divestitures | — % | — % | ||
Insurance organic revenue growth | 1.4 % | 3.6 % | ||
Segment Profit
Segment profit is defined as segment revenues less costs of services, selling, general and administrative, depreciation and amortization, and other segment items. The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated expenses generally include certain corporate function costs, pension and OPEB actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets, impairment losses, gains/(losses) on dispositions of businesses, gains/(losses) on real estate and facility sales, and other costs that do not reflect ongoing segment operating performance. As part of the transition to the new segment structure, the Company updated the assumptions that define which expenses remain in corporate post allocation. The tables below reflect those revised assumptions.
Three Months Ended | ||||
(in millions) | June 30, 2026 | June 30, 2025 | ||
CES profit | $ 100 | $ 105 | ||
GIS profit | 38 | 97 | ||
Insurance profit | 34 | 33 | ||
Corporate expenses | (22) | (19) | ||
Adjusted EBIT | 150 | 216 | ||
Restructuring costs | (26) | (37) | ||
Transaction, separation and integration-related costs | — | (1) | ||
Amortization of acquired intangibles | (87) | (87) | ||
Merger related indemnification | — | (2) | ||
Gain on litigation award | 168 | — | ||
Gains on dispositions | 2 | — | ||
Impairment losses | — | (14) | ||
EBIT | 207 | 75 | ||
Interest income | 89 | 46 | ||
Interest expense | (55) | (54) | ||
Income before income tax | 241 | 67 | ||
Income tax expense | 115 | 49 | ||
Net income | 126 | 18 | ||
Segment profit margins | ||||
CES | 8.1 % | 8.4 % | ||
GIS | 2.6 % | 6.1 % | ||
Insurance | 10.7 % | 10.5 % | ||
Total Company margins | ||||
Adjusted EBIT margin | 5.0 % | 6.8 % | ||
EBIT margin | 6.9 % | 2.4 % | ||
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SOURCE DXC Technology Company