DXC Technology (NYSE: DXC) posts FY26 results and guides to lower FY27 revenue
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
DXC Technology reported fourth-quarter fiscal 2026 revenue of $3.13 billion, down 1.2% year over year, and posted a GAAP net loss with diluted EPS of $(0.84). Adjusted EBIT margin was 7.6% and non-GAAP diluted EPS was $0.77. Free cash flow was $110 million for the quarter and $713 million for the full year on revenue of $12.64 billion and GAAP diluted EPS of $0.10. Bookings were $3.3 billion in Q4 and $12.4 billion for the year, with book-to-bill ratios of 1.07x and 0.98x. For fiscal 2027, the company guides to organic revenue decline of 5.0% to 3.0%, adjusted EBIT margin of 6.0% to 7.0%, non-GAAP EPS of $2.40 to $2.90, and free cash flow of about $600 million.
Positive
- None.
Negative
- Profitability and outlook under pressure: Fiscal 2026 GAAP diluted EPS dropped 95.2% to $0.10, bookings declined 6.2% to $12.4 billion, and fiscal 2027 guidance assumes continued organic revenue declines with lower non-GAAP EPS and reduced free cash flow of about $600 million.
Insights
DXC shows solid cash generation but sharply weaker GAAP earnings and a soft top-line outlook.
DXC Technology delivered fiscal 2026 revenue of $12.64 billion, down 1.8%, with adjusted EBIT of $970 million and margin of 7.7%. However, GAAP EBIT was only $353 million with a 2.8% margin, and GAAP diluted EPS fell to $0.10.
Non-GAAP diluted EPS of $3.23 declined 5.8%, while free cash flow rose modestly to $713 million. Bookings of $12.4 billion and a book-to-bill of 0.98x indicate limited growth momentum despite segment strength in Insurance.
Guidance points to continued organic revenue contraction of 5.0% to 3.0% in fiscal 2027, adjusted EBIT margin of 6.0%–7.0%, non-GAAP EPS of $2.40–$2.90, and free cash flow of about $600 million. Actual performance versus these targets and execution on cost structure will be visible in upcoming quarterly results for Q1 FY27 and beyond.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 FY26 revenue: $3.13 billion
Q4 FY26 GAAP diluted EPS: $(0.84)
FY26 revenue: $12.64 billion
+5 more
8 metrics
Q4 FY26 revenue
$3.13 billion
Down 1.2% year over year
Q4 FY26 GAAP diluted EPS
$(0.84)
Down 158.7% year over year
FY26 revenue
$12.64 billion
Down 1.8% year over year
FY26 GAAP diluted EPS
$0.10
Down 95.2% year over year
FY26 free cash flow
$713 million
Up 3.8% year over year
FY26 bookings
$12.4 billion
Book-to-bill ratio 0.98x, down 6.2% YoY
FY27 non-GAAP EPS guidance
$2.40–$2.90
Full-year fiscal 2027 outlook
FY27 free cash flow guidance
~$600 million
Full-year fiscal 2027 outlook
Key Terms
free cash flow, adjusted EBIT, book to bill ratio, non-GAAP diluted earnings per share, +1 more
5 terms
free cash flow financial
"Free cash flow(4) was $110 million and full fiscal year 2026 was $713 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
adjusted EBIT financial
"Adjusted EBIT(2) was $237 million, up 3.0% year-over-year, with a corresponding margin"
Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.
book to bill ratio financial
"Bookings of $3.3 billion declined 13.5% year-over-year, with a book to bill ratio of 1.07x"
The book-to-bill ratio compares new orders received (bookings) to goods or services actually billed (revenue) over the same period; a ratio above 1 means a company is taking in more orders than it is filling, while below 1 means it is billing more than it is receiving in new orders. Investors use it like a pipeline gauge—high ratios suggest future revenue growth and possible capacity strain, while low ratios can signal weakening demand or excess capacity, helping anticipate earnings and operational pressure.
organic revenue growth financial
"Total revenue was $12.64 billion, down 1.8% year-over-year, down 4.8% on an organic basis"
Organic revenue growth is the increase in a company's sales that comes from its existing products and services, without including any gains from acquisitions or selling off parts of the business. It reflects the company’s ability to attract more customers or encourage existing customers to buy more over time. For investors, it indicates the company's underlying strength and efficiency in expanding its core operations.
Earnings Snapshot
Q4 revenue: $3.13 billion · Guidance included
Q4 and FY 2026
Q4 revenue
$3.13 billion
-1.2% YoY
Q4 GAAP diluted EPS
$(0.84)
-158.7% YoY
FY26 revenue
$12.64 billion
-1.8% YoY
FY26 GAAP diluted EPS
$0.10
-95.2% YoY
FY26 free cash flow
$713 million
+3.8% YoY
Guidance
FY27 revenue $12.11–$12.35 billion (organic decline 5.0%–3.0%), adjusted EBIT margin 6.0%–7.0%, non-GAAP EPS $2.40–$2.90, free cash flow about $600 million; Q1 FY27 revenue $2.97–$3.00 billion, adjusted EBIT margin ~5.0%, non-GAAP EPS about $0.40.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________________________________________
FORM 8-K
_____________________________________________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 7, 2026
______________________________________________________________________________
(Exact name of registrant as specified in its charter)
______________________________________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices and Zip Code) | ||||||||||||||
Registrant’s telephone number, including area code: (703 ) 972-7000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
_____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, DXC Technology Company (the “Company”) issued a press release reporting its financial results for the fourth quarter and full year of fiscal 2026 ended March 31, 2026. The press release is attached hereto as Exhibit 99.1. The Company will also hold a conference call at 5:00 PM ET, on May 7, 2026, to discuss this matter.
The information contained in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | Earnings Press Release issued on May 7, 2026. | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DXC TECHNOLOGY COMPANY | |||||||||||
| Dated: | May 7, 2026 | By: | /s/ Rob Del Bene | ||||||||
| Name: | Rob Del Bene | ||||||||||
| Title: | Executive Vice President and Chief Financial Officer | ||||||||||
 | Exhibit 99.1 | ||||
DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
•Total revenue for Q4 FY26 of $3.13 billion, down 1.2% YoY, down 6.6% on an organic basis(1)
•Q4 FY26 Bookings of $3.3 billion, book to bill ratio of 1.07x
•Q4 FY26 EBIT margin of (1.2)%, and adjusted EBIT(2) margin of 7.6%
•Q4 FY26 Diluted earnings per share of $(0.84) down 158.7% YoY; Non-GAAP diluted earnings per share(3) of $0.77, down 8.3% YoY
•Q4 FY26 Free cash flow(4) was $110 million and full fiscal year 2026 was $713 million, up 3.8% YoY
•Repurchased $60 million of shares in Q4, and $250 million of shares in full fiscal year 2026
ASHBURN, VA, May 7, 2026 – DXC Technology (NYSE: DXC) today reported results for the fourth quarter and full fiscal year 2026.
"We delivered another quarter of strong free cash flow with adjusted EBIT margin ahead of our expectations, while our top line performance fell short,” said DXC Technology President and CEO Raul Fernandez. "Over the past year, we leaned into innovation to reposition DXC for the next phase of enterprise IT and AI driven transformation, including the recent launch of our AI based orchestration platform, OASIS and continued progress across our Core Track and Fast Track initiatives. With our deep client relationships and a clear strategy in place, we remain confident in our direction and are focused on improved revenue performance and long-term value creation."
Financial Highlights - Fourth Quarter Fiscal Year 2026
•Total revenue was $3.13 billion, down 1.2% year-over-year, down 6.6% on an organic basis.(1)
•EBIT was $(39) million, down 111.1% year-over-year with a corresponding margin of (1.2)%. Adjusted EBIT(2) was $237 million, up 3.0% year-over-year, with a corresponding margin(2) of 7.6%.
•Diluted earnings per share was $(0.84), down 158.7% year-over-year. Non-GAAP diluted earnings per share(3) was $0.77, down 8.3% year-over-year.
•Cash generated from operations was $239 million, down $76 million year-over-year. Free cash flow(4) was $110 million, down $1 million year-over-year.
•Bookings of $3.3 billion declined 13.5% year-over-year, with a book to bill ratio of 1.07x.
•Returned $60 million of capital to shareholders by repurchasing approximately 4.6 million shares.
(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.
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Segment Highlights - Fourth Quarter Fiscal Year 2026
Consulting and Engineering Services ("CES")
•Revenue was $1,256 million, up 1.7% year-over-year, down 3.9% on an organic basis.(1)
•Segment profit was $124 million, up 5.1% year-over-year, with a corresponding margin of 9.9%.
•Bookings declined 11.1% year-over-year, with a book to bill ratio of 1.07x.
Global Infrastructure Services ("GIS")
•Revenue was $1,549 million, down 5.0% year-over-year, down 10.6% on an organic basis.(1)
•Segment profit was $100 million, up 2.0% year-over-year, with a corresponding margin of 6.5%.
•Bookings declined 18.9% year-over-year, with a book to bill ratio of 1.11x.
Insurance Software & Services ("Insurance")
•Revenue was $325 million, up 7.3% year-over-year, up 4.0% on an organic basis.(1)
•Segment profit was $33 million, up 6.5% year-over-year, with a corresponding margin of 10.2%.
•Bookings increased 20.3% year-over-year, with a book to bill ratio of 0.88x.
Financial Highlights - Full Fiscal Year 2026
•Total revenue was $12.64 billion, down 1.8% year-over-year, down 4.8% on an organic basis.(1)
•EBIT was $353 million, down 49.3% year-over-year with a corresponding margin of 2.8%. Adjusted EBIT(2) was $970 million, down 4.8% year-over-year, with a corresponding margin(2) of 7.7%.
•Diluted earnings per share was $0.10, down 95.2% year-over-year. Non-GAAP diluted earnings per share(3) was $3.23, down 5.8% year-over-year.
•Cash generated from operations was $1,248 million, down $150 million year-over-year. Free cash flow(4) was $713 million, up $26 million year-over-year.
•Bookings of $12.4 billion declined 6.2% year-over-year, with a book to bill ratio of 0.98x.
Segment Highlights - Full Fiscal Year 2026
Consulting and Engineering Services ("CES")
•Revenue was $5,023 million, down 0.8% year-over-year, down 3.8% on an organic basis.(1)
•Segment profit was $518 million, down 10.7% year-over-year, with a corresponding margin of 10.3%.
•Bookings increased 1.1% year-over-year, with a book to bill ratio of 1.10x.
Global Infrastructure Services ("GIS")
•Revenue was $6,342 million, down 3.9% year-over-year, down 7.2% on an organic basis.(1)
•Segment profit was $432 million, up 0.2% year-over-year, with a corresponding margin of 6.8%.
•Bookings declined 13.3% year-over-year, with a book to bill ratio of 0.94x.
Insurance Software & Services ("Insurance")
•Revenue was $1,279 million, up 5.4% year-over-year, up 3.6% on an organic basis.(1)
•Segment profit was $129 million, down 20.4% year-over-year, with a corresponding margin of 10.1%.
•Bookings increased 3.6% year-over-year, with a book to bill ratio of 0.76x.
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First Quarter Fiscal Year 2027 and Full Fiscal Year 2027 Guidance
First Quarter Fiscal Year 2027
•Total revenue in the range of $2.97 billion to $3.00 billion, a decline of 7.5% to 6.5% year-over-year on an organic basis.(1)
•Adjusted EBIT margin(2) of ~5.0%.
•Non-GAAP Diluted EPS(3) in the range of ~$0.40.
Full Fiscal Year 2027
•Total revenue in the range of $12.11 billion to $12.35 billion, a decline of 5.0% to 3.0% year-over-year on an organic basis.(1)
•Adjusted EBIT margin(2) in the range of 6.0% to 7.0%.
•Non-GAAP diluted EPS(3) in the range of $2.40 to $2.90.
•Free Cash Flow(4) of ~$600 million.
Additional metrics for the fourth quarter and full fiscal year 2027 guidance are presented in the table below.
| Revenue | Q1 FY27 Guidance | FY27 Guidance | ||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||
| YoY Organic Revenue % | (7.5)% | (6.5)% | (5.0)% | (3.0)% | ||||||||||||||||
| Acquisition & Divestitures Revenues % | —% | —% | ||||||||||||||||||
| Foreign Exchange Impact on Revenues % | 1.3% | 2.2% | ||||||||||||||||||
| Others | ||||||||||||||||||||
| Non-GAAP Net Interest Expense ($M) | $15 | $56 | ||||||||||||||||||
| Non-GAAP Tax Rate | 48.0% | 40.0% | ||||||||||||||||||
| Foreign Exchange Assumptions | Current Estimate | Current Estimate | ||||||||||||||||||
| $/Euro Exchange Rate | $1.17 | $1.17 | ||||||||||||||||||
| $/GBP Exchange Rate | $1.35 | $1.35 | ||||||||||||||||||
| $/AUD Exchange Rate | $0.70 | $0.70 | ||||||||||||||||||
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 fourth quarter and full fiscal 2026 results at 5:00 p.m. ET on May 7, 2026. The dial-in number for domestic callers is 888-596-4144. Callers who reside outside of the United States should dial +1-646-968-2525. The passcode for all participants is 9664077#. The webcast audio and any presentation slides will be available through a link posted on DXC Technology’s Investor Relations website.
A replay of the conference call will be available until 11:59 PM ET on May 14, 2026, at 800-770-2030 for domestic callers and at +1-609-800-9909 for international callers. The replay passcode is 9664077#. A transcript of the conference call will be posted on DXC Technology’s Investor Relations website.
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About DXC Technology
DXC Technology (NYSE: DXC) is a leading enterprise 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 on DXC.com.
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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 Russia/Ukraine and the Middle East); macroeconomic challenges, including inflation, reduced customer spending, and economic slowdowns affecting deal closures and cost-takeout efforts; inability to compete effectively, maintain customer relationships, collect receivables, or comply with government contracting regulations; failure to succeed in strategic transactions, acquisitions, or partnerships; securities price volatility; supply chain disruptions, supplier non-performance, or increased procurement costs due to trade tensions, tariffs, or hostilities; climate change, natural disasters, and increased scrutiny of ESG initiatives; infringement of intellectual property rights, or inability to procure necessary third-party licenses; failure to achieve expected benefits of restructuring plans, workforce reductions, and automation/AI reliance; failure to maintain effective disclosure controls and internal control over financial reporting; asset impairment charges, including but not limited to intangibles and deferred tax assets; inability to pay dividends or repurchase shares; pending investigations, claims, and disputes; changes in tax rates, tax laws, and the timing and outcome of tax examinations; and risks related to completed strategic transactions. For a written description of these factors, see our most recently filed Annual Report on Form 10-K, our upcoming Annual Report on Form 10-K for the fiscal year ended March 31, 2026, and any updating information in subsequent SEC filings. Forward-looking statements speak only as of the date made. Except as required by law, we assume no obligation to update or revise any forward-looking statements.
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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 U.S. dollars in the periods presented. See below for a description of the methodology we use to present constant currency revenues.
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 U.S. dollar. We believe organic revenue growth provides investors with useful supplemental information about our revenues after excluding the effect of currency exchange rate fluctuations for currencies other than U.S. dollars and the effects of acquisitions and divestitures in both periods presented.
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 U.S. Dollars using the comparable prior period’s currency conversion rates. This approach is used for all results where the functional currency is not the U.S. Dollar.
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# # #
Contact:
Roger Sachs, CFA, Investor Relations, +1-201-259-0801, roger.sachs@dxc.com
Christina Trejo, Corporate Communications, +1-848-702-4607, christina.trejo@dxc.com
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Condensed Consolidated Statements of Operations
(preliminary and unaudited)
| Three Months Ended | Fiscal Years Ended | |||||||||||||||||||||||||
| (in millions, except per-share amounts) | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Revenues | $ | 3,130 | $ | 3,169 | $ | 12,644 | $ | 12,871 | ||||||||||||||||||
| Costs of services | 2,407 | 2,401 | 9,613 | 9,770 | ||||||||||||||||||||||
| Selling, general and administrative | 333 | 359 | 1,402 | 1,348 | ||||||||||||||||||||||
| Depreciation and amortization | 278 | 312 | 1,160 | 1,287 | ||||||||||||||||||||||
| Restructuring costs | 23 | 29 | 115 | 153 | ||||||||||||||||||||||
| Interest expense | 55 | 58 | 216 | 265 | ||||||||||||||||||||||
| Interest income | (43) | (46) | (181) | (199) | ||||||||||||||||||||||
| Gain on disposition of businesses | — | — | — | (7) | ||||||||||||||||||||||
| Other expense (income), net | 128 | (282) | 1 | (376) | ||||||||||||||||||||||
| Total costs and expenses | 3,181 | 2,831 | 12,326 | 12,241 | ||||||||||||||||||||||
| (Loss) income before income taxes | (51) | 338 | 318 | 630 | ||||||||||||||||||||||
| Income tax expense | 89 | 75 | 290 | 234 | ||||||||||||||||||||||
| Net (loss) income | (140) | 263 | 28 | 396 | ||||||||||||||||||||||
| Less: net income (loss) attributable to non-controlling interest, net of tax | 1 | (1) | 10 | 7 | ||||||||||||||||||||||
| Net (loss) income attributable to DXC common stockholders | $ | (141) | $ | 264 | $ | 18 | $ | 389 | ||||||||||||||||||
| (Loss) income per common share: | ||||||||||||||||||||||||||
| Basic | $ | (0.84) | $ | 1.46 | $ | 0.10 | $ | 2.15 | ||||||||||||||||||
| Diluted | $ | (0.84) | $ | 1.43 | $ | 0.10 | $ | 2.10 | ||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||
| Basic EPS | 168.33 | 181.09 | 175.02 | 180.68 | ||||||||||||||||||||||
| Diluted EPS | 168.33 | 184.84 | 178.65 | 184.92 | ||||||||||||||||||||||
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Selected Condensed Consolidated Balance Sheet Data
(preliminary and unaudited)
| As of | ||||||||||||||
| (in millions) | March 31, 2026 | March 31, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 1,737 | $ | 1,796 | ||||||||||
| Receivables, net | 2,973 | 2,972 | ||||||||||||
| Prepaid expenses | 526 | 477 | ||||||||||||
| Other current assets | 126 | 118 | ||||||||||||
| Total current assets | 5,362 | 5,363 | ||||||||||||
| Intangible assets, net | 1,612 | 1,642 | ||||||||||||
| Operating right-of-use assets, net | 663 | 635 | ||||||||||||
| Goodwill | 527 | 526 | ||||||||||||
| Deferred income taxes, net | 802 | 819 | ||||||||||||
| Property and equipment, net | 1,122 | 1,253 | ||||||||||||
| Other assets | 2,802 | 2,967 | ||||||||||||
| Total Assets | $ | 12,890 | $ | 13,205 | ||||||||||
| Liabilities | ||||||||||||||
| Short-term debt and current maturities of long-term debt | $ | 520 | $ | 880 | ||||||||||
| Accounts payable | 561 | 549 | ||||||||||||
| Accrued payroll and related costs | 564 | 571 | ||||||||||||
| Operating lease liabilities | 232 | 227 | ||||||||||||
| Accrued expenses and other current liabilities | 1,261 | 1,358 | ||||||||||||
| Deferred revenue and advance contract payments | 748 | 762 | ||||||||||||
| Income taxes payable | 53 | 64 | ||||||||||||
| Total current liabilities | 3,939 | 4,411 | ||||||||||||
| Long-term debt, net of current maturities | 3,032 | 2,996 | ||||||||||||
| Non-current deferred revenue | 559 | 635 | ||||||||||||
| Non-current operating lease liabilities | 463 | 444 | ||||||||||||
| Non-current income tax liabilities and deferred tax liabilities | 502 | 495 | ||||||||||||
| Non-current pension obligations | 385 | 387 | ||||||||||||
| Other long-term liabilities | 801 | 347 | ||||||||||||
| Total Liabilities | 9,681 | 9,715 | ||||||||||||
| Total Equity | 3,209 | 3,490 | ||||||||||||
| Total Liabilities and Equity | $ | 12,890 | $ | 13,205 | ||||||||||
9
Condensed Consolidated Statements of Cash Flows
(preliminary and unaudited)
| Fiscal Years Ended | ||||||||||||||
| (in millions) | March 31, 2026 | March 31, 2025 | ||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 28 | $ | 396 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 1,182 | 1,313 | ||||||||||||
| Goodwill impairment losses | 14 | — | ||||||||||||
| Operating right-of-use expense | 305 | 309 | ||||||||||||
| Pension & other post-employment benefits, actuarial & settlement losses (gains) | 169 | (232) | ||||||||||||
| Share-based compensation | 86 | 79 | ||||||||||||
| Deferred taxes | 26 | (35) | ||||||||||||
| Loss (gain) on dispositions | 3 | 24 | ||||||||||||
| Provision for losses on accounts receivable | 9 | 12 | ||||||||||||
| Unrealized foreign currency exchange (gains) losses | (14) | 40 | ||||||||||||
| Impairment losses and contract write-offs | 7 | 32 | ||||||||||||
| Amortization of debt issuance costs and discount | 5 | 5 | ||||||||||||
| Cash surrender value in excess of premiums paid | (16) | (12) | ||||||||||||
| Other non-cash charges, net | 2 | 7 | ||||||||||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
| Decrease in receivables | 294 | 320 | ||||||||||||
| (Increase) decrease in prepaid expenses and other current assets | (164) | (81) | ||||||||||||
| Decrease in accounts payable and accruals | (275) | (335) | ||||||||||||
| (Decrease) increase in income taxes payable and income tax liability | (19) | (57) | ||||||||||||
| Decrease in operating lease liability | (305) | (309) | ||||||||||||
| Decrease in advance contract payments and deferred revenue | (95) | (78) | ||||||||||||
| Other operating activities, net | 6 | — | ||||||||||||
| Net cash provided by operating activities | 1,248 | 1,398 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property and equipment | (212) | (248) | ||||||||||||
| Payments for transition and transformation contract costs | (106) | (135) | ||||||||||||
| Software purchased and developed | (217) | (328) | ||||||||||||
| Business dispositions | — | 26 | ||||||||||||
| Proceeds from sale of assets | 35 | 161 | ||||||||||||
| Other investing activities, net | 16 | 12 | ||||||||||||
| Net cash used in investing activities | (484) | (512) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Borrowings of commercial paper | — | 367 | ||||||||||||
| Repayments of commercial paper | — | (369) | ||||||||||||
| Principal payments on long-term debt | (1,062) | — | ||||||||||||
| Payments on finance leases and borrowings for asset financing | (188) | (298) | ||||||||||||
| Proceeds from bond issuance | 742 | — | ||||||||||||
| Taxes paid related to net share settlements of share-based compensation awards | (14) | (20) | ||||||||||||
| Repurchase of common stock | (249) | (14) | ||||||||||||
| Other financing activities, net | (5) | 17 | ||||||||||||
| Net cash used in financing activities | (776) | (317) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (47) | 3 | ||||||||||||
| Net (decrease) increase in cash and cash equivalents | (59) | 572 | ||||||||||||
| Cash and cash equivalents at beginning of year | 1,796 | 1,224 | ||||||||||||
| Cash and cash equivalents at end of year | $ | 1,737 | $ | 1,796 | ||||||||||
10
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.
•Pension and OPEB actuarial and settlement gains and losses – pension and OPEB actuarial mark to market adjustments and settlement gains and losses.
•Merger related indemnification – represents the Company’s estimate of potential net liability for tax related indemnifications.
•Gains and losses on dispositions – gains and losses related to dispositions of businesses, strategic assets and interests in less than wholly-owned entities.
•Gains and losses on real estate and facility sales – gains and losses related to dispositions of real property.
•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.
•Debt extinguishment costs – costs associated with early retirement, redemption, repayment or repurchase of debt and debt-like items including any breakage, make-whole premium, prepayment penalty or similar costs as well as solicitation and other legal and advisory expenses.
•Tax adjustments – discrete tax adjustments to impair or recognize certain deferred tax assets, adjustments for changes in tax legislation, tax litigation matters, and adjustments to transition tax. Income tax expense (benefit) from the impact of mergers and divestitures is separately computed based on the underlying transaction. Income tax expense of all other (non-discrete) non-GAAP adjustments is computed by applying the jurisdictional tax rate to the pre-tax adjustments on a jurisdictional basis. In fiscal 2026, includes the unfavorable summary judgment in a tax matter relating to a foreign exchange tax case.
Non-GAAP Results
A reconciliation of reported results to non-GAAP results is as follows:
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration-Related Costs | Amortization of Acquired Intangible Assets | Merger related Indemnification | (Gains) and Losses on Real Estate, Facility Sales and Dispositions | Impairment Losses | Pension and OPEB actuarial and Settlement (Gains) and Losses | Tax Adjustment | Non-GAAP Results | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Loss) income from continuing operations, before taxes | $ | (51) | $ | 23 | $ | 1 | $ | 87 | $ | (3) | $ | 7 | $ | 3 | $ | 158 | $ | — | $ | 225 | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 89 | 5 | — | 19 | 1 | 2 | 1 | 35 | (63) | 89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income | (140) | 18 | 1 | 68 | (4) | 5 | 2 | 123 | 63 | 136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: net income attributable to non-controlling interest, net of tax | 1 | — | — | — | — | — | — | 2 | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (loss) income attributable to DXC common stockholders | $ | (141) | $ | 18 | $ | 1 | $ | 68 | $ | (4) | $ | 5 | $ | 2 | $ | 121 | $ | 63 | $ | 133 | ||||||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | (174.5) | % | 39.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | (0.84) | $ | 0.11 | $ | 0.01 | $ | 0.40 | $ | (0.02) | $ | 0.03 | $ | 0.01 | $ | 0.72 | $ | 0.37 | $ | 0.79 | ||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | (0.84) | $ | 0.10 | $ | 0.01 | $ | 0.39 | $ | (0.02) | $ | 0.03 | $ | 0.01 | $ | 0.70 | $ | 0.37 | $ | 0.77 | ||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | 168.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | 168.33 | 172.38 | 172.38 | 172.38 | 172.38 | 172.38 | 172.38 | 172.38 | 172.38 | 172.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year Ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per-share amounts) | As Reported | Restructuring Costs | Transaction, Separation and Integration- Related Costs | Amortization of Acquired Intangible Assets | Merger Related Indemnification | (Gains) and Losses on Real Estate, Facility Sales and Dispositions | Debt Extinguishment Costs | Impairment Losses | Pension and OPEB Actuarial and Settlement (Gains) and Losses | Tax Adjustment | Non-GAAP Results | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 318 | 115 | 3 | 349 | (35) | (1) | 1 | 17 | 169 | — | 936 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 290 | 24 | — | 71 | (1) | 1 | — | 5 | 37 | (80) | 347 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 28 | 91 | 3 | 278 | (34) | (2) | 1 | 12 | 132 | 80 | 589 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: net income attributable to non-controlling interest, net of tax | 10 | — | — | — | — | — | — | — | 2 | — | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to DXC common stockholders | $ | 18 | $ | 91 | $ | 3 | $ | 278 | $ | (34) | $ | (2) | $ | 1 | $ | 12 | $ | 130 | $ | 80 | $ | 577 | ||||||||||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 91.2 | % | 37.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | 0.10 | $ | 0.52 | $ | 0.02 | $ | 1.59 | $ | (0.19) | $ | (0.01) | $ | 0.01 | $ | 0.07 | $ | 0.74 | $ | 0.46 | $ | 3.30 | ||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | 0.10 | $ | 0.51 | $ | 0.02 | $ | 1.56 | $ | (0.19) | $ | (0.01) | $ | 0.01 | $ | 0.07 | $ | 0.73 | $ | 0.45 | $ | 3.23 | ||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | 175.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | 178.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per-share amounts) | As Reported | Restructuring Costs | Amortization of Acquired Intangible Assets | Merger related Indemnification | (Gains) and Losses on Real Estate, Facility Sales and Dispositions | Impairment Losses | Pension and OPEB actuarial and Settlement (Gains) and Losses | Tax Adjustment | Non-GAAP Results | |||||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations, before taxes | 338 | 29 | 85 | 2 | (9) | 5 | (232) | — | 218 | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 75 | 8 | 24 | 1 | 3 | (1) | (66) | 20 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 263 | 21 | 61 | 1 | (12) | 6 | (166) | (20) | 154 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: net loss attributable to non-controlling interest, net of tax | (1) | — | — | — | — | — | (1) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to DXC common stockholders | $ | 264 | $ | 21 | $ | 61 | $ | 1 | $ | (12) | $ | 6 | $ | (165) | $ | (20) | $ | 156 | ||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 22.2 | % | 29.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | 1.46 | $ | 0.12 | $ | 0.34 | $ | 0.01 | $ | (0.07) | $ | 0.03 | $ | (0.91) | $ | (0.11) | $ | 0.86 | ||||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | 1.43 | $ | 0.11 | $ | 0.33 | $ | 0.01 | $ | (0.06) | $ | 0.03 | $ | (0.89) | $ | (0.11) | $ | 0.84 | ||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | 181.09 | 181.09 | 181.09 | 181.09 | 181.09 | 181.09 | 181.09 | 181.09 | 181.09 | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | 184.84 | 184.84 | 184.84 | 184.84 | 184.84 | 184.84 | 184.84 | 184.84 | 184.84 | |||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year Ended March 31, 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 | (Gains) and Losses on Real Estate, Facility Sales and Dispositions | Impairment Losses | Pension and OPEB Actuarial and Settlement (Gains) and Losses | Tax Adjustment | Non-GAAP Results | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 630 | 153 | 25 | 348 | 2 | 10 | 17 | (232) | — | 953 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 234 | 33 | 5 | 77 | 6 | 6 | 1 | (66) | 17 | 313 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 396 | 120 | 20 | 271 | (4) | 4 | 16 | (166) | (17) | 640 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: net income attributable to non-controlling interest, net of tax | 7 | — | — | — | — | — | — | (1) | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to DXC common stockholders | $ | 389 | $ | 120 | $ | 20 | $ | 271 | $ | (4) | $ | 4 | $ | 16 | $ | (165) | $ | (17) | $ | 634 | ||||||||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 37.1 | % | 32.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | 2.15 | $ | 0.66 | $ | 0.11 | $ | 1.50 | $ | (0.02) | $ | 0.02 | $ | 0.09 | $ | (0.91) | $ | (0.09) | $ | 3.51 | ||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | 2.10 | $ | 0.65 | $ | 0.11 | $ | 1.47 | $ | (0.02) | $ | 0.02 | $ | 0.09 | $ | (0.89) | $ | (0.09) | $ | 3.43 | ||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | 180.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | 184.92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
11
Year-over-Year Organic Revenue Growth
| Fiscal Year 2026 | ||||||||||||||||||||||||||||||||
| Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | FY26 | ||||||||||||||||||||||||||||
Total revenue growth | (2.4) | % | (2.5) | % | (1.0) | % | (1.2) | % | (1.8) | % | ||||||||||||||||||||||
Foreign currency | (2.0) | % | (1.9) | % | (3.3) | % | (5.4) | % | (3.1) | % | ||||||||||||||||||||||
Acquisition and divestitures | 0.1 | % | 0.2 | % | — | % | — | % | 0.1 | % | ||||||||||||||||||||||
Organic revenue growth | (4.3) | % | (4.2) | % | (4.3) | % | (6.6) | % | (4.8) | % | ||||||||||||||||||||||
CES revenue growth | (2.7) | % | (1.9) | % | (0.1) | % | 1.7 | % | (0.8) | % | ||||||||||||||||||||||
Foreign currency | (2.0) | % | (1.9) | % | (3.5) | % | (5.6) | % | (3.2) | % | ||||||||||||||||||||||
Acquisition and divestitures | 0.3 | % | 0.4 | % | — | % | — | % | 0.2 | % | ||||||||||||||||||||||
CES organic revenue growth | (4.4) | % | (3.4) | % | (3.6) | % | (3.9) | % | (3.8) | % | ||||||||||||||||||||||
GIS revenue growth | (3.5) | % | (4.2) | % | (2.7) | % | (5.0) | % | (3.9) | % | ||||||||||||||||||||||
Foreign currency | (2.2) | % | (2.1) | % | (3.5) | % | (5.6) | % | (3.3) | % | ||||||||||||||||||||||
Acquisition and divestitures | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
GIS organic revenue growth | (5.7) | % | (6.3) | % | (6.2) | % | (10.6) | % | (7.2) | % | ||||||||||||||||||||||
Insurance revenue growth | 5.4 | % | 4.6 | % | 4.6 | % | 7.3 | % | 5.4 | % | ||||||||||||||||||||||
Foreign currency | (1.8) | % | (1.0) | % | (1.4) | % | (3.3) | % | (1.8) | % | ||||||||||||||||||||||
Acquisition and divestitures | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
Insurance organic revenue growth | 3.6 | % | 3.6 | % | 3.2 | % | 4.0 | % | 3.6 | % | ||||||||||||||||||||||
| Fiscal Year 2025 | ||||||||||||||||||||||||||||||||
| Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | FY25 | ||||||||||||||||||||||||||||
Total revenue growth | (6.1) | % | (5.7) | % | (5.1) | % | (6.4) | % | (5.8) | % | ||||||||||||||||||||||
Foreign currency | 1.4 | % | — | % | 0.7 | % | 2.1 | % | 1.0 | % | ||||||||||||||||||||||
Acquisition and divestitures | 0.3 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
Organic revenue growth | (4.4) | % | (5.6) | % | (4.2) | % | (4.2) | % | (4.6) | % | ||||||||||||||||||||||
CES revenue growth | (3.0) | % | (3.3) | % | (3.5) | % | (6.4) | % | (4.0) | % | ||||||||||||||||||||||
Foreign currency | 1.7 | % | (0.1) | % | 0.9 | % | 2.1 | % | 1.1 | % | ||||||||||||||||||||||
Acquisition and divestitures | 0.4 | % | — | % | 0.4 | % | 0.3 | % | 0.3 | % | ||||||||||||||||||||||
CES organic revenue growth | (0.9) | % | (3.4) | % | (2.2) | % | (4.0) | % | (2.6) | % | ||||||||||||||||||||||
GIS revenue growth | (10.1) | % | (9.2) | % | (8.2) | % | (7.5) | % | (8.8) | % | ||||||||||||||||||||||
Foreign currency | 1.3 | % | 0.1 | % | 0.8 | % | 2.2 | % | 1.1 | % | ||||||||||||||||||||||
Acquisition and divestitures | 0.2 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
GIS organic revenue growth | (8.6) | % | (9.0) | % | (7.2) | % | (5.2) | % | (7.5) | % | ||||||||||||||||||||||
Insurance revenue growth | 5.3 | % | 5.5 | % | 6.6 | % | — | % | 4.3 | % | ||||||||||||||||||||||
Foreign currency | 0.9 | % | (0.2) | % | (0.2) | % | 1.1 | % | 0.4 | % | ||||||||||||||||||||||
Acquisition and divestitures | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
Insurance organic revenue growth | 6.2 | % | 5.3 | % | 6.4 | % | 1.1 | % | 4.7 | % | ||||||||||||||||||||||
12
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.
| Fiscal Year 2026 | ||||||||||||||||||||||||||||||||
| (in millions) | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | FY26 | |||||||||||||||||||||||||||
| CES profit | $ | 105 | $ | 145 | $ | 144 | $ | 124 | $ | 518 | ||||||||||||||||||||||
| GIS profit | 97 | 122 | 113 | 100 | 432 | |||||||||||||||||||||||||||
| Insurance profit | 33 | 28 | 35 | 33 | 129 | |||||||||||||||||||||||||||
| Corporate expenses | (19) | (41) | (29) | (20) | (109) | |||||||||||||||||||||||||||
| Adjusted EBIT | 216 | 254 | 263 | 237 | 970 | |||||||||||||||||||||||||||
| Restructuring costs | (37) | (35) | (20) | (23) | (115) | |||||||||||||||||||||||||||
| Transaction, separation and integration-related costs | (1) | (1) | — | (1) | (3) | |||||||||||||||||||||||||||
| Amortization of acquired intangible assets | (87) | (88) | (87) | (87) | (349) | |||||||||||||||||||||||||||
| Merger related indemnification | (2) | — | 34 | 3 | 35 | |||||||||||||||||||||||||||
| Gains on dispositions | — | 1 | — | — | 1 | |||||||||||||||||||||||||||
| Gains (losses) on real estate and facility sales | — | 7 | — | (7) | — | |||||||||||||||||||||||||||
| Impairment losses | (14) | — | — | (3) | (17) | |||||||||||||||||||||||||||
| Pension and OPEB actuarial and settlement losses | — | — | (11) | (158) | (169) | |||||||||||||||||||||||||||
| EBIT | 75 | 138 | 179 | (39) | 353 | |||||||||||||||||||||||||||
| Interest Income | 46 | 46 | 46 | 43 | 181 | |||||||||||||||||||||||||||
| Interest expense | (54) | (53) | (54) | (55) | (216) | |||||||||||||||||||||||||||
| Income (loss) before income tax | 67 | 131 | 171 | (51) | 318 | |||||||||||||||||||||||||||
| Income tax expense | (49) | (91) | (61) | (89) | (290) | |||||||||||||||||||||||||||
| Net Income (loss) | $ | 18 | $ | 40 | $ | 110 | $ | (140) | $ | 28 | ||||||||||||||||||||||
| Segment profit margins | ||||||||||||||||||||||||||||||||
| CES | 8.4 | % | 11.6 | % | 11.4 | % | 9.9 | % | 10.3 | % | ||||||||||||||||||||||
| GIS | 6.1 | % | 7.7 | % | 7.0 | % | 6.5 | % | 6.8 | % | ||||||||||||||||||||||
| Insurance | 10.5 | % | 8.8 | % | 10.9 | % | 10.2 | % | 10.1 | % | ||||||||||||||||||||||
| Total Company margins | ||||||||||||||||||||||||||||||||
| Adjusted EBIT margin | 6.8 | % | 8.0 | % | 8.2 | % | 7.6 | % | 7.7 | % | ||||||||||||||||||||||
| EBIT margin | 2.4 | % | 4.4 | % | 5.6 | % | (1.2) | % | 2.8 | % | ||||||||||||||||||||||
13
| Fiscal Year 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | FY25 | |||||||||||||||||||||||||||
| CES profit | $ | 123 | $ | 175 | $ | 164 | $ | 118 | $ | 580 | ||||||||||||||||||||||
| GIS profit | 101 | 120 | 112 | 98 | 431 | |||||||||||||||||||||||||||
| Insurance profit | 44 | 37 | 50 | 31 | 162 | |||||||||||||||||||||||||||
| Corporate expenses | (44) | (53) | (40) | (17) | (154) | |||||||||||||||||||||||||||
| Adjusted EBIT | 224 | 279 | 286 | 230 | 1,019 | |||||||||||||||||||||||||||
| Restructuring costs | (39) | (42) | (43) | (29) | (153) | |||||||||||||||||||||||||||
| Transaction, separation and integration-related costs | (7) | (15) | (3) | — | (25) | |||||||||||||||||||||||||||
| Amortization of acquired intangible assets | (87) | (89) | (87) | (85) | (348) | |||||||||||||||||||||||||||
| Merger related indemnification | — | — | — | (2) | (2) | |||||||||||||||||||||||||||
| Gains on dispositions | — | 5 | 8 | — | 13 | |||||||||||||||||||||||||||
| (Losses) gains on real estate and facility sales | (2) | (27) | (3) | 9 | (23) | |||||||||||||||||||||||||||
| Impairment losses | — | — | (12) | (5) | (17) | |||||||||||||||||||||||||||
| Pension and OPEB actuarial and settlement gains | — | — | — | 232 | 232 | |||||||||||||||||||||||||||
| EBIT | 89 | 111 | 146 | 350 | 696 | |||||||||||||||||||||||||||
| Interest Income | 51 | 51 | 51 | 46 | 199 | |||||||||||||||||||||||||||
| Interest expense | (72) | (69) | (66) | (58) | (265) | |||||||||||||||||||||||||||
| Income before income tax | 68 | 93 | 131 | 338 | 630 | |||||||||||||||||||||||||||
| Income tax expense | (43) | (48) | (68) | (75) | (234) | |||||||||||||||||||||||||||
| Net Income | $ | 25 | $ | 45 | $ | 63 | $ | 263 | $ | 396 | ||||||||||||||||||||||
| Segment profit margins | ||||||||||||||||||||||||||||||||
| CES | 9.6 | % | 13.7 | % | 12.9 | % | 9.6 | % | 11.5 | % | ||||||||||||||||||||||
| GIS | 6.1 | % | 7.2 | % | 6.8 | % | 6.0 | % | 6.5 | % | ||||||||||||||||||||||
| Insurance | 14.8 | % | 12.1 | % | 16.3 | % | 10.2 | % | 13.4 | % | ||||||||||||||||||||||
| Total Company margins | ||||||||||||||||||||||||||||||||
| Adjusted EBIT margin | 6.9 | % | 8.6 | % | 8.9 | % | 7.3 | % | 7.9 | % | ||||||||||||||||||||||
| EBIT margin | 2.8 | % | 3.4 | % | 4.5 | % | 11.0 | % | 5.4 | % | ||||||||||||||||||||||
Source: DXC Technology
Category: Investor Relations
14
FAQ
How did DXC (DXC) perform in Q4 fiscal 2026?
DXC reported Q4 fiscal 2026 revenue of $3.13 billion, down 1.2% year over year. The company recorded a GAAP net loss with diluted EPS of $(0.84), while non-GAAP diluted EPS was $0.77 and adjusted EBIT margin was 7.6%.
What were DXC (DXC) full-year fiscal 2026 results?
For fiscal 2026, DXC generated $12.64 billion in revenue, down 1.8% year over year. GAAP diluted EPS was $0.10, non-GAAP diluted EPS was $3.23, adjusted EBIT was $970 million with a 7.7% margin, and free cash flow reached $713 million.
How strong was DXC (DXC) cash flow and capital return in fiscal 2026?
DXC produced $1,248 million in operating cash flow and $713 million in free cash flow during fiscal 2026. The company also repurchased $250 million of shares over the year, including $60 million in Q4, returning cash to shareholders.
What bookings and book-to-bill ratios did DXC (DXC) report?
DXC reported Q4 fiscal 2026 bookings of $3.3 billion with a book-to-bill ratio of 1.07x. For the full year, bookings were $12.4 billion, down 6.2% year over year, resulting in a book-to-bill ratio of 0.98x across the business.
What guidance did DXC (DXC) give for fiscal 2027?
For fiscal 2027, DXC guides total revenue between $12.11 billion and $12.35 billion, implying 5.0% to 3.0% organic decline. It expects adjusted EBIT margin of 6.0%–7.0%, non-GAAP diluted EPS of $2.40–$2.90, and free cash flow of about $600 million.
What is DXC (DXC) expecting for Q1 fiscal 2027?
For Q1 fiscal 2027, DXC projects revenue of $2.97–$3.00 billion, representing organic decline of 7.5% to 6.5%. The company targets adjusted EBIT margin of about 5.0% and non-GAAP diluted EPS of roughly $0.40 in the quarter.