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DXC Technology (NYSE: DXC) Q1 FY27 revenue $3.0B, EPS $0.73 reported

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

DXC Technology reported first quarter fiscal 2027 revenue of $2,999 million, down 5.1% year-over-year and down 6.7% on an organic basis. EBIT was $207 million with a 6.9% margin, while adjusted EBIT was $150 million with a 5.0% margin, down 30.6% year-over-year. GAAP diluted EPS was $0.73; non-GAAP diluted EPS was $0.40, down 41.2% year-over-year.

Cash generated from operations rose to $418 million, and free cash flow was $314 million versus $97 million a year ago, including $214 million of cash from a litigation judgment. Bookings were $3.0 billion, up 5% with a 0.99x book-to-bill, and about $70 million of capital was returned via repurchases of approximately 6.7 million shares. Segment revenue was $1,231 million for CES (down 1.2%), $1,449 million for GIS (down 9.4%), and $319 million for Insurance (up 1.9%). The company maintained full-year guidance, targeting fiscal 2027 revenue of $12.10–$12.35 billion, adjusted EBIT margin of 6.0–7.0%, non-GAAP EPS of $2.40–$2.90, and raising expected free cash flow to about $685 million. Second-quarter revenue is guided to $2.97–$3.00 billion with adjusted EBIT margin around 6.0% and non-GAAP EPS around $0.55.

Positive

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Filing Explained

Cash and equivalents reached $1,957 million on June 30, 2026, up from $1,737 million, while the results remain preliminary and unaudited.

The company’s Form 8-K reports preliminary, unaudited first-quarter fiscal 2027 results for the three months ended June 30, 2026. Its quarter-end cash and cash equivalents were $1,957 million versus $1,737 million at March 31, 2026, updating the company’s disclosed liquidity position.

A Form 8-K is a current report for specified material events within four business days; Items 2.02 and 9.01 identify the results disclosure and Exhibit 99.1. The filing states that information in the release is not deemed filed for Section 18 purposes or incorporated by reference, except by specific reference.

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.
Revenue $2,999 million Three months ended June 30, 2026; down 5.1% year-over-year
Organic revenue growth -6.7% Total company year-over-year organic revenue change for Q1 FY27
GAAP diluted EPS $0.73 Three months ended June 30, 2026
Non-GAAP diluted EPS $0.40 Three months ended June 30, 2026; down 41.2% year-over-year
Free cash flow $314 million Q1 FY27, compared to $97 million in Q1 FY26; includes $214 million litigation cash
Bookings $3.0 billion Q1 FY27 bookings; up 5% year-over-year; book-to-bill ratio 0.99x
Cash and cash equivalents $1,957 million Balance sheet as of June 30, 2026
FY27 free cash flow guidance ~$685 million Full-year fiscal 2027 outlook, raised from prior guide of ~$600 million
Adjusted EBIT financial
"Adjusted EBIT(2) was $150 million, down 30.6% year-over-year"
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.
organic revenue growth financial
"Organic revenue growth is calculated by dividing the year-over-year change in GAAP revenues"
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.
free cash flow financial
"Free cash flow(4) was $314 million, compared to $97 million in the first quarter"
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.
book to bill ratio financial
"Bookings of $3.0 billion increased 5% year-over-year, with a book to bill ratio of 0.99x"
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.
non-GAAP diluted EPS financial
"Non-GAAP diluted earnings per share(3) was $0.40, down 41.2% year-over-year"
Non-GAAP diluted EPS (Earnings Per Share) is a measure of a company's profit allocated to each share of stock, calculated using adjusted earnings that exclude certain items like one-time expenses or gains. It provides a view of ongoing performance by removing irregular or non-recurring factors. Investors use it to better understand the company's core profitability and compare performance across different periods or companies.
constant currency basis financial
"Financial results on a “constant currency basis” are non-GAAP measures calculated by translating"
A "constant currency basis" is a way companies compare financial results by removing the effects of changing exchange rates between different currencies. It helps show how the business is really performing, without the confusion caused by currency value swings, much like adjusting for inflation to see true growth.
Revenue $2,999 million down 5.1% year-over-year; organic revenue down 6.7%
GAAP diluted EPS $0.73 up from $0.09 in the prior-year quarter
Non-GAAP diluted EPS $0.40 down 41.2% year-over-year
EBIT $207 million (6.9% margin) up 176.0% year-over-year
Adjusted EBIT $150 million (5.0% margin) down 30.6% year-over-year
Free cash flow $314 million up versus $97 million in the first quarter of fiscal 2026
Bookings $3.0 billion (book to bill 0.99x) up 5% year-over-year
Guidance

Full-year fiscal 2027 guidance: revenue $12.10-$12.35 billion (organic decline 5.0%-3.0%), adjusted EBIT margin 6.0%-7.0%, non-GAAP diluted EPS $2.40-$2.90, free cash flow about $685 million; second quarter fiscal 2027 revenue $2.97-$3.00 billion, adjusted EBIT margin about 6.0%, non-GAAP diluted EPS about $0.55.

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FAQ

What were DXC (DXC) first quarter fiscal 2027 revenue and growth?
DXC reported Q1 FY27 revenue of $2,999 million, a 5.1% year-over-year decline and a 6.7% decline on an organic basis. Consulting and Engineering Services fell modestly, Global Infrastructure Services declined more sharply, while Insurance segment revenue grew slightly.

How did DXC (DXC) earnings per share perform in Q1 fiscal 2027?
GAAP diluted EPS for Q1 FY27 was $0.73, while non-GAAP diluted EPS was $0.40, down 41.2% year-over-year. The gap reflects non-GAAP adjustments including restructuring, amortization of acquired intangibles, a litigation award gain, and other items detailed in the reconciliation.

What was DXC (DXC) free cash flow and cash from operations in Q1 FY27?
DXC generated $418 million of cash from operations in Q1 FY27 and reported free cash flow of $314 million, versus $97 million a year earlier. Free cash flow included $214 million of cash proceeds from a litigation judgment, boosting reported cash generation for the quarter.

What were DXC (DXC) Q1 FY27 bookings and book-to-bill ratio?
Q1 FY27 bookings were $3.0 billion, an increase of 5% year-over-year, producing a book-to-bill ratio of 0.99x. GIS bookings grew strongly with a 1.11x book-to-bill, while CES bookings declined and Insurance bookings grew modestly compared with the prior-year quarter.

What full-year fiscal 2027 guidance did DXC (DXC) provide?
For FY27, DXC guides revenue of $12.10–$12.35 billion, an organic decline of 5.0–3.0%, adjusted EBIT margin of 6.0–7.0%, and non-GAAP diluted EPS of $2.40–$2.90. Free cash flow guidance was raised to about $685 million, reflecting litigation-related matters.

What are DXC (DXC) expectations for second quarter fiscal 2027?
For Q2 FY27, DXC expects revenue between $2.97 billion and $3.00 billion, an organic decline of 6.5–5.5%. The company projects an adjusted EBIT margin of about 6.0% and non-GAAP diluted EPS of approximately $0.55, based on current foreign exchange assumptions.
False0001688568AshburnVirginia2014700016885682026-07-302026-07-300001688568us-gaap:CommonStockMember2026-07-302026-07-30

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): July 30, 2026
 ______________________________________________________________________________
DXC TECHNOLOGY COMPANY
(Exact name of registrant as specified in its charter)
 ______________________________________________________________________________
Nevada 001-38033 61-1800317
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (I.R.S. Employer
Identification No.)
 
20408 Bashan Drive, Suite 231
Ashburn, Virginia 20147
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareDXCThe New York Stock Exchange


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 July 30, 2026, DXC Technology Company (the “Company”) issued a press release reporting its financial results for the first quarter of fiscal 2027 ended June 30, 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 July 30, 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 July 30, 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:July 30, 2026By:/s/ Rob Del Bene
Name:Rob Del Bene
Title:Executive Vice President and Chief Financial Officer












        
imagea.jpg
Exhibit 99.1

DXC Technology Reports First Quarter Fiscal Year 2027 Results

•Total revenue for Q1 FY27 of $3.00 billion, down 5.1% YoY, down 6.7% on an organic basis(1)
•Q1 FY27 Bookings of $3.0 billion, up 5% YoY with a book to bill ratio of 0.99x
•Q1 FY27 EBIT margin of 6.9%, and adjusted EBIT(2) margin of 5.0%
•Q1 FY27 Diluted earnings per share of $0.73; Non-GAAP diluted earnings per share(3) of $0.40, down 41.2% YoY
•Free cash flow(4) was $314 million compared to $97 million last year
•Repurchased $70 million of shares



ASHBURN, VA, July 30, 2026 – DXC Technology (NYSE: DXC) today reported results for the first quarter fiscal 2027.

"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, down 5.1% year-over-year (down 6.7% on an organic basis).(1)
•EBIT was $207 million, up 176.0% year-over-year with a corresponding margin of 6.9%. Adjusted EBIT(2) was $150 million, down 30.6% year-over-year, with a corresponding margin(2) of 5.0%.
•Diluted earnings per share was $0.73. Non-GAAP diluted earnings per share(3) was $0.40, down 41.2% year-over-year.
•Cash generated from operations was $418 million, up 124.7% year-over-year. Free cash flow(4) was $314 million, compared to $97 million in the first quarter of fiscal year 2026. Free cash flow in fiscal 2027 includes cash proceeds of $214 million related to a litigation judgment.
•Bookings of $3.0 billion increased 5% year-over-year, with a book to bill ratio of 0.99x.
•Returned $70 million of capital to shareholders by repurchasing approximately 6.7 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 - First Quarter Fiscal Year 2027

Consulting and Engineering Services ("CES")
•Revenue was $1,231 million, down 1.2% year-over-year (down 3.0% on an organic basis).(1)
•Segment profit was $100 million, down 4.8% year-over-year, with a corresponding margin of 8.1%.
•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, down 9.4% year-over-year (down 11.1% on an organic basis).(1)
•Segment profit was $38 million, down 60.8% year-over-year, with a corresponding margin of 2.6%.
•Bookings increased 34.7% year-over-year, with a book to bill ratio of 1.11x.

Insurance Software & Services ("Insurance")
•Revenue was $319 million, up 1.9% year-over-year (up 1.4% on an organic basis).(1)
•Segment profit was $34 million, up 3.0% year-over-year, with a corresponding margin of 10.7%.
•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 and $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 ~$685 million compared to the prior guide of ~$600 million. The increase is the reflection of litigation related matters.

Second Quarter Fiscal 2027
•Total revenue in the range of $2.97 billion and $3.00 billion, a decline of 6.5% to 5.5% year-over-year on an organic basis.(1)
•Adjusted EBIT margin(2) of ~6.0%.
•Non-GAAP Diluted EPS(3) of ~$0.55.
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Additional metrics for the second quarter and full year fiscal 2027 guidance are presented in the table below.


RevenueQ2 FY27 GuidanceFY27 Guidance
LowHighLowHigh
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)*~$15~$57
Non-GAAP Tax Rate~44%~40%
Foreign Exchange AssumptionsCurrent EstimateCurrent Estimate
$/Euro Exchange Rate
$1.16$1.16
$/GBP Exchange Rate
$1.34$1.34
$/AUD Exchange Rate
$0.71$0.71
*Excludes $46 million of interest income from the full year for the litigation judgment


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 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 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.



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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, 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
6






Condensed Consolidated Statements of Operations
(preliminary and unaudited)
Three Months Ended
(in millions, except per-share amounts)June 30, 2026June 30, 2025
Revenues$2,999 $3,159 
Costs of services2,388 2,388 
Selling, general and administrative328 394 
Depreciation and amortization267 304 
Restructuring costs26 37 
Interest expense55 54 
Interest income(89)(46)
Other income, net(217)(39)
Total costs and expenses2,758 3,092 
Income before income taxes241 67 
Income tax expense115 49 
Net income126 18 
Less: net income attributable to non-controlling interest, net of tax4 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 EPS162.86 181.10 
   Diluted EPS166.27 184.96 

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Selected Condensed Consolidated Balance Sheet Data
(preliminary and unaudited)
As of
(in millions)June 30, 2026March 31, 2026
Assets
Cash and cash equivalents$1,957 $1,737 
Receivables, net2,892 2,973 
Prepaid expenses556 526 
Other current assets108 126 
Total current assets5,513 5,362 
Intangible assets, net1,518 1,612 
Operating right-of-use assets, net637 663 
Goodwill527 527 
Deferred income taxes, net753 802 
Property and equipment, net1,129 1,122 
Other assets2,849 2,802 
Total Assets$12,926 $12,890 
Liabilities
Short-term debt and current maturities of long-term debt$501 $520 
Accounts payable689 561 
Accrued payroll and related costs587 564 
Operating lease liabilities234 232 
Accrued expenses and other current liabilities1,129 1,261 
Deferred revenue and advance contract payments715 748 
Income taxes payable 61 53 
Total current liabilities3,916 3,939 
Long-term debt, net of current maturities3,003 3,032 
Non-current deferred revenue 559 559 
Non-current operating lease liabilities436 463 
Non-current income tax liabilities and deferred tax liabilities500 502 
Other long-term liabilities1,184 1,186 
Total Liabilities9,598 9,681 
Total Equity3,328 3,209 
Total Liabilities and Equity$12,926 $12,890 

8





Condensed Consolidated Statements of Cash Flows
(preliminary and unaudited)
Three Months Ended
(in millions)June 30, 2026June 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 amortization271 309 
Goodwill impairment losses— 14 
Operating right-of-use expense 72 76 
Share-based compensation17 22 
Deferred taxes49 (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 activities418 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 assets5 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 equivalents21 (3)
Net increase (decrease) in cash and cash equivalents220 (4)
Cash and cash equivalents at beginning of year1,737 1,796 
Cash and cash equivalents at end of period$1,957 $1,792 
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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 DispositionsNon-GAAP
Results
Income before income taxes$241 $26 $87 $(214)$(2)$138 
Income tax expense115 12 40 (99)(1)67 
Net income126 14 47 (115)(1)71 
Less: net income attributable to non-controlling interest, net of tax4 — — — — 4 
Net income attributable to DXC common stockholders$122 $14 $47 $(115)$(1)$67 
Effective Tax Rate47.7 %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 EPS162.86 162.86 162.86 162.86 162.86 162.86 
Diluted EPS166.27 166.27 166.27 166.27 166.27 166.27 




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 taxes67 37 1 87 2 14 — 208 
Income tax expense49 9 — 20 — 4 (2)80 
Net income18 28 1 67 2 10 2 128 
Less: net income attributable to non-controlling interest, net of tax2 — — — — — — 2 
Net income attributable to DXC common stockholders$16 $28 $1 $67 $2 $10 $2 $126 
Effective Tax Rate73.1 %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 EPS181.10 181.10 181.10 181.10 181.10 181.10 181.10 181.10 
Diluted EPS184.96 184.96 184.96 184.96 184.96 184.96 184.96 184.96 





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.


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Year-over-Year Organic Revenue Growth

Three Months Ended
June 30, 2026June 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 %




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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, 2026June 30, 2025
CES profit$100 $105 
GIS profit38 97 
Insurance profit34 33 
Corporate expenses(22)(19)
Adjusted EBIT150 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 award168 — 
Gains on dispositions2 — 
Impairment losses— (14)
EBIT207 75 
Interest income89 46 
Interest expense(55)(54)
Income before income tax241 67 
Income tax expense115 49 
Net income126 18 
Segment profit margins
CES8.1 %8.4 %
GIS2.6 %6.1 %
Insurance10.7 %10.5 %
Total Company margins
Adjusted EBIT margin5.0 %6.8 %
EBIT margin6.9 %2.4 %

Source: DXC Technology
Category: Investor Relations



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