| Imagery Source: Axios |
| Information Source: Nasdaq |
- Total revenue of $3.16 billion, down 2.5% YoY (down 4.2% on an organic basis )(1)
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- Bookings of $2.7 billion, trailing twelve-month book-to-bill ratio of 1.08x
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- EBIT margin of 4.4%, and adjusted EBIT(2) margin of 8.0%
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- Diluted earnings per share were $0.20, down 13.0% YoY; Non-GAAP diluted earnings per share(3) were $0.84, down 9.7% YoY
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- Free cash flow(4) was $240 million, up $192 million YoY
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- Repurchased $75 million of shares
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| DXC Technology (NYSE: DXC) today reported results for the second quarter of fiscal 2026. |
| "For the second quarter, we delivered Adjusted EBIT margin and Non-GAAP diluted EPS above our guidance and generated very strong free cash flow. Our revenue performance has remained consistent throughout the year, and we continue to be laser-focused on better execution and driving pipeline conversion in the quarters ahead," said DXC Technology President and CEO, Raul Fernandez. "We are introducing a strategic and tactical game plan to win in a rapidly evolving AI global economy. This game plan includes formalising a two-track approach to running our business, core track and fast track, and the launch of our Xponential AI framework." |
| Financial Highlights - Second Quarter Fiscal Year 2026 |
- Total revenue was $3.16 billion, down 2.5% year-over-year (down 4.2% on an organic basis).(1)
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- EBIT was $138 million, up 24.3% year-over-year with a corresponding margin of 4.4%. Adjusted EBIT(2) was $254 million, down 9.0% year-over-year, with a corresponding margin(2) of 8.0%.
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- Diluted earnings per share were $0.20, down 13.0% year-over-year. Non-GAAP diluted earnings per share(3) were $0.84, down 9.7% year-over-year.
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- Cash generated from operations was $409 million, up $214 million year-over-year. Free cash flow(4) was $240 million, up $192 million year-over-year.
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- Bookings of $2.7 billion increased 2.4% year-over-year, with a book-to-bill ratio of 0.85x. The trailing twelve-month book-to-bill ratio was 1.08x.
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- Returned $75 million of capital to shareholders by repurchasing approximately 5.3 million shares.
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| Segment Highlights - Second Quarter Fiscal Year 2026 |
| Consulting and Engineering Services ("CES") |
- Revenue was $1,255 million, down 1.9% year-over-year (down 3.4% on an organic basis).(1)
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- Segment profit was $145 million, down 17.1% year-over-year, with a corresponding margin of 11.6%.
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- Bookings declined 2.7% year-over-year, with a book-to-bill ratio of 0.92x.
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- Trailing twelve-month book-to-bill ratio of 1.15x.
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| Global Infrastructure Services ("GIS") |
- Revenue was $1,586 million, down 4.2% year-over-year (down 6.3% on an organic basis).(1)
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- Segment profit was $122 million, up 1.7% year-over-year, with a corresponding margin of 7.7%.
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- Bookings increased 4.1% year-over-year, with a book-to-bill ratio of 0.82x.
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- Trailing twelve-month book-to-bill ratio of 1.08x.
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| Insurance Services ("Insurance") |
- Revenue was $320 million, up 4.6% year-over-year (up 3.6% on an organic basis).(1)
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- Segment profit was $28 million, down 24.3% year-over-year, with a corresponding margin of 8.8%.
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- Bookings increased 24.9% year-over-year, with a book-to-bill ratio of 0.68x.
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- Trailing twelve-month book-to-bill ratio of 0.76x.
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| Full Year Fiscal 2026 and Third Quarter Fiscal Year 2026 Guidance |
| Full Year Fiscal 2026 |
- Total revenue in the range of $12.67 billion and $12.81 billion, a decline of 4.5% to 3.5% year-over-year on an organic basis compared to the prior guide of $12.61 billion and $12.87 billion, a decline of 5.0% to 3.0%.(1)
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- Adjusted EBIT margin(2) in the range of 7.0% to 8.0%.
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- Non-GAAP diluted EPS(3) in the range of $2.85 to $3.35.
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- Free Cash Flow(4) of ~$650 million compared to the prior guide of $600 million.
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| Third Quarter Fiscal 2026 |
- Total revenue in the range of $3.18 billion and $3.22 billion, a decline of 5.0% to 4.0% year-over-year on an organic basis. (1)
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- Adjusted EBIT margin(2) in the range of 7.0% to 8.0%.
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- Non-GAAP Diluted EPS(3) in the range of $0.75 to $0.85.
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| For the full document, click the link below |
| DXC Technology |
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