What factors drove the changes in DXC Technology's revenue and profit?

What is the revenue and EPS growth rate for DXC Technology year over year?

What does DXC Technology do and what are its main business segments?

What were the key takeaways from DXC Technology's earnings call?

Did DXC Technology beat or miss consensus estimates last quarter?

What is DXC Technology's gross profit margin?

What guidance did DXC Technology's management provide for the next earnings period?

What were the key takeaways from DXC Technology’s earnings call?

- **AI-Driven Growth**: Fast-track AI solutions to contribute 10% of revenue within 3 years, with CoreIgnite and OASIS leading the charge.
- **Mixed Q2 Results**: 4.2% YoY revenue decline offset by 8% EBIT margin, $240M free cash flow, and improving book-to-bill trends.
- **Pipeline Confidence**: Trailing 12-month book-to-bill 1.08, with Q3+ bookings expected to exceed 1.0 as fast-track solutions gain traction.
- **Balance Sheet Strength**: $1.9B cash, $467M remaining under share buyback program, and $650M free cash flow guidance for FY26.
- **Internal AI Efficiency**: 10x productivity gains across functions, enabling focus on high-value client relationships.


**【CEO Summary Section】**
- **Mixed Q2 Performance**: Revenue declined 4.2% YoY organically, but adjusted EBIT margin improved to 8%, driven by cost discipline. Fast-track AI solutions aim to contribute 10% of revenue within 3 years.
- **2-Track Strategy**: Core track focuses on optimizing existing businesses (e.g., SAP, insurance SaaS), while fast track develops AI-native solutions like CoreIgnite (banking platform) and OASIS (AI-powered IT orchestration).
- **AI Integration**: Internal AI adoption (e.g., legal, sales, finance) boosts efficiency by 10x. Xponential framework enables rapid client AI implementation with governance and human oversight.
- **Pipeline Momentum**: Trailing 12-month book-to-bill ratio of 1.08, with confidence in Q3+ bookings to exceed 1.0.

**【CFO Financial Commentary】**
- **Q2 Financials**: Revenue $3.2B (-4.2% YoY), Non-GAAP EPS $0.84 (vs. $0.93 YoY), free cash flow $240M (vs. $48M YoY). Insurance segment grew 3.6% YoY, GIS declined 6.3% YoY.
- **Segment Performance**: CES bookings moderate but trailing 12-month book-to-bill 1.15; GIS bookings growth with long-cycle deals; insurance SaaS revenue to double annually.
- **Guidance Update**: FY26 revenue $12.67B-$12.81B (-3.5% to -4.5% YoY), adjusted EBIT margin 7%-8%, free cash flow $650M (up from $600M prior guidance).
- **Balance Sheet**: $1.9B cash, $4B debt, $125M share buybacks YTD, with $467M remaining under repurchase program.

**【Q&A Highlights】**
- **CES Progress**: New leadership focus on SAP optimization and fast-track AI solutions. Q4 revenue visibility from existing bookings, but pipeline conversion key for growth.
- **GIS Innovation**: OASIS platform to launch mid-2026, targeting IT services growth segments. Pipeline building for new AI-enabled solutions.
- **AI Investment**: Internal AI tools reduce costs and cycle times. Fast-track solutions target high-margin, replicable use cases (e.g., banking, IT management).
- **CoreIgnite Impact**: Converts legacy Hogan banking systems into cloud-native services, enabling banks to launch new revenue streams without disrupting core operations.
- **Cost Management**: Sustained EBIT margin through disciplined spending and AI-driven productivity. No major macroeconomic assumptions in guidance.


DXC

DXC fundamentals

You can ask Aime