In This Article:
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Total Revenue: $3.2 billion, declining 4.2% year-to-year on an organic basis.
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Bookings Growth: Up more than 20% year-to-year, with a book-to-bill ratio of 1.2.
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Adjusted EBIT Margin: 7.3%, down 110 basis points year-to-year.
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Non-GAAP Gross Margin: 24.2%, down 40 basis points year-to-year.
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Non-GAAP SG&A: 11.3% of revenue, expanded 160 basis points year-to-year.
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Non-GAAP EPS: $0.84, down from $0.97 in the prior year quarter.
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GBS Revenue: Down 2.4% year-to-year organically, with a profit margin of 10.9%.
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GIS Revenue: Declined 6% year-to-year organically, with a profit margin of 7.0%.
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Full Year Revenue: $12.9 billion, down 4.6% year-to-year on an organic basis.
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Full Year Adjusted EBIT Margin: 7.9%, expanded 50 basis points year-to-year.
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Full Year Non-GAAP EPS: $3.43, up 11% year-to-year.
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Free Cash Flow: $687 million for fiscal 2025.
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Total Debt: $3.9 billion, down $213 million year-to-year.
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Total Cash: $1.8 billion, increased by approximately $570 million year-to-year.
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Net Debt: Reduced by $785 million to approximately $2.1 billion.
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Fiscal 2026 Guidance - Revenue Decline: Expected to decline 3% to 5% organically.
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Fiscal 2026 Guidance - Adjusted EBIT Margin: Expected between 7% to 8%.
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Fiscal 2026 Guidance - Non-GAAP EPS: Expected between $2.75 and $3.25.
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Fiscal 2026 Guidance - Free Cash Flow: Approximately $600 million.
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Q1 Fiscal 2026 Guidance - Revenue Decline: Expected between 4.0% and 5.5% organically.
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Q1 Fiscal 2026 Guidance - Adjusted EBIT Margin: Expected between 6% to 7%.
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Q1 Fiscal 2026 Guidance - Non-GAAP EPS: Expected between $0.55 to $0.65.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DXC Technology Co (NYSE:DXC) reported a significant increase in bookings, up more than 20%, with a book-to-bill ratio of 1.2, indicating strong market traction.
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The company has successfully recruited 22 new members to its leadership team, enhancing its operational capabilities.
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DXC Technology Co (NYSE:DXC) has secured a major contract with Carnival Cruise Line, showcasing its ability to win competitive bids.
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The company is well-positioned to capitalize on the growing AI market, with early success in delivering AI-driven solutions to clients.
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DXC Technology Co (NYSE:DXC) plans to restart its share repurchase program, reflecting confidence in its future performance and commitment to shareholder value.
Negative Points
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DXC Technology Co (NYSE:DXC) reported a 4.2% year-over-year decline in revenue for the fourth quarter, continuing a trend of revenue decline.
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Adjusted EBIT margin decreased by 110 basis points year-over-year to 7.3%, impacted by investments in employees and sales force improvements.
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The company projects a further 3% to 5% decline in organic revenue for fiscal year 2026, indicating ongoing challenges in reversing revenue decline.
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Non-GAAP EPS decreased from $0.97 to $0.84 year-over-year, driven by lower adjusted EBIT.
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DXC Technology Co (NYSE:DXC) faces near-term uncertainty due to tariffs and economic conditions, which could impact future performance.