DXC Technology Reports Third Quarter Fiscal Year 2026 Results
Total revenue for the quarter was reported at $3.19 billion, reflecting a decrease of 1.0% year-over-year. On an organic basis, this represented a decline of 4.3%. This performance showcased the continuing market challenges that the company navigated throughout the year.
Key Financial Metrics
- Bookings totaled $3.6 billion, resulting in a book-to-bill ratio of 1.12x.
- EBIT margin stood at 5.6%, with an adjusted EBIT margin of 8.2%.
- Diluted earnings per share increased impressively to $0.61, indicating a significant 96.8% growth year-over-year. When excluding GAAP measures, the non-GAAP diluted earnings per share was $0.96, up 4.3% compared to last year.
- The free cash flow generated during this period was $266 million, contributing to a year-to-date total of $603 million, reflecting a 4.7% improvement year-over-year.
- In terms of shareholder returns, DXC Technology repurchased $65 million in shares and redeemed $300 million in senior notes during the quarter.
According to Raul Fernandez, President and CEO of DXC Technology, "We delivered third quarter results with solid profit margins and continued strong cash flow generation. Our disciplined execution reflects our commitment to invest in our core business and develop new, innovative solutions moving forward." He emphasized the company’s strategic investment in artificial intelligence to help clients leverage smart solutions for improved performance.
Third Quarter Sector Performance
Consulting and Engineering Services (CES)
- Revenue was $1,266 million, which showed a minor decrease of 0.1% year-over-year, equating to a 3.6% decline on an organic basis.
- Segment profit experienced a reduction of 12.2% year-over-year, reaching $144 million, with a corresponding profit margin of 11.4%.
- Bookings decreased by 6% year-over-year, sustaining a book-to-bill ratio of 1.20x.
Global Infrastructure Services (GIS)
- Revenue reported at $1,607 million, down 2.7% year-over-year, with a 6.2% decline on an organic basis.
- Segment profit increased slightly up by 0.9% to $113 million, maintaining a margin of 7.0%.
- Bookings fell significantly, down 26% year-over-year, realizing a book-to-bill ratio of 1.09x.
Insurance Services
- Revenue climbed to $321 million, representing a 4.6% year-over-year increase, while organic growth was recorded at 3.2%.
- Despite the overall revenue growth, segment profit plunged 30.0% year-over-year to $35 million, reflecting a margin of 10.9%.
Future Guidance
As DXC Technology looks toward its future, expectations for the fourth quarter of fiscal year 2026 are set with total revenue projected between $3.16 billion and $3.19 billion, anticipating a decline of approximately 5.0% to 4.0% year-over-year on an organic basis. Also, the adjusted EBIT margin is forecasted to be in the range of 6.5% to 7.5%, with the non-GAAP diluted EPS anticipated between $0.65 and $0.75.
About DXC Technology
DXC Technology (NYSE: DXC) positions itself as a premier enterprise technology and innovation partner, providing a diverse array of solutions that help organizations navigate and thrive amid evolving technological landscapes. With a commitment to modernizing and ensuring security across complex technology infrastructures, DXC continues to drive improvements in operational efficiency and innovative solution delivery.
Frequently Asked Questions
What were the total revenues for DXC Technology in Q3 2026?
The total revenue reported for DXC Technology in Q3 2026 was $3.19 billion.
How much did DXC Technology spend on share repurchases?
DXC Technology repurchased approximately $65 million of its shares during the quarter.
What was the EBIT margin reported for Q3 2026?
The EBIT margin reported for Q3 2026 was 5.6%.
How has diluted earnings per share changed?
The diluted earnings per share increased significantly, reaching $0.61, which is a 96.8% increase year-over-year.
What is the expected revenue range for the fourth quarter of FY 2026?
The expected revenue range for the fourth quarter of FY 2026 is between $3.16 billion and $3.19 billion.
