Technology

DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results

Published

6 hours ago

May 7, 2026

Total revenue for Q4 FY26 of $3.13 billion, down 1.2% YoY, down 6.6% on an organic basis(1)Q4 FY26 Bookings of $3.3 billion, book to bill ratio of 1.07xQ4 FY26 EBIT margin of (1.2)%, and adjusted EBIT(2) margin of 7.6%Q4 FY26 Diluted earnings per share of $(0.84) down 158.7% YoY; Non-GAAP diluted earnings per share(3) of $0.77, down 8.3% YoYQ4 FY26 Free cash flow(4) was $110 million and full fiscal year 2026 was $713 million, up 3.8% YoYRepurchased $60 million of shares in Q4, and $250 million of shares in full fiscal year 2026

ASHBURN, Va., May 7, 2026 /PRNewswire/ – DXC Technology (NYSE: DXC) today reported results for the fourth quarter and full fiscal year 2026.

“We delivered another quarter of strong free cash flow with adjusted EBIT margin ahead of our expectations, while our top line performance fell short,” said DXC Technology President and CEO Raul Fernandez. “Over the past year, we leaned into innovation to reposition DXC for the next phase of enterprise IT and AI driven transformation, including the recent launch of our AI based orchestration platform, OASIS and continued progress across our Core Track and Fast Track initiatives. With our deep client relationships and a clear strategy in place, we remain confident in our direction and are focused on improved revenue performance and long-term value creation.”

Financial Highlights – Fourth Quarter Fiscal Year 2026

Total revenue was $3.13 billion, down 1.2% year-over-year, down 6.6% on an organic basis.(1)EBIT was $(39) million, down 111.1% year-over-year with a corresponding margin of (1.2)%. Adjusted EBIT(2) was $237 million, up 3.0% year-over-year, with a corresponding margin(2) of 7.6%.Diluted earnings per share was $(0.84), down 158.7% year-over-year. Non-GAAP diluted earnings per share(3) was $0.77, down 8.3% year-over-year.Cash generated from operations was $239 million, down $76 million year-over-year. Free cash flow(4) was $110 million, down $1 million year-over-year.Bookings of $3.3 billion declined 13.5% year-over-year, with a book to bill ratio of 1.07x.Returned $60 million of capital to shareholders by repurchasing approximately 4.6 million shares.

Segment Highlights – Fourth Quarter Fiscal Year 2026

Consulting and Engineering Services (“CES”)

Revenue was $1,256 million, up 1.7% year-over-year, down 3.9% on an organic basis.(1)Segment profit was $124 million, up 5.1% year-over-year, with a corresponding margin of 9.9%.Bookings declined 11.1% year-over-year, with a book to bill ratio of 1.07x.

Global Infrastructure Services (“GIS”)

Revenue was $1,549 million, down 5.0% year-over-year, down 10.6% on an organic basis.(1)Segment profit was $100 million, up 2.0% year-over-year, with a corresponding margin of 6.5%.Bookings declined 18.9% year-over-year, with a book to bill ratio of 1.11x.

Insurance Software & Services (“Insurance”)

Revenue was $325 million, up 7.3% year-over-year, up 4.0% on an organic basis.(1)Segment profit was $33 million, up 6.5% year-over-year, with a corresponding margin of 10.2%.Bookings increased 20.3% year-over-year, with a book to bill ratio of 0.88x.

Financial Highlights – Full Fiscal Year 2026

Total revenue was $12.64 billion, down 1.8% year-over-year, down 4.8% on an organic basis.(1)EBIT was $353 million, down 49.3% year-over-year with a corresponding margin of 2.8%. Adjusted EBIT(2) was $970 million, down 4.8% year-over-year, with a corresponding margin(2) of 7.7%.Diluted earnings per share was $0.10, down 95.2% year-over-year. Non-GAAP diluted earnings per share(3) was $3.23, down 5.8% year-over-year.Cash generated from operations was $1,248 million, down $150 million year-over-year. Free cash flow(4) was $713 million, up $26 million year-over-year.Bookings of $12.4 billion declined 6.2% year-over-year, with a book to bill ratio of 0.98x.

Segment Highlights – Full Fiscal Year 2026

Consulting and Engineering Services (“CES”)

Revenue was $5,023 million, down 0.8% year-over-year, down 3.8% on an organic basis.(1)Segment profit was $518 million, down 10.7% year-over-year, with a corresponding margin of 10.3%.Bookings increased 1.1% year-over-year, with a book to bill ratio of 1.10x.

Global Infrastructure Services (“GIS”)

Revenue was $6,342 million, down 3.9% year-over-year, down 7.2% on an organic basis.(1)Segment profit was $432 million, up 0.2% year-over-year, with a corresponding margin of 6.8%.Bookings declined 13.3% year-over-year, with a book to bill ratio of 0.94x.

Insurance Software & Services (“Insurance”)

Revenue was $1,279 million, up 5.4% year-over-year, up 3.6% on an organic basis.(1)Segment profit was $129 million, down 20.4% year-over-year, with a corresponding margin of 10.1%.Bookings increased 3.6% year-over-year, with a book to bill ratio of 0.76x.

First Quarter Fiscal Year 2027 and Full Fiscal Year 2027 Guidance

First Quarter Fiscal Year 2027

Total revenue in the range of $2.97 billion to $3.00 billion, a decline of 7.5% to 6.5% year-over-year on an organic basis.(1)Adjusted EBIT margin(2) of ~5.0%.Non-GAAP Diluted EPS(3) in the range of ~$0.40.

Full Fiscal Year 2027

Total revenue in the range of $12.11 billion to $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 ~$600 million.

Additional metrics for the fourth quarter and full fiscal year 2027 guidance are presented in the table below.

Revenue

Q1 FY27
Guidance

FY27 Guidance

Low

High

Low

High

YoY Organic Revenue %

(7.5) %

(6.5) %

(5.0) %

(3.0) %

Acquisition & Divestitures Revenues %

— %

Foreign Exchange Impact on Revenues %

1.3 %

2.2 %

Others

Non-GAAP Net Interest Expense ($M)

$15

$56

Non-GAAP Tax Rate

48.0 %

40.0 %

Foreign Exchange Assumptions

Current Estimate

$/Euro Exchange Rate

$1.17

$/GBP Exchange Rate

$1.35

$/AUD Exchange Rate

$0.70

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 fourth quarter and full fiscal 2026 results at 5:00 p.m. ET on May 7, 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 until 11:59 PM ET on May 14, 2026, at 800-770-2030 for domestic callers and at +1-609-800-9909 for international callers. 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 enterprise 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 on DXC.com.

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, our upcoming Annual Report on Form 10-K for the fiscal year ended March 31, 2026, 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.

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.

Condensed Consolidated Statements of Operations
(preliminary and unaudited)

Three Months Ended

Fiscal Years Ended

(in millions, except per-share amounts)

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Revenues

$ 3,130

$ 3,169

$ 12,644

$ 12,871

Costs of services

2,407

2,401

9,613

9,770

Selling, general and administrative

333

359

1,402

1,348

Depreciation and amortization

278

312

1,160

1,287

Restructuring costs

115

153

Interest expense

216

265

Interest income

(43)

(46)

(181)

(199)

Gain on disposition of businesses

—

(7)

Other expense (income), net

128

(282)

(376)

Total costs and expenses

3,181

2,831

12,326

12,241

(Loss) income before income taxes

(51)

338

318

630

Income tax expense

290

234

Net (loss) income

(140)

263

396

Less: net income (loss) attributable to non-controlling interest, net of tax

(1)

Net (loss) income attributable to DXC common stockholders

$ (141)

$ 264

$ 18

$ 389

(Loss) income per common share:

Basic

$ (0.84)

$ 1.46

$ 0.10

$ 2.15

Diluted

$ (0.84)

$ 1.43

$ 0.10

$ 2.10

Weighted average common shares outstanding for:

Basic EPS

168.33

181.09

175.02

180.68

Diluted EPS

168.33

184.84

178.65

184.92

Selected Condensed Consolidated Balance Sheet Data
(preliminary and unaudited)

As of

(in millions)

March 31, 2026

March 31, 2025

Assets

Cash and cash equivalents

$ 1,737

$ 1,796

Receivables, net

2,973

2,972

Prepaid expenses

526

477

Other current assets

126

118

Total current assets

5,362

5,363

Intangible assets, net

1,612

1,642

Operating right-of-use assets, net

663

635

Goodwill

527

526

Deferred income taxes, net

802

819

Property and equipment, net

1,122

1,253

Other assets

2,802

2,967

Total Assets

$ 12,890

$ 13,205

Liabilities

Short-term debt and current maturities of long-term debt

$ 520

$ 880

Accounts payable

561

549

Accrued payroll and related costs

564

571

Operating lease liabilities

232

227

Accrued expenses and other current liabilities

1,261

1,358

Deferred revenue and advance contract payments

748

762

Income taxes payable

Total current liabilities

3,939

4,411

Long-term debt, net of current maturities

3,032

2,996

Non-current deferred revenue

559

635

Non-current operating lease liabilities

463

444

Non-current income tax liabilities and deferred tax liabilities

502

495

Non-current pension obligations

385

387

Other long-term liabilities

801

347

Total Liabilities

9,681

9,715

Total Equity

3,209

3,490

Total Liabilities and Equity

$ 12,890

$ 13,205

Condensed Consolidated Statements of Cash Flows
(preliminary and unaudited)

Fiscal Years Ended

(in millions)

March 31, 2026

March 31, 2025

Cash flows from operating activities:

Net income

$ 28

$ 396

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

1,182

1,313

Goodwill impairment losses

—

Operating right-of-use expense

305

309

Pension & other post-employment benefits, actuarial & settlement losses (gains)

169

(232)

Share-based compensation

Deferred taxes

(35)

Loss (gain) on dispositions

Provision for losses on accounts receivable

Unrealized foreign currency exchange (gains) losses

(14)

Impairment losses and contract write-offs

Amortization of debt issuance costs and discount

Cash surrender value in excess of premiums paid

(16)

(12)

Other non-cash charges, net

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

Decrease in receivables

294

320

(Increase) decrease in prepaid expenses and other current assets

(164)

(81)

Decrease in accounts payable and accruals

(275)

(335)

(Decrease) increase in income taxes payable and income tax liability

(19)

(57)

Decrease in operating lease liability

(305)

(309)

Decrease in advance contract payments and deferred revenue

(95)

(78)

Other operating activities, net

—

Net cash provided by operating activities

1,248

1,398

Cash flows from investing activities:

Purchases of property and equipment

(212)

(248)

Payments for transition and transformation contract costs

(106)

(135)

Software purchased and developed

(217)

(328)

Business dispositions

—

Proceeds from sale of assets

161

Other investing activities, net

Net cash used in investing activities

(484)

(512)

Cash flows from financing activities:

Borrowings of commercial paper

—

367

Repayments of commercial paper

—

(369)

Principal payments on long-term debt

(1,062)

—

Payments on finance leases and borrowings for asset financing

(188)

(298)

Proceeds from bond issuance

742

—

Taxes paid related to net share settlements of share-based compensation awards

(14)

(20)

Repurchase of common stock

(249)

(14)

Other financing activities, net

(5)

Net cash used in financing activities

(776)

(317)

Effect of exchange rate changes on cash and cash equivalents

(47)

Net (decrease) increase in cash and cash equivalents

(59)

572

Cash and cash equivalents at beginning of year

1,796

1,224

Cash and cash equivalents at end of year

$ 1,737

$ 1,796

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.Pension and OPEB actuarial and settlement gains and losses – pension and OPEB actuarial mark to market adjustments and settlement gains and losses.Merger related indemnification – represents the Company’s estimate of potential net liability for tax related indemnifications.Gains and losses on dispositions – gains and losses related to dispositions of businesses, strategic assets and interests in less than wholly-owned entities.Gains and losses on real estate and facility sales – gains and losses related to dispositions of real property.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.Debt extinguishment costs – costs associated with early retirement, redemption, repayment or repurchase of debt and debt-like items including any breakage, make-whole premium, prepayment penalty or similar costs as well as solicitation and other legal and advisory expenses.Tax adjustments – discrete tax adjustments to impair or recognize certain deferred tax assets, adjustments for changes in tax legislation, tax litigation matters, and adjustments to transition tax. Income tax expense (benefit) from the impact of mergers and divestitures is separately computed based on the underlying transaction. Income tax expense of all other (non-discrete) non-GAAP adjustments is computed by applying the jurisdictional tax rate to the pre-tax adjustments on a jurisdictional basis. In fiscal 2026, includes the unfavorable summary judgment in a tax matter relating to a foreign exchange tax case.

Non-GAAP Results

A reconciliation of reported results to non-GAAP results is as follows:

Three Months Ended March 31, 2026

(in millions, except per-share amounts)

Reported

Restructuring

Costs

Transaction,

Separation and

Integration-Related Costs

Amortization

of Acquired

Intangible

Assets

Merger related Indemnification

(Gains) and Losses on

Real Estate, Facility Sales

and Dispositions

Impairment

Losses

Pension and OPEB actuarial

and Settlement (Gains) and Losses

Tax Adjustment

Non-GAAP

Results

(Loss) income from continuing operations, before taxes

$ (51)

$ 23

$ 1

$ 87

$ (3)

$ 7

$ 3

$ 158

$ —

$ 225

Income tax expense

—

(63)

Net (loss) income

(140)

(4)

123

136

Less: net income attributable to non-controlling interest, net of tax

—

Net (loss) income attributable to DXC common stockholders

$ (141)

$ 18

$ 1

$ 68

$ (4)

$ 5

$ 2

$ 121

$ 63

$ 133

Effective Tax Rate

(174.5) %

39.6 %

Basic EPS

$ (0.84)

$ 0.11

$ 0.01

$ 0.40

$ (0.02)

$ 0.03

$ 0.01

$ 0.72

$ 0.37

$ 0.79

Diluted EPS

$ (0.84)

$ 0.10

$ 0.01

$ 0.39

$ (0.02)

$ 0.03

$ 0.01

$ 0.70

$ 0.37

$ 0.77

Weighted average common shares outstanding for:

Basic EPS

168.33

Diluted EPS

168.33

172.38

Fiscal Year Ended March 31, 2026

(in millions, except per-share amounts)

Reported

Restructuring

Costs

Transaction,

Separation and

Integration-

Related Costs

Amortization

of Acquired

Intangible

Assets

Merger Related Indemnification

(Gains) and Losses on

Real Estate, Facility Sales

and Dispositions

Debt Extinguishment

Costs

Impairment

Losses

Pension and

OPEB Actuarial

and Settlement

(Gains) and

Losses

Tax Adjustment

Non-GAAP Results

Income before income taxes

318

115

349

(35)

(1)

169

—

936

Income tax expense

290

—

(1)

—

(80)

347

Net income

278

(34)

(2)

132

589

Less: net income attributable to non-controlling interest, net of tax

—

Net income attributable to DXC common stockholders

$ 18

$ 91

$ 3

$ 278

$ (34)

$ (2)

$ 1

$ 12

$ 130

$ 80

$ 577

Effective Tax Rate

91.2 %

37.1 %

Basic EPS

$ 0.10

$ 0.52

$ 0.02

$ 1.59

$ (0.19)

$ (0.01)

$ 0.01

$ 0.07

$ 0.74

$ 0.46

$ 3.30

Diluted EPS

$ 0.10

$ 0.51

$ 0.02

$ 1.56

$ (0.19)

$ (0.01)

$ 0.01

$ 0.07

$ 0.73

$ 0.45

$ 3.23

Weighted average common shares outstanding for:

Basic EPS

175.02

Diluted EPS

178.65

Three Months Ended March 31, 2025

(in millions, except per-share amounts)

Reported

Restructuring

Costs

Amortization

of Acquired

Intangible

Assets

Merger related Indemnification

(Gains) and Losses on

Real Estate, Facility Sales

and Dispositions

Impairment

Losses

Pension and OPEB actuarial

and Settlement (Gains) and Losses

Tax Adjustment

Non-GAAP Results

Income from continuing operations, before taxes

338

(9)

(232)

—

218

Income tax expense

(1)

(66)

Net income

263

(12)

(166)

(20)

154

Less: net loss attributable to non-controlling interest, net of tax

(1)

—

(1)

—

(2)

Net income attributable to DXC common stockholders

$ 264

$ 21

$ 61

$ 1

$ (12)

$ 6

$ (165)

$ (20)

$ 156

Effective Tax Rate

22.2 %

29.4 %

Basic EPS

$ 1.46

$ 0.12

$ 0.34

$ 0.01

$ (0.07)

$ 0.03

$ (0.91)

$ (0.11)

$ 0.86

Diluted EPS

$ 1.43

$ 0.11

$ 0.33

$ 0.01

$ (0.06)

$ 0.03

$ (0.89)

$ (0.11)

$ 0.84

Weighted average common shares outstanding for:

Basic EPS

181.09

Diluted EPS

184.84

Fiscal Year Ended March 31, 2025

(in millions, except per-share amounts)

Reported

Restructuring

Costs

Transaction,

Separation and

Integration-

Related Costs

Amortization

of Acquired

Intangible

Assets

Merger Related Indemnification

(Gains) and Losses on

Real Estate, Facility Sales

and Dispositions

Impairment

Losses

Pension and

OPEB Actuarial

and Settlement

(Gains) and

Losses

Tax Adjustment

Non-GAAP

Results

Income before income taxes

630

153

348

(232)

—

953

Income tax expense

234

(66)

313

Net income

396

120

271

(4)

(166)

(17)

640

Less: net income attributable to non-controlling interest, net of tax

—

(1)

—

Net income attributable to DXC common stockholders

$ 389

$ 120

$ 20

$ 271

$ (4)

$ 4

$ 16

$ (165)

$ (17)

$ 634

Effective Tax Rate

37.1 %

32.8 %

Basic EPS

$ 2.15

$ 0.66

$ 0.11

$ 1.50

$ (0.02)

$ 0.02

$ 0.09

$ (0.91)

$ (0.09)

$ 3.51

Diluted EPS

$ 2.10

$ 0.65

$ 0.11

$ 1.47

$ (0.02)

$ 0.02

$ 0.09

$ (0.89)

$ (0.09)

$ 3.43

Weighted average common shares outstanding for:

Basic EPS

180.68

Diluted EPS

184.92

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.

Year-over-Year Organic Revenue Growth

Fiscal Year 2026

Q1 FY26

Q2 FY26

Q3 FY26

Q4 FY26

FY26

Total revenue growth

(2.4) %

(2.5) %

(1.0) %

(1.2) %

(1.8) %

Foreign currency

(2.0) %

(1.9) %

(3.3) %

(5.4) %

(3.1) %

Acquisition and divestitures

0.1 %

0.2 %

— %

0.1 %

Organic revenue growth

(4.3) %

(4.2) %

(4.3) %

(6.6) %

(4.8) %

CES revenue growth

(2.7) %

(1.9) %

(0.1) %

1.7 %

(0.8) %

Foreign currency

(2.0) %

(1.9) %

(3.5) %

(5.6) %

(3.2) %

Acquisition and divestitures

0.3 %

0.4 %

— %

0.2 %

CES organic revenue growth

(4.4) %

(3.4) %

(3.6) %

(3.9) %

(3.8) %

GIS revenue growth

(3.5) %

(4.2) %

(2.7) %

(5.0) %

(3.9) %

Foreign currency

(2.2) %

(2.1) %

(3.5) %

(5.6) %

(3.3) %

Acquisition and divestitures

— %

GIS organic revenue growth

(5.7) %

(6.3) %

(6.2) %

(10.6) %

(7.2) %

Insurance revenue growth

5.4 %

4.6 %

7.3 %

5.4 %

Foreign currency

(1.8) %

(1.0) %

(1.4) %

(3.3) %

(1.8) %

Acquisition and divestitures

— %

Insurance organic revenue growth

3.6 %

3.2 %

4.0 %

3.6 %

Fiscal Year 2025

Q1 FY25

Q2 FY25

Q3 FY25

Q4 FY25

FY25

Total revenue growth

(6.1) %

(5.7) %

(5.1) %

(6.4) %

(5.8) %

Foreign currency

1.4 %

— %

0.7 %

2.1 %

1.0 %

Acquisition and divestitures

0.3 %

0.1 %

0.2 %

0.1 %

0.2 %

Organic revenue growth

(4.4) %

(5.6) %

(4.2) %

(4.6) %

CES revenue growth

(3.0) %

(3.3) %

(3.5) %

(6.4) %

(4.0) %

Foreign currency

1.7 %

(0.1) %

0.9 %

2.1 %

1.1 %

Acquisition and divestitures

0.4 %

— %

0.4 %

0.3 %

CES organic revenue growth

(0.9) %

(3.4) %

(2.2) %

(4.0) %

(2.6) %

GIS revenue growth

(10.1) %

(9.2) %

(8.2) %

(7.5) %

(8.8) %

Foreign currency

1.3 %

0.1 %

0.8 %

2.2 %

1.1 %

Acquisition and divestitures

0.2 %

0.1 %

0.2 %

0.1 %

0.2 %

GIS organic revenue growth

(8.6) %

(9.0) %

(7.2) %

(5.2) %

(7.5) %

Insurance revenue growth

5.3 %

5.5 %

6.6 %

— %

4.3 %

Foreign currency

0.9 %

(0.2) %

1.1 %

0.4 %

Acquisition and divestitures

— %

Insurance organic revenue growth

6.2 %

5.3 %

6.4 %

1.1 %

4.7 %

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.

Fiscal Year 2026

(in millions)

Q1 FY26

Q2 FY26

Q3 FY26

Q4 FY26

FY26

CES profit

$ 105

$ 145

$ 144

$ 124

$ 518

GIS profit

122

113

100

432

Insurance profit

129

Corporate expenses

(19)

(41)

(29)

(20)

(109)

Adjusted EBIT

216

254

263

237

970

Restructuring costs

(37)

(35)

(20)

(23)

(115)

Transaction, separation and integration-related costs

(1)

—

(1)

(3)

Amortization of acquired intangible assets

(87)

(88)

(87)

(349)

Merger related indemnification

(2)

—

Gains on dispositions

—

Gains (losses) on real estate and facility sales

—

(7)

—

Impairment losses

(14)

—

(3)

(17)

Pension and OPEB actuarial and settlement losses

—

(11)

(158)

(169)

EBIT

138

179

(39)

353

Interest Income

181

Interest expense

(54)

(53)

(54)

(55)

(216)

Income (loss) before income tax

131

171

(51)

318

Income tax expense

(49)

(91)

(61)

(89)

(290)

Net Income (loss)

$ 18

$ 40

$ 110

$ (140)

$ 28

Segment profit margins

CES

8.4 %

11.6 %

11.4 %

9.9 %

10.3 %

GIS

6.1 %

7.7 %

7.0 %

6.5 %

6.8 %

Insurance

10.5 %

8.8 %

10.9 %

10.2 %

10.1 %

Total Company margins

Adjusted EBIT margin

6.8 %

8.0 %

8.2 %

7.6 %

7.7 %

EBIT margin

2.4 %

4.4 %

5.6 %

(1.2) %

2.8 %

Fiscal Year 2025

(in millions)

Q1 FY25

Q2 FY25

Q3 FY25

Q4 FY25

FY25

CES profit

$ 123

$ 175

$ 164

$ 118

$ 580

GIS profit

101

120

112

431

Insurance profit

162

Corporate expenses

(44)

(53)

(40)

(17)

(154)

Adjusted EBIT

224

279

286

230

1,019

Restructuring costs

(39)

(42)

(43)

(29)

(153)

Transaction, separation and integration-related costs

(7)

(15)

(3)

—

(25)

Amortization of acquired intangible assets

(87)

(89)

(87)

(85)

(348)

Merger related indemnification

—

(2)

Gains on dispositions

—

(Losses) gains on real estate and facility sales

(2)

(27)

(3)

(23)

Impairment losses

—

(12)

(5)

(17)

Pension and OPEB actuarial and settlement gains

—

232

EBIT

111

146

350

696

Interest Income

199

Interest expense

(72)

(69)

(66)

(58)

(265)

Income before income tax

131

338

630

Income tax expense

(43)

(48)

(68)

(75)

(234)

Net Income

$ 25

$ 45

$ 63

$ 263

$ 396

Segment profit margins

CES

9.6 %

13.7 %

12.9 %

9.6 %

11.5 %

GIS

6.1 %

7.2 %

6.8 %

6.0 %

6.5 %

Insurance

14.8 %

12.1 %

16.3 %

10.2 %

13.4 %

Total Company margins

Adjusted EBIT margin

6.9 %

8.6 %

8.9 %

7.3 %

7.9 %

EBIT margin

2.8 %

3.4 %

4.5 %

11.0 %

5.4 %

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SOURCE DXC Technology Company

Technology

10x Genomics Reports First Quarter 2026 Financial Results

Published

6 hours ago

May 7, 2026

PLEASANTON, Calif., May 7, 2026 /PRNewswire/ — 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2026.

Recent Updates

Revenue was $150.8 million for the first quarter of 2026, representing a 3% decrease over the corresponding period of 2025. Excluding $16.8 million related to one-time license and royalty revenue in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025.Launched Atera, a new platform to redefine how biology is measured and understood. Atera was engineered to deliver spatial whole-transcriptome analysis with single-cell sensitivity at unprecedented scale. The Company expects to start shipping Atera in the second half of 2026.Announced a partnership with Bioptimus, a global AI biotech company, to launch STELA, a multinational spatial data generation initiative to create foundational datasets connecting underlying biology with disease outcomes. The initiative is starting this effort on our Xenium platform and plans to expand to Atera over time.Ended the first quarter of 2026 with cash and cash equivalents and marketable securities of $539.8 million, representing a $112.9 million increase from March 31, 2025.

“We had a solid start to the year, with double-digit growth in Single Cell consumables reaction volumes and double-digit growth in Spatial consumables revenue,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “The biggest highlight is our recent launch of Atera, which represents the most significant product introduction in our history. We are extremely encouraged by the extraordinary early customer response.”

First Quarter 2026 Financial Results

Revenue was $150.8 million for the first quarter of 2026, a 3% decrease from the corresponding period of 2025. Excluding $16.8 million related to a patent litigation settlement recognized in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025.

Gross margin was 70% for the first quarter of 2026, as compared to 68% for the corresponding prior year period. The increase in gross margin was primarily due to lower warranty costs and lower inventory write-downs, partially offset by a decrease in license and royalty revenue reflecting a non-recurring royalty benefit recognized in the first quarter of 2025.

Operating expenses were $123.2 million for the first quarter of 2026, a 15% decrease from $144.8 million for the corresponding prior year period. The decrease was primarily driven by lower outside legal expenses and personnel expenses, partially offset by a non-recurring gain on settlement of $9.2 million recognized in the first quarter of 2025.

Operating loss was $17.0 million for the first quarter of 2026, as compared to operating loss of $39.3 million for the corresponding prior year period.

Net loss was $13.5 million for the first quarter of 2026, as compared to a net loss of $34.4 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $539.8 million as of March 31, 2026.

2026 Financial Guidance

10x Genomics is maintaining its full year 2026 revenue guidance of $600 million to $625 million. Excluding the non-recurring license and royalty revenue related to patent litigation settlements in 2025, this represents 0% to 4% growth over full year 2025.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the first quarter 2026 financial results, business developments and outlook after market close on Thursday, May 7, 2026 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world’s understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “expect,” “plan,” “outlook,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “see,” “estimate,” “predict,” “potential,” “would,” “likely,” “seek” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.’s products, services, business strategy, collaborations and opportunities and 10x Genomics, Inc.’s financial performance and results of operations, including expectations regarding revenue and guidance. These statements are based on management’s current expectations, forecasts, beliefs, estimates, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.’s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics’ expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recently-filed 10-K for the fiscal year ended December 31, 2025 filed on February 12, 2026 and the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the U.S. Securities and Exchange Commission (“SEC”), and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: investors@10xgenomics.com

Media: media@10xgenomics.com

10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended
March 31,

2026

2025

Products and services revenue

$ 149,896

$ 137,823

License and royalty revenue

947

17,060

Revenue (1)

150,843

154,883

Cost of products and services revenue (2)

44,665

49,438

Gross profit

106,178

105,445

Operating expenses:

Research and development (2)

56,847

64,245

Selling, general and administrative (2)

66,377

89,728

Gain on settlement

—

(9,200)

Total operating expenses

123,224

144,773

Loss from operations

(17,046)

(39,328)

Other income (expense):

Interest income

5,014

3,686

Other income (expense), net

(815)

2,136

Total other income

4,199

5,822

Loss before provision for income taxes

(12,847)

(33,506)

Provision for income taxes

623

852

Net loss

$ (13,470)

$ (34,358)

Net loss per share, basic and diluted

$ (0.10)

$ (0.28)

Weighted-average shares used to compute net loss per share, basic and diluted

128,291,153

122,606,091

__________________________

(1)

The following table represents total revenue by source for the periods indicated (in thousands). Spatial includes the Company’s Visium and Xenium products:

Three Months Ended
March 31,

2026

2025

Instruments

Single Cell

$ 5,223

$ 5,913

Spatial

6,039

8,902

Total instruments revenue

11,262

14,815

Consumables

Single Cell

88,894

84,109

Spatial

40,907

31,247

Total consumables revenue

129,801

115,356

Services

8,833

7,652

Products and services revenue

149,896

137,823

License and royalty revenue

947

17,060

Total revenue

$ 150,843

$ 154,883

(1)

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

Three Months Ended
March 31,

2026

2025

Americas

United States*

$ 76,693

$ 86,818

Americas (excluding United States)

3,406

3,752

Total Americas

80,099

90,570

Europe, Middle East and Africa

36,852

31,895

Asia-Pacific

China

15,837

16,883

Asia-Pacific (excluding China)

18,055

15,535

Total Asia-Pacific

33,892

32,418

Total revenue

$ 150,843

$ 154,883

Includes license and royalty revenue.

(2)

Includes stock-based compensation expense as follows:

Three Months Ended
March 31,

(in thousands)

2026

2025

Cost of revenue

$ 1,918

$ 2,481

Research and development

10,695

14,106

Selling, general and administrative

10,029

14,489

Total stock-based compensation expense

$ 22,642

$ 31,076

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$ 490,285

$ 473,966

Marketable securities

49,563

49,443

Accounts receivable, net

39,031

47,013

Other receivables

17,106

35,480

Inventory

53,487

56,341

Prepaid expenses and other current assets

20,261

22,208

Total current assets

669,733

684,451

Property and equipment, net

220,591

226,711

Operating lease right-of-use assets

58,390

60,450

Goodwill

4,511

Intangible assets, net

59,910

62,329

Other noncurrent assets

2,624

2,913

Total assets

$ 1,015,759

$ 1,041,365

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$ 17,425

$ 12,733

Accrued compensation and related benefits

21,506

42,500

Accrued expenses and other current liabilities

33,680

39,971

Deferred revenue

24,342

23,902

Operating lease liabilities

11,330

10,985

Contingent consideration, current

5,315

23,363

Total current liabilities

113,598

153,454

Contingent consideration, noncurrent

1,222

1,237

Operating lease liabilities, noncurrent

70,059

73,376

Deferred revenue, noncurrent

10,138

10,501

Other noncurrent liabilities

6,418

6,471

Total liabilities

201,435

245,039

Commitments and contingencies

Stockholders’ equity:

Preferred stock

—

Common stock

Additional paid-in capital

2,338,269

2,306,690

Accumulated deficit

(1,524,061)

(1,510,591)

Accumulated other comprehensive income

114

225

Total stockholders’ equity

814,324

796,326

Total liabilities and stockholders’ equity

$ 1,015,759

$ 1,041,365

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SOURCE 10x Genomics, Inc.

Technology

OUTFRONT Media Announces Quarterly Dividend

Published

6 hours ago

May 7, 2026

NEW YORK, May 7, 2026 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) announced today that its board of directors has declared a quarterly cash dividend on the Company’s common stock of $0.30 per share payable on June 30, 2026, to shareholders of record at the close of business on June 5, 2026.

About OUTFRONT Media Inc.
OUTFRONT is one of the largest and most trusted out-of-home media companies in the U.S., helping brands connect with audiences in the moments and environments that matter most. As OUTFRONT evolves, it’s defining a new era of in-real-life (IRL) marketing, turning public spaces into platforms for creativity, connection, and cultural relevance. With a nationwide footprint across billboards, digital displays, transit systems, and other out-of-home formats, OUTFRONT turns creative into powerful real-world experiences. Its in-house agency, OUTFRONT STUDIOS, and award-winning innovation team, XLabs, deliver standout storytelling, supported by advanced technology and data tools that can drive measurable impact.

Contacts:

Investors

Media

Stephan Bisson

Courtney Richards

Investor Relations

Events & Communications

(212) 297-6573

(646) 876-9404

stephan.bisson@outfront.com

courtney.richards@outfront.com

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SOURCE OUTFRONT Media Inc.

Technology

OUTFRONT Media Reports First Quarter 2026 Results

Published

6 hours ago

May 7, 2026

Revenues of $429.6 million

Operating income of $55.9 million

Net income attributable to OUTFRONT Media Inc. of $19.1 million

Adjusted OIBDA of $100.4 million

AFFO attributable to OUTFRONT Media Inc. of $61.0 million

Quarterly dividend of $0.30 per share, payable June 30, 2026

NEW YORK, May 7, 2026 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) today reported results for the quarter ended March 31, 2026.

“Our first quarter results demonstrate our continued strong performance, with revenue, OIBDA, and AFFO all exceeding our guidance,” said Nick Brien, Chief Executive Officer of OUTFRONT Media. “Importantly, this exceptional performance was driven by strong results across our entire business, with billboard and transit both contributing to this success.”

Three Months Ended
March 31,

$ in Millions, except per share amounts

2026

2025

Revenues

$429.6

$390.7

Operating income

55.9

13.9

Adjusted OIBDA

100.4

64.2

Net income (loss) before allocation to redeemable and non-redeemable
noncontrolling interests

19.3

(20.7)

Net income (loss)1

19.1

(20.6)

Net income (loss) per share1,2,3

$0.11

($0.14)

Funds From Operations (FFO)1

63.5

26.5

Adjusted FFO (AFFO)1

61.0

27.1

Shares outstanding3

177.1

166.4

Notes: See exhibits for reconciliations of non-GAAP financial measures; 1) References to “Net income (loss)”, “FFO” and “AFFO” mean “Net income (loss) attributable to OUTFRONT Media Inc.”, “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively; 2) References to “per share” mean per common share for diluted earnings per weighted average share; 3) Diluted weighted average shares outstanding.

First Quarter 2026 Results

Consolidated Results
Reported revenues of $429.6 million increased $38.9 million, or 10.0%, for the first quarter of 2026 as compared to the same prior-year period.

Total operating expenses of $227.5 million increased $6.2 million, or 2.8%, compared to the same prior-year period, due primarily to higher variable billboard property lease expenses, higher transit franchise costs, including higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority (the “MTA”) due to inflation, higher production expenses, and higher maintenance and utilities costs, partially offset by the impact of lost billboards in the period.

Selling, General and Administrative expenses (“SG&A”) of $107.3 million decreased $7.4 million, or 6.5%, compared to the same prior-year period, due primarily to lower compensation-related expenses, including severance and salaries, and lower credit card usage by customers, partially offset by higher professional fees, including software and technology expenses, a higher allowance for bad debt and higher client entertainment expenses.

Adjusted OIBDA of $100.4 million increased $36.2 million, or 56.4%, compared to the same prior-year period.

Segment Results

Billboard
Reported billboard segment revenues of $332.9 million increased $22.2 million, or 7.1%, compared to the same prior-year period, due primarily to higher proceeds from condemnations and an increase in average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues, partially offset by lost billboards in the period.

Operating expenses increased $3.5 million, or 2.4%, due primarily to higher variable billboard property lease costs, higher maintenance and utilities, higher site-related costs, and higher compensation-related expenses, partially offset by the impact of lost billboards in the period.

SG&A expenses increased $1.3 million, or 1.9%, due primarily to higher professional fees, including software and technology expenses, and a higher allowance for bad debt, partially offset by lower credit card usage by customers and lower compensation-related expenses.

Adjusted OIBDA of $116.4 million increased $17.4 million, or 17.6%, compared to the same prior-year period.

Transit
Reported transit segment revenues of $95.0 million increased $17.3 million, or 22.3%, compared to the same prior-year period, due primarily to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts.

Operating expenses increased $3.0 million, or 4.0%, due primarily to higher guaranteed minimum annual payments to the MTA due to inflation, higher display production costs, and higher posting and rotation costs.

SG&A expenses increased $1.5 million, or 8.7%, due primarily to higher compensation-related expenses, including severance and commissions, higher professional fees, including higher software and technology expenses, partially offset by lower credit card usage by customers.

Adjusted OIBDA loss decreased $12.8 million, or 90.1%, compared to the same prior-year period.

Other
Reported revenues decreased $0.6 million, or 26.1%, operating expenses decreased $0.3 million, or 16.7%, and Adjusted OIBDA decreased $0.3 million, or 60.0%, compared to the same prior-year period, due primarily to a decrease in third-party digital equipment sales.

Corporate
Corporate expenses, excluding stock-based compensation, decreased $6.3 million, or 29.9%, compared to the same prior-year period to $14.8 million, due primarily to lower compensation-related expenses, including severance, and lower professional fees, including fees related to a management consulting project.

Interest Expense
Net interest expense in the first quarter of 2026 was $36.0 million, including amortization of deferred financing costs of $1.4 million, as compared to $36.0 million, including amortization of deferred financing costs of $1.5 million, in the same prior-year period. The weighted average cost of debt was 5.3% as of March 31, 2026 and 5.4% as of March 31, 2025.

Income Taxes
The provision for income taxes decreased $0.1 million, or 20.0%, in the first quarter of 2026 compared to the same prior-year period. Cash paid for income taxes in the three months ended March 31, 2026 was $0.4 million.

Net Income Attributable to OUTFRONT Media Inc.
Net income attributable to OUTFRONT Media Inc. was $19.1 million in the first quarter of 2026 compared to a Net loss attributable to OUTFRONT Media Inc. of $20.6 million in the same prior-year period. Diluted weighted average shares outstanding were 177.1 million for the first quarter of 2026 compared to 166.4 million for the same prior-year period. Net income per common share for diluted earnings per weighted average share was $0.11 in the first quarter of 2026 compared to a Net loss per common share for diluted earnings per weighted average share of $0.14 in the same prior-year period.

FFO
FFO attributable to OUTFRONT Media Inc. was $63.5 million in the first quarter of 2026, an increase of $37.0 million, or 139.6%, from the same prior-year period, driven primarily by higher Adjusted OIBDA.

AFFO
Starting at the end of 2025, we modified our calculation of AFFO to include amortization of direct lease acquisition costs instead of cash paid for direct lease acquisition costs, as management believes that this calculation of AFFO is a more appropriate measure of performance period-over-period and consistent with how we calculate FFO. Accordingly, relevant prior periods have been recast to conform to this presentation.

AFFO attributable to OUTFRONT Media Inc. was $61.0 million in the first quarter of 2026, an increase of $33.9 million, or 125.1%, from the same prior-year period, due primarily to higher Adjusted OIBDA and a higher non-cash effect of straight-line rent, partially offset by lower equity earnings.

Cash Flow & Capital Expenditures
Net cash flow provided by operating activities of $75.3 million for the three months ended March 31, 2026, increased $41.7 million, or 124.1%, compared to $33.6 million in the same prior-year period, due primarily to higher net income, as adjusted for non-cash items, the timing of accounts receivables and a decrease in accounts payable and accrued expenses, partially offset by a decrease in deferred revenues. Total capital expenditures increased $6.9 million, or 40.1%, to $24.1 million for the three months ended March 31, 2026, compared to the same prior-year period, due primarily to increased growth in digital displays, increased maintenance spending for billboard display upgrades and increased spending for safety-related projects.

Dividends
In the three months ended March 31, 2026, we paid cash dividends of $53.4 million on our common stock and vested restricted share units granted to employees. We announced on May 7, 2026, that our board of directors has approved a quarterly cash dividend on our common stock of $0.30 per share payable on June 30, 2026, to stockholders of record at the close of business on June 5, 2026.

Balance Sheet and Liquidity
As of March 31, 2026, our liquidity position included unrestricted cash of $67.2 million and $494.9 million of availability under our $500.0 million revolving credit facility, net of $5.1 million of issued letters of credit against the letter of credit facility sublimit under the revolving credit facility, and $150.0 million of additional availability under our accounts receivable securitization facility. During the three months ended March 31, 2026, no shares of our common stock were sold under our at-the-market equity offering program, of which $232.5 million remains available. Total indebtedness as of March 31, 2026 was $2.6 billion, excluding $14.8 million of deferred financing costs, and includes a $500.0 million term loan, $450.0 million of senior secured notes and $1.7 billion of senior unsecured notes.

Conference Call
We will host a conference call to discuss the results on May 7, 2026, at 4:30 p.m. Eastern Time. The conference call numbers are 833-461-5787 (U.S. callers) and 585-542-9983 (International callers) and the passcode for both is 404991578. Live and replay versions of the conference call will be webcast in the Investor Relations section of our website, www.outfront.com.

Supplemental Materials
In addition to this press release, we have provided a supplemental investor presentation which can be viewed on our website, www.outfront.com.

Contacts:

Investors

Media

Stephan Bisson

Courtney Richards

Investor Relations

Events & Communications

(212) 297-6573

(646) 876-9404

stephan.bisson@outfront.com

courtney.richards@outfront.com

Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) provided throughout this document, this document and the accompanying tables include non-GAAP financial measures as described below. We calculate and define “Adjusted OIBDA” as operating income (loss) before depreciation, amortization, net (gain) loss on dispositions and stock-based compensation. We calculate Adjusted OIBDA margin by dividing Adjusted OIBDA by total revenues. Adjusted OIBDA and Adjusted OIBDA margin are among the primary measures we use for managing our business, evaluating our operating performance and planning and forecasting future periods, as each is an important indicator of our operational strength and business performance. Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of Adjusted OIBDA and Adjusted OIBDA margin, as supplemental measures, are useful in evaluating our business because eliminating certain non-comparable items highlight operational trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier for users of our financial data to compare our results with other companies that have different financing and capital structures or tax rates. When used herein, references to “FFO” and “AFFO” mean “FFO attributable to OUTFRONT Media Inc.” and “AFFO attributable to OUTFRONT Media Inc.,” respectively. We calculate FFO in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO reflects net income (loss) attributable to OUTFRONT Media Inc. adjusted to exclude gains and losses from the sale of real estate assets, depreciation and amortization of real estate assets, amortization of direct lease acquisition costs and the same adjustments for our equity-based investments and redeemable and non-redeemable noncontrolling interests, as well as the related income tax effect of adjustments, as applicable. We calculate AFFO as FFO adjusted to include amortization of direct lease acquisition costs as such costs are generally amortized over a period ranging from four weeks to one year and therefore are incurred on a regular basis. AFFO also includes cash paid for maintenance capital expenditures since these are routine uses of cash that are necessary for our operations. In addition, AFFO excludes certain non-cash items, including non-real estate depreciation and amortization, stock-based compensation expense, accretion expense, the non-cash effect of straight-line rent, amortization of deferred financing costs and the same adjustments for our redeemable and non-redeemable noncontrolling interests, along with the non-cash portion of income taxes, and the related income tax effect of adjustments, as applicable. We use FFO and AFFO measures for managing our business and for planning and forecasting future periods, and each is an important indicator of our operational strength and business performance, especially compared to other real estate investment trusts (“REITs”). Our management believes users of our financial data are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in managing, planning and executing our business strategy. Our management also believes that the presentations of FFO and AFFO, as supplemental measures, are useful in evaluating our business because adjusting results to reflect items that have more bearing on the operating performance of REITs highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. It is management’s opinion that these supplemental measures provide users of our financial data with an important perspective on our operating performance and also make it easier to compare our results to other companies in our industry, as well as to REITs. Since Adjusted OIBDA, Adjusted OIBDA margin, FFO and AFFO are not measures calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, operating income (loss) and net income (loss) attributable to OUTFRONT Media Inc., the most directly comparable GAAP financial measures, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies. In addition, these measures do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs.

Please see Exhibits 4-5 of this release for a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures.

Cautionary Statement Regarding Forward-Looking Statements
We have made statements in this document that are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “would,” “may,” “might,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “projects,” “predicts,” “estimates,” “forecast” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions related to our capital resources, portfolio performance and results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: declines in advertising and general economic conditions; competition; government regulation; our ability to operate our digital display platform; losses and costs resulting from recalls and product liability, warranty and intellectual property claims; our ability to obtain and renew key municipal contracts on favorable terms; taxes, fees and registration requirements; decreased government compensation for the removal of lawful billboards; content-based restrictions on outdoor advertising; seasonal variations; acquisitions and other strategic transactions that we may pursue could have a negative effect on our results of operations; dependence on our management team and other key employees; experiencing a cybersecurity incident; changes in regulations and consumer concerns regarding privacy, information security and data, or any failure or perceived failure to comply with these regulations or our internal policies; asset impairment charges for our long-lived assets and goodwill; environmental, health and safety laws and regulations; expectations relating to environmental, social and governance considerations; our substantial indebtedness; restrictions in the agreements governing our indebtedness; incurrence of additional debt; interest rate risk exposure from our variable-rate indebtedness; our ability to generate cash to service our indebtedness; cash available for distributions; hedging transactions; the ability of our board of directors to cause us to issue additional shares of stock without common stockholder approval; certain provisions of Maryland law may limit the ability of a third party to acquire control of us; our rights and the rights of our stockholders to take action against our directors and officers are limited; our failure to remain qualified to be taxed as a REIT; REIT distribution requirements; availability of external sources of capital; we may face other tax liabilities even if we remain qualified to be taxed as a REIT; complying with REIT requirements may cause us to liquidate investments or forgo otherwise attractive investments or business opportunities; our ability to contribute certain contracts to a taxable REIT subsidiary (“TRS”); our planned use of TRSs may cause us to fail to remain qualified to be taxed as a REIT; REIT ownership limits; complying with REIT requirements may limit our ability to hedge effectively; the ability of our board of directors to revoke our REIT election at any time without stockholder approval; the Internal Revenue Service may deem the gains from sales of our outdoor advertising assets to be subject to a 100% prohibited transaction tax; establishing operating partnerships as part of our REIT structure; and other factors described in our filings with the Securities and Exchange Commission (the “SEC”), including but not limited to the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026. All forward-looking statements in this document apply as of the date of this document or as of the date they were made and, except as required by applicable law, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

EXHIBITS

Exhibit 1: CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions, except per share amounts)

2026

2025

Revenues

$ 429.6

$ 390.7

Expenses:

Operating

227.5

221.3

Selling, general and administrative

107.3

114.7

Net loss on dispositions

1.0

0.1

Depreciation

20.7

23.6

Amortization

17.2

17.1

Total expenses

373.7

376.8

Operating income

55.9

13.9

Interest expense, net

(36.0)

Income (loss) before provision for income taxes and equity in earnings of investee
companies

19.9

(22.1)

Provision for income taxes

(0.4)

(0.5)

Equity in earnings of investee companies, net of tax

(0.2)

1.9

Net income (loss) before allocation to redeemable and non-redeemable noncontrolling
interests

19.3

(20.7)

Net income (loss) attributable to redeemable and non-redeemable noncontrolling interests

0.2

(0.1)

Net income (loss) attributable to OUTFRONT Media Inc.

$ 19.1

$ (20.6)

Net income (loss) per common share:

Basic

$ 0.11

$ (0.14)

Diluted

$ 0.11

$ (0.14)

Weighted average shares outstanding:

Basic

175.5

166.4

Diluted

177.1

166.4

Exhibit 2: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) See Notes on Page 14

As of

(in millions)

March 31,
2026

December 31,
2025

Assets:

Current assets:

Cash and cash equivalents

$ 67.2

$ 99.9

Receivables, less allowance ($25.0 in 2026 and $23.2 in 2025)

294.3

365.7

Prepaid lease and franchise costs

2.6

5.1

Prepaid MTA equipment deployment costs

0.2

—

Other prepaid expenses

25.6

21.9

Other current assets

11.6

11.1

Total current assets

401.5

503.7

Property and equipment, net

644.3

643.8

Goodwill

2,006.4

Intangible assets

603.6

612.0

Operating lease assets

1,553.8

1,521.5

Other assets

28.5

24.2

Total assets

$ 5,238.1

$ 5,311.6

Liabilities:

Current liabilities:

Accounts payable

$ 33.3

$ 50.2

Accrued compensation

42.4

72.3

Accrued interest

23.4

35.1

Accrued lease and franchise costs

62.7

72.2

Other accrued expenses

63.2

55.5

Deferred revenues

60.1

57.7

Short-term operating lease liabilities

179.5

172.9

Other current liabilities

27.6

29.4

Total current liabilities

492.2

545.3

Long-term debt, net

2,584.5

2,583.4

Asset retirement obligation

34.1

34.0

Operating lease liabilities

1,398.9

1,374.7

Other liabilities

39.2

40.3

Total liabilities

4,548.9

4,577.7

Commitments and contingencies

Redeemable noncontrolling interests

25.8

22.0

Stockholders’ equity:

Common stock (2026 – 450.0 shares authorized, and 176.1 shares issued and
outstanding; 2025 – 450.0 shares authorized, and 175.2 issued and outstanding)

1.8

Additional paid-in capital

2,604.6

2,619.3

Distribution in excess of earnings

(1,944.6)

(1,910.8)

Accumulated other comprehensive loss

0.1

Total stockholders’ equity

661.9

710.4

Noncontrolling interests

1.5

Total liabilities and equity

$ 5,238.1

$ 5,311.6

Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Operating activities:

Net income (loss) attributable to OUTFRONT Media Inc.

$ 19.1

$ (20.6)

Adjustments to reconcile net income (loss) to net cash flow provided by operating activities:

Net income (loss) attributable to redeemable and non-redeemable noncontrolling interests

0.2

(0.1)

Depreciation and amortization

37.9

40.7

Stock-based compensation

5.6

9.5

Provision for doubtful accounts

2.2

1.5

Accretion expense

0.7

Net loss on dispositions

1.0

0.1

Equity in earnings of investee companies, net of tax

0.2

(1.9)

Distributions from investee companies

0.3

Amortization of deferred financing costs and debt discount and premium

1.4

1.5

Change in assets and liabilities, net of investing and financing activities:

Decrease in receivables

69.2

45.3

Increase in prepaid MTA equipment deployment costs

(0.2)

—

(Increase) decrease in prepaid expenses and other current assets

(3.5)

0.8

Decrease in accounts payable and accrued expenses

(57.1)

(67.8)

Increase in operating lease assets and liabilities

0.5

2.1

Increase in deferred revenues

2.4

16.7

Increase (decrease) in income taxes

—

0.5

Other, net

(4.6)

4.3

Net cash flow provided by operating activities

75.3

33.6

Investing activities:

Capital expenditures

(24.1)

(17.2)

Acquisitions

(8.1)

(5.7)

MTA franchise rights

(1.8)

(4.0)

Net proceeds from dispositions

—

0.7

Investment in investee companies

(4.0)

—

Return of investments in investee companies

—

1.5

Net cash flow used for investing activities

(38.0)

(24.7)

Financing activities:

Proceeds from borrowings under short-term debt facilities

—

50.0

Repayments of borrowings under short-term debt facilities

—

(10.0)

Taxes withheld for stock-based compensation

(16.6)

(12.3)

Dividends

(53.4)

(53.0)

Net cash flow used for financing activities

(70.0)

(25.3)

Exhibit 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Net decrease in cash and cash equivalents

(32.7)

(16.4)

Cash and cash equivalents at beginning of period

99.9

46.9

Cash and cash equivalents at end of period

$ 67.2

$ 30.5

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$ 0.4

$ —

Cash paid for interest

47.1

46.2

Non-cash investing and financing activities:

Accrued purchases of property and equipment

3.3

13.4

Accrued MTA franchise rights

1.9

1.6

Taxes withheld for stock-based compensation

2.8

2.6

Exhibit 4: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited) See Notes on Page 14

Three Months Ended March 31, 2026

(in millions, except percentages)

Billboard

Transit

Other

Corporate

Consolidated

Revenues

$ 332.9

$ 95.0

$ 1.7

$ —

$ 429.6

Operating income (loss)

$ 82.5

$ (6.4)

$ 0.2

$ (20.4)

$ 55.9

Net loss on dispositions

0.9

0.1

—

1.0

Depreciation

18.1

2.6

—

20.7

Amortization

14.9

2.3

—

17.2

Stock-based compensation

—

5.6

Adjusted OIBDA

$ 116.4

$ (1.4)

$ 0.2

$ (14.8)

$ 100.4

Adjusted OIBDA margin

35.0 %

(1.5) %

11.8 %

23.4 %

Three Months Ended March 31, 2025

(in millions, except percentages)

Billboard

Transit

Other

Corporate

Consolidated

Revenues

$ 310.7

$ 77.7

$ 2.3

$ —

$ 390.7

Operating income (loss)

$ 61.0

$ (17.0)

$ 0.5

$ (30.6)

$ 13.9

Net (gain) loss on dispositions

0.7

(0.6)

—

0.1

Depreciation

21.6

2.0

—

23.6

Amortization

15.7

1.4

—

17.1

Stock-based compensation

—

9.5

Adjusted OIBDA

$ 99.0

$ (14.2)

$ 0.5

$ (21.1)

$ 64.2

Adjusted OIBDA margin

31.9 %

(18.3) %

21.7 %

16.4 %

Exhibit 5: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Net income (loss) attributable to OUTFRONT Media Inc.

$ 19.1

$ (20.6)

Depreciation of billboard advertising structures

16.2

18.8

Amortization of real estate-related intangible assets

14.3

15.1

Amortization of direct lease acquisition costs

13.0

13.2

Net loss on disposition of real estate assets

1.0

0.1

Adjustment related to redeemable and non-redeemable noncontrolling interests

(0.1)

FFO attributable to OUTFRONT Media Inc.

$ 63.5

$ 26.5

Non-cash portion of income taxes

—

0.5

Cash paid for direct lease acquisition costs

(13.0)

(13.2)

Maintenance capital expenditures

(7.0)

(6.3)

Other depreciation

4.5

4.8

Other amortization

2.9

2.0

Stock-based compensation

5.6

9.5

Non-cash effect of straight-line rent

2.4

1.1

Accretion expense

0.7

Amortization of deferred financing costs

1.4

1.5

AFFO attributable to OUTFRONT Media Inc.(a)

$ 61.0

$ 27.1

Exhibit 6: SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions)

2026

2025

Adjusted OIBDA

$ 100.4

$ 64.2

Interest expense, net, less amortization of deferred financing costs

(34.6)

(34.5)

Cash paid for income taxes

(0.4)

—

Maintenance capital expenditures

(7.0)

(6.3)

Equity in earnings of investee companies, net of tax

(0.2)

1.9

Non-cash effect of straight-line rent

2.4

1.1

Accretion expense

0.7

Adjustment related to redeemable and non-redeemable noncontrolling interests

(0.3)

—

AFFO attributable to OUTFRONT Media Inc.(a)

$ 61.0

$ 27.1

Exhibit 7: OPERATING EXPENSES

(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions, except percentages)

2026

2025

Change

Operating expenses:

Billboard property lease

$ 111.3

$ 109.2

1.9 %

Transit franchise

59.7

58.0

2.9

Posting, maintenance and other

56.5

54.1

4.4

Total operating expenses

$ 227.5

$ 221.3

2.8

Exhibit 8: EXPENSES BY SEGMENT

(Unaudited) See Notes on Page 14

Three Months Ended

March 31,

(in millions, except percentages)

2026

2025

Change

Billboard:

Billboard property lease

$ 111.3

$ 109.2

1.9 %

Billboard posting, maintenance and other

37.1

35.7

3.9

Billboard operating expenses

$ 148.4

$ 144.9

2.4

Billboard SG&A expenses

$ 68.1

$ 66.8

1.9

Transit:

Transit franchise

$ 59.7

$ 58.0

2.9

Transit posting, maintenance and other

17.9

16.6

7.8

Transit operating expenses

$ 77.6

$ 74.6

4.0

Transit SG&A expenses

$ 18.8

$ 17.3

8.7

NOTES TO EXHIBITS

PRIOR PERIOD PRESENTATION CONFORMS TO CURRENT REPORTING CLASSIFICATIONS.

(a)

Starting at the end of 2025, we modified our calculation of AFFO to include amortization of direct lease acquisition costs instead of the cash paid for direct lease acquisition costs, as management believes that this calculation of AFFO is a more appropriate measure of performance period-over-period and consistent with how we calculate FFO. Accordingly, relevant prior periods have been recast to conform to this presentation.

* Calculation not meaningful.

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SOURCE OUTFRONT Media Inc.