Total revenue for Q1 FY27 of $3.00 billion, down 5.1% YoY, down 6.7% on an organic basis(1)Q1 FY27 Bookings of $3.0 billion, up 5% YoY with a book to bill ratio of 0.99xQ1 FY27 EBIT margin of 6.9%, and adjusted EBIT(2) margin of 5.0%Q1 FY27 Diluted earnings per share of $0.73; Non-GAAP diluted earnings per share(3) of $0.40, down 41.2% YoYFree cash flow(4) was $314 million compared to $97 million last yearRepurchased $70 million of shares

ASHBURN, Va., July 30, 2026 /PRNewswire/ — DXC Technology (NYSE: DXC) today reported results for the first quarter fiscal 2027.

“Our first quarter results were in line with our expectations, and we are maintaining our full-year guidance,” said DXC Technology President and CEO, Raul Fernandez. “Through our Fast Track approach to innovation, we are bringing a new generation of AI-enabled platforms to market that help customers modernize operations and deliver measurable business outcomes.  The momentum we are building is strengthening our capabilities, deepening customer engagement, and creating a clearer path to long-term value creation. The recent addition of Paul Taylor as incoming President further strengthens our leadership team and positions us to execute our strategy with greater speed and focus.”

Financial Highlights – First Quarter Fiscal Year 2027

Total revenue was $3.00 billion, down 5.1% year-over-year (down 6.7% on an organic basis).(1)EBIT was $207 million, up 176.0% year-over-year with a corresponding margin of 6.9%.  Adjusted EBIT(2) was $150 million, down 30.6% year-over-year, with a corresponding margin(2) of 5.0%.Diluted earnings per share was $0.73. Non-GAAP diluted earnings per share(3) was $0.40, down 41.2% year-over-year.Cash generated from operations was $418 million, up 124.7% year-over-year. Free cash flow(4) was $314 million, compared to $97 million in the first quarter of fiscal year 2026. Free cash flow in fiscal 2027 includes cash proceeds of $214 million related to a litigation judgment.Bookings of $3.0 billion increased 5% year-over-year, with a book to bill ratio of 0.99x.Returned $70 million of capital to shareholders by repurchasing approximately 6.7 million shares.

Segment Highlights – First Quarter Fiscal Year 2027

Consulting and Engineering Services (“CES”)

Revenue was $1,231 million, down 1.2% year-over-year (down 3.0% on an organic basis).(1)Segment profit was $100 million, down 4.8% year-over-year, with a corresponding margin of 8.1%.Bookings declined 18.5% year-over-year, with a book to bill ratio of 0.98x.

Global Infrastructure Services (“GIS”)

Revenue was $1,449 million, down 9.4% year-over-year (down 11.1% on an organic basis).(1)Segment profit was $38 million, down 60.8% year-over-year, with a corresponding margin of 2.6%.Bookings increased 34.7% year-over-year, with a book to bill ratio of 1.11x.

Insurance Software & Services (“Insurance”)

Revenue was $319 million, up 1.9% year-over-year (up 1.4% on an organic basis).(1)Segment profit was $34 million, up 3.0% year-over-year, with a corresponding margin of 10.7%.Bookings increased 3.6% year-over-year, with a book to bill ratio of 0.54x.

Full Year Fiscal 2027 and Second Quarter Fiscal Year 2027 Guidance

Full Year Fiscal 2027

Total revenue in the range of $12.10 billion and $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 ~$685 million compared to the prior guide of ~$600 million. The increase is the reflection of litigation related matters.

Second Quarter Fiscal 2027

Total revenue in the range of $2.97 billion and $3.00 billion, a decline of 6.5% to 5.5% year-over-year on an organic basis.(1)Adjusted EBIT margin(2) of ~6.0%.Non-GAAP Diluted EPS(3) of ~$0.55.

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

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 first quarter fiscal 2027 results at 5:00 p.m. ET on July 30, 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 approximately two hours after its conclusion until 11:59 PM ET on August 6, 2026, at 800-770-2030. 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 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 at 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, 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.

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.Merger-related indemnification – represents the Company’s estimate of potential net liability for tax related indemnifications.Gain on litigation award – reflects a gain related to the TCS Litigation judgment.Gains and losses on real estate and facility sales – gains and losses related to dispositions of real property.Gains and losses on dispositions – gains and losses related to dispositions of businesses, strategic assets and interests in less than wholly-owned entities.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.Tax adjustments – discrete tax adjustments to impair or recognize certain deferred tax assets, adjustments for changes in tax legislation and the impact of merger and divestitures. Income tax expense of all other (non-discrete) non-GAAP adjustments is based on the difference in the GAAP annual effective tax rate (AETR) and overall non-GAAP provision (consistent with the GAAP methodology).

Non-GAAP Results

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

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

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.

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