Companies /Technology

DXC Technology Company

NYSE: DXC Information Technology Services
$11.00
â–² $0.45 (+4.27%) today
Markets closed · 5:21am ET

Q1 2026 Earnings

Reported Jul 31, 2025, 4:19pm ET · SEC source
$0.68
Beat +9.87%
EPS · est. $0.62
$3.2B
Beat +2.39%
Revenue · est. $3.1B
+9.2%
Beating market
DXC vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−8%−4%0+4%Jul 31Aug 1report 4:19pm ETearnings−1.5%−5.5%
−8%−4%0+4%Jul 31Aug 1earnings−1.5%−5.5%
DXC −5.5%S&P 500 −1.5%
−8%−4%0+4%Jul 31Aug 1report 4:19pm ETearnings−1.8%−5.5%
−8%−4%0+4%Jul 31Aug 1earnings−1.8%−5.5%
DXC −5.5%NASDAQ −1.8%
−12%−8%−4%0Jul 30Aug 8report 4:19pm ETearnings+1.0%−6.2%
−12%−8%−4%0Jul 30Aug 8earnings+1.0%−6.2%
DXC −6.2%S&P 500 +1.0%
−12%−8%−4%0Jul 30Aug 8report 4:19pm ETearnings+2.0%−6.2%
−12%−8%−4%0Jul 30Aug 8earnings+2.0%−6.2%
DXC −6.2%NASDAQ +2.0%
−5.51%
Day of report
+3.73%
Next session
+2.18%
One week
+12.75%
30 days

S&P 500 over the same 30 days: +3.54%.

Did DXC Beat Earnings? Q1 2026 Results

DXC Technology opened its fiscal 2026 on a stronger-than-expected note, posting first-quarter non-GAAP EPS of $0.68 against a consensus estimate of $0.62, a beat of roughly 9.87%, while revenue of $3.16 billion edged past the $3.09 billion estimate despite falling 2.4% year-over-year as the company continued to absorb top-line pressure. The most meaningful driver behind the earnings outperformance was a sharp improvement in corporate expenses, which fell to $19 million from $44 million a year ago, helping offset margin compression across all three business segments. Bookings momentum offered perhaps the clearest forward signal, with total bookings of $2.80 billion growing 14% year-over-year, the third straight quarter of double-digit growth, and the Consulting and Engineering Services segment posting a standout book-to-bill of 1.19x. Free cash flow more than doubled to $97 million, aided by a significant reduction in capital expenditures. Management responded to the beat by raising its full-year non-GAAP EPS guidance to $2.85 to $3.35, while maintaining revenue guidance of $12.61 billion to $12.87 billion, signaling cautious but improving confidence in the underlying business trajectory.

Key Takeaways
  • Total bookings of $2.8 billion, up 14% YoY — third consecutive quarter of double-digit bookings growth
  • CES bookings surged 32% YoY with book-to-bill of 1.19x
  • Insurance Services revenue grew 5.4% YoY (3.6% organic), the only segment with positive revenue growth
  • Free cash flow more than doubled YoY to $97 million from $45 million driven by lower capital expenditures
  • Corporate expenses reduced significantly to $19 million from $44 million in prior year quarter

“We delivered first quarter results at the high end of our guidance for both organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations. For the third straight quarter, we reported double digit bookings growth, a clear sign we are connecting better with clients.”

DXC Technology CEO, on the earnings call

Forward Guidance & Outlook

For full-year fiscal 2026, DXC expects total revenue of $12.61–$12.87 billion (organic revenue decline of 5.0% to 3.0%), adjusted EBIT margin of 7.0%–8.0%, non-GAAP diluted EPS of $2.85–$3.35 (raised from prior guidance of $2.75–$3.25), and free cash flow of approximately $600 million. For Q2 FY2026, the company guides total revenue of $3.15–$3.18 billion (organic revenue decline of 4.5% to 3.5%), adjusted EBIT margin of 6.5%–7.5%, and non-GAAP diluted EPS of $0.65–$0.75.

DXC YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$900.0M$1.8B$2.7B$3.2B$3.2BRevenue$710.0M$771.0MGross Profit$83.0M$75.0MOperating Income$26.0M$18.0MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

DXC Revenue by Segment

Global Infrastructure Services$1.6B−3.5%
Consulting and Engineering Services$1.2B−2.7%
Insurance Software & Services$313.0M+5.4%

Figures from SEC filings and company reports. Not investment advice.