Companies /Technology

DXC Technology Company

NYSE: DXC Information Technology Services
$10.97
â–² $0.42 (+3.96%) today
Markets open · 12:32pm ET

Q2 2026 Earnings

Reported Oct 30, 2025, 4:18pm ET · SEC source
$0.84
Beat +20.53%
EPS · est. $0.70
$3.2B
Miss −0.18%
Revenue · est. $3.2B
−3.8%
Trailing market
DXC vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
0+4%+8%Oct 30Oct 31report 4:18pm ETearnings−0.1%+7.8%
0+4%+8%Oct 30Oct 31earnings−0.1%+7.8%
DXC +7.8%S&P 500 −0.1%
0+4%+8%Oct 30Oct 31report 4:18pm ETearnings−0.1%+7.4%
0+4%+8%Oct 30Oct 31earnings−0.1%+7.4%
DXC +7.4%NASDAQ −0.1%
−3%0+3%+6%Oct 29Nov 7report 4:18pm ETearnings−1.8%−1.1%
−3%0+3%+6%Oct 29Nov 7earnings−1.8%−1.1%
DXC −1.1%S&P 500 −1.8%
−4%0+4%+8%Oct 29Nov 7report 4:18pm ETearnings−3.4%−1.1%
−4%0+4%+8%Oct 29Nov 7earnings−3.4%−1.1%
DXC −1.1%NASDAQ −3.4%
+9.74%
Day of report
−6.55%
Next session
−7.32%
One week
−3.52%
30 days

S&P 500 over the same 30 days: +0.27%.

Did DXC Beat Earnings? Q2 2026 Results

DXC Technology delivered a profitability-driven beat in its fiscal second quarter of 2026, posting non-GAAP diluted EPS of $0.84 against a consensus estimate of $0.70, a 20.53% beat, even as revenue came in fractionally light at $3.16 billion versus the $3.17 billion estimate and fell 2.5% year-over-year. The standout driver behind the quarter was a surge in free cash flow to $240 million, up $192 million from the prior-year period, fueled by operating cash flow of $409 million, which gave management room to repurchase $75 million in shares during the quarter. Revenue headwinds persisted across the company's two largest segments, with Global Infrastructure Services and Consulting and Engineering Services both posting organic declines, while Insurance Services offered a rare bright spot with 4.6% reported revenue growth. Looking ahead, DXC guided Q3 revenue of $3.18 billion to $3.22 billion with continued organic declines of 4% to 5%, and raised its full-year free cash flow target to approximately $650 million, signaling confidence in its cash generation even as top-line pressure remains a central concern for investors.

Key Takeaways
  • Insurance Services delivered 4.6% YoY revenue growth and 24.9% bookings growth
  • Strong free cash flow generation of $240M, up $192M YoY
  • Adjusted EBIT margin and non-GAAP diluted EPS exceeded guidance
  • GIS segment profit margin improved to 7.7% from 7.2% despite revenue decline
  • Total bookings of $2.7B grew 2.4% YoY with trailing twelve-month book-to-bill of 1.08x

“For the second quarter, we delivered Adjusted EBIT margin and Non-GAAP diluted EPS above our guidance and generated very strong free cash flow. Our revenue performance has remained consistent throughout the year, and we continue to be laser focused on better execution and driving pipeline conversion in the quarters ahead.”

DXC Technology CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026, DXC expects revenue of $3.18B to $3.22B (organic decline of 4% to 5%), adjusted EBIT margin of 7.0% to 8.0%, and non-GAAP diluted EPS of $0.75 to $0.85. For full year FY2026, DXC narrowed its revenue guidance to $12.67B to $12.81B (organic decline of 3.5% to 4.5%), maintained adjusted EBIT margin guidance of 7.0% to 8.0%, non-GAAP diluted EPS of $2.85 to $3.35, and raised its free cash flow target to approximately $650M from prior guidance of $600M.

DXC YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$900.0M$1.8B$2.7B$3.2B$3.2BRevenue$814.0M$778.0MGross Profit$132.0M$138.0MOperating Income$42.0M$36.0MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

DXC Revenue by Segment

Global Infrastructure Services$1.6B−4.2%
Consulting and Engineering Services$1.3B−1.9%
Insurance Software & Services$320.0M+4.6%

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