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DXC Technology

DXC Technology (DXC) Q3 2026 Earnings

Reported Jan 29, 2026 at 4:19 PM ET · SEC Source

Q3 26 EPS

$0.96

BEAT +16.18%

Est. $0.83

Q3 26 Revenue

$3.19B

BEAT +0.46%

Est. $3.18B

vs S&P Since Q3 26

-42.5%

TRAILING MARKET

DXC -33.9% vs S&P +8.6%

Market Reaction

Did DXC Beat Earnings? Q3 2026 Results

DXC Technology delivered a stronger-than-expected third quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.96 against a consensus estimate of $0.83, a beat of 16.18%, even as the IT services firm continued to navigate a challenging revenue e… Read more DXC Technology delivered a stronger-than-expected third quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.96 against a consensus estimate of $0.83, a beat of 16.18%, even as the IT services firm continued to navigate a challenging revenue environment. Total revenue of $3.19 billion edged ahead of the $3.18 billion consensus by 0.46%, though it still fell 1.0% year-over-year, with organic declines of 4.3% partially offset by a favorable 3.3-percentage-point currency tailwind. The profitability outperformance was driven in large part by sharply lower restructuring costs, reduced depreciation and amortization, and a meaningfully lower effective tax rate, which together nearly doubled GAAP diluted EPS to $0.61 from $0.31 a year ago. Bookings of $3.60 billion produced a solid 1.12x book-to-bill ratio, though they declined 17% year-over-year, a trend that tempered investor enthusiasm despite the earnings beat. Looking ahead, DXC guided Q4 non-GAAP EPS of $0.65 to $0.75 on revenue of $3.16 billion to $3.19 billion, with full-year free cash flow targeted at approximately $650 million.

Key Takeaways

  • • Disciplined execution across the business delivering solid profit margins
  • • Insurance Services was the sole organic growth driver at 3.2% organic growth
  • • Foreign currency provided a 3.3 percentage point tailwind to reported revenue
  • • Lower restructuring costs of $20 million vs $43 million year-over-year
  • • Reduced depreciation and amortization ($283 million vs $320 million)
  • • Year-to-date free cash flow of $603 million, up 4.7% year-over-year
24/7 Wall St

DXC YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

DXC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“We delivered third quarter results with solid profit margins, continued strong free cash flow generation and improved bookings. This reflects disciplined execution across our business.”

— Raul Fernandez, Q3 2026 Earnings Press Release

Back to DXC Stock Page