Companies /Technology
DXC Technology Company
NYSE: DXC Information Technology Services
$11.95
▲ $0.12 (+1.03%) today
Markets open · 2:54pm ET

DXC Technology (DXC) Q3 2026 Earnings

Reported Jan 29, 2026, 4:19pm ET · SEC source
$0.96
Beat +16.18%
EPS · est. $0.83
$3.2B
Beat +0.46%
Revenue · est. $3.2B
−12.5%
Trailing market
DXC vs S&P since report
1 quarter
Consecutive EPS misses

How Did DXC Stock React to Q3 2026 Earnings?

% change · around the report
−8%−4%0+4%Jan 29Jan 30report 4:19pm ETearnings−0.5%+2.6%
−8%−4%0+4%Jan 29Jan 30earnings−0.5%+2.6%
DXC +2.6%S&P 500 −0.5%
−8%−4%0+4%Jan 29Jan 30report 4:19pm ETearnings−1.4%+2.6%
−8%−4%0+4%Jan 29Jan 30earnings−1.4%+2.6%
DXC +2.6%NASDAQ −1.4%
−5%0+5%+10%Jan 28Feb 6report 4:19pm ETearnings−0.5%+8.6%
−5%0+5%+10%Jan 28Feb 6earnings−0.5%+8.6%
DXC +8.6%S&P 500 −0.5%
−5%0+5%+10%Jan 28Feb 6report 4:19pm ETearnings−3.2%+8.6%
−5%0+5%+10%Jan 28Feb 6earnings−3.2%+8.6%
DXC +8.6%NASDAQ −3.2%
+0.14%
Day of report
+5.89%
Next session
+5.34%
One week
−13.51%
30 days

S&P 500 over the same 30 days: −0.99%.

Did DXC Beat Earnings? Q3 2026 Results

Yes. DXC Technology reported Q3 2026 earnings of $0.96 a share on Jan 29, 2026, beating the $0.83 consensus estimate by 16.2%. Revenue was $3.2B against a $3.2B estimate.

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

“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.”

DXC Technology CEO, on the earnings call

What Was DXC Technology's Outlook in Q3 2026?

For Q4 FY2026, DXC guided total revenue of $3.16 billion to $3.19 billion (organic decline of 4.0% to 5.0%), adjusted EBIT margin of 6.5% to 7.5%, and non-GAAP diluted EPS of $0.65 to $0.75. For full-year FY2026, the company narrowed guidance to approximately $12.69 billion in revenue (organic decline of ~4.3%), adjusted EBIT margin of ~7.5%, non-GAAP diluted EPS of ~$3.15, and free cash flow of ~$650 million. Foreign exchange assumptions include EUR/USD at $1.16, GBP/USD at $1.34, and AUD/USD at $0.65.

DXC YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$900.0M$1.8B$2.7B$3.2B$3.2BRevenue$809.0M$759.0MGross Profit$154.0M$179.0MOperating Income$57.0M$110.0MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income
DXC income statement, Q3 2026 versus Q3 2025
Metric Q3 2026 Q3 2025 Year over year
Revenue $3.2B $3.2B −1.0%
Gross Profit $759.0M $809.0M −6.2%
Operating Income $179.0M $154.0M +16.2%
Net Income $110.0M $57.0M +93.0%

DXC Revenue by Segment

Global Infrastructure Services$1.6B−2.7%
Consulting and Engineering Services$1.3B−0.1%
Insurance Software & Services$321.0M+4.6%

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