DXC Technology

DXC Technology (DXC) Q4 2026 Earnings

Reported May 7, 2026 at 4:20 PM ET · SEC Source

Q4 26 EPS

$0.77

BEAT +9.50%

Est. $0.70

Q4 26 Revenue

$3.13B

MISS 0.48%

Est. $3.15B

vs S&P Since Q4 26

-5.3%

TRAILING MARKET

DXC -2.9% vs S&P +2.3%

Full Year 2026 Results

FY 26 EPS

$3.23

FY 26 Revenue

$12.64B

Market Reaction

Did DXC Beat Earnings? Q4 2026 Results

DXC Technology delivered a mixed fourth-quarter fiscal 2026 report, posting adjusted earnings that topped expectations while revenue continued its downward trend and forward guidance rattled investors. The IT services company reported non-GAAP dilute… Read more DXC Technology delivered a mixed fourth-quarter fiscal 2026 report, posting adjusted earnings that topped expectations while revenue continued its downward trend and forward guidance rattled investors. The IT services company reported non-GAAP diluted EPS of $0.77, clearing the $0.70 consensus estimate by 9.50%, as disciplined cost controls and a resilient adjusted EBIT margin of 7.6% helped offset persistent top-line pressure. Revenue of $3.13 billion fell 1.2% year-over-year, edging just below the $3.15 billion consensus, with organic decline accelerating to 6.6% from 4.3% in the prior quarter, a trend that weighed heavily on sentiment. The Global Infrastructure Services segment remained the clearest drag, posting organic revenue contraction of 10.6%, while Insurance Software and Services provided a bright spot with 7.3% reported growth. Looking ahead, DXC guided fiscal 2027 revenue of $12.11 billion to $12.35 billion and non-GAAP EPS of $2.40 to $2.90, implying further year-over-year declines, and a particularly soft first quarter, leaving the stock under scrutiny despite the earnings beat.

Key Takeaways

  • Insurance Software & Services revenue grew 7.3% YoY with bookings up 20.3%
  • Adjusted EBIT margin of 7.6% exceeded expectations
  • Strong free cash flow generation of $110 million in Q4 and $713 million for full year
  • CES returned to positive reported revenue growth of 1.7% YoY
  • Share repurchases of $250 million during FY26

DXC Forward Guidance & Outlook

For Q1 FY27, DXC guided total revenue of $2.97 billion to $3.00 billion (organic decline of 6.5% to 7.5%), adjusted EBIT margin of ~5.0%, and non-GAAP diluted EPS of ~$0.40. For full fiscal year 2027, the company expects total revenue of $12.11 billion to $12.35 billion (organic decline of 3.0% to 5.0%), adjusted EBIT margin of 6.0% to 7.0%, non-GAAP diluted EPS of $2.40 to $2.90, and free cash flow of ~$600 million. Foreign exchange assumptions include EUR/USD at $1.17, GBP/USD at $1.35, and AUD/USD at $0.70.

24/7 Wall St

DXC YoY Financials

Q4 2026 vs Q4 2025, source: SEC Filings

24/7 Wall St

DXC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“We delivered another quarter of strong free cash flow with adjusted EBIT margin ahead of our expectations, while our top line performance fell short. Over the past year, we leaned into innovation to reposition DXC for the next phase of enterprise IT and AI driven transformation, including the recent launch of our AI based orchestration platform, OASIS and continued progress across our Core Track and Fast Track initiatives. With our deep client relationships and a clear strategy in place, we remain confident in our direction and are focused on improved revenue performance and long-term value creation.”

— Raul Fernandez, Q4 2026 Earnings Press Release