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DXC Technology

DXC Technology (DXC) Q1 2027 Earnings

Reported Jul 30, 2026 at 4:18 PM ET · SEC Source

Q1 27 EPS

$0.40

MISS 11.35%

Est. $0.45

Q1 27 Revenue

$3.00B

BEAT +0.45%

Est. $2.99B

vs S&P Since Q1 27

-10.8%

TRAILING MARKET

DXC -7.3% vs S&P +3.5%

Market Reaction

Did DXC Beat Earnings? Q1 2027 Results

DXC Technology posted a mixed first quarter for fiscal 2027, delivering a narrow revenue beat while falling short on the earnings line that matters most to investors. The IT services firm reported non-GAAP diluted EPS of $0.40, missing the $0.45 cons… Read more DXC Technology posted a mixed first quarter for fiscal 2027, delivering a narrow revenue beat while falling short on the earnings line that matters most to investors. The IT services firm reported non-GAAP diluted EPS of $0.40, missing the $0.45 consensus estimate by 11.35%, snapping what had been four consecutive quarters of beating EPS expectations. Revenue of $3.00 billion edged past the $2.99 billion consensus by 0.45%, though the topline still fell 5.1% year-over-year as secular pressures continued to weigh on demand. The central story of the quarter was a steep compression in underlying profitability; adjusted EBIT collapsed 30.6% to $150.00 million, squeezing the adjusted EBIT margin to 5.0% from 6.8% a year ago, with Global Infrastructure Services bearing the brunt as segment profit tumbled 60.8%. A $214.00 million litigation award provided a flattering boost to GAAP results but masked the operational softness. Looking ahead, DXC maintained its full-year revenue outlook of $12.10 billion to $12.35 billion, with non-GAAP EPS guided to $2.40 to $2.90 and free cash flow raised to approximately $685.00 million.

Key Takeaways

  • • Total revenue declined 5.1% YoY (6.7% organic), driven primarily by GIS revenue decline of 9.4%
  • • GAAP EPS benefited from $214 million gain on TCS litigation judgment
  • • Non-GAAP diluted EPS declined 41.2% YoY to $0.40
  • • Adjusted EBIT margin compressed to 5.0% from 6.8% YoY
  • • Free cash flow of $314 million included $214 million cash proceeds from litigation judgment
  • • Total bookings increased 5% YoY with book-to-bill of 0.99x
  • • GIS bookings surged 34.7% with book-to-bill of 1.11x
  • • Insurance segment was the only growth segment with 1.9% revenue increase

DXC Forward Guidance & Outlook

DXC maintained full-year FY27 guidance: total revenue of $12.10 billion to $12.35 billion (organic decline of 5.0% to 3.0%), adjusted EBIT margin of 6.0% to 7.0%, non-GAAP diluted EPS of $2.40 to $2.90, and free cash flow of approximately $685 million (increased from ~$600 million reflecting litigation proceeds). For Q2 FY27, the company expects revenue of $2.97 billion to $3.00 billion (organic decline of 6.5% to 5.5%), adjusted EBIT margin of approximately 6.0%, and non-GAAP diluted EPS of approximately $0.55.

24/7 Wall St

DXC YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

24/7 Wall St

DXC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q1 27

“Our first quarter results were in line with our expectations, and we are maintaining our full-year guidance. Through our Fast Track approach to innovation, we are bringing a new generation of AI-enabled platforms to market that help customers modernize operations and deliver measurable business outcomes. The momentum we are building is strengthening our capabilities, deepening customer engagement, and creating a clearer path to long-term value creation. The recent addition of Paul Taylor as incoming President further strengthens our leadership team and positions us to execute our strategy with greater speed and focus.”

— Raul Fernandez, Q1 2027 Earnings Press Release

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