Q3 2025 DXC Technology Co Earnings Call Transcript
Key Points
- DXC Technology Co (DXC) reported revenue, adjusted EBIT margin, and non-GAAP EPS all ahead of guidance.
- The company delivered strong free cash flow of $483 million for the quarter, exceeding full-year fiscal 2025 guidance.
- DXC's revamped go-to-market approach resulted in a significant uptick in bookings, with a book-to-bill ratio of 1.3x, the highest in eight quarters.
- The company is investing in AI-driven transformation programs and has formed strategic partnerships, such as with SAP and ServiceNow, to enhance its service offerings.
- DXC's insurance and horizontal BPS segment showed strong performance with organic revenue growth of 5.6% year-over-year.
- Total revenue declined 4.2% year-over-year on an organic basis.
- The global infrastructure services segment saw a 7.8% year-over-year organic revenue decline.
- The company faces ongoing global uncertainties, including trade policy, geopolitical conflicts, inflation, and labor costs, which pressure corporate spending.
- Adjusted EBIT margin is expected to decline in the fourth quarter due to revenue decline and merit increases.
- There is a need for continued restructuring, with charges expected to be a maximum of $100 million above last year.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXC Technology 3rd quarter fiscal year '25 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question again press one.
Thank you, and I would now like to turn the conference over to Roger Sacks, head of investor relations. Roger, you may begin.
Thank you, operator. Good afternoon everybody and welcome to DXC Technologies 3rd quarter earnings call. We hope you had a chance to review our earnings release to the IR section of DXC's website.
Speakers on today's call are Raul Fernandez, our President and CEO, and Rob Del Beni, our Chief
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