Q2 2026 DXC Technology Co Earnings Call Transcript
Key Points
- DXC Technology Co (DXC) exceeded guidance in adjusted EBIT margin and non-GAAP diluted EPS, and generated strong second quarter free cash flow.
- The company has a structured plan to scale its SAP business, aiming to double SAP revenue over the next three years.
- DXC Technology Co (DXC) is developing new AI-native solutions, with a goal for these to constitute 10% of the business within 36 months.
- The company has a strong balance sheet and consistent free cash flow, providing flexibility for investments in AI strategy.
- DXC Technology Co (DXC) has been recognized as a leader in several industry studies, validating its strategic focus and capabilities.
- DXC Technology Co (DXC) reported a decline in total revenue by 4.2% year-over-year on an organic basis.
- The book-to-bill ratio for the quarter was 0.85, indicating lower bookings than anticipated.
- Adjusted EBIT margin declined by 60 basis points year-over-year, reflecting top-line pressure and higher investment levels.
- The company is facing ongoing pressure in discretionary custom application projects, impacting revenue in the CES segment.
- DXC Technology Co (DXC) has experienced longer closing cycles on several large deals, affecting the GIS segment's performance.
Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome you to the DXC Technology Services second quarter fiscal year 2026 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 at that time, simply press star followed by the number one on your telephone keypad and if you would like to withdraw that question again press one. 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 second quarter fiscal 2026 earnings conference call. We hope you've had a chance to review our earnings release posted to the IR section of DXC's website.
Speaking on today's call are Raul Fernandez, our President and CEO, and Rob Del
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