Q4 2026 DXC Technology Co Earnings Call Transcript
Key Points
- DXC Technology Co (DXC) delivered a strong quarter on profitability with adjusted EBIT margin and free cash flow ahead of guidance.
- The company is transforming into an AI-led organization, with every employee having access to enterprise-grade AI tools.
- DXC's AI initiatives, such as the FastTrack offerings, are designed to build AI-native products and services at a faster pace.
- The company has a high percentage of outcome-based revenue, allowing for AI-driven productivity to expand margins.
- DXC has made significant progress in reducing debt, with a net debt reduction of $1.1 billion over two years.
- DXC Technology Co (DXC) missed its revenue guidance by approximately $75 million, or two points.
- The company experienced a 6.6% year-to-year decline in total revenue, impacted by weakening discretionary spending on short-term services projects.
- Bookings were down approximately 14% year-to-year, driven by a tough comparison to last year's fourth quarter and a decline in short-term project-based services.
- The adjusted EBIT margin declined 20 basis points year-to-year, largely due to investments to support future revenue growth.
- DXC's guidance for fiscal 2027 indicates a continued decline in organic revenue, with expectations of a 3% to 5% year-over-year decline.
Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Calvin, and I will be your conference operator today. At this time, I would like to welcome everyone to DXC Technologies fourth quarter and 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 during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star once again.
Thank you. I would now like to turn the call over to Roger Sachs, Head of Investor Relations.
Please go ahead.
Thank you, operator. Good afternoon, everybody, and welcome to DXC Technologies' fourth quarter and fiscal year-end 2026 Earnings Conference Call.
We hope you have had a chance to review our earnings release, which is available in the IR section of DXC's website
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