Financial Performance - Revenues for the three months ended December 31, 2024, were $3,225 million, a decrease of 5.1% compared to $3,399 million for the same period in 2023[10]. - Net income for the nine months ended December 31, 2024, was $133 million, down 52.7% from $281 million in the same period of 2023[10]. - Basic income per common share for the three months ended December 31, 2024, was $0.31, down from $0.82 in the same period of 2023[10]. - The company reported a comprehensive income attributable to DXC common stockholders of $2 million for the three months ended December 31, 2024, compared to $188 million for the same period in 2023[11]. - The company reported a net income of $125 million for the nine months ended December 31, 2024, compared to $291 million for the same period in the previous year[19]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $57 million, a decrease of 63.5% compared to $156 million for the same period in 2023[28]. - Basic earnings per share (EPS) for the three months ended December 31, 2024, was $0.31, down 62.8% from $0.82 in the prior year[28]. - Total revenues for the nine months ended December 31, 2024, were $9,702 million, down from $10,281 million for the same period in 2023[86]. - Total revenue for the third quarter of fiscal 2025 was $3.2 billion, a decrease of 5.1% compared to the same period a year ago[112]. - Diluted earnings per share for the third quarter of fiscal 2025 were $0.31, down from $0.81 in the third quarter of fiscal 2024[112]. - Total revenue growth for the three months ended December 31, 2024, was reported at (5.1)%, while organic revenue growth was (4.2)%[158]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $1,083 million for the nine months ended December 31, 2024, compared to $1,081 million for the same period in 2023[16]. - Cash and cash equivalents increased to $1,723 million as of December 31, 2024, compared to $1,224 million as of March 31, 2024[15]. - The company reported a net increase in cash and cash equivalents of $499 million for the nine months ended December 31, 2024[162]. - Operating cash flow for fiscal 2025 was $1,083 million, resulting in free cash flow of $576 million, compared to $601 million in the same period a year ago[112]. - As of December 31, 2024, total liquidity was $4.9 billion, including $1.7 billion in cash and cash equivalents and $3.2 billion in available borrowings[170]. - The company expects existing cash and cash equivalents, along with cash generated from operations, to be sufficient for normal operating requirements for the next 12 months[168]. Assets and Liabilities - Total current assets decreased to $5,075 million as of December 31, 2024, from $5,135 million as of March 31, 2024[15]. - Total liabilities decreased to $9,781 million as of December 31, 2024, from $10,805 million as of March 31, 2024[15]. - The company’s total equity increased to $3,252 million as of December 31, 2024, from $3,066 million as of March 31, 2024[15]. - The balance of accumulated deficit decreased to $(3,715) million as of December 31, 2024, from $(3,771) million at September 30, 2024[18]. - The estimated fair value of the Company's long-term debt was $3.3 billion as of December 31, 2024, compared to a carrying value of $3.5 billion[58]. - Total debt decreased by $259 million during the first nine months of fiscal 2025, from $4,089 million to $3,830 million[165]. Restructuring and Costs - The company incurred restructuring costs of $124 million for the nine months ended December 31, 2024, compared to $91 million for the same period in 2023[10]. - Restructuring liabilities totaled $45 million as of December 31, 2024, down from $51 million as of March 31, 2024[63]. - Restructuring costs for Q3 FY2025 were $43 million, an increase of $7 million year-over-year, and for the first nine months, they were $124 million, up $33 million[131]. Tax and Compliance - The effective tax rate for the three months ended December 31, 2024, was 51.9%, significantly higher than 34.0% for the same period in 2023[67]. - The effective tax rate for Q3 FY2025 was 51.9%, compared to 34.0% for the same period last year, and for the first nine months, it was 54.5% versus 32.8%[139]. - Approximately $463 million of foreign earnings are considered indefinitely reinvested, which could be subject to U.S. federal tax upon repatriation[68]. - The company recorded a $15 million tax indemnification receivable related to uncertain tax positions and a $99 million tax indemnification payable related to other tax receivables[69]. Share Repurchase and Equity - The company repurchased 11,341 thousand shares during the three months ended December 31, 2023, resulting in a reduction of equity by $255 million[18]. - A total of 32,274,927 shares were repurchased during fiscal 2024 at an average price of $23.11 per share, totaling $746 million[77]. - Approximately $592 million worth of shares remained available for repurchase under the share repurchase plan as of December 31, 2024[184]. - The company suspended payment of quarterly dividends for fiscal 2025 to maintain financial flexibility[171]. Segment Performance - Revenues for the Global Business Services (GBS) segment for the three months ended December 31, 2024, were $1,666 million, a decrease from $1,696 million in the same period of 2023[86]. - Segment profit for GBS for the three months ended December 31, 2024, was $224 million, compared to $202 million for the same period in 2023[86]. - The Global Infrastructure Services (GIS) segment saw revenues of $1,559 million, down 8.5% year-over-year[114]. - For Q3 FY2025, Global Business Services (GBS) revenue was $1.67 billion, a decrease of $30 million or 1.8% year-over-year, with a 0.5% decline in organic revenue[118]. - For the first nine months of FY2025, GIS revenue was $4.7 billion, down $487 million or 9.4% year-over-year, including an 8.9% decline in organic revenue[121]. Other Financial Metrics - The company reported adjusted EBIT of $286 million for the three months ended December 31, 2024, an increase of 11.7% from $256 million in the same period of 2023[152]. - The company has initiated a global cost savings initiative for fiscal 2025 to align workforce and facility requirements[64]. - The cash conversion cycle improved to 18 days for the three months ended December 31, 2024, compared to 2 days in the previous year[163]. - The company is in compliance with all financial covenants associated with its borrowings as of December 31, 2024[166]. - Credit ratings from Fitch and Moody's are BBB and Baa2, respectively, both with a negative outlook[167].

Core Insights - DXC Technology Company reported $3.23 billion in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 5.1% [1] - The company's EPS for the same period was $0.92, an increase from $0.87 a year ago, resulting in an EPS surprise of +19.48% compared to the consensus estimate of $0.77 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.25 billion, resulting in a surprise of -0.69% [1] Financial Performance Metrics - Global Business Service (GBS) revenue decreased by 1.9% year-over-year, compared to an estimated decline of 0.8% by analysts [4] - Total revenues experienced a year-over-year decline of 5.7%, against the three-analyst average estimate of -4.8% [4] - Global Infrastructure Services (GIS) revenue declined by 9.4% year-over-year, compared to an estimated decline of 8.7% [4] - GIS revenues were reported at $1.56 billion, slightly above the average estimate of $1.55 billion, representing a year-over-year change of -8.4% [4] - GBS revenues were reported at $1.67 billion, slightly below the average estimate of $1.68 billion, indicating a year-over-year change of -1.5% [4] Stock Performance - Shares of DXC Technology have returned +9% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

1 Q3 Performance Highlights and Business Update 3rd Quarter Fiscal Year 2025 Earnings Presentation February 4, 2025 Agenda for Today 2 Detailed Review of Q3 Results and Guidance Update Q&A 3 2 Forward-Looking Statements All statements and assumptions contained in this earnings presentation that do not directly and exclusively relate to historical facts constitute "forward-looking statements." Forward-looking statements often include words such as "anticipates," "believes," "estimates," "expects," "forecast, ...

Core Viewpoint - DXC Technology Company reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.87 per share a year ago, representing an earnings surprise of 19.48% [1][2] Financial Performance - The company posted revenues of $3.23 billion for the quarter ended December 2024, which was a miss against the Zacks Consensus Estimate by 0.69%, and a decrease from $3.4 billion year-over-year [2] - Over the last four quarters, DXC Technology has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - DXC Technology shares have increased approximately 10.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.74 on revenues of $3.23 billion, and for the current fiscal year, it is $3.17 on revenues of $12.95 billion [7] Industry Context - The Computers - IT Services industry, to which DXC Technology belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Total revenue for Q3 FY2025 was $3.23 billion, down 5.1% year-over-year and down 4.2% on an organic basis[6]. - Revenues for the three months ended December 31, 2024, were $3,225 million, a decrease of 5.1% compared to $3,399 million for the same period in 2023[27]. - Global Business Services revenue was $1.67 billion, down 1.8% year-over-year, while Global Infrastructure Services revenue was $1.56 billion, down 8.5% year-over-year[9]. - Total revenue growth for the nine months ended December 31, 2024, was down 5.6%, compared to a decline of 5.1% in the previous year[38]. - Consulting & Engineering Services revenue for Q3 FY25 was $1,270 million, a slight decrease from $1,281 million in Q2 FY25[41]. - Cloud, ITO & Security revenue remained stable at $1,184 million in Q3 FY25, compared to $1,188 million in Q2 FY25[41]. - Insurance Software & BPS revenue was consistent at $396 million for both Q3 FY25 and Q2 FY25[41]. Profitability Metrics - EBIT margin was 4.5%, with adjusted EBIT margin at 8.9%, reflecting a year-over-year increase of 11.7%[7]. - Diluted earnings per share decreased to $0.31, down 61.7% year-over-year, while non-GAAP diluted EPS increased by 7.0% to $0.92[7]. - Segment profit for Global Business Services (GBS) for the three months ended December 31, 2024, was $224 million, representing a profit margin of 13.4%[31]. - Segment profit for Global Infrastructure Services (GIS) for the three months ended December 31, 2024, was $101 million, with a profit margin of 6.5%[31]. - Adjusted EBIT for the nine months ended December 31, 2024, increased to $789 million, up 8.8% from $725 million in the same period of 2023[39]. - Basic EPS for the quarter was reported at $0.94, while diluted EPS was $0.92, showing a positive trend in earnings per share[33]. Cash Flow and Financial Position - Cash generated from operations was $650 million, down 7.9% year-over-year, with free cash flow at $483 million compared to $585 million in Q3 FY2024[7]. - Free cash flow for the nine months ended December 31, 2024, was $1,083 million, slightly up from $1,081 million for the same period in 2023[29]. - Cash and cash equivalents at the end of the period on December 31, 2024, were $1,723 million, an increase from $1,224 million at the beginning of the year[29]. - Total assets as of December 31, 2024, were $13,033 million, a decrease from $13,871 million as of March 31, 2024[28]. - Total liabilities as of December 31, 2024, were $9,781 million, down from $10,805 million as of March 31, 2024[28]. Guidance and Future Outlook - Full-year adjusted EBIT margin guidance increased to approximately 7.9%, up from previous guidance of 7.0% to 7.5%[9]. - Full-year non-GAAP diluted EPS guidance raised to approximately $3.35, compared to prior guidance of $3.00 to $3.25[9]. - Free cash flow guidance for the full year increased to approximately $625 million, up from prior guidance of $550 million[9]. - The company is focused on strategic changes to improve bookings performance and drive sustainable revenue growth[4]. - Future outlook includes continued focus on mergers, acquisitions, and strategic investments to drive growth[34]. Restructuring and Costs - The company reported restructuring costs of $43 million for the three months ended December 31, 2024, compared to $36 million in the same period of 2023[27]. - The company incurred $43 million in restructuring costs, primarily related to workforce and real estate optimization[34]. - Transaction, separation, and integration-related costs amounted to $87 million, reflecting ongoing strategic initiatives[34]. - Amortization of acquired intangible assets was $12 million, indicating continued investment in acquired technologies[34]. - The company reported impairment losses of $12 million for the nine months ended December 31, 2024, compared to $5 million in the same period of 2023[39]. Tax and Income - The effective tax rate for the period was 35.1%, down from 51.9% in the prior year, indicating improved tax efficiency[33]. - The effective tax rate for the three months ended December 31, 2023, was 54.5%, compared to 33.9% in the previous year[36]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $57 million, down 63.5% from $156 million in the same period of 2023[27]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $170 million, reflecting a significant increase compared to previous periods[33]. - Net income for Q3 FY25 was $63 million, a decrease of 55% compared to $140 million in Q3 FY24[39].

DXC Technology (DXC) is scheduled to report third-quarter fiscal 2025 results on Feb. 4, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fiscal third quarter, DXC Technology anticipates revenues between $3.2 billion and $3.3 billion. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $3.25 billion, indicating a year-over-year decline of 4.3%.DXC projects adjusted earnings per share between 75 cents and 80 cents for the fiscal third q ...

DXC Technology Company. (DXC) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

DXC Technology Company. (DXC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The ...

DXC software powers the infotainment system of the F80 – Ferrari's new supercarASHBURN, Va., Jan. 9, 2025 /PRNewswire/ - DXC (NYSE: DXC) has announced an agreement with Ferrari to extend their partnership to develop the next generations of Ferrari's in-vehicle infotainment systems enabling drivers to be closer to the high-performance functionality of Ferrari vehicles.With its extensive experience in the automotive industry, DXC will help ensure that Ferrari infotainment systems are engineered to provide a s ...

DXC Technology Company (DXC) shares have gained 10.3% over the past six months and outperformed the broader Zacks Computer and Technology sector’s return of 4.9%, reflecting investor confidence. The company has made significant strides in its operational performance, innovation capabilities and financial stability, making it an attractive investment opportunity. Here are three compelling reasons to consider adding DXC stock to investors’ portfolios right now.DXC’s Transformation EffortsDXC’s sustained effor ...