Core Insights - DXC Technology has been recognized as a Leader in the Everest Group's "Custom Application Development Services PEAK Matrix® Assessment 2025," highlighting its strengths in building scalable and secure custom applications tailored to business needs [1][2][4] Group 1: Company Strengths - DXC leverages GenAI platforms to enhance efficiency and productivity, providing software engineers with secure AI-powered assets and services that include coding assistants to accelerate software development and reduce operational costs [2][4] - The company manages over 20,000 applications globally and has transformed over 2 billion lines of code, helping enterprises modernize and accelerate critical applications, resulting in a 25% acceleration in application development and 40% faster application testing for customers [3][4] Group 2: Market Position - The PEAK Matrix® assessment evaluates 31 leading technology providers based on their vision, strategy, ecosystem investments, and ability to maintain growth momentum, with DXC positioned as a Leader due to its strong in-house capabilities and consistent delivery performance [4][5] - DXC serves 2,000 customers across more than 70 countries in various industries, including transportation, retail, telecommunications, and energy, emphasizing its role as a trusted partner in custom application services [3][5]

Core Insights - DXC Technology and Boomi have formed a strategic partnership aimed at redefining enterprise automation and integration through AI, focusing on application modernization and the adoption of agentic systems at scale [1][3][9] Group 1: Partnership Objectives - The partnership addresses the challenges enterprises face with disconnected systems and technical debt, aiming to accelerate transformations while ensuring security and compliance [3] - The collaboration emphasizes the importance of agentic transformation as a necessity for enterprises, providing a pathway to modernization and long-term AI readiness [3][4] Group 2: Key Focus Areas - Application Modernization: DXC will provide cloud-native integration solutions to help enterprises replace outdated middleware, facilitating faster transformation through co-created solutions with partners [4] - AI-Driven Migration and Data Readiness: The integration of Boomi's AI-powered automation with DXC's engineering capabilities will enhance operational efficiency and decision-making across critical systems [5] - Agentic Transformation: DXC will ensure that Boomi's Agentstudio operates securely and intelligently across essential systems, orchestrating AI agents at scale [6] Group 3: Center of Excellence - A dedicated Boomi Center of Excellence (COE) will be established within DXC to serve as an innovation hub, offering reusable assets and proven implementation patterns to ensure a high-quality modernization experience for customers [8]

Group 1 - DXC Technology is supporting the digital transformation of Northeast Grocery, leading to over $40 million in savings over five years [1][3] - The collaboration aims to create operational efficiencies by consolidating IT infrastructures and optimizing operations, including the integration of generative AI [3][4] - Northeast Grocery operates nearly 300 stores and employs over 30,000 associates, ranking No. 46 on Progressive Grocer's 2025 list of top food retailers in North America [8] Group 2 - The modernization efforts include updating the mainframe system to a zLinux environment, increasing compute capacity and enabling future growth [4][5] - DXC's comprehensive support encompasses software engineering, IT operations managed services, and workplace collaboration [4][5] - The partnership focuses on maximizing technology investments, enhancing customer experience, and preparing for next-generation technologies [5][6]

Financial Data and Key Metrics Changes - The company delivered FFO and DPS of 20.7¢ per security, slightly above guidance of 20.6¢, with like-for-like income growth of 2.9% and occupancy reaching 99.9% [4][7][8] - Gearing stands at 29.4%, positioned at the lower end of the target range, expected to increase with capital deployment into growth opportunities [5][9] - NTA per security grew by 8¢ or 2.2% to $3.64, supported by underlying rental growth and cap rate compression [8][10] Business Line Data and Key Metrics Changes - The portfolio consists of over 90 assets valued at over $700 million, with a significant focus on metro and highway locations [2][3] - The company executed $38.8 million in divestments in the first half, enhancing portfolio quality and providing balance sheet capacity for future growth [4][12] Market Data and Key Metrics Changes - Property valuations increased by 2.3%, driven by rental growth and cap rate compression of eight basis points [10] - The portfolio capitalization rate is 6.32%, supported by strength in the underlying transaction market [10] Company Strategy and Development Direction - The company is focused on developing the Glasshouse Mountains project, which will enhance overall portfolio quality and increase strategic weighting to highway assets [11][12] - Future growth initiatives include progressing the redevelopment of Glasshouse Mountain southbound and securing other growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in momentum leading up to the federal election, but a strong increase in volumes post-election [11] - For FY '26, the company expects to deliver FFO and distributions per security of 20.9¢, reflecting year-on-year growth of 1.2% [13] Other Important Information - The company maintains a carbon-neutral position across controlled assets and engages with tenants to support their ESG objectives [6] - Environmental initiatives are integral to development plans, including EV charging bays and renewable energy sources [7] Q&A Session Summary Question: Can you walk us through the bridge in FY '26 regarding key moving parts and drivers? - Management indicated that like-for-like NOI growth will be similar, offset by a moderate increase in the cost of debt and dilution from asset sales [16] Question: Are you assuming any more capital deployment during the period? - Guidance does not assume capital deployment beyond the Glasshouse Mountains northbound project [17] Question: What is the focus on the pipeline for restocking? - The focus is on convenience retail hubs and highway sites with truck stop facilities, with ongoing discussions with developers [18][19] Question: How much are you willing to spend on new projects? - The company has a buying capacity of approximately $50 to $60 million while remaining within the target gearing range [20] Question: What are the key metrics for the development project? - Expected development IRR is around 20%, with a long-term hold IRR of about 10% [22]

Financial Performance - FY25 FFO was 20.7 cents per security, slightly above the guidance of 20.6 cents per security[17] - Distributions were also 20.7 cents per security[17] - Net property income was $46.445 million in FY25 compared to $48.350 million in FY24[74] - Portfolio valuation increased by $16.6 million, representing a 2.3% increase[41] - NTA per security increased by 2.2% from $3.56 to $3.64[32] Portfolio and Operations - Portfolio occupancy remained high at 99.9%[12] - The portfolio Weighted Average Lease Expiry (WALE) is 7.9 years[12] - Like-for-like income growth was +2.9%[17] - Average rent review achieved +3.1%[17] - $38.8 million of strategic divestments were executed[15] Capital Management - Gearing was 29.4%, at the lower end of the target range of 25-40%[14] - Average debt hedged was 72%[14] - Total borrowings amounted to $215.5 million[35] Future Outlook - FY26 FFO and distributions are expected to be 20.9 cents per security, reflecting growth of 1.2%[54]

Core Viewpoint - DXC Technology has officially opened a new office in Buenos Aires, Argentina, as part of its strategy to expand its presence in Latin America and enhance collaboration and innovation [1][2]. Company Expansion - The new office in Buenos Aires will serve as a strategic hub for DXC's Go-to-Market teams and leaders across various services including Business Process Services, Cloud, ITO, Applications, and Modern Workplace [2][5]. - This expansion follows recent office openings in Farnborough, UK, and Toronto, indicating a broader commitment to growth and customer success [5]. Commitment to Innovation - DXC's investment in Argentina reflects a long-term commitment to supporting customers and talent in the region, aligning with the country's role as an innovation hub in Latin America [4][5]. - The Buenos Aires office is designed to deepen partnerships with regional customers and accelerate project delivery, showcasing the company's focus on delivering excellence [2][5]. Market Context - According to IDC, Argentina's IT services market is expected to experience renewed momentum, highlighting the potential for digital transformation in the region [4].

Core Insights - DXC Technology and 7AI have formed a strategic partnership to launch the DXC Agentic Security Operations Center (SOC), integrating fully autonomous AI agents into managed security operations, enhancing speed, accuracy, and coverage for customers globally [1][2][3] Company Overview - DXC Technology is a leading global provider of information technology services, focusing on simplifying, optimizing, and modernizing systems and processes for innovative organizations [6] - 7AI, founded in 2024 by cybersecurity veterans, specializes in agentic security, utilizing AI agents to autonomously manage essential security operations tasks [7] Partnership Details - The partnership aims to revolutionize managed security services by automating core SOC tasks, moving away from traditional manual approaches [2][3] - The DXC Agentic SOC is expected to save customers between 30 minutes to 2.5 hours per investigation and reduce false positive rates, enhancing overall security outcomes [2][3] Performance Metrics - The 7AI platform has saved security teams over 224,000 analyst hours, equivalent to 112 full-time analyst years and more than $11.2 million in productivity [3][4] - The platform is projected to save customers over $100 million in 2025, showcasing significant financial benefits [3] Technological Innovation - 7AI's Dynamic Reasoning technology allows AI agents to autonomously determine investigative approaches for new threats in real time, without needing pre-written playbooks [3][4] - DXC's extensive cybersecurity operations process 4.5 million daily security threats, providing a rich data environment for advancing AI capabilities [4] Customer Engagement - Live demonstrations of the DXC Agentic SOC will be available at the Black Hat 2025 event, reinforcing DXC's position as a cybersecurity innovator [5][6]

Core Insights - DXC Technology reported Q1 FY2026 GAAP revenue of $3.16 billion and non-GAAP EPS of $0.68, both exceeding analyst expectations [1][5] - Year-over-year, GAAP revenue declined by 2.4%, and non-GAAP EPS fell by 9.3% [5][10] - The company experienced strong bookings growth, reaching $2.8 billion, up 14% year-over-year, marking the third consecutive quarter of double-digit growth [6][10] Financial Performance - GAAP revenue for Q1 FY2026 was $3.16 billion, surpassing estimates by $80.9 million, while non-GAAP EPS was $0.68, exceeding estimates by $0.01 [1][5] - Free cash flow (non-GAAP) increased significantly to $97 million, up from $45 million in Q1 FY2025, reflecting a 115.6% increase [2][7] - Net income on a GAAP basis was $16 million, down from $26 million in Q1 FY2025, with GAAP diluted EPS decreasing from $0.14 to $0.09 [5][9] Business Segments - Consulting and Engineering Services saw a 32% increase in bookings but a 2.7% decline in revenue, with profit margin dropping from 9.6% to 8.4% [6][9] - Global Infrastructure Services bookings grew by 4%, while revenue fell by 3.5% year-over-year [6] - Insurance Services revenue increased by 5.4% year-over-year, but segment profit fell by 25%, reducing the margin to 10.5% [6][9] Strategic Focus - The company is focusing on integrating AI and advanced data analytics into its services, enhancing cybersecurity capabilities, and expanding its talent pool [4][8] - Management emphasized the importance of building a stronger client pipeline and streamlining sales processes [4][10] - A major contract was secured with Carnival Cruise Line for technology management across its fleet, showcasing the company's capabilities in infrastructure [8] Future Outlook - Management raised full-year guidance for non-GAAP diluted EPS to a range of $2.85–$3.35 for FY2026, while expecting organic revenue to decline by 3.0% to 5.0% [10][11] - For Q2 FY2026, non-GAAP EPS is projected between $0.65 and $0.75, with revenue expected to be approximately $3.15–$3.18 billion [10] - The company aims for approximately $600 million in free cash flow (non-GAAP) for FY2026 and plans to continue share repurchases [11]

Core Insights - DXC Technology, Inc. reported better-than-expected financial results for Q1 of fiscal 2026, with shares rising 4% in extended trading after reporting non-GAAP earnings of 68 cents per share, exceeding the Zacks Consensus Estimate by 6.3% despite a 10.5% year-over-year decline in earnings [1][9] - The company has a strong track record of beating earnings estimates, surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 22.3% [2] Financial Performance - DXC reported revenues of $3.16 billion for Q1, beating the Zacks Consensus Estimate by 2.9%, but showing a 2.5% decline year over year; on an organic basis, revenues decreased by 4.3% [2] - The new reporting segment structure includes Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services, effective April 1, 2025, to better align financial disclosures with operational organization [3] - CES revenues declined 2.7% year over year to $1.25 billion, while GIS revenues were $1.6 billion, down 3.5% year over year; Insurance Services saw a 5.4% increase to $313 million [4] Margins and Cash Flow - The non-GAAP gross margin increased by 140 basis points, while non-GAAP operating income was $216 million, down 3.6% year over year; the non-GAAP operating margin contracted by 10 basis points to 6.8% [5] - DXC ended Q1 with $1.79 billion in cash and cash equivalents, with long-term debt increasing to $3.1 billion; operating cash flow was $186 million, and free cash flow was $97 million [6] Guidance and Outlook - DXC updated its fiscal 2026 revenue guidance to between $12.61 billion and $12.87 billion, up from the previous range of $12.18 billion to $12.44 billion; the Zacks Consensus Estimate for revenue is $12.29 billion, indicating a 4.5% decline [7] - The company projects an adjusted EBIT margin of 7%-8% and adjusted EPS in the range of $2.85-$3.35, compared to the previous guidance of $2.75-$3.25; the consensus for fiscal 2025 EPS is $3.05, suggesting an 11.1% increase [8] Q2 Expectations - For Q2, DXC anticipates revenues between $3.15 billion and $3.18 billion, with an adjusted EBIT margin of approximately 6.5% to 7.5%; adjusted EPS is projected to be between 65 cents and 75 cents [10]

Core Insights - DXC Technology has been selected by Banco Sabadell to enhance the accessibility of its digital services through a new testing framework that incorporates manual testing, automation, and AI-driven analysis [1][2][3] Group 1: Partnership Details - The initiative aims to create a more inclusive experience for Banco Sabadell's 12 million customers in Spain by addressing accessibility barriers, which is expected to reduce user drop-off and improve customer satisfaction [2][3] - DXC will provide 350,000 hours of advanced testing annually to support this initiative [2] Group 2: Methodology and Compliance - DXC and Banco Sabadell have developed a methodology that integrates accessibility testing throughout the product development lifecycle, including a real-time monitoring system for evaluating issues based on business impact [3] - The approach ensures compliance with accessibility standards set by Spanish and EU regulations, helping Banco Sabadell meet regulatory obligations and broader inclusion goals [3] Group 3: Industry Expertise - DXC Technology has over 45 years of experience in banking and capital markets, providing the necessary technology and expertise for financial institutions to remain competitive [4] - The collaboration is seen as a significant step towards a more equitable digital future for all citizens [4]