# DXC Technology Co (DXC)

Informational only - not investment advice.

CIK: 0001688568
SIC: 7374 Services-Computer Processing & Data Preparation
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7374 Services-Computer Processing & Data Preparation](/industry/7374/)
Latest 10-K filed: 2026-05-08
SEC page: https://www.sec.gov/edgar/browse/?CIK=1688568
Filing source: https://www.sec.gov/Archives/edgar/data/1688568/000168856826000022/dxc-20260331.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-08 · accession 0001688568-26-000022 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001688568.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 12,644,000,000 USD | 2026 | verified |
| Net income | 18,000,000 USD | 2026 | verified |
| Assets | 12,890,000,000 USD | 2026 | verified |
| Free cash flow | 1,036,000,000 USD | 2026 | computed |
| Net margin | 0.14% | 2026 | computed |
| Operating margin | 7.67% | 2026 | computed |
| Revenue YoY | -1.76% | 2026 | computed |
| ROE | 0.61% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DXC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 0.1% | 5.8% | 18 | 29 |
| Operating margin | 7.7% | 7.7% | 48 | 28 |
| Revenue growth | -1.8% | 10.0% | 3 | 30 |
| FCF margin | 8.2% | 17.5% | 21 | 29 |
| ROE | 0.6% | 14.1% | 15 | 27 |
| ROA | 0.1% | 5.0% | 21 | 30 |
| Liabilities / equity | 3.29 | 1.28 | 85 | 27 |
| Current ratio | 1.36 | 1.64 | 45 | 30 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7374 Services-Computer Processing & Data Preparation, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 12644000000 | USD | 2026 | 2026-05-08 |
| Net income | 18000000 | USD | 2026 | 2026-05-08 |
| Assets | 12890000000 | USD | 2026 | 2026-05-08 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001688568.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 7,607,000,000 | 21,733,000,000 | 20,753,000,000 | 19,577,000,000 | 17,729,000,000 | 16,265,000,000 | 14,430,000,000 | 13,667,000,000 | 12,871,000,000 | 12,644,000,000 |
| Net income | -123,000,000 | 1,751,000,000 | 1,257,000,000 | -5,369,000,000 | -149,000,000 | 718,000,000 | -568,000,000 | 91,000,000 | 389,000,000 | 18,000,000 |
| Operating income | 618,000,000 | 2,989,000,000 | 3,269,000,000 | 2,061,000,000 | 1,102,000,000 | 1,375,000,000 | 1,136,000,000 | 1,009,000,000 | 1,019,000,000 | 970,000,000 |
| Diluted EPS | -0.88 | 6.04 | 4.47 | -20.76 | -0.59 | 2.81 | -2.48 | 0.46 | 2.10 | 0.10 |
| Operating cash flow | 619,000,000 | 2,567,000,000 | 1,783,000,000 | 2,350,000,000 | 124,000,000 | 1,501,000,000 | 1,415,000,000 | 1,361,000,000 | 1,398,000,000 | 1,248,000,000 |
| Capital expenditures | 246,000,000 | 224,000,000 | 297,000,000 | 350,000,000 | 261,000,000 | 254,000,000 | 267,000,000 | 182,000,000 | 248,000,000 | 212,000,000 |
| Share buybacks |  |  |  |  |  | 628,000,000 | 669,000,000 | 898,000,000 | 14,000,000 | 249,000,000 |
| Assets | 8,663,000,000 | 33,921,000,000 | 29,574,000,000 | 26,006,000,000 | 22,038,000,000 | 20,139,000,000 | 15,845,000,000 | 13,871,000,000 | 13,205,000,000 | 12,890,000,000 |
| Liabilities | 6,497,000,000 | 20,084,000,000 | 17,849,000,000 | 20,877,000,000 | 16,730,000,000 | 14,764,000,000 | 12,025,000,000 | 10,805,000,000 | 9,715,000,000 | 9,681,000,000 |
| Stockholders' equity | 1,888,000,000 | 13,487,000,000 | 11,402,000,000 | 4,785,000,000 | 4,973,000,000 | 5,052,000,000 | 3,497,000,000 | 2,811,000,000 | 3,229,000,000 | 2,941,000,000 |
| Cash and cash equivalents | 1,263,000,000 | 2,593,000,000 | 2,899,000,000 | 3,679,000,000 | 2,968,000,000 | 2,672,000,000 | 1,858,000,000 | 1,224,000,000 | 1,796,000,000 | 1,737,000,000 |
| Free cash flow | 373,000,000 | 2,343,000,000 | 1,486,000,000 | 2,000,000,000 | -137,000,000 | 1,247,000,000 | 1,148,000,000 | 1,179,000,000 | 1,150,000,000 | 1,036,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -1.62% | 8.06% | 6.06% | -27.43% | -0.84% | 4.41% | -3.94% | 0.67% | 3.02% | 0.14% |
| Operating margin | 8.12% | 13.75% | 15.75% | 10.53% | 6.22% | 8.45% | 7.87% | 7.38% | 7.92% | 7.67% |
| Return on equity | -6.51% | 12.98% | 11.02% | -112.20% | -3.00% | 14.21% | -16.24% | 3.24% | 12.05% | 0.61% |
| Return on assets | -1.42% | 5.16% | 4.25% | -20.65% | -0.68% | 3.57% | -3.58% | 0.66% | 2.95% | 0.14% |
| Liabilities / equity | 3.44 | 1.49 | 1.57 | 4.36 | 3.36 | 2.92 | 3.44 | 3.84 | 3.01 | 3.29 |
| Current ratio | 1.10 | 0.98 | 0.96 | 1.14 | 1.01 | 1.09 | 1.18 | 1.17 | 1.22 | 1.36 |

## As-reported value updates

6 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/DXC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001688568.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q2 | 2022-09-30 |  |  | 0.12 | reported discrete quarter |
| 2023-Q3 | 2022-12-31 |  |  | 0.25 | reported discrete quarter |
| 2024-Q1 | 2023-06-30 |  |  | 0.17 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 | 3,436,000,000 | 99,000,000 | 0.49 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 | 3,399,000,000 | 156,000,000 | 0.81 | reported discrete quarter |
| 2024-Q4 | 2024-03-31 | 3,386,000,000 | -200,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-06-30 | 3,236,000,000 | 26,000,000 | 0.14 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 | 3,241,000,000 | 42,000,000 | 0.23 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 | 3,225,000,000 | 57,000,000 | 0.31 | reported discrete quarter |
| 2025-Q4 | 2025-03-31 | 3,169,000,000 | 264,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-06-30 | 3,159,000,000 | 16,000,000 | 0.09 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 | 3,161,000,000 | 36,000,000 | 0.20 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 | 3,194,000,000 | 107,000,000 | 0.61 | reported discrete quarter |
| 2026-Q4 | 2026-03-31 | 3,130,000,000 | -141,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2027-Q1 | 2026-06-30 | 2,999,000,000 | 122,000,000 | 0.73 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DXC's latest 10-K: [/company/DXC/business/](/company/DXC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DXC's latest 10-K: [/company/DXC/risk-factors/](/company/DXC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1688568/000168856826000069/dxc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction

The purpose of the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to present information that management believes is relevant to an assessment and understanding of our results of operations and cash flows for the first quarter of fiscal 2027 and our financial condition as of June 30, 2026. The MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and accompanying notes.

The MD&A is organized in the following sections:

•Background

•Results of Operations

•Liquidity and Capital Resources

•Critical Accounting Estimates

The following discussion includes a comparison of our results of operations and liquidity and capital resources for the first quarters of fiscal 2027 and fiscal 2026. References are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

Background

DXC is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world’s most complex technology estates.

We generate revenue by offering a broad range of information technology services and solutions to customers primarily in North America, Europe, Asia, and Australia. Our financial results are reported through three reportable segments that reflect the Company’s operational structure and how we deliver end-to-end IT solutions: Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Software & Services ("Insurance").

Key Metrics

Key revenue, profitability and cash flow metrics for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026 are included below. Organic revenue, adjusted earnings before income taxes, and adjusted diluted earnings per share are non-GAAP financial measures. For more information see “Non-GAAP Financial Measures.”

•Revenues of $2,999 million, down 5.1% year-over-year (down 6.7% on an organic basis);

•EBIT was $207 million, with a corresponding margin of 6.9%. Adjusted EBIT was $150 million, down 30.6% year-over-year with a corresponding margin of 5.0%;

•Diluted earnings per share of $0.73, compared to $0.09 in the same period a year ago; adjusted diluted earnings per share of $0.40, compared to $0.68 in the same period a year ago;

•Cash generated from operations was $418 million, less capital expenditures of $104 million, resulted in free cash flow of $314 million, compared to free cash flow of $97 million in the prior-year period. Free cash flow in fiscal 2027 includes cash proceeds of $214 million related to the litigation judgment obtained against TCS, as discussed further in Note 18 - “Commitments and Contingencies”;

•Book-to-bill ratio (contract awards divided by quarterly revenue) of 0.99x, compared to 0.90x during fiscal 2026.

30

Segment Highlights

Consulting & Engineering Services

•Revenue was $1,231 million, down 1.2% year-over-year (down 3.0% on an organic basis).

•Segment profit was $100 million, down 4.8% year-over-year, with a corresponding margin of 8.1%.

•Book-to-bill ratio of 0.98x, compared to 1.19x during the first quarter of fiscal 2026.

Global Infrastructure Services

•Revenue was $1,449 million, down 9.4% year-over-year (down 11.1% on an organic basis).

•Segment profit was $38 million, down 60.8% year-over-year, with a corresponding margin of 2.6%.

•Book-to-bill ratio of 1.11x, compared to 0.74x during the first quarter of fiscal 2026.

Insurance Software & Services

•Revenue was $319 million, up 1.9% year-over-year (up 1.4% on an organic basis).

•Segment profit was $34 million, up 3.0% year-over-year, with a corresponding margin of 10.7%.

•Book-to-bill ratio of 0.54x, compared to 0.54x during the first quarter of fiscal 2026.

31

Results of Operations for the Three Months Ended June 30, 2026 and June 30, 2025

Revenues

Our revenues by geography and operating segment are provided below:

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Percentage Change","","Percentage of Revenue for the Three Months Ended"],["(in millions)","","June 30, 2026","","June 30, 2025","","U.S. Dollars","","Constant Currency(1)","","June 30, 2026","","June 30, 2025"],["Geographic Market"],["United States","","$","742","","","$","828","","","(10.4)","%","","(10.4)","%","","24.7","%","","26.2","%"],["United Kingdom","","401","","","480","","","(16.5)","%","","(16.7)","%","","13.4","%","","15.2","%"],["Other Europe","","1,039","","","1,038","","","0.1","%","","(2.1)","%","","34.6","%","","32.9","%"],["Australia","","288","","","259","","","11.2","%","","0.4","%","","9.6","%","","8.2","%"],["Other International","","529","","","554","","","(4.5)","%","","(4.2)","%","","17.6","%","","17.5","%"],["Total Revenues","","$","2,999","","","$","3,159","","","(5.1)","%","","(6.7)","%","","100.0","%","","100.0","%"],["Reportable Segments"],["CES","","$","1,231","","","$","1,246","","","(1.2)","%","","(3.0)","%","","41.0","%","","39.4","%"],["GIS","","1,449","","","1,600","","","(9.4)","%","","(11.1)","%","","48.3","%","","50.6","%"],["Insurance","","319","","","313","","","1.9","%","","1.4","%","","10.6","%","","9.9","%"],["Total Revenues","","$","2,999","","","$","3,159","","","(5.1)","%","","(6.7)","%","","100.0","%","","100.0","%"]]
[[/GREPCENT_TABLE]]

(1) Constant currency revenues are a non-GAAP measure calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This information is consistent with how management views our revenues and evaluates our operating performance and trends. For more information, see "Non-GAAP Financial Measures."

For the first quarter of fiscal 2027, our total revenue was $3.0 billion, a decrease of $160 million or 5.1%, compared to the same period a year ago. The decrease against the comparative period includes a 6.7% decline in organic revenue partially offset by a 1.6% favorable foreign currency exchange rate impact. Organic revenue growth is a non-GAAP measure. For more information, see "Non-GAAP Financial Measures".

For the discussion of risks associated with our foreign operations, see Part 1, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.

Costs and Expenses

Our total costs and expenses are provided below:

[[GREPCENT_TABLE]]
[["","","Dollar Amount"],["","","Three Months Ended June 30,","","Change"],["(in millions)","","2026","","2025","","Dollar","","Percent"],["Costs of services (excludes depreciation and amortization and restructuring costs)","","$","2,388","","","$","2,388","","","$","\u2014","","","\u2014","%"],["Selling, general and administrative (excludes depreciation and amortization and restructuring costs)","","328","","","394","","","(66)","","","(16.8)","%"],["Depreciation and amortization","","267","","","304","","","(37)","","","(12.2)","%"],["Restructuring costs","","26","","","37","","","(11)","","","(29.7)","%"],["Interest expense","","55","","","54","","","1","","","1.9","%"],["Interest income","","(89)","","","(46)","","","(43)","","","93.5","%"],["Other income, net","","(217)","","","(39)","","","(178)","","","456.4","%"],["Total costs and expenses","","$","2,758","","","$","3,092","","","$","(334)","","","(10.8)","%"]]
[[/GREPCENT_TABLE]]

32

Costs of Services

Costs of services, excluding depreciation and amortization and restructuring costs ("COS"), consist of expenses directly associated with revenue-generating activities. These expenses primarily include payroll and related employee benefit costs, subcontractor costs and other contract-related expenses, as well as technology, facilities, and other supporting infrastructure costs.

COS was $2.4 billion for the first quarter of fiscal 2027, unchanged from the prior-year period. While the Company’s cost optimization initiatives reduced payroll and related employee benefit costs, professional services, and contractor-related expenses, cost reductions did not keep pace with the decline in revenue. As a result, gross margin was 20.4% for the first quarter of fiscal 2027, a decline of 400 basis points against the prior-year period.

Selling, General and Administrative

Selling, general and administrative expense, excluding depreciation and amortization and restructuring costs ("SG&A"), consist of the costs associated with personnel in non-client facing positions. These expenses primarily include payroll and related employee benefit costs, business development efforts, marketing and advertising activities, and other expenses such as information systems and office space.

SG&A was $328 million for the first quarter of fiscal 2027, a decrease of $66 million (-16.8%) compared to the prior-year period. The decline was primarily driven by lower payroll and related employee benefit costs, as well as reduced professional services and contractor related expenses. SG&A as a percentage of revenue was 10.9% for the first quarter of fiscal 2027, an improvement of 160 basis points against the prior-year period.

Depreciation and Amortization

Depreciation and amortization was $267 million for the first quarter of fiscal 2027, a decrease of $37 million (-12.2%) compared to the prior-year period. Depreciation expense decreased by $12 million due to lower average net property and equipment balances. Amortization expense decreased by $25 million due to lower software amortization and transition and transformation contract cost balances.

Restructuring Costs

During fiscal 2027, management approved global cost savings initiatives designed to better align our workforce, facility and data center requirements. Total restructuring costs recorded, net of reversals, was $26 million for the first quarter of fiscal 2027, an $11 million decrease (-29.7%) compared to the prior-year period.

See Note 10 – “Restructuring Costs” for additional information about our restructuring actions.

Interest Income and Interest Expense

Net interest income (interest expense less interest income) was $34 million for the first quarter of fiscal 2027, an increase of $42 million as compared to the prior-year period. Included in this amount is $46 million of interest income from the TCS litigation judgment, as discussed in Note 18 - “Commitments and Contingencies.”

33

Other Income, Net

Other income, net includes non-service cost components of net periodic pension income, pension and other post-retirement benefit (“OPEB”) actuarial and settlement losses and (gains), movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, losses on real estate and facility sales, and other miscellaneous losses and (gains).

The components of Other income, net were as follows:

[[GREPCENT_TABLE]]
[["","","Three Months Ended"],["(in millions)","","June 30, 2026","","June 30, 2025","","Dollar Change"],["Non-service cost components of net periodic pension income","","$","(45)","","","$","(43)","","","$","(2)"],["Foreign currency gain","","(1)","","","(5)","","","4"],["Gain on litigation","","(168)","","","\u2014","","","(168)"],["Other miscellaneous (gain) loss","","(3)","","","9","","","(12)"],["Total","","$","(217)","","","$","(39)","","","$","(178)"]]
[[/GREPCENT_TABLE]]

Other income, net, increased $178 million compared to the prior-year period primarily due to:

•pension income ($2 million) - increase in net periodic pension income, primarily due to changes in expected returns on assets and other actuarial assumptions;

•foreign c

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1688568/000168856826000022/dxc-20260331.htm
Complete FY 2026 MD&A: /company/DXC/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-05-08
Report date: 2026-03-31

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction

The purpose of the Management's Discussion and Analysis (“MD&A”) is to present information that management believes is relevant to an assessment and understanding of our results of operations and cash flows for the fiscal year ended March 31, 2026 and our financial condition as of March 31, 2026. The MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and notes.

The MD&A is organized in the following sections:

•Background

•Results of Operations

•Liquidity and Capital Resources

•Critical Accounting Estimates

The following discussion includes a comparison of our results of operations and liquidity and capital resources for fiscal 2026 and fiscal 2025. A comparison of our results of operations and liquidity and capital resources for fiscal 2025 and fiscal 2024 may be found in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” on Form 10-K filed with the Securities and Exchange Commission on May 15, 2025.

Background

DXC is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world’s most complex technology estates.

We generate revenue by offering a wide range of information technology services and solutions primarily in North America, Europe, Asia, and Australia. Effective April 1, 2025 (fiscal year 2026), we began reporting our financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services. The new structure includes three reportable segments: Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Software & Services ("Insurance").

Key Metrics

Key revenue, profitability and cash flow metrics for fiscal 2026 compared to fiscal 2025 are included below. We have presented organic revenue, adjusted earnings before income taxes, and adjusted diluted earnings per share on a non-GAAP basis. For more information see “Non-GAAP Financial Measures.”

•Revenues of $12.64 billion, down 1.8% year-over-year (down 4.8% on an organic basis);

•EBIT was $353 million with a corresponding margin of 2.8%. Adjusted EBIT was $970 million, down 4.8% year-over-year with a corresponding margin of 7.7%;

•Diluted earnings per share of $0.10, compared to $2.10 in fiscal 2025; adjusted diluted earnings per share of $3.23, compared to $3.43 in fiscal 2025;

•Cash generated from operations was $1,248 million, less capital expenditures of $535 million, resulted in free cash flow of $713 million, compared to free cash flow of $687 million in the prior-year

•Book-to-bill ratio (contract awards divided by annual revenue) of 0.98x, compared to 1.03x during fiscal 2025.

39

Segment Highlights - Fiscal Year 2026

Consulting & Engineering Services

•Revenue was $5,023 million, down 0.8% year-over-year (down 3.8% on an organic basis).

•Segment profit was $518 million, down 10.7% year-over-year, with a corresponding margin of 10.3%.

•Book-to-bill ratio of 1.10x, compared to 1.08x during fiscal 2025.

Global Infrastructure Services

•Revenue was $6,342 million, down 3.9% year-over-year (down 7.2% on an organic basis).

•Segment profit was $432 million, up 0.2% year-over-year, with a corresponding margin of 6.8%.

•Book-to-bill ratio of 0.94x, compared to 1.04x during fiscal 2025.

Insurance Software & Services

•Revenue was $1,279 million, up 5.4% year-over-year (up 3.6% on an organic basis).

•Segment profit was $129 million, down 20.4% year-over-year, with a corresponding margin of 10.1%.

•Book-to-bill ratio of 0.76x, compared to 0.77x during fiscal 2025.

Results of Operations

The following table provides financial data for fiscal 2026 and 2025:

[[GREPCENT_TABLE]]
[["","","Fiscal Years Ended"],["(In millions, except per-share amounts)","","March 31, 2026","","March 31, 2025"],["Revenues","","$","12,644","","","$","12,871"],["Income before income taxes (1)","","318","","","630"],["Income tax expense","","290","","","234"],["Net income (1)","","$","28","","","$","396"],["Less: net income attributable to non-controlling interest, net of tax","","10","","","7"],["Net income attributable to DXC common stockholders (1)","","18","","","389"],["Diluted earnings per common share: (1)","","$","0.10","","","$","2.10"]]
[[/GREPCENT_TABLE]]

(1) Income before income taxes, Net income, Net income attributable to DXC common stockholders, and Diluted earnings per common share include Pension and OPEB actuarial and settlement losses and (gains) that were $169 million and $(232) million for the fiscal years ended March 31, 2026 and March 31, 2025, respectively.

40

Revenues

Our revenues by geography and operating segments are provided below:

[[GREPCENT_TABLE]]
[["","","Fiscal Years Ended","","Percentage Change","","Percentage of Revenuefor the Fiscal Year Ended"],["(in millions)","","March 31, 2026","","March 31, 2025","","U.S.Dollars","","Constant Currency(1)","","March 31, 2026","","March 31, 2025"],["Geographic Market"],["United States","","$","3,209","","","$","3,560","","","(9.9)","%","","(9.9)","%","","25.4","%","","27.7","%"],["United Kingdom","","1,862","","","1,817","","","2.5","%","","(2.4)","%","","14.7","%","","14.1","%"],["Other Europe","","4,249","","","4,128","","","2.9","%","","(3.8)","%","","33.6","%","","32.1","%"],["Australia","","1,093","","","1,145","","","(4.5)","%","","(5.9)","%","","8.6","%","","8.9","%"],["Other International","","2,231","","","2,221","","","0.5","%","","(0.7)","%","","17.6","%","","17.3","%"],["Total Revenues","","$","12,644","","","$","12,871","","","(1.8)","%","","(4.9)","%","","100.0","%","","100.0","%"],["Reportable Segments"],["CES","","$","5,023","","","$","5,062","","","(0.8)","%","","(4.0)","%","","39.7","%","","39.3","%"],["GIS","","6,342","","","6,596","","","(3.9)","%","","(7.2)","%","","50.2","%","","51.2","%"],["Insurance","","1,279","","","1,213","","","5.4","%","","3.6","%","","10.1","%","","9.4","%"],["Total Revenues","","$","12,644","","","$","12,871","","","(1.8)","%","","(4.9)","%","","100.0","%","","100.0","%"]]
[[/GREPCENT_TABLE]]

(1) Constant currency revenues are a non-GAAP measure calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This information is consistent with how management views our revenues and evaluates our operating performance and trends. For more information, see "Non-GAAP Financial Measures."

For fiscal 2026, our total revenue was $12.6 billion, a decrease of $227 million or 1.8%, compared to the prior fiscal year. The decrease against the comparative period includes a 4.8% decline in organic revenue partially offset by a 3.1% favorable foreign currency exchange rate impact. Organic revenue is a non-GAAP measure, as discussed in our "Non-GAAP Financial Measures." In addition, for a discussion of risks associated with our foreign operations, see Part I, Item 1A - "Risk Factors."

Costs and Expenses

Our total costs and expenses were as follows:

[[GREPCENT_TABLE]]
[["","","Dollar Amount"],["","","Fiscal Years Ended","","Change"],["(in millions)","","March 31, 2026","","March 31, 2025","","Dollar","","Percent"],["Costs of services","","$","9,613","","","$","9,770","","","$","(157)","","","(1.6)","%"],["Selling, general and administrative","","1,402","","","1,348","","","54","","","4.0"],["Depreciation and amortization","","1,160","","","1,287","","","(127)","","","(9.9)"],["Restructuring costs","","115","","","153","","","(38)","","","(24.8)"],["Interest expense","","216","","","265","","","(49)","","","(18.5)"],["Interest income","","(181)","","","(199)","","","18","","","(9.0)"],["Gain on disposition of businesses","","\u2014","","","(7)","","","7","","","(100.0)"],["Other expense (income), net","","1","","","(376)","","","377","","","(100.3)"],["Total costs and expenses","","$","12,326","","","$","12,241","","","$","85","","","0.7","%"]]
[[/GREPCENT_TABLE]]

41

Costs of Services

Costs of services, excluding depreciation and amortization and restructuring costs ("COS"), consist of expenses directly associated with revenue-generating activities. These expenses primarily include payroll and related employee benefit costs, subcontractor costs and other contract-related expenses, as well as technology, facilities, and other supporting infrastructure costs.

COS was $9.6 billion for fiscal 2026, a decrease of $157 million (-1.6%) compared to the prior-year period. The decline was primarily driven by a decrease in costs from lower revenue levels, the alignment of business development expenses to selling, general and administrative expenses in support of the offering model, and a reduction in professional services and contractor-related expenses from our cost optimization initiatives, partially offset by an unfavorable foreign currency exchange rate impact. In connection with the Company’s new segment structure in fiscal 2026, certain costs for personnel in non-client facing positions are now included in selling, general and administrative expenses.

Gross margin (Revenues less COS as a percentage of revenue) was 24.0% for fiscal 2026, a decline of 10 basis points against the prior fiscal year.

Selling, General and Administrative

Selling, general and administrative expense, excluding depreciation and amortization and restructuring costs ("SG&A"), consist of the costs associated with personnel in non-client facing positions. These expenses primarily include payroll and related employee benefit costs, business development efforts, marketing and advertising activities, and other expenses such as information systems and office space.

SG&A was $1,402 million for fiscal 2026, an increase of $54 million (+4.0%) compared to the prior-year period. The increase was primarily driven by the realignment of business development and certain other costs from COS, an unfavorable foreign currency exchange rate impact, and a gain from a legal settlement in the second quarter of fiscal 2025, partially offset by lower levels of merger-related indemnification expenses and transaction, separation, and integration ("TSI") costs in fiscal 2026.

SG&A as a percentage of revenue was 11.1% for fiscal 2026, an increase of 60 basis points against the prior fiscal year.

Depreciation and Amortization

Depreciation and amortization was $1,160 million for fiscal 2026, a decrease of $127 million (-9.9%) compared to the prior-year period. Depreciation expense decreased by $57 million due to lower average net property and equipment balances. Amortization expense decreased by $70 million due to lower transition and transformation contract cost balances and lower software amortization.

Restructuring Costs

During fiscal 2026, management approved global cost savings initiatives designed to better align our workforce, facility and data center requirements. Total restructuring costs recorded, net of reversals, during fiscal 2026 were $115 million, a decrease of $38 million (-24.8%) compared to the prior fiscal year, primarily from a reduction in workforce-related expenses.

See Note 12 - "Restructuring Costs" for additional information about our restructuring actions.

Interest Expense and Interest Income

Net interest expense (interest expense less interest income) was $35 million for fiscal 2026, a decrease of $31 million (-47.0%) as compared to the prior-year. The improvement was primarily from higher net interest income from our cash deposits and multi-currency notional pools and lower finance lease

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/DXC/mda/fy2026/
All MD&A years: /company/DXC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/DXC/mda/fy2025/): filed 2025-05-15; accession 0001688568-25-000029 (https://www.sec.gov/Archives/edgar/data/1688568/000168856825000029/dxc-20250331.htm)
- [FY 2024 MD&A](/company/DXC/mda/fy2024/): filed 2024-05-17; accession 0001688568-24-000032 (https://www.sec.gov/Archives/edgar/data/1688568/000168856824000032/dxc-20240331.htm)
- [FY 2023 MD&A](/company/DXC/mda/fy2023/): filed 2023-05-19; accession 0001688568-23-000030 (https://www.sec.gov/Archives/edgar/data/1688568/000168856823000030/dxc-20230331.htm)
- [FY 2022 MD&A](/company/DXC/mda/fy2022/): filed 2022-05-26; accession 0001688568-22-000027 (https://www.sec.gov/Archives/edgar/data/1688568/000168856822000027/dxc-20220331.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7374 Services-Computer Processing & Data Preparation) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DXC.md · JSON record: /company/DXC.json · verified financials: /company/DXC/financials.json / /company/DXC/financials.csv · machine TOC for the whole site: /llms.txt