#USA #DXC Technology #Ashburn #Business Performance #fiscal year 2026

DXC Technology Q3 Fiscal Year 2026 Results Overview

DXC Technology (NYSE: DXC) recently disclosed its financial performance for the third quarter of fiscal 2026, revealing a complex landscape for the company. The total revenue reached approximately $3.19 billion, exhibiting a slight decline of 1% year-over-year, with a more significant organic drop of 4.3%. Despite this dip in revenue, the company highlighted its ongoing investments aimed at revitalizing its core business and innovating solutions to drive future growth.

Revenue and Profit Dynamics

The report indicated that while total revenue fell slightly, the company demonstrated resilience in its profitability metrics. The EBIT (Earnings Before Interest and Taxes) margin stood at 5.6%, showing a year-over-year increase of 22.6%. This performance reflected disciplined execution across various sectors of the business, as noted by Raul Fernandez, the President and CEO of DXC Technology. Notably, diluted earnings per share (EPS) were reported to be $0.61, a remarkable increase of 96.8% compared to the previous year. Furthermore, the non-GAAP diluted EPS reached $0.96, marking a 4.3% rise.

Free cash flow was another significant highlight, with $266 million generated in the quarter, pushing the year-to-date total to $603 million—an increase of 4.7% compared to the prior year. This cash flow has positioned the company well for its strategic initiatives, including a commitment of $65 million towards share repurchases and the redemption of $300 million in senior notes.

Segment Performance

Breaking down the results by segment provides further insight into DXC's varied performance:

1. Consulting and Engineering Services (CES): Revenue for this segment showed minimal change at $1.266 billion, with a small organic decline of 3.6%. The segment's profitability, however, suffered a decrease of 12.2%, resulting in a profit margin of 11.4%. The bookings here saw a decline of 6% year-on-year.

2. Global Infrastructure Services (GIS): This segment reported $1.607 billion in revenue, down 2.7% year-over-year, with a sharper organic downturn of 6.2%. Profits rose slightly by 0.9%, yielding a margin of 7.0%. Bookings in this area dropped significantly, down 26% year-over-year.

3. Insurance Services: The only segment showing growth, Insurance Services saw revenue rise to $321 million, an uptick of 4.6%. However, profits fell by 30%, leading to a profit margin of 10.9%. This segment also experienced a bookings decline of 6%.

Looking Ahead

As DXC Technology heads into the fourth quarter of fiscal 2026, projections indicate a continued revenue decline in the range of 4.0% to 5.0% year-over-year. Adjusted EBIT margins are expected to stay between 6.5% and 7.5%, while diluted EPS is projected to fall between $0.65 and $0.75.

The company anticipates total revenue for the full fiscal year to be around $12.69 billion, reflecting a decline of roughly 4.3% year-over-year on an organic basis. Furthermore, free cash flow is projected to be approximately $650 million for the fiscal year.

Future Strategies

Looking forward, DXC's strategy involves leveraging artificial intelligence within their service offerings, providing clients with tools to operate more efficiently and deliver new value sources. The emphasis on innovation is critical as it aims to reposition the company as a strategic partner in an increasingly competitive landscape.

Reflecting on these results, DXC Technology's leadership appears dedicated to evolving its business model while addressing challenges posed by shifting market demands and technological advancements. As we move deeper into 2026, stakeholders and investors alike will be keenly observing how these adaptations manifest in future performance metrics.