DXC Technology Reports Mixed Fiscal 2025 Results

Dxc Technology Company ( (DXC) ) has released its Q4 earnings. Here is a breakdown of the information Dxc Technology Company presented to its investors.

DXC Technology is a global IT services company that assists enterprises in managing their critical systems and operations, with a focus on modernizing IT, optimizing data architectures, and ensuring security across various cloud environments. In its latest earnings report for the fourth quarter and full fiscal year 2025, DXC Technology reported a decline in total revenue to $3.17 billion for the quarter, representing a 6.4% decrease year-over-year. Despite the revenue drop, the company achieved a notable improvement in its EBIT margin, which stood at 11.0% for the quarter.

The earnings report highlighted several key financial metrics, including a diluted earnings per share of $1.43, a significant recovery from a loss of $1.10 per share in the same quarter last year. However, on a non-GAAP basis, diluted earnings per share fell by 13.4% to $0.84. The company also reported a book-to-bill ratio of 1.22x, indicating strong booking growth. For the full fiscal year 2025, DXC’s total revenue was $12.87 billion, down 5.8% from the previous year, while its adjusted EBIT margin slightly increased to 7.9%.

Segment-wise, Global Business Services (GBS) saw a revenue decline of 4.8% year-over-year, while Global Infrastructure Services (GIS) experienced an 8.1% drop. Despite these challenges, both segments reported improved book-to-bill ratios, suggesting a positive trend in future business commitments. The company also generated $1.398 billion in cash from operations for the year, a modest increase from the previous year.

Looking ahead, DXC Technology’s management remains focused on achieving sustained, profitable growth despite an uncertain macroeconomic environment. The company has set a revenue guidance range of $12.18 billion to $12.44 billion for fiscal year 2026, with an adjusted EBIT margin expected to be between 7.0% and 8.0%. The management’s strategic priorities include enhancing customer experience and driving performance through an engaged workforce.