DXC Technology (DXC)
NYSE:DXC
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Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.42Last Year’s EPS
0.68Same Quarter Last Year
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call conveyed a mixed picture: clear operational progress (AI adoption, product launches like OASIS and Core Ignite, insurance growth, strong free cash flow and balance sheet improvement) but material near-term commercial weakness (Q4 revenue miss, bookings declines, significant GIS deterioration, and guidance for continued revenue decline and margin pressure). Management emphasized execution improvements and a conservative approach to modeling AI revenue contributions, but the financial guidance indicates the company expects the top-line challenges to continue into FY2027 before improvement later in the year.Company Guidance
Profitability and Cash Flow Ahead of Guidance
Adjusted EBIT margin in Q4 was 7.6%, up 30 basis points year-over-year and slightly above guidance; non-GAAP EPS for Q4 was $0.77 (high end of guidance). Free cash flow for Q4 was $110 million and full-year fiscal 2026 free cash flow was $713 million (up from $687 million last year), outperforming expectations.
AI Transformation and Product Launch Momentum
Significant internal AI adoption (100+ self-formed teams built ~1,300 working AI agents) and new AI-led products coming to market. Launched OASIS (agentic orchestration) on April 28 with 10 customers and early traction, including a large European insurer win; previewed Core Ignite for banking modernization. CEO demonstrated use of custom AI voice model, underscoring 'customer zero' approach.
Favorable Revenue Mix — Outcome-Based Contracts
About 80% of DXC revenue sits in outcome-based categories vs. 20% time-and-materials, positioning the company to capture AI-driven productivity gains that can expand margins as these efficiencies are realized.
Insurance Segment Growth and Product Momentum
Insurance grew 4% year-over-year in Q4 and 3.6% for fiscal 2026. The software business delivered high-teens growth in the quarter, driven by migrations to the Assured cloud platform and adoption of newly introduced AI-enabled smart apps.
Progress in Competitive Pursuits
Reached late stages on large deals: pursued 13 large opportunities in the quarter representing >$2 billion potential total contract value; won 32% (dollar-weighted) and ~28% remain outstanding, showing ability to compete for large, strategic engagements.
Balance Sheet and Capital Allocation Progress
Repurchased $250 million of shares in fiscal 2026 (~18 million shares, ~10% of outstanding shares), repaid capital leases and reduced debt via $808 million of cash payments since FY2025 start; net debt reduced by $1.1 billion over two years. Management plans to retire roughly $400 million of bonds and continue $250 million of buybacks in FY2027.
DXC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DXC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $12.01 | $9.43 | -21.48% |
Jan 29, 2026 | $14.41 | $14.43 | +0.14% |
Oct 30, 2025 | $12.94 | $14.20 | +9.74% |
Jul 31, 2025 | $13.61 | $12.86 | -5.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does DXC Technology (DXC) report earnings?
DXC Technology (DXC) is schdueled to report earning on Aug 05, 2026, After Close (Confirmed).
What is DXC Technology (DXC) earnings time?
DXC Technology (DXC) earnings time is at Aug 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DXC EPS forecast?
DXC EPS forecast for the fiscal quarter 2027 (Q1) is 0.42.