Overview

* DXC fiscal Q2 revenue declines 2.5% YoY

* Adjusted EPS for fiscal Q2 beats consensus, despite a 9.7% YoY decline

* Company repurchased $75 mln of shares, indicating strategic capital return

Outlook

* DXC Technology ( DXC ) expects Q3 revenue between $3.18 bln and $3.22 bln

* Company sees FY26 revenue between $12.67 bln and $12.81 bln

* DXC Technology ( DXC ) anticipates FY26 free cash flow of ~$650 mln

Result Drivers

* STRONG CASH FLOW - Free cash flow increased significantly, up $192 mln YoY, supporting strategic initiatives

* STRATEGIC FOCUS - CEO Raul Fernandez emphasizes better execution and pipeline conversion to drive future growth

* AI STRATEGY - Introduction of Xponential AI framework as part of strategic plan to leverage AI economy

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Meet $3.16 $3.16

Revenue bln bln (8

Analysts

)

Q2 Beat $0.84 $0.69 (9

Adjusted Analysts

EPS )

Q2 Net $40 mln

Income

Q2 8%

Adjusted

EBIT

Margin

Q2 EBIT $138 mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for DXC Technology Co ( DXC ) is $15.34, about 14.1% above its October 29 closing price of $13.17

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)