DXC Technology reported its second‑quarter fiscal 2026 results with revenue of $3.16 billion, a 2.5% year‑over‑year decline from the prior year. The company’s adjusted EBIT margin reached 8.0%, above the guidance range of 6.5%‑7.5%. Non‑GAAP diluted earnings per share were $0.84, surpassing the $0.65‑$0.75 guidance. Free cash flow rose to $240 million, a substantial increase from $48 million in the same period last year.
Segment performance varied: the Insurance Services segment posted revenue growth and strong bookings, while Global Infrastructure Services experienced a decline. Bookings for the quarter increased 2% year‑over‑year, indicating potential stabilization in future periods.
Management highlighted continued cost discipline and the expansion of AI‑driven services under the Xponential AI framework as key drivers of margin improvement. The company also repurchased $75 million of shares during the quarter, underscoring its commitment to returning capital to shareholders and strengthening its balance sheet.
For the third quarter of fiscal 2026, DXC projected an organic revenue decline of 4.0%‑5.0% and an adjusted EBIT margin of 7.0%‑8.0%. The full‑year guidance calls for an organic revenue decline of 3.5%‑4.5%, an adjusted EBIT margin of 7.0%‑8.0%, and free cash flow of approximately $650 million.
The results reflect DXC’s strategic pivot toward AI‑enabled services and ongoing modernization of its IT infrastructure, positioning the company to maintain competitiveness in the rapidly evolving IT services market.
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