DXC Technology Co Q4 FY2025 earnings call

• Bookings up more than 20% with a book-to-bill ratio of 1.2, second consecutive quarter above 1.0. - Recruited 22 new extended leadership team members in 15 months and rotated out 14 executives. - Deepened customer relationships, started rebuilding capabilities from ground-up. - Carnival Cruise Line won to manage critical infrastructure. - Focus on increasing internal communication clarity and embedding startup ethos. - Restarted share repurchase program.

For the segments: GBS (51% of total revenue) was down 2.4% year-to-year organically, with a profit margin decrease of 240 basis points to 10.9%. Within GBS, consulting and engineering services had strong bookings growth but organic revenue decline due to market pressures. Insurance and BPS organic revenue grew 2.7%. GIS (49% of total revenue) declined 6% year-to-year organically, with improvement driven by cloud offerings and workplace support services. Fourth quarter bookings for GIS grew 33% with a book-to-bill of 1.28, and profit margin declined 50 basis points to 7.0%

• Full year fiscal 2026 organic revenue expected to decline 3% to 5%. - Adjusted EBIT margin expected to be between 7% to 8%. - Non-GAAP diluted EPS expected to be between $2.75 and $3.25. - First quarter fiscal 2026 organic revenue expected to decline between 4.0% and 5.5%. - Adjusted EBIT margin expected in the range of 6% to 7%. - Non-GAAP diluted EPS expected to be $0.55 to $0.65.

Q: Bryan Bergin with TD Cowen asked about demand evolution by industry and tariff dynamics.

A: Raul Fernandez and Rob Del Bene responded on demand in different industries, pipeline drops in some sectors, and project-based services.

Q: Jonathan Lee with Guggenheim Partners asked about macroeconomic conditions in the outlook and pricing environment.

A: Rob Del Bene discussed macroeconomic uncertainty in guides and stable pricing.

Q: James Faucette with Morgan Stanley asked about GenAI spend and project growth.

A: Raul Fernandez talked about GenAI pilots and DXC's position.

Q: Keith Bachman of BMO asked about revenue growth conditions and Carnival Cruise Line deal.

A: Raul Fernandez and Rob Del Bene discussed revenue growth foundation and the Carnival win.

Q: Paul Obrecht with Wolfe Research asked about cross-sell motion and margin guide.

A: Raul Fernandez and Rob Del Bene spoke on cross-sell and margin bridge.

Q: Tyler DuPont with Bank of America asked about leadership and pipeline sustainability.

A: Raul Fernandez and Rob Del Bene discussed leadership and pipeline visibility.

Q: Jamie Friedman with Susquehanna asked about insurance segment and technology innovation.

A: Rob Del Bene and Raul Fernandez talked about insurance segment break-out and tech position.

Q: Rod Bourgeois from DeepDive Equity Research asked about investment plans.

A: Raul Fernandez and Rob Del Bene discussed investment in solution capabilities and market segments.