EarningsQ1 2027 Earnings Report

DXC Technology (DXC) Q1 2027 Earnings Report

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Previous Report: Q4 2026

MX:DXC Q1 2027 EPS Results

Actual EPS$7.32

Consensus EPS$7.57

Beat/MissMissed by -$0.26

One Year Ago EPS$12.44

MX:DXC Q1 2027 Revenue Results

Actual Revenue$54.87B

Expected Revenue$54.62B

Beat/MissBeat by +$246.54M

YoY Revenue Growth-5.06%

Earnings Announcement Details

QuarterQ1 2027

Date07/30/2026

TimeAfter Close

Conference CallThursday, July 30, 2026

MX:DXC Upcoming Earnings

DXC Technology's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q1 2027 Earnings Call Audio

MX:DXC Q1 2027 Earnings Call

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Q1 2027 Earnings Slide Deck

Q1 2027 Earnings Call Summary

Q1 2027

Earnings Call Date:Jul 30, 2026|

% Change Since:

Earnings Call Sentiment|Neutral

The call balanced encouraging strategic and operational progress in AI products, partnerships, and bookings (notably GIS bookings, SaaS growth, product performance, and improved liquidity) against persistent top-line pressure, margin compression in the quarter, and conservative near-term revenue guidance. Management emphasized early, measurable AI use cases, faster sales cycles, and a disciplined capital posture, but several financial headwinds (organic revenue declines, dependency on litigation-related cash for FCF uplift, and soft discretionary spend) temper short-term outlook.

Company Guidance

Management updated fiscal 2027 guidance expecting total organic revenue to decline 3%–5% year‑over‑year (Q2 guide: down 5.5%–6.5% y/y with sequential improvement into the back half toward roughly -2%), full‑year adjusted EBIT margin of 6%–7% (Q2 ~6.0%), non‑GAAP diluted EPS of $2.40–$2.90 (Q2 ~$0.55), and full‑year free cash flow of about $685 million (which includes a $214 million TCS litigation cash benefit and an underlying ~ $600 million FCF expectation). Segment pacing: CES is expected to decline low single digits, GIS mid single digits (management said ~90% of the H2 improvement is driven by GIS and roughly 75% of that improvement is from opening backlog dynamics), and Insurance low single‑digit growth aided by SaaS momentum (insurance software +13% y/y, SaaS revenues more than doubled y/y). For context, Q1 results included $3.0 billion revenue (‑6.7% y/y), total bookings +5% y/y with book‑to‑bill 0.99x (T‑12 slightly >1.0x), CES book‑to‑bill 0.98x (T‑12 1.04x), GIS book‑to‑bill 1.11x (bookings +35% y/y), adjusted EBIT margin 5.0% (down 180 bps y/y), non‑GAAP EPS $0.40, Q1 free cash flow $314M (ex‑litigation $100M), cash ≈ $1.9B (+$200M), net debt ≈ $1.5B (down ≈$270M), $70M of share repurchases in the quarter and plans to repurchase ≈$50M this year plus retire $400M of bonds maturing Sept 2026.

Strategic AI Partnerships and Talent Initiatives

Announced global partnership with Anthropic; launched forward deployed engineer (FDE) model and certified first 86 engineers with goal to scale to tens of thousands; multilingual FDE certification combining Anthropic, Amazon QuickSight, Microsoft Copilot, 7AI and 11 Labs.

Product Deployments Delivering Measurable Outcomes

AgenTxSOC reduced mean time to intrusion detection from ~21 minutes to ~6 seconds in DXC's environment; DXC Oasis deployed in 57 customer environments with documented improvements in resolution time and ticket backlogs.

Strong GIS Bookings Momentum

GIS bookings increased 35% year-over-year with a Q1 book-to-bill of 1.11x and trailing 12-month book-to-bill above 1.0x, driven by large deal wins (new logos and renewals) in intelligent infrastructure and workplace businesses.

Improved Total Bookings and Book-to-Bill

Total bookings increased 5% year-over-year; company achieved a Q1 book-to-bill of 0.99x—the highest first-quarter level in the past three years—and trailing 12-month book-to-bill slightly above 1.0x.

Growth in Insurance SaaS and Software

Insurance revenue grew 1.4% year-over-year; SaaS-based revenues more than doubled year-over-year; total insurance software revenue grew 13% year-over-year, supporting longer-term SaaS momentum.

Cash Flow, Liquidity and Balance Sheet Strengthening

Generated $314 million of free cash flow in the quarter (including $214 million from TCS litigation); excluding that benefit, free cash flow was $100 million (modest YoY improvement); cash balance ~$1.9 billion (up ~$200 million); net debt declined nearly $270 million from Q4 to ~$1.5 billion; repurchased $70 million of shares in the quarter.

Faster Sales Cycles and Early Customer Traction

Management reported accelerated evaluation-to-contract cycles (traditional 6–12 months compressing to 6 weeks or less for some products); example: AgenTxSOC evaluation completed in just over 4 weeks and converted to a multiyear multimillion-dollar engagement.

MX:DXC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 04, 2026	2027 (Q2)	10.06 / -	15.367	―
Jul 30, 2026	2027 (Q1)	7.57 / 7.32	12.44	-41.18% (-5.12)
May 07, 2026	2026 (Q4)	12.88 / 14.09	15.367	-8.33% (-1.28)
Jan 29, 2026	2026 (Q3)	15.66 / 17.56	16.831	4.35% (+0.73)
Oct 30, 2025	2026 (Q2)	13.04 / 15.37	17.014	-9.68% (-1.65)
Jul 31, 2025	2026 (Q1)	11.32 / 12.44	13.538	-8.11% (-1.10)
May 14, 2025	2025 (Q4)	14.32 / 15.37	17.746	-13.40% (-2.38)
Feb 04, 2025	2025 (Q3)	14.11 / 16.83	15.916	5.75% (+0.91)
Nov 07, 2024	2025 (Q2)	13.15 / 17.01	12.806	32.86% (+4.21)
Aug 08, 2024	2025 (Q1)	10.57 / 13.54	11.526	17.46% (+2.01)

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