DXC Technology Reports Q3 Fiscal 2026 Results: Revenue Decline but Profitability Increase

DXC Technology Company reported its financial results for the third quarter and first nine months of fiscal 2026, revealing a slight decline in revenue but a notable increase in profitability. For the three months ended December 31, 2025, the company generated revenues of $3.194 billion, a decrease of 1.0% compared to $3.225 billion in the same period last year. Year-to-date revenues for the nine months totaled $9.514 billion, down 1.9% from $9.702 billion. Despite the revenue decline, net income attributable to DXC common stockholders increased to $107 million, or $0.61 per diluted share, compared to $57 million, or $0.31 per diluted share, in the prior year.

The company experienced a shift in its operational structure, implementing a new segment reporting framework that includes Consulting & Engineering Services, Global Infrastructure Services, and Insurance Services. This change aims to better align with the company's operational capabilities and enhance performance assessment. The Consulting & Engineering Services segment reported revenues of $1.266 billion, a slight decrease of 0.1% year-over-year, while the Global Infrastructure Services segment saw revenues of $1.607 billion, down 2.7%. In contrast, the Insurance Services segment experienced growth, with revenues rising 4.6% to $321 million.

Operationally, DXC's total costs and expenses for the third quarter were $3.023 billion, a reduction of 2.3% from $3.094 billion in the previous year. The decrease was primarily attributed to lower selling, general, and administrative expenses, which fell by 7.8% to $309 million. The company also reported a significant reduction in restructuring costs, which totaled $20 million for the quarter, down 53.5% from the prior year. The book-to-bill ratio, a key indicator of future revenue, was 1.12x, down from 1.33x in the previous year, indicating a decrease in contract awards relative to revenue.

Looking ahead, DXC Technology anticipates continued challenges in the market, particularly in light of macroeconomic conditions that may affect customer spending. The company maintains a strong liquidity position, with cash and cash equivalents of $1.731 billion as of December 31, 2025, and expects to leverage this liquidity alongside cash generated from operations to meet its financial obligations. The company has also suspended dividend payments for fiscal 2026 to preserve financial flexibility. Overall, while DXC faces headwinds in revenue growth, its strategic initiatives and improved profitability metrics suggest a focus on long-term operational efficiency and market adaptation.