DXC Technology Reports Revenue Decline and Restructuring Efforts in Q2 Fiscal 2026

DXC Technology Company reported its financial results for the second quarter and first six months of fiscal 2026, revealing a decline in revenue and profitability compared to the previous year. For the three months ended September 30, 2025, the company generated revenues of $3.161 billion, a decrease of 2.5% from $3.241 billion in the same period last year. Net income attributable to DXC common stockholders was $36 million, down from $42 million, resulting in diluted earnings per share of $0.20, compared to $0.23 in the prior year. For the first half of fiscal 2026, revenues totaled $6.320 billion, down 2.4% year-over-year, with net income of $58 million compared to $70 million in the previous year.

The company experienced a notable shift in its operational structure, implementing a new segment reporting framework that includes Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services. This change aims to better align with the company's operational capabilities and enhance performance assessment. The restructuring has led to a reallocation of goodwill, with a significant impairment of $14 million recognized in the GIS segment during the first quarter of fiscal 2026.

Operationally, DXC reported a book-to-bill ratio of 0.85x for the second quarter, an improvement from 0.81x in the prior year, indicating a positive trend in contract awards relative to revenue. The company also noted a cash flow increase, with $595 million generated from operations in the first half of fiscal 2026, compared to $433 million in the same period last year. This increase was attributed to improved working capital management, despite a decrease in net income.

Geographically, revenue from the United States fell by 7.6% year-over-year, while the United Kingdom and other European markets showed slight growth. The Insurance Services segment reported a 4.6% increase in revenue, contrasting with declines in the CES and GIS segments. The company continues to focus on strategic initiatives to enhance its service offerings and operational efficiency, with plans to leverage its cash reserves and available credit facilities to support future growth.

Looking ahead, DXC Technology anticipates ongoing challenges in the market, including potential impacts from macroeconomic conditions and competition. The company remains committed to its restructuring efforts and strategic investments to drive long-term growth and improve profitability. The management expressed confidence in the company's ability to navigate these challenges while maintaining a strong liquidity position, with $1.888 billion in cash and cash equivalents as of September 30, 2025.