DXC Reports Q1 2027 Earnings with Revenue Decline but Stronger Bookings
DXC Technology (DXC) reported first-quarter earnings for fiscal year 2027, showing a total revenue of $3 billion, which marked an organic decline of 6.7% compared to the previous year. The adjusted EBIT margin fell by 180 basis points to 5.0%, primarily due to seasonal factors and anticipated revenue trends. However, non-GAAP earnings per share came in at $0.40, meeting management's guidance for the quarter. Despite declining revenues across several segments—particularly a significant drop of 11% in Global Infrastructure Services (GIS) revenue—the company reported strong bookings growth with total bookings reaching $3 billion and an improved book-to-bill ratio of 0.99x. The Insurance Software segment showed resilience, posting a modest organic increase of 1.4%, while SaaS revenue more than doubled due to customer migration to the Azure platform. DXC also highlighted progress in its Oasis Platform deployment with 57 active environments and improvements from AI-driven security solutions like AgenTxSOC. Free cash flow for Q1 was $314 million, including litigation benefits, though adjusted free cash flow showed only modest improvement.
Tickers: $DXC
Topics: book-to-bill ratio ebit margin free cash flow revenue