DXC Technology (DXC) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue was $3.13B, down 6.6% organically, with adjusted EBIT margin at 7.6% and non-GAAP EPS of $0.77; book-to-bill was 1.07x.

• Full FY26 revenue was $12.64B, down 4.8% organically, with adjusted EBIT margin at 7.7% and non-GAAP EPS of $3.23; book-to-bill was 0.98x.

• AI-driven transformation is advancing, with automation initiatives across functions and new AI-native offerings launched.

• Large deal win rates were below expectations, with 32% of $2B in opportunities won, 40% lost, and 28% outstanding.

Financial highlights

• Q4 adjusted EBIT margin was 7.6%, up 30 bps YoY; full year margin was 7.7%.

• Q4 free cash flow was $110M; full year free cash flow was $713M, up from $687M last year.

• Q4 bookings were $3.3B, down 13.5% YoY; full year bookings were $12.4B, down 6.2% YoY.

• Net debt reduced by $1.1B over two years, ending at $1.7B.

Outlook and guidance

• FY27 organic revenue expected to decline 5.0%–3.0% YoY; adjusted EBIT margin guided at 6.0%–7.0%; non-GAAP EPS $2.40–$2.90; free cash flow ~$600M.

• Q1 FY27 revenue expected to decline 7.5%–6.5% YoY; adjusted EBIT margin ~5.0%; non-GAAP EPS ~$0.40.