ASHBURN – October 30, 2026 -- DXC Technology (NYSE: DXC) reported second-quarter fiscal 2027 revenue of $3.03 billion, down 4.0% year over year and on an organic basis, while adjusted EBIT fell 26.4% to $187 million. The company also confirmed ongoing discussions about a possible sale of its insurance business.
Adjusted EBIT margin of 6.2% accompanies a 52.2% drop in reported EBIT
Reported EBIT was $66 million, a 2.2% margin and down 52.2% year over year. Adjusted EBIT margin was 6.2%. Diluted earnings per share were $0.15, and non-GAAP diluted EPS was $0.67, down 20.2%.
CEO Raul Fernandez said revenue, adjusted EBIT and non-GAAP EPS came in above the company's expectations. He cautioned that "core revenue recovery will take time." He added that the revenue ramp for agentic AI solutions is clearer in average deal size, close-cycle timing and pace of follow-on work.
Free cash flow drops to $91 million in the quarter but rises for the half
Cash generated from operations fell 46.9% to $217 million. Quarterly free cash flow was $91 million, against $240 million a year earlier. First-half free cash flow reached $405 million, up from $337 million.
DXC repurchased about 5.7 million shares for $60 million.
Bookings decline 10% to $2.4 billion with a 0.80x book-to-bill ratio
The trailing twelve-month book-to-bill ratio was 1.0x.
Infrastructure revenue slides 10% while insurance grows 23.1%
Global Infrastructure Services revenue fell 10.0% to $1,427 million. Segment profit dropped 45.9% to $66 million, a 4.6% margin. Bookings declined 12.7%, with a book-to-bill ratio of 0.80x.
Consulting and Engineering Services revenue was $1,213 million, down 3.3%. Segment profit fell 13.8% to $125 million, a 10.3% margin. Bookings declined 17.0%, with a book-to-bill ratio of 0.79x.
Insurance Software & Services revenue rose 23.1% to $394 million, including the effect of a favorable contract modification signed in the quarter. Segment profit climbed 60.7% to $45 million, an 11.4% margin. Bookings increased 43.5%, with a book-to-bill ratio of 0.79x.
Full-year guidance calls for revenue of $11.91 billion to $11.98 billion
That range implies an organic decline of 5.0% to 5.5%. DXC expects an adjusted EBIT margin of 5.75% to 6.25%, non-GAAP diluted EPS of $2.25 to $2.50 and free cash flow of about $600 million.
For the third quarter, DXC guides to revenue of about $2.98 billion, an organic decline of about 6.0%. It expects an adjusted EBIT margin of about 6.0% and non-GAAP diluted EPS of about $0.55.