DXC Technology (DXC) Q4 2026 earnings summary

Executive summary

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

• Full FY26 organic revenue declined 4.8% year-over-year to $12.64B, adjusted EBIT margin was 7.7%, and non-GAAP diluted EPS reached $3.23; book-to-bill was 0.98x.

• Transformation to an AI-led company is underway, with internal adoption of AI tools and the launch of new AI-native offerings like CoreIgnite and OASIS.

• Outcome-based pricing now represents 80% of revenue, supporting margin expansion as AI-driven productivity is scaled.

• AI-driven automation initiatives are compressing contract cycles and increasing operational capacity.

Financial highlights

• Q4 revenue was $3.13B, down 6.6% organically year-over-year; full year revenue was $12.64B, down 4.8% organically.

• Q4 adjusted EBIT margin was 7.6%; full year adjusted EBIT margin was 7.7%.

• Q4 non-GAAP EPS was $0.77; full year non-GAAP EPS was $3.23.

• Free cash flow for FY26 was $713M, up from $687M last year.

• Share repurchases totaled $250M in FY26, reducing share count by nearly 10%.

Outlook and guidance

• FY27 organic revenue expected to decline 5.0%–3.0% year-over-year, with improvement in the rate of decline in the second half.

• Adjusted EBIT margin guidance is 6.0%–7.0%; non-GAAP diluted EPS expected between $2.40–$2.90.

• Free cash flow for FY27 is guided at about $600M.

• Q1 FY27 revenue expected to decline 7.5%–6.5% year-over-year; adjusted EBIT margin around 5%; non-GAAP EPS about $0.40.