DXC Technology (DXC) investor relations material

Strategic vision and innovation

• Emphasis on AI-driven transformation, with new solutions like OASIS and partnerships such as Anthropic to accelerate innovation and operational efficiency.

• LabX and Fast Track initiatives enable rapid product development and market responsiveness, focusing on high-impact, high-velocity ideas.

• Focus on regulated industries (banking, insurance, government, aerospace, defense) where trust, reliability, and compliance are critical.

• Talent transformation is central, with upskilling and certification programs for engineers and a culture of adaptability and curiosity.

• Ecosystem partnerships are deepened, prioritizing select partners for future growth and leveraging domain expertise.

Financial guidance and growth outlook

• Fiscal 2027 revenue guidance confirmed at -3% to -5%, with improvement expected in the second half as legacy contract headwinds subside.

• By fiscal 2029, core revenue is targeted to be flat to low single-digit growth, with new AI-enabled products adding approximately two points of incremental growth.

• Margin improvement targeted from 6%-7% in 2027 to 8%-10% by 2029, driven by internal AI adoption and operational efficiencies.

• Stable free cash flow of ~$1.8 billion projected over three years, with capital allocation focused on investment, debt reduction, and shareholder returns.

• SaaS and platform-based revenues are expected to grow, especially in insurance and banking, but current projections remain conservative as new offerings ramp.

Segment strategies and business developments

• GIS (Global Infrastructure Services): Focus on operational excellence, customer retention, and rollout of OASIS to improve reliability and cost structure.

• CES (Consulting & Engineering Services): Targeted growth in engineering, banking modernization (GrowthX, CoreIgnite), and select industry verticals.

• ISB (Insurance Software & BPS): Shift from services-led to recurring SaaS and AI-driven revenue, with Smart Apps and cloud migration driving 5%-7% growth.

• Engineering business spun out as a separate unit to regain agility and focus, with investments in automotive and autonomous driving partnerships.

• Internal AI deployment (customer zero) and agentic operations are expected to deliver $1B-$1.5B in cost savings, with productivity gains and workforce evolution.