DXC Technology Company (DXC) Q3 2026 earnings summary

Executive summary

• Q3 FY26 revenue was $3.2 billion, down 1.0% year-over-year (down 4.3% organically), with adjusted EBIT margin at 8.2% and non-GAAP EPS at $0.96, outperforming guidance.

• The company is executing a dual-track strategy: stabilizing core business and building AI-native revenue streams, with new partnerships and product launches in digital payments and banking.

• Free cash flow for Q3 was $266 million, year-to-date $603 million, with strong liquidity and net debt reduced to $1.9 billion.

• Book-to-bill ratio for Q3 was 1.12x, with bookings totaling $3.6 billion, though down 17% year-over-year.

• Notable new client wins and continued investment in AI-driven solutions and scalable offerings.

Financial highlights

• Q3 revenue was $3.2 billion, down 4.3% organically year-over-year, with adjusted EBIT margin at 8.2% and non-GAAP EPS at $0.96.

• Free cash flow for Q3 was $266 million, year-to-date $603 million, on track for $650 million full-year.

• Net debt reduced to $1.9 billion by Q3 FY26; cash balance at $1.7 billion.

• Book-to-bill ratio for Q3 was 1.12x; trailing 12-month at 1.02x.

• Share repurchases YTD at $190 million, with $65 million in Q3.

Outlook and guidance

• Q4 organic revenue expected to decline 4%-5%; full-year FY26 organic revenue decline of ~4.3%.

• Adjusted EBIT margin for Q4 guided at 6.5%-7.5%; full-year at ~7.5%.

• Non-GAAP diluted EPS for Q4 expected at $0.65-$0.75; full-year at ~$3.15.

• Free cash flow guidance for FY26 remains at ~$650 million.

• Plans to repurchase $250 million in shares in H1 FY27; no dividends planned for FY26.