DXC Q4 Revenue Slips 1.2% to $3.13B, Free Cash Flow at $110M
DXC Technology posted Q4 FY26 revenue of $3.13B, down 1.2% YoY (6.6% organic decline), with Q4 adjusted EBIT margin at 7.6% and negative GAAP margin of 1.2%. Q4 non-GAAP EPS fell 8.3% to $0.77; free cash flow reached $110M, while full-year FCF rose 3.8% to $713M.
1. Q4 Financial Performance
DXC reported Q4 FY26 revenue of $3.13 billion, down 1.2% year-over-year and down 6.6% on an organic basis. EBIT was negative $39 million, a (1.2)% margin, while adjusted EBIT of $237 million delivered a 7.6% margin. Diluted EPS was $(0.84) versus non-GAAP EPS of $0.77, and free cash flow totaled $110 million. Bookings reached $3.3 billion, yielding a book-to-bill ratio of 1.07x, and the company repurchased $60 million of shares.
2. Full Fiscal Year 2026 Results
For full FY26, revenue totaled $12.64 billion, down 1.8% year-over-year and 4.8% organically. Adjusted EBIT fell 4.8% to $970 million, with a 7.7% margin, and non-GAAP EPS declined 5.8% to $3.23. Free cash flow rose 3.8% to $713 million, and DXC repurchased $250 million of shares during the year.
3. FY27 Guidance
DXC forecasts Q1 FY27 revenue of $2.97–$3.00 billion, reflecting a 6.5%–7.5% organic decline, with an adjusted EBIT margin around 5.0% and non-GAAP EPS of about $0.40. Full-year FY27 guidance projects revenue of $12.11–$12.35 billion (3.0%–5.0% organic decline), adjusted EBIT margin between 6.0% and 7.0%, non-GAAP EPS of $2.40–$2.90, and free cash flow of approximately $600 million.