Description

DXC Technology Company Strengthens Competitive Positioning as AI Orchestration Moves to Center Stage!

DXC Technology’s second quarter of fiscal year 2026 financial performance showcased both strengths and areas requiring attention. On the positive side, the company exceeded guidance on adjusted EBIT margin and non-GAAP diluted EPS, demonstrating effective cost management and resulting in strong free cash flow. The adjusted EBIT margin reached 8%, and the company generated $240 million in free cash flow, an increase from the previous year, indicating solid operational efficiency and financial discipline. However, the company’s revenue and bookings did not meet expectations, with total revenue declining by 4.2% year-over-year on an organic basis. Bookings showed a modest 2% year-over-year growth but resulted in a book-to-bill ratio of 0.85, underscoring challenges in achieving targeted business growth. The trailing 12-month book-to-bill ratio stood at 1.08, reflecting a slight improvement but still highlighting the need for enhanced pipeline execution and conversion.