DXC Technology: Will its Improved Bookings & Pipeline Serve As A Stronger Foundation For Potential Growth?

DXC Technology showed promising third-quarter fiscal year 2025 results, driven by effective operational changes and strategic initiatives. The company reported revenue, adjusted EBIT margin, and non-GAAP EPS above its forecast expectations. Revenue declined by 4.2% year-over-year on an organic basis, while the adjusted EBIT margin increased to 8.9%, reflecting a year-over-year expansion. Non-GAAP diluted EPS rose to $0.92, up by 7%, and free cash flow significantly exceeded the fiscal year guidance, reaching $483 million for the quarter and totaling $576 million year-to-date.