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DXC Technology: Inside the Bookings-to-Revenue Gap That Could Decide the Turnaround!

DXC Technology entered the third quarter of fiscal 2026 continuing its effort to stabilize declining revenue while reshaping its business model around AI-enabled, more scalable offerings. Management emphasized a dual-track approach that balances execution in legacy services with investment in new, productized solutions designed to reduce reliance on traditional labor-based growth. The quarter reflected incremental progress on strategy and execution, but also underscored that the financial turnaround remains uneven and subject to timing and mix challenges. Revenue declined 4.3% year over year to $3.2 billion, in line with expectations, with performance varying across segments and geographies. The Consulting and Engineering Services segment continued to face pressure from weaker short-term discretionary projects, despite stronger bookings in longer-duration strategic work that is expected to translate into revenue later. Global Infrastructure Services saw improved bookings driven by large deals, but revenue continued to contract as prior demand softness flowed through results.