DXC Technology Company Q2 FY2026 earnings call

• Raul discussed a 2-track approach: core track (existing business, e.g., SAP practice) and fast track (AI native solutions, e.g., DXC CoreIgnite, [OASIS], SaaS portfolio growth from 30 to 45 products). - Xponential framework blends governance, automation, and human expertise for measurable results. - Recognized as a leader in several studies, showing validation of strategy. - AI used across corporate functions, accelerating content production and transforming back-office activities.

Total revenue was $3.2 billion, declining 4.2% year-to-year. CES represents 40% of total revenue, declining 3.4% year-over-year organically. GIS represents 50% of total revenue, declining 6.3% year-to-year organically. Insurance represents 10% of total revenue, growing 3.6% year-to-year organically. Adjusted EBIT margin was 8%, above guidance range. Bookings grew ~2% y/y with a book-to-bill ratio of 0.85, trailing 12-month book-to-bill ratio at 1.08.

• Total revenue expected $12.67B to $12.81B, organic decline narrowed. - CES expected low single-digit decline, GIS mid-single-digit decline, Insurance mid-single-digit growth. - Adjusted EBIT margin between 7% and 8%, non-GAAP diluted EPS $2.85 to $3.35. - Full year free cash flow increased to ~$650M. - Third quarter organic revenue decline 4%-5%, adjusted EBIT margin 7%-8%, non-GAAP diluted EPS $0.75-$0.85.

Forward-looking statements subject to risks and uncertainties detailed in annual report on Form 10-K and other SEC filings; no commitment to update forward-looking statements.

Q: Talk about CES business, early areas to improve and 4Q outlook?

A: Raul discussed core track improvements (e.g., SAP practice) and fast track progress; Rob noted trailing 12-month book-to-bill for CES at 1.15, expecting improvement.

Q: Trends in GIS business and Hogan?

A: Raul mentioned GIS has higher scores, lower churn; Rob noted project-based services difficulty but pipeline building. Raul discussed Hogan extension with AI API-centric approach.

Q: Runway for AI investments?

A: Raul said low cost of ownership of AI tools; Rob noted balance sheet capacity to make investments.

Q: Confidence in closing large deals amid competitive pricing?

A: Raul cited interest in new offerings; Rob noted stable pricing.

Q: Details on Hogan product?

A: Raul discussed Hogan extension as accretive, leveraging legacy code and data rights.

Q: Sustainability of cost discipline for margin growth?

A: Rob said sustained cost management possible; Raul mentioned internal AI tools for cost structure.

Q: Headcount strategy with AI?

A: Raul said new talent key for transformation; Rob said balancing resources with demand.

Q: Milestones enabling fast track opportunities?

A: Raul cited new talent as absolute key; Rob said third year of free cash flow in range expected to continue