DXC Technology Delivers Strong Q2 Performance, Raises Guidance Amid Strategic Initiatives
DXC Technology, a leading global technology company, has reported a solid second quarter fiscal 2025 performance, exceeding its guidance on key metrics. The company's adjusted EBIT margin and non-GAAP earnings per share (EPS) saw significant improvements, while revenue came in at the high end of its range.
Raul Fernandez, President and CEO of DXC Technology, expressed pride in the company's new leadership team and the early momentum seen from its initiatives this year. Despite more work ahead, particularly in go-to-market initiatives, the company is focused on execution and building a solid foundation for stronger performance going forward.
Key highlights from the quarter include:
* A 5.6% decline in total revenue on an organic basis year-over-year; however, adjusted EBIT margin expanded by 130 basis points to 8.6%, and non-GAAP diluted EPS increased 33% to $0.93.
* The generation of free cash flow of $48 million for the quarter, bringing the year-to-date total to $93 million, compared to $16 million during the same period last year.
DXC Technology's President and CEO, Raul Fernandez, emphasized that corporate spending on discretionary projects remains under pressure. However, the company believes its biggest near-term opportunities lie in self-help initiatives that will drive a more significant impact on results. Bookings remain an area of intense focus for the company, with expectations to improve the book-to-bill ratio in the third quarter.
In an effort to drive improved sales discipline and execution, DXC Technology implemented several new initiatives during the second quarter. These include a client relationship training program, regular sales team performance reviews, and an executive client sponsorship program. The company also initiated tactical actions in its offerings, such as refining delivery models and driving more scalable and standardized solutions.
One notable example of recent innovation is the company's gen AI-powered virtual service agent for Equitable Holdings, a leading financial services client. This engagement demonstrates DXC Technology's commitment to leveraging cutting-edge technology to deliver tailored solutions that meet specific market needs while leveraging global expertise and resources.
