DXC reports fiscal Q2 results and lowers forward outlook
DXC Technology reported fiscal Q2 2027 revenue of $3.03 billion on October 29, 2026, down 4.0% year over year, with adjusted EBIT margin of 6.2% and non-GAAP diluted EPS of $0.67. The company guided fiscal Q3 revenue to ~$2.98 billion and non-GAAP diluted EPS to ~$0.55, while setting fiscal 2027 revenue guidance at $11.91 billion to $11.98 billion and non-GAAP EPS guidance at $2.25 to $2.50. DXC also disclosed ongoing discussions about a possible insurance-business sale and repurchased $60 million of shares.
Why it matters
The company’s Q3 and full-year outlook gives investors a weaker forward revenue trajectory than the reported quarter, while the possible insurance-business sale could change DXC’s portfolio if completed. Investing.com reported that the Q3 and fiscal-year guidance was below analyst consensus, and that the shares fell after the update.
Key facts
- 1Q2 fiscal 2027 revenue was $3.03 billion, down 4.0% year over year and 4.0% on an organic basis. prnewswire.com
- 2Q2 fiscal 2027 adjusted EBIT margin was 6.2%, while non-GAAP diluted EPS was $0.67, down 20.2% year over year. prnewswire.com
- 3First-half fiscal 2027 free cash flow was $405 million, compared with $337 million in the prior-year period. prnewswire.com
- 4DXC guided fiscal 2027 revenue to $11.91 billion to $11.98 billion and non-GAAP diluted EPS to $2.25 to $2.50. sec.gov
- 5DXC said it was in ongoing discussions about a possible sale of its insurance business and repurchased $60 million of shares. sec.gov
Open questions
- Material 2 reports Q2 revenue of $7.45 billion and non-GAAP EPS of $0.15, which conflict with the $3.03 billion revenue and $0.67 non-GAAP EPS reported in materials 3 and 4.
- The possible insurance-business sale remains under discussion, with no transaction value, buyer or closing date confirmed in the primary materials.
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.