DXC Technology Bookings Rise as Organic Revenue Decline Accelerates
The IT services provider reported non-GAAP diluted earnings per share of $0.40 for the first quarter.
DXC Technology (DXC) reported a decline in first-quarter revenue and a sharp drop in quarterly earnings.
The results showed a widening gap between the company's top-line performance and its sales pipeline. While bookings returned to growth, organic revenue declines accelerated and profit margins compressed across key business segments.
Total revenue for the first quarter of fiscal 2027 was $3.00 billion, down 5.1% year over year. On an organic basis, revenue fell 6.7%, a steeper decline than the 4.3% organic drop recorded in the same quarter a year prior. Non-GAAP diluted earnings per share fell 41.2% year over year to $0.40, down from $0.77 in the preceding fourth quarter.
Profitability weakened as the adjusted EBIT margin fell to 5.0%, compared to 6.8% in the first quarter of fiscal 2026 and 7.6% in the fourth quarter of fiscal 2026. The Global Infrastructure Services segment saw its profit fall 60.8% year over year to $38 million, with margins compressing to 2.6% from 6.1%.
Other segments showed mixed momentum. Bookings for Consulting and Engineering Services fell 18.5% year over year, an acceleration of the 11.1% decline seen in the fourth quarter. Revenue for Insurance Software & Services grew 1.9%, though this represented a slowdown from the 5.4% growth reported in the first quarter of fiscal 2026.
Overall bookings rose 5% year over year to $3.0 billion, reversing a 13.5% decline in the prior quarter.
Free cash flow rose to $314 million, up from $97 million in the first quarter of fiscal 2026, supported by $214 million in cash proceeds from a litigation judgment. The company raised its full-year fiscal 2027 free cash flow guidance to approximately $685 million from a previous estimate of $600 million, citing litigation-related matters.
DXC announced the appointment of Paul Taylor as incoming President.