The lowered full-year guidance signals ongoing revenue pressure, particularly in the GIS segment which saw a 10% organic decline. The possible sale of the insurance business introduces strategic uncertainty. Monitor for updates on the insurance divestiture and Q3 results for any stabilization in the core business.
Price Chart
Executive Summary
DXC Technology reported Q2 FY27 revenue of $3.03B, down 4.0% YoY, and non-GAAP diluted EPS of $0.67, down 20.2% YoY. Revenue and adjusted EBIT exceeded expectations, but the company lowered its full-year FY27 guidance: revenue now $11.91B-$11.98B (prior $12.11B-$12.35B) and non-GAAP EPS $2.25-$2.50 (prior $2.40-$2.90). The company also disclosed ongoing discussions regarding a possible sale of its insurance business.
Key Financial Metrics
Key Facts
- Q2 FY27 revenue $3.03B, down 4.0% YoY (organic -4.0%)
- Non-GAAP diluted EPS $0.67, down 20.2% YoY
- Adjusted EBIT $187M, down 26.4% YoY, margin 6.2% vs 8.0% a year ago
- Full-year FY27 guidance lowered: revenue $11.91B-$11.98B (prior $12.11B-$12.35B), non-GAAP EPS $2.25-$2.50 (prior $2.40-$2.90)
- Q3 FY27 guidance: revenue $2.98B (organic -6.0%), non-GAAP EPS $0.55
- GIS segment revenue declined 10.0% YoY, segment profit down 45.9%
- Insurance segment revenue up 23.1% YoY (includes favorable contract modification); company disclosed possible sale of insurance business
- Bookings of $2.4B declined 10% YoY, book-to-bill 0.80x
- Repurchased $60M of shares (5.7M shares) in Q2
- Free cash flow $91M in Q2 vs $240M a year ago; H1 FY27 FCF $405M vs $337M
Financial Impact
Full-year FY27 revenue guidance lowered by ~$200M-$370M at midpoint; non-GAAP EPS guidance lowered by $0.15-$0.40 at midpoint
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Consulting and Engineering Services (CES) | $1.2B | -3.3% |
| Global Infrastructure Services (GIS) | $1.4B | -10.0% |
| Insurance Software Services (Insurance) | $394.0M | +23.1% |
Risk Factors
- Continued revenue decline in GIS segment (10.0% YoY) and overall organic revenue contraction
- Lowered full-year guidance implies further deterioration in H2 FY27
- Possible sale of insurance business could create execution risk and distract management
- Free cash flow in Q2 was $91M vs $240M a year ago, a 62% decline
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001688568-26-000089 |
| Document: dxc-20261029.htm | 0001688568-26-000089 |
| Document: 0001688568-26-000089-index-headers.html | 0001688568-26-000089 |
| Document: 0001688568-26-000089-index.html | 0001688568-26-000089 |
| Document: 0001688568-26-000089.txt | 0001688568-26-000089 |
| 8-K Data (Synthetic) | 0001688568-26-000089 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $15.57 | awaiting T+60 | awaiting T+60 | $14.98 (+3.79%) |
Oct 15, 2026 17d ago | Press Release | $13.62 | awaiting T+60 | awaiting T+60 | $14.98 (+9.99%) |
Sep 18, 2026 6w ago | Press Release | $10.78 | awaiting T+60 | awaiting T+60 | $14.98 (+38.96%) |
Aug 12, 2026 11w ago | Institutional Cluster | $10.68 | awaiting T+60 | awaiting T+60 | $14.98 (+40.26%) |
Jul 30, 2026 13w ago | Press Release | $11.24 $16.09 | ▲ +43.15% | ▲ +40.68% | $14.98 (+33.27%) |
Jun 11, 2026 20w ago | 8-K | $8.82 $11.66 | ▲ +32.20% | ▲ +27.80% | $14.98 (+69.84%) |
Jun 4, 2026 21w ago | DEFA14A | $9.01 $11.29 | ▲ +25.25% | ▲ +21.25% | $14.98 (+66.26%) |
May 7, 2026 25w ago | 8-K | $9.44 $10.97 | ▼ −16.27% | ▼ −13.55% | $14.98 (−58.77%) |
US Market Status
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