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ASHBURN, Va. - DXC Technology (NYSE:DXC) reported third-quarter fiscal 2025 results that exceeded earnings expectations but fell short on revenue, causing shares to drop 3.6% in after-hours trading.
The IT services company posted adjusted earnings per share of $0.92, surpassing the analyst estimate of $0.77 by $0.15. However, revenue for the quarter came in at $3.23 billion, missing the consensus estimate of $3.26 billion. Compared to the same quarter last year, revenue decreased by 5.1%, or 4.2% on an organic basis.
Despite the revenue miss, DXC Technology raised its full-year guidance. The company now expects fiscal 2025 adjusted earnings per share of approximately $3.35, up from its previous forecast of $3.00 to $3.25 and above the analyst consensus of $3.17.
"I am pleased with our third quarter performance. Our operating model changes and focus on disciplined execution is reflected in our third quarter financial results, which were ahead of guidance," said DXC Technology President and CEO, Raul Fernandez.
The company reported a book-to-bill ratio of 1.33x for the quarter, indicating strong future demand. DXC also increased its full-year free cash flow guidance to approximately $625 million, up from the previous estimate of $550 million.
For the fourth quarter of fiscal 2025, DXC Technology projects revenue between $3.10 billion and $3.13 billion, representing a YoY organic decline of 5.5% to 4.5%. The company expects an adjusted EBIT margin of approximately 7.0% and non-GAAP diluted EPS of about $0.75 for the quarter.
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