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Investing.com -- DXC Technology (NYSE:DXC) reported first quarter fiscal 2026 results that exceeded analyst expectations, sending shares up 2.9% as the IT services provider delivered better-than-anticipated earnings and revenue.
The company reported non-GAAP earnings per share of $0.68, surpassing the analyst estimate of $0.61, while revenue came in at $3.16 billion, above the consensus estimate of $3.06 billion. Despite the revenue beat, total revenue declined 2.4% YoY, or 4.3% on an organic basis. The company highlighted strong bookings growth of 14% YoY for the third consecutive quarter, signaling improved client engagement.
"We delivered first quarter results at the high end of our guidance for both organic revenue growth and adjusted EBIT margin, with non-GAAP EPS exceeding expectations," said DXC Technology President and CEO Raul Fernandez. "For the third straight quarter, we reported double digit bookings growth, a clear sign we are connecting better with clients."
The company’s adjusted EBIT was $216 million, down 3.6% YoY, with a corresponding margin of 6.8%. Free cash flow improved to $97 million compared to $45 million in the same quarter last year.
Looking ahead, DXC raised its full-year earnings outlook, now expecting non-GAAP EPS between $2.85 and $3.35, compared to previous guidance of $2.75 to $3.25. The company forecasts full-year revenue between $12.61 billion and $12.87 billion, representing an organic decline of 3.0% to 5.0% YoY, but above the analyst consensus of $12.426 billion.
For the second quarter, DXC projects revenue between $3.15 billion and $3.18 billion, exceeding the consensus estimate of $3.101 billion, though this represents a YoY organic decline of 3.5% to 4.5%. The company expects second quarter non-GAAP EPS of $0.65 to $0.75, below the consensus of $0.80.
During the quarter, DXC returned $50 million to shareholders through the repurchase of approximately 3.3 million shares.
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