DXC Technology at TD Cowen Conference: Strategic Turnaround Focus

On Thursday, 29 May 2025, DXC Technology (NYSE:DXC) presented its strategic vision at TD Cowen’s 53rd Annual Technology, Media & Telecom Conference 2025. The company highlighted its ongoing turnaround efforts, balancing optimism with realism amid economic challenges. CEO Raul Fernandez and CFO Rob DelBenny outlined plans to leverage AI and strategic projects to drive growth, despite forecasting a revenue decline for fiscal year 2026.

Key Takeaways

• DXC Technology is focusing on a strategic turnaround, emphasizing AI and financial services.
• The company forecasts a 3% to 5% revenue decline for fiscal year 2026 due to economic uncertainty.
• A $150 million share repurchase program is planned for fiscal 2026.
• The adjusted EBIT margin target is set at 7% to 8%, with a focus on cost reduction.
• Free cash flow is projected at $600 million, reflecting increased restructuring costs.

Financial Results

• Revenue is expected to decline by 3% to 5% in fiscal year 2026, influenced by economic uncertainty and a slowdown in short-term services.
• Adjusted EBIT margin is targeted at 7% to 8%.
• Free cash flow guidance is set at $600 million, impacted by a reduction in after-tax EBIT and $30 million in restructuring costs.
• A $150 million share repurchase program will be executed linearly, with adjustments as needed.

Operational Updates

• DXC is focusing on four pillars: People, Process, Culture, and Scale.
• Leadership changes include 22 new appointments in the extended team over 15 months.
• The company is investing in AI-centric work, particularly in financial services and core banking.
• There is a cultural shift towards greater on-site presence to enhance teamwork and learning.

Future Outlook

• The primary goal is achieving positive revenue growth.
• DXC plans to expand margins through sustained profitable growth and capitalize on AI initiatives.
• Economic uncertainties present challenges, but internal efforts aim to offset these.
• Potential M&A activity is contingent on achieving positive revenue growth.

Q&A Highlights

• Revenue growth will focus on converting opportunities into bookings and winning renewals.
• Fiscal year 2026 guidance is cautious due to economic uncertainty affecting short-term services.
• The company aims to maintain a book-to-bill ratio above 1.0 to support future revenue growth.

Readers are encouraged to refer to the full transcript for a more detailed understanding of DXC Technology’s strategic plans and financial outlook.

Full transcript - TD Cowen’s 53rd Annual Technology, Media & Telecom Conference 2025:

Brian Bergen, Analyst, TD Cowen: All right. We’re going kick off here. I’m Brian Bergen from TD Cowen, of IT Services and Payments. Very pleased to have DXC Technology with us next for this fireside. With us from DXC, have Raul Fernandez, President and CEO and Rob DelBenny, CFO.

We also have Roger Sachs and Tiffany Horvath in the room from IR, so appreciate all your time today.

Raul Fernandez, President and CEO, DXC Technology: Thank you. Thanks.

Brian Bergen, Analyst, TD Cowen: DXC, for those that don’t know, it’s a diversified IT services vendor serving enterprise clients with application consulting and engineering services, infrastructure, workplace offerings, and other solutions. Its broad based workforce comprises approximately 120,000 professionals globally, and it serves a wide variety of enterprise Fortune 2,000 companies. I think what would be best, Raul, will be kind of an opener on the DXC State of the Union. So you’ve been in the CEOC for now for a bit over a year, right? Talk about how what that primary focus for you has been since taking the helm.

And just at a high level, how would you characterize that State of the Union?

Raul Fernandez, President and CEO, DXC Technology: Yeah, sure. So look, I think it’s a bit of context that’s helpful here. So DXC came together as a combination of CSC and HP. But as you look at the 23andMe chart of DXC, it’s made up of a lot of companies, right? And I think one of the things that I knew coming into it and then one of things that became a deeper sense of appreciation awareness, was there was a lot of federated operations, so offerings in countries and subsets of divisions, really not working as a unified team.

And so that was one of the big opportunities that I noticed very early on and began really the rebuild and the turnaround around kind of four pillars people, process, culture, and scale. People brought in a tremendous amount of talent at the executive level. And then two or three levels down that I knew came from a different that had kind of like, the best way to put it is a survivability DNA, right? They’ve been through situations where they’ve had to figure it out. It wasn’t a, oh, just do what the last guy did and that’s what you needed here.

You needed a fresh look. Company is incredibly blessed with incredible clients and a wonderful history with those clients. So if you were to start any business from scratch, what would you want? You want a good product and you want a good client base. Well, we have a good product and we have an incredible client base.

The product, our services, can still have a lot of upside. And that, again, is where people leadership comes in, but processes. Better ways, best practices in pre solutioning, better practices in marketing, better practices in sales, better practices in sales performance management. I noticed that when I came in a year ago, I was coming in at the beginning of the new fiscal year. So budgeting cycles were already underway.

I really didn’t have a chance to put my imprint on it. As we went through last calendar year and fiscal year, I realized that there was a lot more oversight needed in our revenue function. And I stepped in as interim chief revenue officer in November, recruited somebody who ramped up over the first few months of the year, and then we announced him in March. But being able to be in the process pre fiscal year of quota development, planning, cross referencing territories and people and accounts and making sure that we’re paying for the right things was something that, again, hadn’t been done in the past, was remedial. You think it’s basic, it is basic, but it hadn’t been done.

So the discernment that a lot of basic foundational work needed to be done got the people to begin to get that done, got a culture change in terms of how we approach things, how we’re going to be more self propelled, how we’re going to be more entrepreneurial, and then processes that are repeatable. Like, Okay, here’s what good looks like, here’s what great And we’re going to repeat great over and over and scale it and train it. So those are kind of that’s the state of where we were. We’ve laid a strong foundation.

We’ve had some great early wins, both quantitatively and qualitatively. Quantitatively, quarter over quarter of a book to bill of over one point zero is obviously building a good track record mathematically. At some point, over one point zero gets you into a positive revenue trajectory. And that’s our number one goal is to get to positive revenue, profitable growth in the right categories, super indexed on AI, super indexed in a couple of industries where we’ve got a degree of knowledge and insight that exceeds some of our competitors financial services, core banking, and some modernization work. I’m super excited about some of the early wins there.

But it’s a great, great global company. It’s big enough to be globally important, but small enough to still be able to manage. So if you think about the heavyweights, we’re on the lighter side of the heavyweights in terms of scale. But that’s easier to try to get more nimble and be more nimble.

Brian Bergen, Analyst, TD Cowen: Okay, makes sense. You touched on a lot there. Obviously people, process, culture. When you think about what’s furthest along versus what you need to lean into most to catch up, where would you

Raul Fernandez, President and CEO, DXC Technology: Processes, replicability. There’s early, hey, this worked, we won. Let’s do it again. Now let’s do it again in all the offerings and all the geographies and all the languages. Then let’s make sure that we’re doing it again from the ground up and that it’s not a one off to be successful.

I know at any given day, I can field a team that can beat anybody. But I can’t do that at scale yet. So I have to do that at scale.

Brian Bergen, Analyst, TD Cowen: Okay. Okay. As you think about the timeline for these major initiatives, so how did you build that plan? So we’re talking one, two, three years. I know you’ll get to a state where there will always be continuous improvement.

But the heavy lifting, how long do you think that’s going to take?

Raul Fernandez, President and CEO, DXC Technology: This is a foundational setting year. So we identified what needed to be fixed in the first year. I’m going to call it calendar year versus fiscal year, the first calendar year. This new calendar year, which again blends in fiscal years, is leadership mainly in place, foundational go to market elements, everything from the delivery side to the pre sales and sales side in place, need to get repeatability and replicability of certain winning motions and actions. And then lean into a couple of new things that we think are going to be great spearheads for us and beachheads for us in terms of getting new work, AI centric work.

Brian Bergen, Analyst, TD Cowen: Okay, makes sense. So then as we kind of talk about that leadership and the changes you’ve made, pretty notable, at least the count here on last call, talked about 22 changes in the extended leadership team in about fifteen months, including that new chief revenue officer. So talk a little bit about those backgrounds. You mentioned kind of survivability. Just double click there.

Raul Fernandez, President and CEO, DXC Technology: It’s people that I’ve worked with either in an operating role I’ve worked with because I’ve been an investor in their company, a board member in their company. But they’ve had to constantly figure things out on their own. And they’ve had to constantly not just accept or take a current business model or current set of opportunities, but reshape it and reshape it with will and with intelligence and with teamwork. And so having personally recruited a lot of these people, I knew they were successful in their past. And I think that the trait from a DNA standpoint is just I think there are great people that know playbooks and they run playbooks.

There are great people that run playbooks, they run playbooks and then they also make the next playbook. And that’s what we have here.

Brian Bergen, Analyst, TD Cowen: Okay. So it certainly sounds like scrappy but also challenging everything that’s been done in the past within the company. Yeah. Okay. Okay.

You know, when you make a lot of these changes, there’s there’s naturally, as as leadership comes in, they have their people that follow them and take their roles. Yep. There’s execution risk around that. How do you think about building that into the plan?

Raul Fernandez, President and CEO, DXC Technology: I think the execution risk of not making changes is higher than the execution risk of keeping And that’s a different point of view, right? Usually, oh my gosh, I don’t mind. I know I can get more people. I know I have a deep bench of talent at all levels instead of my people. And so if we’re not aligned on doing things in a different way clearly, eight years of revenue decline is nothing there’s nothing winning about that.

And I’m not here to continue that trend. I’m here to reverse that trend and make it positive. And I’m going to bring and do everything I can as fast as I can to make that happen. Okay. All right.

Brian Bergen, Analyst, TD Cowen: Very clear. Why don’t we pivot to demand? So it’s obviously been a very volatile environment in technology and services particularly. What have you seen over the last several quarters? Just kind of talk about the progression of client demand in the conversation.

Raul Fernandez, President and CEO, DXC Technology: We can talk about macro, but at the micro level, I’ve met over 100 customers, big ones, 500,000,000 in TCV, 100,000,000, 50 million, all sizes, new work at 100,000,000. And I am incredibly, positively shocked every time I meet them and I talk about another part of the business that they’re not using from our services standpoint. And they all say, well, you need to send that person in or that division needs to come in and present. There’s more opportunities here. We clearly do a lot with you.

We can do more with you. You’re a trusted partner. We’re getting the list of our trusted partners. They’re shrinking. You should be taking a bigger share of that.

And if I’m hearing that at my level, that should be across the board. So much more engagement with customers. We have the skill sets. We have the case studies. We have the references.

You just have to engage and you have to be present to win. This company, early pre COVID, went very remote. COVID, obviously, very remote. But we’re, like other tech companies, swinging back, using every facility we have to fill it up as fast as possible. Not just from an execution standpoint does that make us better as teammates.

But you have to be there to learn from both the good things you do and the bad That’s how I learned from watching others that were ahead of me professionally do both the positive things and the negative things. So that’s another culture shift as well. So from a demand standpoint, great customers, great relationships, great reason to go have a conversation. From an offering standpoint, some really innovative things that we are now positioned from an AI standpoint in a way that’s understandable.

A lot of this early stuff is a lot of new terms that are thrown around and new things that in two years will be like, well, of course, that’s that. But cutting through that noise and actually seeing real bottom line results and then also taking advantage of the leverage we have, being so close to these customers, we have the most insight on infrastructure readiness, on data readiness, and on people and process readiness. We are uniquely positioned to know where they are on the spectrum to take in massive AI projects. And we’re uniquely positioned to help them get there. And so that insight and that positioning is one we just have to take better advantage of.

So yes, macro uncertainty, certain industries obviously hit more, pauses, elongation. But I’ve lived through, since the late ’90s, a bunch of these highs and lows in the macro environment. And this one so far, yes, a little bit of turbulence, a little bit of noise, heavier in some industries than other. But I think our own self help execution outweighs anything that overhangs today from a macro standpoint.

Brian Bergen, Analyst, TD Cowen: Yeah, Okay. That’s clear too. There’s a bit of a difference here for what you’re seeing in those conversations. Are you able to attach that though, the company specific kind of goodness of the changes in the processes you’re making versus that sentiment of the client and their decision making? Even recent weeks, there’s been obviously good and bad headlines around tariffs.

Is there anything that’s changed?

Raul Fernandez, President and CEO, DXC Technology: Yeah. Look, I think you’re seeing certain industries that have been hit directly on their cost of goods input and they’re pausing certain things or recasting their outlooks or taking away guidance. There are some that are hit more than others. And there are some that even though they’re hit, they’re in a category like we have a luxury car partner manufacturer where we run the production floor, plus we run some of the in car infotainment systems. And they’ve got pricing power.

They can pass along 20% tariff increase. So every customer in every industry has a different story on how they’re dealing with this. But I think the counterbalance to this is you cannot not go into these AI initiatives. And the early ones are going to be wide and maybe not have the ROI. But they’ll give you the experience to understand where is it that you can double down.

Where do you have to fix your data? Where do you have to fix your processes? Where do you have to restack your people in terms of skill sets? And then how quickly can you get an ROI on all that stuff.

Brian Bergen, Analyst, TD Cowen: Okay. Okay. You’ve had you’re showing some building traction, some early traction. You’ve got two straight quarters now of that book to bill above one. How do you feel about the ability to sustain that in the near term?

You’re entering a new fiscal year, so we understand that there could be seasonality. But any color you could share there?

Rob DelBenny, CFO, DXC Technology: Yes. So far, just connecting a couple of thoughts here. We do see strength in our pipeline, particularly in strategic projects. So we’re seeing we’ve seen a little bit of a slowdown in demand in the shorter term project based services, and that’s what Raul was referring to. And if you look at our bookings for the second half of the fiscal year and our pipeline in the short term for the first and second quarter, those project based shorter term services are kind of flattish as opposed to robust growth.

But strategic projects, the larger strategic projects are where we really succeeded in the second half of the year. And the pipelines going forward are really strong in those categories as well. And our full year pipe for the company is encouraging. And we have to convert and progress the pipe naturally. But early indications are that pipeline’s looking robust and certainly better than it did a year ago.

Raul Fernandez, President and CEO, DXC Technology: Revenue is the key to this, right? It’s in general. More revenue cures a lot of sense, right? And so having a better go to market, having a better top of the funnel pipeline, and then making sure that your conversion rate, which historically has been pretty good for us, stays the same or gets better, will lead you to book to bills over one. And over time, that will leave you into the positive revenue trajectory.

But it all starts with a qualified larger base funnel opportunities, revenue opportunities. And certainly converting on new opportunities. Exactly. And then the other piece, it’s offense and defense. So that’s the offense.

The defense is win all your renewals, keep all your customers happy, which by a lot of metrics in the last twelve months, they’re in great positions. And don’t lose anything on the defensive side, meaning your renewals. And then on the offensive side, get better at capturing more business in those accounts and then capturing net new accounts, which was one of the reasons we highlighted Carnival Cruise Lines in our last earnings call because that was one where the pursuit started in, I want to say, the February time frame of last year. Some of the new players were actually touching literally the proposal as it was going in. And we made it through a field of 22 competitors, beat an incumbent, didn’t win on price.

We won on quality and overall execution capability. So it’s a great that’s why I feel so confident that on any given day, we can do that. I can’t do it at scale yet. And scale is what we’ve put the foundational elements for the company in place with the people and the processes to do that at scale.

Brian Bergen, Analyst, TD Cowen: Okay. Okay. What can you say about kind of the mix of work that you have been winning in that new versus renewal or extension? And then also just any trends around the ACV in some of these, the duration of ACV, just to give us context as that layers in?

Rob DelBenny, CFO, DXC Technology: Yes, I’ll take the second one first. The ACV, because the bookings we’ve had are longer term in nature, the durations are longer. So the ACV is robust, but the mix is different than last year’s ACV. Okay. And it’s more spread out over time, which is why we guided the way we did for the full year.

So that’s been factored into our guide along with the resale continuing to decline year to year because because of the economic environment. Six months ago, I would have said resale would be flat in fiscal twenty six. And now we’re calling for a decline because it’s discretionary. Companies could stop a refresh of equipment very quickly and postpone it, right? And that’s what’s bled into our pipe and into our guide for the year.

The bookings, I mean, bookings have been, my comments related to the bookings are pretty consistent across CES, across that business and in project based services within GIS, there’s consistency there as well where discretionary is being postponed, strategic are being given the green light. And then with the insurance business, that’s extremely lumpy related to renewals. So those will bounce up and down, but our confidence in our backlog entering the year in the insurance business is very strong. Okay.

Brian Bergen, Analyst, TD Cowen: Now as you we talk about all these qualitative trends and some quantitative, but when we bring that to a guidance framework as you thought about fiscal twenty six, what are some of the nuances there as it related to maybe client ramp progression? Any of deal wins or conversion? Any any of those factors that are important to consider?

Rob DelBenny, CFO, DXC Technology: Yeah. Guide of minus three to minus five, we left room at the low end of that guide for further economic uncertainty. And baked into those numbers is the resale impacting us by about a point year to year? Is project based services continuing as it has the last couple of quarters, continuing for the year? And that’s another point.

So there’s a couple of points of economic uncertainty baked into the guide. And if there are improvements and the project based services are released, we we’d be on the better end of the guide. And if not, we’ve factored that in. Short of worsening, I think we’re at the first half versus the better end of the guide versus the worse end of the guide.

Brian Bergen, Analyst, TD Cowen: It’s been relatively consistent since. Yes. More or less, right? Yes. Okay.

And then when you think about coverage, how much you already have in hand in that backlog to get to the middle of your range, how do you forecast that?

Rob DelBenny, CFO, DXC Technology: We have a really good view of backlog entering the year. So we know exactly how much sell and deliver we need within a year. And our supporting backlog at the beginning of fiscal twenty twenty six is similar in magnitude to historical rates. So we’re not expecting an outsized performance or improvement in the opening back. It’s kind of similar to previous years, there’s consistency.

Brian Bergen, Analyst, TD Cowen: Okay. Okay.

Rob DelBenny, CFO, DXC Technology: And we’ll be looking over time, we’ll be looking for improvements to that backlog position as we progress.

Brian Bergen, Analyst, TD Cowen: Okay. You feel that the changes you’ve made in the front end, the go to market, the sales comp structure, does that give you improved visibility as you build this out? Does it help?

Raul Fernandez, President and CEO, DXC Technology: It gives us, I’d say coverage is a better word. And again, being able to have looked at the deployment of the quotas this year versus last year, was too late. Like, I just got here and they were out the door. This year is better than last year and next year will be even better than this year because I’ve got somebody that will have been there a year full time, not part time, because I was literally just doing it because we didn’t have one. Okay.

And it’ll get better.

Rob DelBenny, CFO, DXC Technology: Yeah, the discipline in recording opportunities, and we use Salesforce, The discipline in recording opportunities and progressing those opportunities is vastly improved from a year ago. It’s much better. So the predictability of the pipe is better than it was a year ago.

Brian Bergen, Analyst, TD Cowen: Okay. Let’s shift to margin. So you’ve laid out an adjusted EBIT margin target of 7% to 8% for 2026. You’re obviously making many changes in the organization investments, but at same time, there’s optimization. Is there a way to scale the gross savings that you’re driving in the plan and then obviously the net investment that comes from that?

Raul Fernandez, President and CEO, DXC Technology: I think when you do turnarounds, there’s a period of time, period of performance where you’re paying for multiple things at once while you’re sorting things out, right? So it’s never perfect where you’re like, Okay, I’m going to offload these people, these costs, these systems, and I’m unloading. So it’s never a perfect wave. There’s always going be some other momentum. So part of what we have this year is an overlap overhang, which we’re going to work through with the new leadership in place.

But those are investments and, in some cases, paying for some things that next year we’re just going to be better fine tuned to refine and go, Okay, this is the winning play and we can take out this other stuff. So that’s one of the overhangs on the expense side.

Rob DelBenny, CFO, DXC Technology: Yeah, so one way to think about it is that, you know, the pressure associated with the revenue declining and both the variable and fixed costs that we have to take out of the system as a result of the revenue declining, Where we’ve been very successful in keeping pace with the revenue declines and ripping out enough cost. And we’ve gone, included in that has been substantial overhead reductions and efficiencies that were process efficiencies we’re driving throughout the company. And we’ve been able to, in ’25, make investments and compensate for the revenue declines. And the plan for ’26 is going to be similar that we still are guiding to a revenue decline. So we have cost takeout plans that are similar in magnitude to last year plus overhead, non volume related reductions plus investments we’d like to make that account for the guide we gave.

And we’ve got room in there to make incremental investment if we have more opportunity or want to increase sales capacity. Okay.

Brian Bergen, Analyst, TD Cowen: Okay. Let’s keep this moving down from margin to cash flow then. So I think you’ve given a $600,000,000 guide for free cash flow. Walk us from maybe EBIT or the net income level to that. Any moving pieces then within network capital or CapEx?

The way key pieces there.

Rob DelBenny, CFO, DXC Technology: The think about it is on a year to year basis, we’re going from the $680,000,006 90,000,000 range to 600,000,000 in the guide. And that is simply the reduction in after tax EBIT and accounting for 30,000,000 increase in restructuring year to year. So that’s the simple math. And we think that positions us well. And then we have a lot of other free cash flow levers that we will work during the year to try to improve our position and give us more flexibility.

So other than the EBIT decline and the restructuring reductions, think of all else being flat year to year and we’re going to go work the basics on every line item.

Brian Bergen, Analyst, TD Cowen: Okay. Obviously, lot of moving pieces beyond that too with finance leases too. And when you net those together, talk about the trend you’ve seen over the last two years.

Rob DelBenny, CFO, DXC Technology: Yes. So we yes, thank you for that. So we made a change in 2025 where we stopped, almost completely stopped signing up for new capital leases and we ran everything through capital expenditures, which hits free cash flow. So if normalize for that fundamental and we did that to pay down debt, if you will, paying off our capital leases without signing new originations. So it pays down the debt.

So that was purposeful. We said we’d do it at the beginning of the year. We executed on that. And if you were to normalize for that activity over the last three years, our free cash flow has actually grown nicely. And I showed that chart in the earnings call, right.

So it’s it was really good free normalized free cash flow performance on a year to year basis. And we’re going to continue that strategy on capital leasing or minimizing capital leasing in fiscal twenty twenty six.

Brian Bergen, Analyst, TD Cowen: Okay. So as you work through all these changes in the organization, you’re driving to get to growth. As if you’re successful on this, what does it as we sit back and think about margin or free cash flow margin, what does an optimized free cash flow profile for this business look like?

Rob DelBenny, CFO, DXC Technology: I think the in terms of optimizing, our goal is with sustained profitable revenue growth, we expand margins and we’ve got room for margin expansion, think of it as three, four point range, we could foresee that would drop the free cash flow. That’s the way we think about it.

Brian Bergen, Analyst, TD Cowen: And you’ve done a lot of the heavy lifting in the network and capital programs now in the balance sheet. You Yes. Last one on guidance here. Just as we think about cadence for fiscal twenty twenty six, any important puts and takes as you move through the year on growth or margin or cash flow?

Rob DelBenny, CFO, DXC Technology: Look, we are from a guidance perspective, I think the revenue guide, as I mentioned earlier, leaves room at the lower end economic conditions worsen a bit. For us, execution of this opportunity pipeline is paramount. I have confidence that we’ll execute on the cost reductions that we need to make. I have confidence that we’ll be able to deliver consistently strong free cash flows. The pluses and minuses to those numbers will be our execution of the pipeline and performing on the revenue line.

Brian Bergen, Analyst, TD Cowen: Okay. Okay. We’ll go last topic here with capital allocation. So you’re starting the buyback. You’ve laid out $150,000,000 repurchase target in 2026.

Maybe first off, how are you thinking about the deployment of that? Is it opportunistic? Is this relatively even throughout the year? In

Rob DelBenny, CFO, DXC Technology: our guide, we mentioned that we should think of it as being linear through the year and around the edges if there’s, we’re going to remain opportunistic in the very short term here.

Brian Bergen, Analyst, TD Cowen: Okay. And you’re aiming to do that while maintaining, I think, a cash level that’s pretty consistent, right? Entering and exiting the year?

Rob DelBenny, CFO, DXC Technology: Yes. That’s correct. That’s correct.

Brian Bergen, Analyst, TD Cowen: As you do that, how does the rank order of capital allocation priorities change? Talk to that dynamic. As you know, understanding the 150 repo now, but as you complete that program as we look ahead, when do you feel that M and A may come back into the picture?

Raul Fernandez, President and CEO, DXC Technology: So I think part of what didn’t happen before was things weren’t integrated. So I’ve got to fix stuff in the past. I’ve got to make sure the foundation is solid. And then it has to be a win win. It’s just not accretive.

But it’s got to be keep the customers, keep the key people, expand your either offering or geography in some way that you’re doing it faster through an M and A exercise than organically. And then something else, like whether it’s the company has an incredible ability to get talent and scale that talent at a better way in that part of the world than we do. So I’ve bought and sold a lot of things. I invest in a lot of things. So I’m pretty conservative when it comes to doing this because I think we have a lot of the right stuff in place.

So it’s not like I need to buy anything to win. When I buy something, it’s got to be a clear winner for us. It’s got to be a clear winner for them. But it’s got to be mathematically and operationally out of the park.

Brian Bergen, Analyst, TD Cowen: Okay. And presuming you guys are successful in executing, then your own shares are likely even more attractive than you. Exactly. Right. Okay.

The other side of this, can acquire things, you could also divest things. There’s been talk over time about portfolio pruning. As you look at what you have today, that still in the conversation? Do you like what you have? How are you thinking about that?

Raul Fernandez, President and CEO, DXC Technology: Yeah, look, I think we know that there are certain business units because of the flavor of revenue, the margin that are valued more than holdco. Obviously, they are. But our number one goal is positive revenue growth. And once we’re down that path, we can then hopefully have a different point of view on valuation. And we can think about what’s the best move to go to the next stair step of value creation for shareholders.

I mean, we’re all aligned. We want the most value creation as quickly as possible but on a solid foundation. So near term, no. Medium term, let’s see how it plays out in terms of the marketplace. Okay.

That’s clear.

Brian Bergen, Analyst, TD Cowen: We’re out of time. Raul, Rob, thank

Rob DelBenny, CFO, DXC Technology: you very much. Thank you. Thank you

Raul Fernandez, President and CEO, DXC Technology: so much. Appreciate it. Thanks.

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