Q2 2025 DXC Technology Co Earnings Call Transcript
Key Points
- DXC Technology Co (DXC) reported a solid quarter with adjusted EBIT margin and non-GAAP EPS exceeding guidance.
- The company raised its full-year guidance for adjusted EBIT margin and non-GAAP EPS.
- DXC Technology Co (DXC) generated free cash flow of $48 million for the quarter, significantly higher than the same period last year.
- The company is expanding its gen AI offerings, which have shown successful client engagements and increased revenue.
- DXC Technology Co (DXC) has implemented a global shared services model to consolidate and optimize processes, improving agility and cost efficiency.
- Total revenue declined 5.6% year-over-year on an organic basis.
- The book-to-bill ratio for the quarter was 0.81, indicating challenges in securing new business.
- Corporate spending on discretionary projects remains under pressure, affecting potential growth.
- The GIS segment saw a 9.6% year-over-year decline in revenue, with services revenue down 8%.
- Free cash flow for the quarter was lower compared to the same period last year, driven by deteriorated DSO performance.
Good afternoon and good evening. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the DXC Technology Q2 FY '25 earnings call. (Operator Instructions) And with that, I would like to begin our call and I would like to turn it over to Roger Sachs, VP of Investor Relation.
Thank you, operator. Good afternoon, everybody, and welcome to DXC Technology's second quarter earnings conference call. We hope you've had a chance to review our earnings release posted to the IR section of DXC's website. Speakers on today's call are Raul Fernandez, our President and CEO; and Rob Del Bene, our Chief Financial Officer. Our agenda will be as follows: Raul will provide an overview of our results and an update on our strategic initiatives.
Rob will then walk you through our financial performance for the quarter as well as update you on our full year outlook and provide some thoughts on our fiscal third quarter. Raul and Rob will then
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