Q1 2025 DXC Technology Co Earnings Call Transcript
Key Points
- DXC Technology Co (DXC) reported first-quarter results that exceeded expectations in terms of top-line, adjusted EBIT margin, and adjusted diluted EPS.
- The company achieved a 17% year-over-year increase in non-GAAP diluted EPS, reaching $0.74.
- DXC Technology Co (DXC) is seeing early success in its revamped go-to-market strategy, with an expanded pipeline driven by new deal inflows in consulting and engineering services.
- The company has initiated several tactical actions under its enhanced operating model, including optimizing its global delivery network and increasing the adoption of GenAI capabilities.
- DXC Technology Co (DXC) reported a notable improvement in delivery metrics and overall quality of services, resulting in higher client satisfaction net promoter scores.
- Total revenue declined 4% year-over-year on an organic basis, reflecting ongoing market uncertainty and cautious customer behavior.
- The book-to-bill ratio for the quarter was 0.77, indicating pressure on bookings due to restrained discretionary spending and a selective approach to new deals.
- GIS revenue, which represents 48% of total revenue, declined 9% year-over-year, continuing recent trends.
- The company is experiencing ongoing challenges in the ITO market, impacting the book-to-bill ratio for GIS, which was 0.67.
- DXC Technology Co (DXC) anticipates a full-year revenue decline of 6% to 4% year-over-year on an organic basis, with continued pressure on customer discretionary spending.
Hello and welcome to the DXC Technology Q1 fiscal year 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the call over to Roger Sachs, VP of Investor Relations. You may begin.
Thank you, operator. Good afternoon, everybody, and welcome to DXC Technology's first quarter earnings conference call. We hope you 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 second quarter. Raul and Rob will then
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