DXC Technology Reports First Quarter Fiscal Year 2025 Financial Results
Intellectia.AI Updated: 1970-01-01
DXC Technology Reports First Quarter Fiscal Year 2025 Financial Results
DXC Technology (NYSE:DXC) has announced its financial results for the first quarter of fiscal year 2025.
Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $3.24B | $3.45B | -6% | $3.14B |
| Diluted EPS | $0.14 | $0.17 | -18% | $0.58 |
| Non-GAAP Diluted EPS | $0.74 | $0.63 | +17% | N/A |
| Operating Cash Flow | $238M | $127M | +87% | N/A |
| Free Cash Flow | $45M | -$75M | N/A | N/A |
| Net Income | $25M | $42M | -40% | N/A |
Interpretation: DXC’s revenue slightly exceeded consensus estimates despite a year-over-year decline of 6%. The non-GAAP diluted EPS saw a significant annual increase, hinting at more efficient operations or cost control. However, the diluted EPS came in lower than estimates indicating some underlying pressures. The strong growth in operating cash flow and positive transition in free cash flow reflect solid cash management.
Revenue Performance by Segment
| Segment | Q1 FY2025 Revenue | Q1 FY2024 Revenue | YoY Change | Segment Profit | YoY Change |
|---|---|---|---|---|---|
| Global Business Services (GBS) | $1.67B | $1.71B | -2% | $181M | -6% |
| Global Infrastructure Services (GIS) | $1.56B | $1.73B | -10% | $114M | +25% |
Interpretation: The GBS segment had a slight revenue decline but maintained a positive organic growth. GIS faced a steeper revenue decline, yet it achieved a notable increase in segment profit, signifying improved operational efficiencies in that area.
Comments from Company Officers
Raul Fernandez, President and CEO of DXC Technology, expressed satisfaction with the quarterly results, emphasizing the improved execution and the potential of their enhanced operating model to deliver long-term shareholder value.
Operational Data
- Book-to-Bill Ratio for Q1 FY2025 was 0.77x, compared to 0.89x in Q1 FY2024.
Dividends or Share Repurchase Program
No information on dividends or share repurchase programs was provided.
Forward Guidance
DXC has increased its full-year adjusted EBIT margin outlook to range between 6.5% and 7.0%, and raised the lower end of its non-GAAP diluted EPS outlook to $2.75-$3.00. The revenue guidance is adjusted to a range of $12.74B to $13.02B. For Q2 FY2025, DXC expects revenue between $3.19B to $3.22B and non-GAAP diluted EPS between $0.70 and $0.75.
Stock Price Movement
After the earnings release, DXC Technology's stock experienced a 2.23% increase, reflecting investor optimism about the financial performance and improved guidance.
Conclusion: DXC Technology's Q1 FY2025 results indicate a modest outperforming of revenue expectations, promising improved profitability metrics, and increased cash flows, amid sectoral revenue challenges. The uptick in stock price post-announcement underscores positive market reception to DXC’s improved operational performance and optimistic forward guidance.
