The chart below shows how DXC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DXC sees a +0.98% change in stock price 10 days leading up to the earnings, and a -2.08% change 10 days following the report. On the earnings day itself, the stock moves by -0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
EBIT Margin Expansion: Adjusted EBIT margin equaled 8.6%, expanding 130 basis points year-over-year.
EPS Growth Year-Over-Year: Non-GAAP diluted EPS was $0.93, up 33% year-over-year.
Free Cash Flow Increase: Generated free cash flow of $48 million for a year-to-date total of $93 million compared to $16 million during the same period last year.
EBIT Margin Expansion: Adjusted EBIT margin expanded 130 basis points year-over-year to 8.6%, above our guidance for the quarter.
Gross Margin Expansion: Non-GAAP gross margin for the second quarter was 25.1%, expanding 170 basis points year-over-year.
Negative
Revenue Decline Analysis: Total revenue of $3.2 billion declined 5.6% year-to-year organically, which was towards the high end of our guidance range.
Book-to-Bill Ratio Improvement: Our book-to-bill ratio for the quarter was 0.81, a modest improvement from 0.77 in Q1.
Sales Performance Overview: During the quarter, we executed sales of approximately $60 million with a loss of $27 million.
G.I.S. Revenue Decline: G.I.S., which represents 48% of total revenue, declined 9.6% year-to-year organically as services revenue was down 8% in line with prior quarter, and resale declined 19%.
Free Cash Flow Increase: Our free cash flow for the first half of fiscal 2025 equaled $93 million compared to $16 million for the same period last year.
DXC Technology Company (DXC) Q2 2025 Earnings Call Transcript
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