DXC - Earnings call transcript Q2 2025

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Operator

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.

Roger Sachs

Thank you, operator. welcome Technology's and Conference Quarter everybody, Call. afternoon, to Second DXC Earnings Good had review chance posted hope a We you've to IR of to section our DXC's website. the release earnings President call Raul Bene, today's Chief Officer. Financial and on Speakers our Fernandez, our Rob and are Del CEO;

to you our initiatives. will performance fiscal will follows: update Rob take some on on outlook well give our expressed thoughts financial quarter. of will forward-looking. the year to cause agenda on an our differ quarter third call. will update the results uncertainties, call as provide an questions. Certain Raul These Raul make then our Our materially and will on for and we from and as and be Rob are overview subject could as risks full then those results on our comments statements be strategic your which today's you provide actual

in of not You report commit discussion do made can any XX-K find to We on during a and updating these forward-looking our other filings. call. Form statements annual and SEC today's uncertainties risks

investors. in Additionally, Raul. to GAAP today's be call, we our financial most to that, the non-GAAP that the earnings believe the let included tables this With provide included information measures over release. to discussing are we comparable useful turn call during measures will Reconciliations in me

Raul Fernandez

for our revenue adjusted the EPS a fiscal non-GAAP Roger. everyone, report in EBIT guidance for quarter afternoon, us and our second end Good our of and and you, today earnings you exceeding margin Thank with range. high pleased towards call. thank XXXX quarter, solid to coming I'm joining

we've proud for team from year our momentum this our raising the non-GAAP margin are together year. initiatives new leadership has we performance, our how and full early adjusted and guidance seen of EBIT come this Given EPS. I'm

forward. even in is going on a building initiatives, to our foundation support ahead, we're there go-to-market stronger While solid focused work particularly more performance and execution

total year-over-year. compared revenue margin And quarter, year. an a period million during $XX the of $XX points basis. $X.XX, during Adjusted year-over-year X.X%, to cash generated diluted we on of the up year-over-year. Non-GAAP flow organic was declined $XX total Specifically, basis year-to-date X.X% million for equaled million EPS XXX same free EBIT expanding XX% last

spending projects corporate we more discretionary continue that will believe our pressure, initiatives opportunities While biggest to lie on near-term significant under remains results. impact self-help a drive on our in

bookings remain the feel Our needed area make in we quarters. an the I upcoming and intense progress of focus, will

quarter. book-to-bill our expect We ratio improve the third in to

to delivery a deep sales we team local sales respond during certified; initiatives improved the with a by These of include: global dynamics understand executive sponsorship global program and detailed cadence new new client of to execution, go-to-market sales and regional client market regular now to leveraging several is second members a drive solutions footprint a including program expertise while a quarter deeper competitive needs and and the to value training provide; client XXX Being specific Our and resources. To presence global solutions tailored and allows we that to meet delivering complemented advantage implemented serving discipline local by clients. approach. team augment nearly performance relationships. of revamped the assessments relationship reviews, drive our us new

we transformations, standardized digital more our offerings segment, initiated solutions. build where to help during our accelerate clients we Global Additionally, continue refine to and delivery models tactical in Services quarter, our scalable the we Business second actions and In on our several drive progress.

requirements are hired met. Engineering global & Consulting ensure in sharpen to leader Services, a on delivery track, and Specifically, new operations, projects we keep contract

of gen RISE so AI S/XHANA cloud excellence are SAP with center leveraging scale implementations, we application model enterprise clients We can to are our proof DXC a of and more production. concepts to their capabilities, Fast accelerate expanding service SAP offerings beyond using building

recent Let of X gen highlight examples engagements. AI me

activities The Excellence such deployed customer this virtual more more freeing built to the Equitable XX% to as AI gen Gen services has AI-based we client, to gen value-added a faster of of which planning. applications, growing financial more AI-powered client, enabling success representatives complex several creation documents, on of leading Center XXx. by financial service relationship them Holdings, solution respond led quickly focus agent. a a and of For the and analyzes for This thousands solution than developed the

We card large helping new bank global time-to-market a also credit accelerate for are products.

code By Java the gen embedding time-to-market of bank edge. our highly lines AI-powered less of capture industry. AI a into solutions, share conversion competitive with errors. faster thousands Our solution Expediting market many automates sharpening of across we're competitive to hundreds XX% our of the positions of the legacy in better

ensuring secure We AI way. This client life deployments models AI opportunities initial includes building from of are identifying help that CES. and approach to numerous is a latest reliable. to in manage within current, matching in momentum practice the gen data businesses data solutions to needs clients our AI access language full and gen the providing that grow clean, their cycle with meet This and solutions is complete

continue We as software insurance geographically. expand business to grow in and well services to to reoccurring mix our invest our as

help drive we and in public manage for evaluating to a greater enhanced of our all platforms, presence value actions grow and delivery accountability. and portfolio range We resources. ITO, Services And we a accelerate our streamlined deliberate to brought opportunities represents across leaders and out solutions, segment, profitability quarter. long-term place security improve are software and single capabilities. and the have of several during consistency clients thoughtful modern performance rolled our new cloud our modern being stakeholders. To We technology improve to sector, and workforce system drive our workplace management to leader to and innovation in security better under We Infrastructure which Global took sales our very the deliver we in

a improvement Score. Promoter record and quality to realizing in metrics overall a delivery service, our Net are leading notable We of

seen have we contract in terminations. result, a reduction meaningful As

services our serve increases our account agility shared eliminating is sales, fully and and better optimize implemented, global consolidating, across business, Our operations. costs. now to processes This standardizing, model redundant and clients

and migration Our ERP wave first consolidation systems. remains legacy on track, from our successfully we have initiated plan the

expect and margin are time. to applications. positioned We platforms reduce clients revenue growth groundwork through these for ecosystem the well we initiatives on migrations software expansion cloud opportunities, our over migrating top-tier including all maximizing to capabilities, cloud-native expenses to partner returns With to cost-effective lay and engineering and capture

months, the resilience, capability, witnessed team's to and commitment our past Over XX global clients. I've shared

capable winning. only of also We worthy are not but

consistently doing Now on our scale. is focus so and at

tactical this and accountability, with a to rewards industry right this workforce this, the a formula firm commitment am complementing To involve we our and support combination of for success. execution, leaders deep recruited is measurable realizing group confident Our proven, journey to innovative to IT hungry, I reenergized talented and tied services essential vision success. expertise, will portfolio. have

model, enduring leader, stronger As we global experienced of success. solid and results opportunity first-time we our enhanced are as believe a with executing execute an Embracing are we the I move path each passion to precision operating for the firmly we delivering forward. foundation on building of the a with entrepreneur

for a me let to detailed review second over quarter call Now results. turn Rob of our the

Robert Del Bene

our our good our third I'll outlook, afternoon, with full along quarter you fiscal for with everyone. and quarter. XXXX view and results updates review year second our provide Today, the Raul, to Thanks, latest

in to to included performance, I no in point and will Before reporting the on discussing of the a facilities of EBIT change these adjusted our second are be and of gains out considered be longer the EBIT. adjusted our sale as estate want in transactions quarter, Starting losses nonoperational. real calculation

During are from free million loss are adjusted losses, flow, executed included not quarter any adjusted EBIT clear, included previous from in EBIT, second we with cash guidance the and sales million. approximately the transactions of be quarter, were for $XX reported To of these proceeds cash the results. which excluded the not a in $XX

We range. a section billion download results. our from to that IR declined end view provided the our the data towards Total sheet guidance website. And of now X.X% you revenue Excel change which the DXC's have our our organically, of of $X.X can of reporting high in year-to-year results reflecting historical was on

the X.XX a primarily book-to-bill X.XX, development which nature year-to-year, same basis Adjusted points of trailing for the The improvement year-to-year gross a the revenue management XXX costs to full primarily Our due expanded performance by change, reclass a the The points within margin XX.X%, development our to settlement X ongoing SG&A expanding our basis point points of X.X%, XQ. related gross the year. business margin is XX.X% for to GIS X.XX, higher impact better representation the a the second would This as basis from cost and XXX quarter. was quarter. cost a matter, driven EBIT ratio of of book-to-bill was year-to-year. to was have XX points percentage XX last quarter compared X.X% Absent ratio was from increase modest expanded spending. last initiatives guidance as related reclassification margin. Non-GAAP of to XX-month spending. point was One a was in benefit SG&A, margin the to quarter for business this segment. Non-GAAP the which basis legal added of management due of to was yield to nonrecurring a above

year. year-to-year. impact contributing impact, $X.XX improvement. $X.XX, SG&A in second non-GAAP and the as was count, flat revenue a of of $X.XX share Non-GAAP last lower was EBIT a the from by The driven a $X.XX increase primarily higher have of the quarter been percent Excluding would up EPS adjusted each

XX% results. to which by organically. turning year-to-year GBS efficient profit due X.X% XX.X% Now segment represents XX to year-to-year total was our to GBS, resource management. revenue, points basis of largely margin The more down increased

organically our Workplace low-margin X.X% The of The of from organically. primarily with market just X% deal the XX-month which deals. GIS, was revenue. down to revenue of revenue our with to ratio disciplined expanded data GBS ratio higher improved centers this Engineering ratio our organically, contributes declined resource large in almost revenue and large management, trailing XX% X% number and equaled CES' quarter X.XX due was business prior and services year-to-year book-to-bill optimize which and this The X.X Modern as and ratio down in basis mix organically XX-month Security timing is represents in about while and XX%. impacting the X.X% deals. The the representing due new the and revenue with with declined the book-to-bill BPS down reminder, XX% declined revenues and GIS, book-to-bill actions XX%. tend in XX.X% X.X% and trailing variation resale longer Embedded to of application XX-month year-to-year services largely is duration continued The to was largely a book-to-bill quarter-to-quarter, on organically software revenue, book-to-bill points to to certain segment, X/X both services business, stable X.XX X%, resale remains which organically resale first and to declined X.X. Insurance services line revenue horizontal X.X%, attributed Cloud/ITO of total X% to year-to-year X.XX, disciplined Profit of close we be total Within X.XX. bookings book-to-bill Services X.X projects, trailing grew the quarter. Consulting X% as networks, ratio reduce lower custom book-to-bill over resale X.XX. year-to-year and was the down line the down deals. renewals ratio to margin equaled with lumpy core XX% declined X.XX quarter, significant insurance year-to-year approach Within concentration performance ongoing & last year-to-year as about ratio a and the trailing of was given revenue. XX-month pressures of And total, up year-to-year. at

to turning Now balance sheet. flows our and cash

million same free our million new from cash $XX less and $XX originations which largely in $XX year-to-year, driven quarter, decline last by down last $XXX million million year. equaled as million, was about the down defined million, cash the year. compared operating $XX The deteriorated equaled performance, period the During quarter. CapEx, were Capital DSO to lease $XX flow flow, in expenditures

expenditures and prior million of the capital together, period as by improved and declined basis points percent leasing to revenue for XX X.X%. Taken originations $XX a

equaled revenue, percent as 'XX XX X.X%. and the Our to basis free of million $XX year. of points improved period million last for cash for flow And compared fiscal the first lease CapEx a half originations to same $XX

updated in At our million. approach. a moment the where $XXX the the flow fiscal year, a With year. We We're achieve million reflected that to our is Now the plans taking of measured we would restructuring the you net cash told track since putting us utilizing cost to anticipate million our efforts, free of increase saving $XXX by headcount we're guidance. adjustment This on approximately beginning full disciplined reduced we have on spending very fiscal approximately year, of our by the beginning $XXX practices, now maximum hiring a currently we XXXX. for into revising year-to-year. X,XXX

our and This partially the our through leases. impact paying During approximately driven payments our on euro balance euro-denominated by reduced debt strengthening $XXX quarter, the was bonds. we of retiring the paper of action offset outstanding commercial capital million, by down cash outstanding

full Now our outlook. with let thinking me you year provide on our latest

we to organically, between behind range the us, the year of have the now and expecting half year-to-year with for total range X.X% revenue tightening As are and we're midpoint unchanged. revenue the decline X.X%

business, now we seeing longer slightly better offset year-to-year, than full conversion somewhat by anticipate in GIS decline CES we our expectation. to revenue our and market performance Given times prior slightly conditions GBS year are

of raising from a year, adjusted to margin full in prior first year to guidance result a our X.X% to performance the the outlook of X.X% EBIT As strong of our half X.X%, range up X.X%. our of we're

and EBIT adjusted labor all year second during partially IT, half. increases first lower half to primarily marketing, our sales, and ramping be the due to margin This is the the efficiencies. than in by offset expect investments of We merit

$XXX update to prior driven to full is year outlook. year the capital. And adjusted and third These is Free tax now continue maximum effective being restructuring million. of is largely a are expected to We benefits now non-GAAP the partially to This an cash the $X.XX diluted $X. about margin expect $X.XX to year cash compared primarily expansion between to anticipated $XXX be by anticipated million. from be the and increase This outlook our increase for approximately non-GAAP lower of $XXX prior EBIT approximately the of million, working due to for increase of now improvement of flow by our the rate view Full offset of $X spending outlook flow our EBIT XX%. is of a quarter. EPS

in the our call total X.X%, $X.XX expect with EPS to to X.X% EBIT Roger. decline to sequential and let X.X% organic $X.XX. improvement activity We of investment revenue margin me the anticipate the ratio. adjusted I reflecting a book-to-bill We with And of to that, to finally, range just in mentioned, higher diluted X.X% non-GAAP turn back

Roger Sachs

for Thank now your to like you please Rob. the I'd the Operator, questions. call you, provide open can instructions?

Operator

of first Our Instructions] Ajzenman today from [Operator question comes from with line Zack the Cowen.

Zachary Ajzenman

Bryan. Zack is for This on Ajzenman

question both of wanted dig for Nice uptick restructuring. first the flow, extension Just bit free like It on and this a driven 'XX. fiscal profitability sounds to little the to see is by in the cash further.

in Just and in to fiscal wanted on to levels the a growth 'XX, goal get sustainability quarters was back seen better to and the coming years. I the 'XX. sense know get

and free you beyond other kind continue of and As margin upside back are does that Or still you cash to on extend build to levers flow from goals? the get restructuring fiscal 'XX? those that program, there weigh help

Robert Del Bene

question, Yes. the Thanks Zack. Rob. is for This

with me flow very reminder, a year, when the 'XX restructuring guidance, let be cash lease our the the without we would said and we the set beginning in X -- consistent approach originations, cash our So lease the for free change years. of free just at as of the fiscal originations, flow prior

out at origination free X now you So look the a we cash we are the from if that fundamental account or base assessment here maintained you with, years. last and flow strong level for forecast at is changes, also similar year, very have full of the that the generation. And restructuring lease for back when

So flow into that the that free $XXX and is year, of foundation maintained 'XX. cash foundation will this be million maintained in fiscal

of As cash I we'll this beginning at with we precise not. the we'll will the and -- restructuring said think get previous year, more over of of consistent closer the being give the to of whether out should what how you consistent years. the and fundamental with obviously, or as carry much end year But generation figure guidance

Zachary Ajzenman

revenue to the nice And stabilization. then see helpful. moving That's --

dig segment? Can dig the booking way the It market kind to want improvement broader you just into an parse moving you to versus pieces Just any GIS, of sounds expected to in company-specific GBS, go-to-market quarters. by coming like And in the the to on potential stricter to can on structural like X.X anything factors the dynamics? say return book-to-bill. specifically. the

Robert Del Bene

Yes.

half. our GIS half bookings is first a And so second have lumpier confidence work forward we So will in well. the and confidence as have we a book-to-bill that perspective. from into Insurance little the segment it's CES that going not in from on as both meaningful project-based improve

from CES Now pipeline we been -- a has have perspective, growing.

new been management up new of the in slightly. to closure that ticking So new and our is consistent, pipeline. leaders our organization, is And system, evidence hold, go-to-market our first take starting have slightly rates

the in of X.X-plus to have quarter And in our in performance off based October, of pipe, the which we the year. in range, opportunities expect be fourth to a us, than range. bookings by the way, also will the with and And of Modern half on it third into So from had the on quarter front -- in reminder, based We rates will renewals. pipelines, gives second a that business, improvements better us based Workplace in ITO, the and was confidence that dependent year. lumpy second so X.XX quarter book-to-bill there. In again, going as expect CES improve was it the closure half our large we're better those confident X-plus the the as better do good in on well, both on we're are we that, start first our we

both So indicators improved and GIS to are all CES. our pointing here in internal performance of

Raul Fernandez

point. amplify Zack, let just on X me other

bringing XX recruit in can for GBS, XX assist an them about and they X.X so I've in other and experience companies new recruiting, senior here, deliver. of and helped we've worked team. average, I've with the For years, on both many been months. They have of or leaders into They've in been only average know I GIS

they've adding on impact very also just while early you tracked on you, just we see accurate, that can how we data is arrived. the have mechanics worked tracked, was So to talent we we on, an while been as that more we've what because I worked sure going making the gave from new

confident, feel that as So very results. we'll prepared I said where just better see are remarks, areas my those I in

Operator

is with Our line question of next the from Jason Kupferberg BofA.

Tyler DuPont

delaying expected more change This Or it for like on DuPont couple is growth Jason. to within it in on it there year. growth asking wanted past to expectations, be looks particularly a Tyler would It it basis What to are was and be specific macro of CES. lay I'm seeing I that you're for sounded the great like start made the it in the is of me potentially certain it negative full XXX but just the a by GBS. clients individual correct sort to remarks, prepared on of or this positive decelerated get over seen about And that have wrong, sounded due year-on-year see based outlook? encouraging are months quarter, if growth is of the GBS. implementation? to you around bps sequential mostly And you land what like,

Robert Del Bene

No, question. great Yes.

tied it is to the is seeing we're economy. what So

can company-specific we're mentioned you not as give us pipelines that of so A CES in to improved as it's I business, that. that color by custom enterprise is earlier, have little customer-specific. development in opposed or it's macro, our it's hit encouraged the I And harder applications. So application bit

of It's in our really close custom deals, healthy rollout apps. of a in rates good closing are projects improving. the and just slowdown Our and

in yet that's we -- down and the why half, see little bit the that and a bit don't it outlook second took So an we the were just the we're we in bit. uptick down a originally half little just We second anticipating of and a -- it took year. of

Raul Fernandez

will near amplify functions. just that in term mentioned as self-help on far believe me I've let the the Yes, macro greater I call, than impact have the as a the in that well. initiatives,

of the especially at convert get that just and we them have a we have level. opportunities. higher We teammates plenty opportunities, more We on to can with new have board,

fundamental new So confident that changes board made we've in come that give the teammates boost again, I'm that that, on need area. plus we us that the will have the

Tyler DuPont

helpful. And how was past on to I I has color wanted more very second, there. execution of if and seems changed that's the then And ask the go-to-market. on take this putting you quarters. a minute It Okay, been just I sales of and geography. since it's maybe about emphasis focusing could like over an wondering appreciate the discuss evolving couple

the sort of to that that Sort we make ground, are that direction stakes better sure to the in the of a hoping of what we're see for we're in for? lack need phrase, right moving

Raul Fernandez

Yes.

in think mechanics have was fundamentals and the I I a together on focus average, at it that here for clearly been again, weren't beginning, below and and average. Rob XX months,

we've got So getting real to revenue right sure the of on across those both working working have terms and positive system that and up backed in place the of fair for success by that we sales all is world in success, that profitability. And executives reward also is balance. but measuring on making a our average,

things got think I've terrific. global our that much of footprint the a I is appreciation one better is

on engaged ground of really combination market, sense, happen. the base skill make local And the sets know the seen the Our it lot know we terrific. know a know the is a delivery, to value talent And leaders, know the I've much had of DXC that ability individuals, that global the a that's to better the buyers, the deeper we of offering, the have the and global get of CEO never many provide. a customer of which I the sense customers, with before.

additional execute growth higher confident of So a feel those and throughput, foundation for mechanics those on I get at as there. we mechanics that we've level the laid

Operator

Susquehanna. line comes question next Our Jamie of the Friedman with from

James Friedman

comments you remarks business. prepared made some insurance I regard the of to Raul, with in ask wanted So to the your about

And You grown the the recurring services and numbers software mix. the say in insurance. Congratulations that. you've good look on especially

tactics maybe inputs those the some software the are the components insurance? related and related of recurring what to to So of like specifically

Raul Fernandez

great better question. Yes, It's execution.

in you looking about at of that still fundamentals looking of place in attributes pricing, doing basis, et in business a terms was, go-to-market segment at the they past spent affect in now at rewards, our while of we're and offerings, increases, systems, unit all bit also company. positive time entire cetera. We've a increases from looking think portfolio, that on looking it benefits the a of place, looking putting smarter, the quite relative that bit better, at If more the And are terms the put our price where or SKUs our and we a in future. price at efficient in necessary all

that to can I the portfolio behind really talent that the just revenue. able boost the to to to segment more think recurring great IP also higher-margin have some into that confidence we we deliver and recruit product but so services how that. We've level take and And really not through and shift that the innovation about been another

good that and all make can better it it's working be think I elements the better. So a on to business we're

James Friedman

the Okay. follow just could up good GIS I there as margin, progress And if on well. then

or on in better is doing But otherwise. could I the call you're those if the you increase, lower Rob, margin. you of like anyway, the of sure out did how inputs that component margin to that is So that the wasn't impacted reseller. sequence it were unpack the the in a order that

Robert Del Bene

component Yes. the job improvement. vast and element an done cost costs because outstanding of The lowering disciplined of by the team. a revenue resale majority is They've The non-people-related is management small of management resource with relatively the declines. the

attribute I'd very it's management. cost very, Jamie, disciplined So just, to just it

Operator

[Operator line Instructions] have question our next Bourgeois -- Research. from the Equity our with next We call Rod of DeepDive

Rod Bourgeois

a have that business. ITO the questions of structural couple related are to I

new last guess, relates of great trend I resale new mix headwind the side. the of couple -- how for mix. over that's resale but had on trend. into revenue before Clearly, that underway years already management came which much question is My so It's is X started, margins a first that The a is to place. been team a the not had the bit dropping, a

question resale based a my based to the on how So product having business services and that's there on room pass-through more mix the there is, reducing on and is go much stuff? less

Robert Del Bene

year-to-year the continue for And that going decline next the into of through Thanks the more then We're see this be next half stable question, decline Yes. to Rod. year. of year year. I then first second a half to and in to of second expect the half narrow

we're So most through we've gone it. most years, The last X.X of through it. of

X months another start there's think X off. I it's to then and going to level to

Rod Bourgeois

Okay. the this tapering that And portion is that intentional from of moving just actively way, or a good by away -- sort is of business you're where yes, okay.

Robert Del Bene

margins, disciplined we're we're accept. holding margin still definitely willing Yes, Rod, to but very -- to on thresholds work describe to our is our bidding on it's holding intentional. And the it way I'd the

a in the tunnel as margin the of kind coming. sticking driving of see declines revenue. losing end I But the on to we're our said, -- that we're could those those lot reduction of And thresholds. So that's that deals because were I

Rod Bourgeois

the prompting you that additional is, what's structural AI of then And migration further centers front. an as happening move Understood. other era, question that update get just into to is helpful legacy on the would to cloud? be data on And

Raul Fernandez

the compute the it as it's And to as backdrop is in excites that gave, data deployment then that then had from picking, example our first holistic me very opportunity the the legacy and GIS. through prototypes, at from sure Look, increase it, of making our our you in, then AI business question. even them, to projects cleansing it building we're incremental that different that includes deployment in it's initial And need data, experts to as I've in that we the pilot models fact great helping fast obviously, participate kind markers services. That well had and But led a remarks, terrific is together the the deploying look us my should one fees language a and data evolving, ROI for new, a was that approach correct and activity of an business that first right customers scale. in I proprietary to deployments, of line learning evolving. to set I at, talk chance be that bring it's the is gives that that's things a using, today XXx mentioned the gen Yes, that today. where than the bottom SaaS prepared our any at

continue area I Again, will all consistent it and So we where is well definitely us and positioned. for we're We demand to a lot a that's think a effectively. just need to scale have very and consistency here approach more of have an scale. -- theme

Operator

the comes question Tien-Tsin next line of with Huang Our JPMorgan. from

Tien-Tsin Huang

Just to question to picture falling visibility, Should just about experience further. Rod now generally here I we here, just thinking Raul, know election your changes. there? sensitive asked? the speaking, bigger secular visibility. that we presumably I'm And being expect relative have Any on that draw guess some certainty in improvement in and more rates to on I comments focused want place, GBS probably more

Raul Fernandez

end to that I there. from the our heard I consistent, CEOs sees and information on the team and is opportunity better. whole outlier Yes. that Look, have I an that so other I've from customers the thing in commentary execute is fundamentals just I think space no the the commentary Rob The see, hear

impact single us the those biggest get consistently key we've to term references success chance got opportunities. it opportunity self-help to get months many prepared are in more little are is little good. going environment scaling right in for I every executing have worse. some the The near that It and on talent, that XX of bigger can initiatives, better, environment. the we it's is with. my that the right together But I a in have know can next XX and a about As I all that right And I a got the which and we it. the ongoing than globally remarks, before, know get mentioned listed the macro macro and know a I that we've the and putting

Operator

Our line next question comes from with Instructions] Jonathan of [Operator Guggenheim. the Lee

Yu Lee

GBS what's of you're be outlook to, you seeing better to in of end low versus dynamics should high end of your the it, higher improvement understand outlook. needed and GIS here? Trying hit some in dig that the Can the your the we softness around how the to call versus tying end into the

Robert Del Bene

Yes. better apps and Thanks performance some To economics Jonathan. business, up just the get customers a on having end, from for the on question, little the would CES accelerate the the the custom just to we higher of the loosen projects. need

for to path higher get primary that would be So the end. us to the

in of instead would that closer GBS, So single-digit path. it draws flat that negatives, the low to be

Yu Lee

And the CES? seeing just you of follow-up, dynamics, Understood. in you're pricing talk specifically around some as can through a what

Robert Del Bene

From encouraged I'm a price deals so by stability our perspective, I that. see in

the will offerings our migrate longer for over we margin than term And higher enterprise As price encouraging. to solutions, stability deals those be us the is custom. in

move to over long beneficial from the be So term, prices my customs stable. the short will term, enterprise from in are to us. And the perspective,

Operator

that to over to call Roger. and ladies the this like hand to session gentlemen, close conclude our And today's back call. Q&A out, for And I'd will

Roger Sachs

Thank you, speaking next quarter. our again we joining with everybody, look to for today, us you call and on forward

DXC Technology (DXC) 7 Nov 242025 Q2 Earnings call transcript