0001688568-25-000072
SEC filingDXC reported segment profit of $235M (7.4% margin) with GIS goodwill impairment $14M; purchase commitments $1.05B; share repurchases $50M; total debt $4.03B.
As of June 30, 2025, DXC held $1,792M in cash and equivalents, with total debt of $4,029M (including $929M short-term). Net debt stood at $2,237M. Shareholders' equity (DXC) was $3,168M. Deferred revenue (contract liabilities) totaled $1,353M, while remaining performance obligations were $16.7B, with 32% expected to be recognized in fiscal 2026.
Minimum purchase commitments aggregated $1,054M, with $506M due in the remainder of fiscal 2026, $458M in the next two years, and $90M thereafter. The company also has operating lease commitments of $831M (undiscounted) and finance lease commitments of $276M.
During the quarter, DXC repurchased 3,275,268 shares for $50M at an average price of $15.27. No dividends were paid. Total debt increased by $153M, driven by foreign exchange effects on euro-denominated senior notes. Capital expenditures (including software and transition costs) were $89M, or 2.8% of revenue.
DXC adopted a new segment structure in Q1 FY2026: Consulting & Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Services (Insurance). CES revenue declined 2.7% to $1,246M, with segment profit of $105M (8.4% margin). GIS revenue fell 3.5% to $1,600M, profit $97M (6.1% margin), and included a $14M goodwill impairment (excluded from segment profit). Insurance revenue grew 5.4% to $313M, profit $33M (10.5% margin). Geographically, the US contributed $828M (26%), UK $480M (15%), Other Europe $1,038M (33%), Australia $259M (8%), and other international $554M (18%).