DXC Technology filed its second quarter fiscal year 2027 earnings release on October 29, 2026, reporting total revenue of $3.03 billion and disclosing ongoing discussions regarding a possible sale of its insurance business.

Key Highlights

  • Total revenue: $3.03 billion for Q2 FY27, down 4.0% year-over-year and down 4.0% on an organic basis.
  • Diluted EPS: $0.15 on a GAAP basis; Non-GAAP diluted EPS of $0.67, down 20.2% year-over-year.
  • Adjusted EBIT margin: 6.2% for the quarter, with GAAP EBIT margin of 2.2%.
  • First-half free cash flow: $405 million, compared to $337 million in the same period last year.
  • Share repurchases: Approximately 5.7 million shares repurchased for $60 million during the quarter.
  • Q2 bookings: $2.4 billion, down 10% year-over-year, with a book-to-bill ratio of 0.80x.
  • Insurance business: The company disclosed "ongoing discussions regarding a possible sale of its insurance business."

DXC Technology Q2 FY27 Segment Results and Guidance

According to the filing, DXC Technology (NYSE:DXC) reported second quarter fiscal 2027 results on October 29, 2026. Total revenue of $3.03 billion declined 4.0% year-over-year. GAAP EBIT was $66 million, down 52.2% year-over-year, while adjusted EBIT came in at $187 million, down 26.4% year-over-year. Cash generated from operations was $217 million, down 46.9% year-over-year, and Q2 free cash flow was $91 million, compared to $240 million in Q2 of fiscal year 2026.

The filing breaks results into three segments. Consulting and Engineering Services ("CES") reported revenue of $1,213 million, down 3.3% year-over-year, with segment profit of $125 million and a margin of 10.3%. Global Infrastructure Services ("GIS") reported revenue of $1,427 million, down 10.0% year-over-year, with segment profit of $66 million and a margin of 4.6%. Insurance Software and Services ("Insurance") reported revenue of $394 million, up 23.1% year-over-year, with segment profit of $45 million and a margin of 11.4%. The filing notes that Insurance organic revenue growth "includes a favorable contract modification entered into during the second quarter of fiscal 2027."

For the full fiscal year 2027, the company provided guidance for total revenue in the range of $11.91 billion to $11.98 billion, an organic decline of 5.5% to 5.0% year-over-year. Adjusted EBIT margin is guided at 5.75% to 6.25%, Non-GAAP diluted EPS at $2.25 to $2.50, and free cash flow of approximately $600 million. For Q3 FY27, guidance calls for revenue of approximately $2.98 billion, adjusted EBIT margin of approximately 6.0%, and Non-GAAP diluted EPS of approximately $0.55. The company also disclosed "ongoing discussions regarding a possible sale of its insurance business."

What Was Disclosed

DXC Technology reported Q2 fiscal 2027 financial results including revenue of $3.03 billion, GAAP diluted EPS of $0.15, Non-GAAP diluted EPS of $0.67, and $60 million in share repurchases, along with full-year and Q3 guidance and disclosure of possible insurance business sale discussions.