DXC Technology, based in Ashburn, VA, is a global IT services provider helping businesses manage their critical systems and operations. The company reported its fourth quarter and full-year fiscal 2025 results, indicating a decline in revenue but an increase in bookings.

In the fourth quarter, DXC generated total revenue of $3.17 billion, down 6.4% year-over-year, and down 4.2% on an organic basis. The adjusted EBIT margin stood at 7.3%, decreasing by 110 basis points from the previous year. Adjusted EBIT was $230 million, a decline of 19% year-over-year. Non-GAAP diluted earnings per share was $0.84, down 13.4% year-over-year from $0.97.

For the full fiscal year 2025, total revenue amounted to $12.87 billion, reflecting a year-over-year decline of 5.8% and an organic decline of 4.6%. The adjusted EBIT margin for the year reached 7.9%, a slight increase of 1% compared to the prior year. The company’s non-GAAP diluted EPS for the fiscal year was $3.43, up 10.6% year-over-year.

DXC’s free cash flow for the fourth quarter was $111 million, a decline from $155 million in the fourth quarter of fiscal 2024. For the entire fiscal year, free cash flow totaled $687 million, down from $756 million in the previous year.

Bookings were up more than 20% year-over-year, achieving a book-to-bill ratio of 1.22 in the fourth quarter, compared to 0.94 in the same quarter last year. Full-year bookings increased by 7%, reflecting a strong performance in the second half, with a trailing book-to-bill ratio of 1.03.

Segment performance for the fourth quarter indicated a decline in Global Business Services (GBS) revenue to $1.63 billion, down 4.8% year-over-year, with a profit margin of 10.9%. Global Infrastructure Services (GIS) revenue fell to $1.54 billion, down 8.1%, with a profit margin of 7.0%. Both segments saw substantial bookings growth.

Looking ahead to fiscal 2026, DXC expects organic revenue to decline between 3% and 5%. The adjusted EBIT margin guidance is set between 7% and 8%. The company has projected non-GAAP diluted EPS to range from $2.75 to $3.25 and anticipates free cash flow for the year to be around $600 million. For the first quarter of fiscal 2026, organic revenue is estimated to decline by 4% to 5.5%, with adjusted EBIT margin guidance for the quarter between 6% and 7%.