DXC Technology has revealed its financial result and main achievements for the first quarter of fiscal year 2025.
DXC Technology reported 6 percent drop in revenue to $3.24 billion with net income of $25 million (down 40 percent) and margin of 0.8 percent.
DXC Technology has generated sales of $1.284 billion from Consulting & Engineering Services, $389 million from Insurance Software & BPS, $1.206 billion from Cloud, ITO & Security, and $357 million from Modern Workplace.
DXC Technology CEO Raul Fernandez said: “Our teams are focused on designing and implementing solutions that embed engineering skills, AI and industry expertise to capture opportunities in an expanding addressable market. As our enhanced operating model gains traction, we believe it positions us well to deliver greater value for our customers.”
DXC Technology said Book to Bill ratio was 0.77x, compared to 0.89x in the first quarter of fiscal year 2024.
DXC Technology’s Global Business Services (GBS) revenue was $1.67 billion (down 2 percent).
Book to Bill ratio of 0.83x, compared to 0.84x during the first quarter of fiscal 2024
DXC Technology’s Global Infrastructure Services (GIS) revenue was $1.56 billion (down 10 percent).
Book to Bill ratio of 0.70x, compared to 0.94x during the first quarter of fiscal 2024
DXC Technology is targeting revenue of $12.74 billion – $13.02 billion for full year fiscal 2025, compared to the prior outlook of $12.67 billion to $12.95 billion, a decline of 6 percent to 4 percent.
DXC Technology is targeting revenue of $3.19 billion and $3.22 billion in the second quarter fiscal 2025, a decline of 6.5 percent to 5.5 percent.
DXC Technology has recently completed a strategic realignment of its business operations into five key verticals: Financial Services, Automotive and Manufacturing, Healthcare and Life Sciences, Airlines, and the Public Sector. The company aims to leverage its significant domain expertise in these areas to develop industry-specific solutions that address unique challenges.
To enhance its operating and delivery model, DXC Technology has also embarked on several initiatives. These include optimizing its global delivery network to better utilize talent across different geographic regions, increasing the adoption of generative AI (Gen AI) capabilities for application development, and implementing a new workforce planning management system.
Within its Insurance Software and Business Process Services (BPS) unit, which generates over $1 billion in annual revenue, DXC is exploring opportunities to accelerate growth. The company plans to provide further updates on these developments in the near future.
DXC’s Global Infrastructure Services (GIS) division, which includes its infrastructure, security, and modern workplace teams, is being consolidated under the leadership of Chris Drumgoole, a seasoned executive within the company. This move is expected to enhance the development and delivery of secure technology solutions that meet the evolving needs of customers. The integrated GIS workforce, comprising nearly 50,000 professionals across 70 countries, boasts over 49,000 certifications in key technologies such as AWS, Google Cloud, and Microsoft Azure.
In the Cloud, IT Outsourcing (ITO), and Security sectors, DXC is focusing on developing targeted offerings, investing in top-performing accounts, and increasing the use of its AI-driven intelligent automation platform. This platform helps customers quickly detect and resolve IT issues, preventing future problems.
Within the Modern Workplace sector, DXC is implementing AI and Gen AI tools to improve chatbot capabilities, enabling them to handle more service requests. The company is also working on improving operational efficiency by consolidating and standardizing processes across its sales, business, and account operations. As part of this effort, DXC is in the final stages of upgrading its ERP system to S/4HANA, with initial migrations expected to begin later this year.
DXC’s comprehensive approach to revamping its go-to-market strategy and optimizing operations across its divisions is already yielding positive results, with notable improvements in service delivery metrics and client satisfaction scores. The company continues to redirect investments towards high-value, front-end initiatives to drive further growth and success.
Baburajan Kizhakedath
