On this page of StockholderLetter.com we present the latest annual shareholder letter from DXC Technology Co — ticker symbol DXC. Reading current and past DXC letters to shareholders can bring important insights into the investment thesis.


To our shareholders Fiscal year 2026 was one of meaningful progress in repositioning DXC Technology for the future. We laid the foundation to enable us to bring new AI-based solutions to the market and reshape how we operate. During the year, we delivered strong free cash flow and solid profitability and earnings; however, we were not satisfied with our revenue performance. We remain focused on improving execution to stabilize revenue and position the business for sustainable, profitable growth over time. The market shift The enterprise market is changing rapidly. AI is no longer a future consideration. It is actively reshaping how companies operate, consume technology services and measure results. The challenge facing most enterprises is not access to technology but knowing where to apply it, how to redesign processes around it, and how to scale it without an established playbook. DXC s strategic response Combining governance, automation and human expertise to move organizations from pilots to production deployments that deliver measurable outcomes, DXC s Xponential framework is how we answer that challenge for clients. We draw on our deep domain expertise and decades of experience across customers technology environments to apply AI where it delivers real We remain focused on improving business results. We are applying these same principles inside DXC through our customer zero model, embedding AI in how we operate, deliver and protect our clients. execution to stabilize Across the company, teams are deploying AI agents to automate workflows, revenue and position sales, legal, HR and marketing. The result is much more than cost efficiency. the business for compress cycle times and improve quality, and adoption is expanding across We are seeing increased capacity and faster decision making that we are bringing to our clients. sustainable, profitable growth over time. Raul Fernandez President and Chief Executive Officer, DXC Technology DXC Public | 1
Examples we are bringing forward with clients include the following: DXC CoreIgnite enables banks to modernize and innovate, connecting capabilities such as buy-nowpay-later, stablecoin and modern remittance into legacy platforms so banks can move at fintech speed without core banking risk. Smart Apps is a suite of AI-enabled solutions for our Insurance clients that improve productivity without disrupting core systems, running on our Assure Platform and generating scalable SaaS revenue. DXC OASIS is our agentic orchestration platform that Bringing AI solutions to market and scaling innovation Over the past two years, we have focused on building AI-native solutions grounded in real enterprise use cases, designed for complex, highly regulated environments where systems cannot afford to fail. These new fast-track solutions are AI native, or highly infused with AI, are replicable, and are built on proprietary fundamentally changes how we deliver our managed services. It moves beyond monitoring and incident management to autonomous remediation and service optimization, orchestrating across a client s full technology ecosystem. We launched DXC OASIS with an initial group of customers in April, and early traction is encouraging, including its role in a large new client win. methodologies, models and frameworks that create LabX is the key enabler of our future solution defensible moats. They carry a margin profile distinct from development, providing an environment inside DXC that of our traditional services, and they are designed to where we build and test solutions tied to real enterprise be scalable, platform agnostic and drive outcomes. needs. We test them internally, refine them and bring those with clear customer value to market. This approach accelerates innovation while reducing risk for our clients. 2
Financial performance and capital allocation Looking ahead Revenue was $12.6 billion, down 4.8% on an organic basis, taken from this year give us greater clarity on where we reflecting continued pressure in discretionary, project- need to improve and how we will execute more consistently. based services in a challenging macro environment. Entering fiscal year 2027, our focus is on the following Despite these top-line challenges, our financial discipline priorities: helped keep adjusted EBIT margin largely steady while Scale our AI-native offerings including DXC CoreIgnite, generating another year of strong free cash flow as we Smart Apps and DXC OASIS with a goal of expanding continued to invest in the business. into broader enterprise adoption We also continued to execute against our capital The progress we have made and the learnings we have Continue modernizing operations to help improve allocation priorities, returning $250 million to profitability as AI-driven productivity transforms our shareholders through share repurchases and reducing managed services delivery debt by approximately $500 million, further strengthening the balance sheet and maintaining flexibility as we invest We expect these efforts to begin showing up in our results in the next phase of DXC. over the course of the year, and we will hold ourselves accountable for that progress. Fiscal year 2026 highlights include the following:* DXC has deep client relationships, strong technical Total revenue of $12.6 billion (down 1.8% year over year; down 4.8% organically) EBIT margin of 2.8%; adjusted EBIT margin of 7.7% Diluted EPS of $0.10; non-GAAP diluted EPS of $3.23 Cash generated from operations of $1.2 billion; free cash capabilities and decades of trust in mission-critical environments. Fiscal year 2026 was an important step in reshaping the company, and we are confident in our ability to build on that progress. Thank you for your continued trust and support. flow of $713 million Share repurchases of approximately $250 million Raul Fernandez President and Chief Executive Officer DXC Technology * Please see non-GAAP reconciliations of EBIT margin and adjusted EBIT margin to GAAP net income margin provided at the end of this annual report. For non-GAAP reconciliations of organic revenue growth, non-GAAP diluted EPS and free cash flow to their respective most directl compara le GAAP measures, see the Form for the ear ended arch , , included as part of this annual report. 3
 • shareholder letter icon 6/4/2026 Letter Continued (Full PDF)
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 • stockholder letter icon 6/14/2024 DXC Stockholder Letter
 • stockholder letter icon 6/5/2025 DXC Stockholder Letter
 • stockholder letter icon More "Information Technology Services" Category Stockholder Letters
 • Benford's Law Stocks icon DXC Benford's Law Stock Score = 81


DXC Shareholder/Stockholder Letter Transcript:



To our shareholders
Fiscal year 2026 was one of meaningful progress in repositioning DXC
Technology for the future. We laid the foundation to enable us to bring new
AI-based solutions to the market and reshape how we operate.
During the year, we delivered strong free cash flow and solid profitability and
earnings; however, we were not satisfied with our revenue performance.
We remain focused on improving execution to stabilize revenue and position
the business for sustainable, profitable growth over time.
The market shift
The enterprise market is changing rapidly. AI is no longer a future
consideration. It is actively reshaping how companies operate, consume
technology services and measure results. The challenge facing most
enterprises is not access to technology but knowing where to apply it,
how to redesign processes around it, and how to scale it without an
established playbook.
DXC   s strategic response
Combining governance, automation and human expertise to move
organizations from pilots to production deployments that deliver measurable
outcomes, DXC   s Xponential framework is how we answer that challenge for
clients. We draw on our deep domain expertise and decades of experience
across customers    technology environments to apply AI where it delivers real
We remain focused
on improving
business results.
We are applying these same principles inside DXC through our customer
zero model, embedding AI in how we operate, deliver and protect our clients.
execution to stabilize
Across the company, teams are deploying AI agents to automate workflows,
revenue and position
sales, legal, HR and marketing. The result is much more than cost efficiency.
the business for
compress cycle times and improve quality, and adoption is expanding across
We are seeing increased capacity and faster decision making that we are
bringing to our clients.
sustainable, profitable
growth over time.
Raul Fernandez
President and Chief Executive
Officer, DXC Technology
DXC Public
| 1

Examples we are bringing forward with clients include
the following:
DXC CoreIgnite enables banks to modernize and
innovate, connecting capabilities such as buy-nowpay-later, stablecoin and modern remittance into legacy
platforms so banks can move at fintech speed without
core banking risk.
Smart Apps is a suite of AI-enabled solutions for our
Insurance clients that improve productivity without
disrupting core systems, running on our Assure Platform
and generating scalable SaaS revenue.
DXC OASIS is our agentic orchestration platform that
Bringing AI solutions to market
and scaling innovation
Over the past two years, we have focused on building
AI-native solutions grounded in real enterprise use cases,
designed for complex, highly regulated environments
where systems cannot afford to fail.
These new fast-track solutions are AI native, or highly
infused with AI, are replicable, and are built on proprietary
fundamentally changes how we deliver our managed
services. It moves beyond monitoring and incident
management to autonomous remediation and service
optimization, orchestrating across a client   s full
technology ecosystem.
We launched DXC OASIS with an initial group of
customers in April, and early traction is encouraging,
including its role in a large new client win.
methodologies, models and frameworks that create
LabX is the key enabler of our future solution
defensible moats. They carry a margin profile distinct from
development, providing an environment inside DXC
that of our traditional services, and they are designed to
where we build and test solutions tied to real enterprise
be scalable, platform agnostic and drive outcomes.
needs. We test them internally, refine them and bring
those with clear customer value to market. This approach
accelerates innovation while reducing risk for our clients.
2

Financial performance and
capital allocation
Looking ahead
Revenue was $12.6 billion, down 4.8% on an organic basis,
taken from this year give us greater clarity on where we
reflecting continued pressure in discretionary, project-
need to improve and how we will execute more consistently.
based services in a challenging macro environment.
Entering fiscal year 2027, our focus is on the following
Despite these top-line challenges, our financial discipline
priorities:
helped keep adjusted EBIT margin largely steady while
    Scale our AI-native offerings including DXC CoreIgnite,
generating another year of strong free cash flow as we
Smart Apps and DXC OASIS     with a goal of expanding
continued to invest in the business.
into broader enterprise adoption
We also continued to execute against our capital
The progress we have made and the learnings we have
    Continue modernizing operations to help improve
allocation priorities, returning $250 million to
profitability as AI-driven productivity transforms our
shareholders through share repurchases and reducing
managed services delivery
debt by approximately $500 million, further strengthening
the balance sheet and maintaining flexibility as we invest
We expect these efforts to begin showing up in our results
in the next phase of DXC.
over the course of the year, and we will hold ourselves
accountable for that progress.
Fiscal year 2026 highlights include the following:*
DXC has deep client relationships, strong technical
    Total revenue of $12.6 billion (down 1.8% year over year;
down 4.8% organically)
    EBIT margin of 2.8%; adjusted EBIT margin of 7.7%
    Diluted EPS of $0.10; non-GAAP diluted EPS of $3.23
    Cash generated from operations of $1.2 billion; free cash
capabilities and decades of trust in mission-critical
environments. Fiscal year 2026 was an important step in
reshaping the company, and we are confident in our ability
to build on that progress.
Thank you for your continued trust and support.
flow of $713 million
    Share repurchases of approximately $250 million
Raul Fernandez
President and Chief Executive Officer
DXC Technology
* Please see non-GAAP reconciliations of EBIT margin and adjusted EBIT margin to GAAP net income margin provided at the end of this
annual report. For non-GAAP reconciliations of organic revenue growth, non-GAAP diluted EPS and free cash flow to their respective most
directl   compara  le GAAP measures, see the Form          for the   ear ended   arch     ,         , included as part of this annual report.
3


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