DXC Technology Q2 FY2027 Revenue Falls 4% to $3.03 Billion

DXC Technology reported second-quarter fiscal year 2027 revenue of $3.03 billion, a 4.0% decline from the same period a year earlier on both a reported and organic basis, according to results released by the IT services company.

The company's EBIT margin came in at 2.2% for the quarter, while its adjusted EBIT margin reached 6.2%, reflecting the gap between headline accounting results and the company's preferred performance metric after stripping out certain charges. The difference between those two figures suggests DXC continued to carry meaningful restructuring or one-time costs during the period.

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Diluted earnings per share on a GAAP basis were $0.15 for the quarter. On a non-GAAP basis, diluted EPS reached $0.67, but that figure represented a decline of 20.2% compared with the prior-year quarter — a steeper drop than the top-line revenue slide, pointing to margin compression or higher costs weighing on profitability.

The results underscore the ongoing pressure facing legacy IT services providers as enterprises shift workloads to cloud-native vendors and renegotiate long-term outsourcing contracts. DXC has been working through a multi-year transformation effort aimed at stabilizing revenue and improving margins, but the latest quarter suggests that turnaround remains a work in progress.

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