DXC Technology reported second quarter 2027 results that surpassed analyst expectations on both the top and bottom lines. While total revenue declined 4.0% to $3.03 billion, the result was ahead of the $3.00 billion estimate. Non-GAAP diluted EPS of $0.67 comfortably beat the $0.55 consensus. The company's performance was bolstered by a significant organic growth spike in the insurance segment, helping to mitigate continued double-digit declines in its legacy infrastructure business.
Key Highlights
- Revenue beat analyst consensus by approximately 1%, supported by a 23.1% organic revenue increase in the Insurance segment following favorable contract modifications.
- Non-GAAP EPS of $0.67 outperformed expectations of $0.55, despite a 20.2% year-over-year decline as the company navigates legacy headwinds.
- Global Infrastructure Services (GIS) continues to struggle, with organic revenue falling 10.0% and segment profit margins contracting 310 basis points to 4.6%.
- Management confirmed ongoing discussions regarding a potential sale of its Insurance Software & Services business, which currently maintains an 11.4% profit margin.