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Item 1. Financial Statements

2025-10-31 compared with 2025-08-01 · 286 added, 180 removed, 724 unchanged (39% of the section changed)

1 unchanged sentence

Index to Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2025 and June 30, 2024 (unaudited)

Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended June 30, 2025 and June 30, 2024 (unaudited)

Condensed Consolidated Balance Sheets as of June 30, 2025 and March 31, 2025 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2025, and June 30, 2024 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended June 30, 2025 and June 30, 2024 (unaudited)

Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2025 and September 30, 2024 (unaudited)

Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Six Months Ended September 30, 2025 and September 30, 2024 (unaudited)

Condensed Consolidated Balance Sheets as of September 30, 2025 and March 31, 2025 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2025 and September 30, 2024 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended September 30, 2025 and September 30, 2024 (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

(in millions, except per-share amounts) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions, except per-share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Revenues $ 3,161 $ 3,241 $ 6,320 $ 6,477

10 unchanged sentences

Net income 40 45 58 70

net income (loss) attributable to non-controlling interest, net of tax

net income attributable to non-controlling interest, net of tax 4 3 6 2

Net income attributable to DXC common stockholders $ 36 $ 42 $ 52 $ 68

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited)

Three Months Ended

(in millions)

June 30, 2025 June 30, 2024

Net income $ 18 $ 25

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

$ 40 $ 45 $ 58 $ 70

Other comprehensive (loss) income, net of taxes:

Foreign currency translation adjustments, net of tax (benefit) expense of $( 15 ) and $ 1

Cash flow hedges adjustments, net of tax (benefit) expense of $( 2 ) and $ 1

Foreign currency translation adjustments, net of tax (1)

( 75 ) 79 ( 107 ) 82

Cash flow hedges adjustments, net of tax (2)

( 4 ) ( 14 ) ( 11 ) ( 11 )

Pension and other post-retirement benefit plans, net of tax:

Amortization of prior service cost, net of tax benefit of $ 0 and $ 0

Amortization of prior service cost, net of tax (3)

( 2 ) ( 1 ) ( 2 ) ( 2 )

Pension and other post-retirement benefit plans, net of tax ( 2 ) ( 1 ) ( 2 ) ( 2 )

Other comprehensive (loss) income, net of taxes

( 81 ) 64 ( 120 ) 69

Comprehensive (loss) income

comprehensive income (loss) attributable to non-controlling interest

( 41 ) 109 ( 62 ) 139

comprehensive income attributable to non-controlling interest

Comprehensive (loss) income attributable to DXC common stockholders

$ ( 44 ) $ 106 $ ( 67 ) $ 137

______________

(1) Tax benefit related to foreign currency translation adjustments was $ 0 and $ 15 for the three and six months ended September 30, 2025, respectively, and $ 7 and $ 6 for the three and six months ended September 30, 2024, respectively.

(2) Tax benefit related to cash flow hedges adjustments was $ 2 and $ 4 for the three and six months ended September 30, 2025, respectively, and $ 4 and $ 3 for the three and six months ended September 30, 2024, respectively.

(3) Tax benefit related to amortization of prior service costs was $ 0 and $ 0 for the three and six months ended September 30, 2025, respectively, and $ 1 and $ 1 for the three and six months ended September 30, 2024, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions, except per-share and share amounts) June 30, 2025 March 31, 2025

(in millions, except per-share and share amounts) September 30, 2025 March 31, 2025

Current assets:

16 unchanged sentences

Accrued payroll and related costs 603 571

Operating lease liabilities

Current operating lease liabilities 237 227

Accrued expenses and other current liabilities 1,197 1,358

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DXC stockholders’ equity:

Preferred stock, par value $ 0.01 per share;

authorized 1,000,000 shares;

none issued as of June 30, 2025 and March 31, 2025

Common stock, par value $ 0.01 per share;

authorized 750,000,000 shares;

issued 185,978,363 as of June 30, 2025 and 186,856,421 as of March 31, 2025

Preferred stock, par value $ 0.01 per share, 1,000,000 shares authorized, none issued as of September 30, 2025 and March 31, 2025

Common stock, par value $ 0.01 per share, 750,000,000 shares authorized, 180,921,736 issued as of September 30, 2025 and 186,856,421 issued as of March 31, 2025

Additional paid-in capital 7,360 7,677

1 unchanged sentence

Accumulated other comprehensive loss ( 881 ) ( 762 )

Treasury stock, at cost, 6,364,907 and 5,653,666 shares as of June 30, 2025 and March 31, 2025

Treasury stock, at cost, 6,420,155 and 5,653,666 shares as of September 30, 2025 and March 31, 2025

( 248 ) ( 237 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended

(in millions)

June 30, 2025 June 30, 2024

Six Months Ended

(in millions) September 30, 2025 September 30, 2024

Cash flows from operating activities:

6 unchanged sentences

Deferred taxes 22 ( 95 )

Gain on dispositions ( 1 ) ( 1 )

(Gain) loss on dispositions ( 5 ) 23

Provision for losses on accounts receivable 3 10

2 unchanged sentences

Other non-cash charges, net ( 8 ) 3

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

Changes in assets and liabilities:

Decrease in assets 211 133

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Other financing activities, net ( 2 ) ( 2 )

Net cash (used in) provided by financing activities ( 110 ) 41

Net cash used in financing activities ( 246 ) ( 189 )

Effect of exchange rate changes on cash and cash equivalents ( 35 ) 38

Net (decrease) increase in cash and cash equivalents ( 4 ) 93

Net increase in cash and cash equivalents including cash classified within current assets held for sale 92 24

Cash classified within current assets held for sale — ( 3 )

Net increase in cash and cash equivalents 92 21

Cash and cash equivalents at beginning of year 1,796 1,224

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

(in millions, except

shares in thousands) Common Stock Additional

Paid-in Capital

Accumulated Deficit Accumulated

Paid-in Capital Accumulated Deficit Accumulated

Comprehensive Loss

Treasury Stock (1)

Controlling Interest

DXC Equity Non-

Controlling Interest Total Equity

Shares Amount

Balance at March 31, 2025

186,856 $ 2 $ 7,677 $ ( 3,451 ) $ ( 762 ) $ ( 237 ) $ 3,229 $ 261 $ 3,490

Balance at June 30, 2025 185,978 $ 2 $ 7,561 $ ( 3,347 ) $ ( 801 ) $ ( 247 ) $ 3,168 $ 262 $ 3,430

Net Income 36 36 4 40

6 unchanged sentences

Stock option exercises and other common stock transactions 261 — —

Non-controlling interest distributions and other — — ( 1 ) ( 1 )

Balance at September 30, 2025 180,921 $ 2 $ 7,360 $ ( 3,162 ) $ ( 881 ) $ ( 248 ) $ 3,071 $ 265 $ 3,336

Three Months Ended September 30, 2024

(in millions, except

shares in thousands) Common Stock Additional

Paid-in Capital Accumulated Deficit Accumulated

Comprehensive Loss Treasury Stock Total

DXC Equity Non-

Controlling Interest Total Equity

Shares Amount

Balance at June 30, 2024 186,267 $ 2 $ 7,622 $ ( 3,814 ) $ ( 727 ) $ ( 233 ) $ 2,850 $ 253 $ 3,103

Other comprehensive income

Share-based compensation expense 25 25 25

Acquisition of treasury stock ( 1 ) ( 1 ) ( 1 )

Stock option exercises and other common stock transactions 254 — —

Non-controlling interest distributions and other 1 1 $ ( 1 ) —

Balance at September 30, 2024 186,521 $ 2 $ 7,647 $ ( 3,771 ) $ ( 663 ) $ ( 234 ) $ 2,981 $ 255 $ 3,236

Six Months Ended September 30, 2025

(in millions, except

shares in thousands) Common Stock Additional

Paid-in Capital Accumulated Deficit Accumulated

Comprehensive Loss

Treasury Stock (1)

DXC Equity Non-

Controlling Interest Total Equity

Shares Amount

Balance at March 31, 2025 186,856 $ 2 $ 7,677 $ ( 3,451 ) $ ( 762 ) $ ( 237 ) $ 3,229 $ 261 $ 3,490

Net income 52 52 6 58

Other comprehensive loss

( 119 ) ( 119 ) ( 1 ) ( 120 )

Three Months Ended June 30, 2024

Share-based compensation expense 46 46 46

Acquisition of treasury stock ( 11 ) ( 11 ) ( 11 )

Share repurchase program (2)

( 8,593 ) ( 363 ) 237 ( 126 ) ( 126 )

Stock option exercises and other common stock transactions 2,658 — —

Non-controlling interest distributions and other — ( 1 ) ( 1 )

Balance at September 30, 2025 180,921 $ 2 $ 7,360 $ ( 3,162 ) $ ( 881 ) $ ( 248 ) $ 3,071 $ 265 $ 3,336

Six Months Ended September 30, 2024

(in millions, except

shares in thousands) Common Stock Additional

Paid-in Capital

Accumulated Deficit Accumulated

Paid-in Capital Accumulated Deficit Accumulated

Comprehensive Loss Treasury Stock Total

Controlling Interest

DXC Equity Non-

Controlling Interest Total Equity

Shares Amount

Balance at March 31, 2024 183,431 $ 2 $ 7,599 $ ( 3,839 ) $ ( 732 ) $ ( 219 ) $ 2,811 $ 255 $ 3,066

183,431 $ 2 $ 7,599 $ ( 3,839 ) $ ( 732 ) $ ( 219 ) $ 2,811 $ 255 $ 3,066

Net income 68 68 2 70

4 unchanged sentences

Non-controlling interest distributions and other — — ( 2 ) ( 2 )

Balance at June 30, 2024

Balance at September 30, 2024 186,521 $ 2 $ 7,647 $ ( 3,771 ) $ ( 663 ) $ ( 234 ) $ 2,981 $ 255 $ 3,236

_____________

(1) 6,364,907 treasury shares as of June 30, 2025.

(1) 6,420,155 treasury shares as of September 30, 2025.

(2) On August 16, 2022, the U.S.

Government enacted the Inflation Reduction Act (the “IRA”) into law.

The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022.

We reflect the excise tax within equity as part of the repurchase of the common stock.

The IRA imposes a 1% excise tax on

share repurchases completed after December 31, 2022.

We reflect the excise tax within equity as part of the repurchase of the common

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive (Loss) Income as the “statements of comprehensive (loss) income,” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive (Loss) Income as the “statements of comprehensive income,” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest.

2 unchanged sentences

Non-controlling interests are presented as a separate component within equity in the balance sheets.

Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income (loss) attributable to non-controlling interests are presented separately in the statements of comprehensive (loss) income.

Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income attributable to non-controlling interests are presented separately in the statements of comprehensive income.

All intercompany transactions and balances have been eliminated.

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Recent Accounting Pronouncements

During fiscal 2025, the following Accounting Standards Updates ("ASU") were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:

The following Accounting Standards Updates (“ASU”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:

Date Issued and ASU DXC Effective Date

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The Company is in the process of assessing the impacts and method of adoption.

This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.

This ASU will impact our income tax disclosures, but not its consolidated financial statements.

November 2024

ASU 2024-03, “Disaggregation of Income Statement Expenses”

ASU 2024-03, “Disaggregation of Income Statement Expenses” Fiscal 2028

The update requires disclosure, in the notes to financial statements, of specified quantitative information about certain costs and expenses presented in the income statement and certain qualitative information about costs that are not disaggregated.

2 unchanged sentences

This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.

September 2025

ASU 2025-06, “Targeted Improvements to the Accounting for Internal-Use Software”

The update amends the guidance for capitalizing internal-use software so that it is neutral to different software development methods, primarily by removing the previous “development stage” model to more closely align the capitalization of internal use software to that of software to be sold or marketed externally.

Early adoption of this update is permitted.

The Company is in the process of assessing the impact of the ASU on our consolidated financial statements as well as its method of adoption.

Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC’s condensed consolidated financial statements.

5 unchanged sentences

The following table reflects the calculation of basic and diluted EPS:

Three Months Ended

(in millions, except per-share amounts)

June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions, except per-share amounts) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Net income attributable to DXC common shareholders:

$ 36 $ 42 $ 52 $ 68

Common share information:

7 unchanged sentences

The number of awards excluded were as follows:

Three Months Ended

June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Stock Options 275,643 906,745 341,010 917,260

1 unchanged sentence

Performance Stock Units 4,057,854 107,406 3,063,239 114,745

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 3 – Receivables

1 unchanged sentence

The following table presents the change in balance for the allowance for doubtful accounts:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

(in millions) September 30, 2025 September 30, 2024

Beginning balance $ 32 $ 35

5 unchanged sentences

The Receivables Facility was amended on July 25, 2025, extending the termination date to July 24, 2026.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As of June 30, 2025, the total availability under the Receivables Facility was $ 380 million and the amount sold to the Purchasers was $ 373 million, which was derecognized from the Company’s balance sheet.

As of June 30, 2025, the Company recorded a $ 7 million asset within accounts receivable because the amount of cash proceeds received by the Company under the Receivables Facility was less than the total availability.

As of September 30, 2025, the total availability under the Receivables Facility was $ 397 million and the amount sold to the Purchasers was $ 394 million, which was derecognized from the Company’s balance sheet.

As of September 30, 2025, the Company recorded a $ 3 million asset within accounts receivable because the amount of cash proceeds received by the Company under the Receivables Facility was less than the total availability.

The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.

1 unchanged sentence

The Company has operating and finance leases for data centers, corporate offices, and certain equipment.

Its leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to ten years , and some of which include options to terminate the leases within one to three years .

Its leases have remaining lease terms of one to nine years , some of which include options to extend the leases for up to ten years , and some of which include options to terminate the leases within one to three years .

Operating Leases

The components of operating lease expense were as follows:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Operating lease cost $ 77 $ 80 $ 153 $ 160

3 unchanged sentences

Total operating costs $ 95 $ 94 $ 188 $ 188

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information below.

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Six Months Ended

(in millions) September 30, 2025 September 30, 2024

Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows

ROU assets obtained in exchange for operating lease liabilities (1)

(1) Net of $ 214 million and $ 237 million in lease modifications and terminations for the three months ended June 30, 2025 and June 30, 2024, respectively.

_______________

(1) Net of $ 406 million and $ 332 million in lease modifications and terminations during the first six months of fiscal 2026 and 2025, respectively.

See Note 15 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

(in millions) Balance Sheet Line Item June 30, 2025 March 31, 2025

(in millions) Balance Sheet Line Item September 30, 2025 March 31, 2025

ROU operating lease assets Operating right-of-use assets, net $ 679 $ 635

2 unchanged sentences

Total operating lease liabilities $ 712 $ 671

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The weighted-average operating lease term was 3.7 years and 3.8 years as of June 30, 2025 and March 31, 2025, respectively.

The weighted-average operating lease discount rate was 4.8 % and 4.9 % as of June 30, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of June 30, 2025:

The weighted-average operating lease term was 3.6 years and 3.8 years as of September 30, 2025 and March 31, 2025, respectively.

The weighted-average operating lease discount rate was 4.7 % and 4.9 % as of September 30, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of September 30, 2025:

(in millions)

5 unchanged sentences

Total operating lease liabilities

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Finance Leases

The components of finance lease expense were as follows:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Amortization of right-of-use assets $ 14 $ 24 $ 28 $ 49

Interest on lease liabilities 3 3 6 7

Total finance lease cost $ 18 $ 29

Total finance lease expense $ 17 $ 27 $ 34 $ 56

The following table provides supplemental cash flow information related to the Company’s finance leases:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Six Months Ended

(in millions) September 30, 2025

September 30, 2024

Interest paid for finance lease liabilities – Operating cash flows

2 unchanged sentences

Capital expenditures through finance lease obligations (1)

_____________

(1) See Note 15 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

(in millions) Balance Sheet Line Item June 30, 2025 March 31, 2025

(in millions) Balance Sheet Line Item September 30, 2025 March 31, 2025

ROU finance lease assets Property and Equipment, net $ 107 $ 145

2 unchanged sentences

Total finance lease liabilities (1)

_____________

(1) See Note 8 – “Debt” for further information on finance lease liabilities.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The weighted-average finance lease term was 2.6 years and 2.7 years as of June 30, 2025 and March 31, 2025, respectively.

The weighted-average finance lease discount rate was 5.6 % as of both June 30, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2025:

The weighted-average finance lease term was 2.4 years and 2.7 years as of September 30, 2025 and March 31, 2025, respectively.

The weighted-average finance lease discount rate was 5.8 % and 5.6 % as of September 30, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of September 30, 2025:

(in millions)

5 unchanged sentences

Total finance lease liabilities

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 5 – Derivative Instruments

6 unchanged sentences

The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Indian Rupee-denominated obligations and forecasted transactions.

The notional amounts of foreign currency forward contracts designated as cash flow hedges as of June 30, 2025 and March 31, 2025 were $ 546 million and $ 668 million, respectively.

As of June 30, 2025, the related forecasted transactions extend through December 2026.

During the three months ended June 30, 2025 and June 30, 2024, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

The notional amounts of foreign currency forward contracts designated as cash flow hedges as of September 30, 2025 and March 31, 2025 were $ 417 million and $ 668 million, respectively.

As of September 30, 2025, the related forecasted transactions extend through December 2026.

During the three and six months ended September 30, 2025 and September 30, 2024, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

See Note 13 - “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting.

As of June 30, 2025, $ 15 million of loss related to cash flow hedges reported in accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

As of September 30, 2025, $ 20 million of loss related to the cash flow hedge reported in accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

Derivatives Not Designated for Hedge Accounting

3 unchanged sentences

The Company manages the exposure to fluctuations in foreign currencies by using primarily short-term foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions.

The net notional amounts of the foreign currency forward contracts outstanding as of June 30, 2025 and March 31, 2025 were $ 1.7 billion and $ 1.9 billion, respectively.

The net notional amounts of the foreign currency forward contracts outstanding as of September 30, 2025 and March 31, 2025 were $ 2.0 billion and $ 1.9 billion, respectively.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following table presents the pretax foreign currency (gain) loss to Other income, net:

For the Three Months Ended

(in millions) June 30, 2025 June 30, 2024

The following table presents the foreign currency (gain) loss to Other income, net:

Three Months Ended

Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Foreign currency remeasurement (1)

$ — $ ( 25 ) $ ( 59 ) $ ( 18 )

Undesignated foreign currency forward contracts (2)

( 2 ) 25 52 19

Total - Foreign currency (gain) loss

$ ( 2 ) $ — $ ( 7 ) $ 1

_____________

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.

4 unchanged sentences

To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties.

With respect to its foreign currency derivatives, as of June 30, 2025, there were three counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $ 2 million.

With respect to its foreign currency derivatives, as of September 30, 2025, there was one counterparty with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $ 1 million.

The Company also enters into enforceable master netting arrangements with some of its counterparties.

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Gains or losses on individual net investments in non-U.S.

operations are reclassified to earnings from accumulated other comprehensive loss when such net investments are sold or substantially liquidated.

As of June 30, 2025 and March 31, 2025, DXC had $ 763 million and $ 702 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S.

operations are reclassified to earnings from accumulated other comprehensive income (loss) when such net investments are sold or substantially liquidated.

As of September 30, 2025 and March 31, 2025, DXC had $ 764 million and $ 702 million, respectively, of foreign currency-denominated debt designated as hedges of net investments in non-U.S.

subsidiaries.

For the three months ended June 30, 2025, the pre-tax impact of loss on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive (loss) income was $ 61 million.

For the three and six months ended September 30, 2025, the pre-tax loss on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive income was $ 1 million and $ 62 million, respectively.

DXC TECHNOLOGY COMPANY

2 unchanged sentences

Intangible assets consisted of the following:

As of June 30, 2025

As of September 30, 2025

As of March 31, 2025

2 unchanged sentences

Customer related intangible assets

3,963 3,167 796 3,886 2,933 953

Other intangible assets

288 159 129 284 142 142

Total intangible assets $ 7,899 $ 6,034 $ 1,865 $ 7,883 $ 6,241 $ 1,642

The components of amortization expense were as follows:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Intangible asset amortization $ 180 $ 187 $ 360 $ 366

1 unchanged sentence

Total amortization expense $ 221 $ 235 $ 446 $ 467

_____________

(1) Transaction and transformation contract costs are included within other assets on the balance sheets.

Estimated future amortization related to intangible assets as of June 30, 2025 is as follows:

Estimated future amortization related to intangible assets as of September 30, 2025 is as follows:

Fiscal Year (in millions)

2 unchanged sentences

Total $ 1,865

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 7 – Goodwill

5 unchanged sentences

As a result of the realignment, the Company reallocated goodwill to the new reporting units on a relative fair value basis.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In connection with the goodwill reallocation described above, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below their carrying amount and require goodwill to be tested for impairment.

As a result, the Company concluded that the goodwill balance reallocated to the GIS segment was fully impaired in the first quarter of fiscal 2026.

The following table summarizes the changes in the carrying amount of goodwill by segment for the three months ended June 30, 2025.

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of September 30, 2025.

(in millions) Global Business Solutions

3 unchanged sentences

Balance as of March 31, 2025, net

$ 526 $ — $ — $ — $ 526

Reallocation of goodwill

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Foreign currency translation (2)

Balance as of June 30, 2025, net $ — $ 381 $ — $ 151 $ 532

Balance as of September 30, 2025, net

$ — $ 380 $ — $ 151 $ 531

Goodwill, gross 3,599 5,080 1,422 10,101

Accumulated impairment losses ( 3,219 ) ( 5,080 ) ( 1,271 ) ( 9,570 )

Balance as of June 30, 2025, net $ 381 $ — $ 151 $ 532

Balance as of September 30, 2025, net

$ 380 $ — $ 151 $ 531

_____________

(1) Impairment losses are included within Other income, net on the statements of operations.

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dollar-denominated goodwill balances.

Goodwill Impairment Analyses

The Company tests goodwill for impairment on an annual basis, as of the first day of the second fiscal quarter, and between annual tests if circumstances change, or if an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

The Company concluded that, as a result of its qualitative assessment performed on July 1, 2025, it remained more likely than not that the fair value of the CES and Insurance reporting units exceed their respective carrying amounts.

As of September 30, 2025, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below its carrying amount and require goodwill to be tested for impairment.

The Company determined that there have been no such indicators and therefore, it was unnecessary to perform an interim goodwill impairment test as of September 30, 2025.

DXC TECHNOLOGY COMPANY

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The following is a summary of the Company’s debt:

(in millions) Interest Rates Fiscal Year Maturities June 30, 2025 (1)

(in millions) Interest Rates Fiscal Year Maturities September 30, 2025 (1)

March 31, 2025 (1)

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1.75 % 2026 $ 763 $ 702

$ 700 million Senior notes

1.80 % 2027 699 —

Current maturities of finance lease liabilities 0.52 % - 14.59 %

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$ 700 million Senior notes

1.80 % 2027 — 698

€ 750 million Senior notes

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$ 3,982 $ 3,876

(1) The carrying amounts of the senior notes as of June 30, 2025 and March 31, 2025, include the remaining principal outstanding of $ 3,698 million and $ 3,510 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $ 12 million and $ 11 million, respectively.

_____________

(1) The carrying amounts of the senior notes as of September 30, 2025 and March 31, 2025, include the remaining principal outstanding of $ 3,700 million and $ 3,510 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $ 11 million for both periods, respectively.

Fair Value of Debt

The estimated fair value of the Company’s long-term debt excluding finance lease liabilities was $ 3.5 billion and 3.3 billion as of June 30, 2025 and March 31, 2025, respectively, compared with carrying value of $ 3.8 billion and $ 3.6 billion as of June 30, 2025 and March 31, 2025, respectively.

The estimated fair value of the Company’s long-term debt, excluding finance lease liabilities, was $ 3.6 billion and $ 3.3 billion as of September 30, 2025 and March 31, 2025, respectively, compared with a carrying value of $ 3.8 billion and $ 3.6 billion.

Long-term debt excluding finance lease liabilities are classified as Level 1 or Level 2 within the fair value hierarchy.

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The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

United States $ 821 $ 889 $ 1,649 $ 1,786

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Remaining Performance Obligations

As of June 30, 2025, approximately $ 16.7 billion of revenue is expected to be recognized from remaining performance obligations.

As of September 30, 2025, approximately $ 16.3 billion of revenue is expected to be recognized from remaining performance obligations.

We expect to recognize revenue on approximately 25 % of these remaining performance obligations in fiscal 2026, with the remainder of the balance recognized thereafter.

Contract Balances

The following table provides information about the balances of the Company’s trade receivables, contract assets and contract liabilities:

(in millions) Balance Sheet Line Item June 30, 2025 March 31, 2025

The following table provides information about the balances of the Company’s trade receivables, and contract assets and contract liabilities:

(in millions) Balance Sheet Line Item

September 30, 2025 March 31, 2025

Trade receivables, net Receivables and contract assets, net of allowance for doubtful accounts

$ 1,914 $ 2,041

Contract assets Receivables and contract assets, net of allowance for doubtful accounts

Contract liabilities Deferred revenue and advance contract payments and Non-current deferred revenue

$ 1,267 $ 1,397

Change in contract liabilities were as follows:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Six Months Ended

(in millions) September 30, 2025 September 30, 2024

Balance, beginning of period $ 1,397 $ 1,537

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The composition of restructuring liabilities by financial statement line items is as follows:

(in millions) June 30, 2025 March 31, 2025

(in millions) September 30, 2025 March 31, 2025

Accrued expenses and other current liabilities $ 31 $ 33

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Costs Expensed, Net of Reversals Costs Not Affecting Restructuring Liability (1)

Cash Paid Restructuring Liability as of June 30, 2025

Cash Paid Other (2)

Restructuring Liability as of September 30, 2025

Fiscal 2026 Plan

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Total $ 39 $ 72 $ ( 6 ) $ ( 71 ) $ 2 $ 36

_____________

(1) Restructuring costs associated with right-of-use assets.

Restructuring costs for the first quarter of fiscal 2026 includes $ 2 million related to amortization of the right-of-use asset and interest expense for leased facilities that have been vacated but are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.

(2) Foreign currency translation adjustments.

Restructuring costs for the six months ended September 30, 2025 includes $ 4 million related to amortization of the right-of-use asset and interest expense for leased facilities that have been vacated but are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.

DXC TECHNOLOGY COMPANY

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The components of net periodic pension income were:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Service cost $ 13 $ 13 $ 26 $ 26

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Expected return on assets ( 118 ) ( 115 ) ( 235 ) ( 228 )

Amortization of prior service credit ( 1 ) ( 1 )

Amortization of prior service costs ( 1 ) ( 1 ) ( 2 ) ( 2 )

Net periodic pension income $ ( 30 ) $ ( 27 ) $ ( 60 ) $ ( 54 )

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Note 12 – Income Taxes

The Company’s effective tax rate (“ETR”) was 73.1 % and 63.2 % for the three months ended June 30, 2025, and June 30, 2024, respectively.

For the three months ended June 30, 2025, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, the tax benefit of a worthless stock deduction under section 165(g) of the Internal Revenue Code related to DXC’s investment in a wholly owned subsidiary, and a reduction in a deferred tax asset for stock based compensation.

For the three months ended June 30, 2024, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, a reduction in a deferred tax asset for stock based compensation, and a decrease in a deferred tax liability for estimated taxes associated with the repatriation of foreign earnings.

As of June 30, 2025, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and had a deferred tax liability of $ 28 million for the estimated taxes associated with the repatriation of these earnings.

The Company’s effective tax rate (“ETR”) was 69.5 % and 51.6 % for the three months ended September 30, 2025, and September 30, 2024, respectively, and 70.7 % and 56.5 % for the six months ended September 30, 2025, and September 30, 2024, respectively.

For the three months ended September 30, 2025, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, and the tax benefit of a worthless stock deduction under section 165(g) of the Internal Revenue Code related to the Company's investment in a wholly owned subsidiary.

For the six months ended September 30, 2025, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, the tax benefit of a worthless stock deduction under section 165(g) of the Internal Revenue Code related to the Company’s investment in a wholly owned subsidiary, and a decrease in a deferred tax asset for stock based compensation.

For the three months ended September 30, 2024, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, the foreign tax credit, and an increase in interest receivables due from tax authorities.

For the six months ended September 30, 2024, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, the foreign tax credit, an increase in interest receivables due from tax authorities, and a decrease in a deferred tax asset for stock based compensation.

As of September 30, 2025, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and a deferred tax liability of $ 23 million for the estimated taxes associated with the repatriation of these earnings.

The Company also had undistributed earnings and other outside basis differences in foreign subsidiaries that were indefinitely reinvested for which no taxes have been provided and the quantification of the deferred tax liability, if any, was not practicable.

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Pursuant to the tax matters agreement, the Company recorded a $ 13 million tax indemnification receivable related to uncertain tax positions, a $ 33 million tax indemnification receivable related to other tax payables, and a $ 94 million tax indemnification payable related to other tax receivables.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In connection with the spin-off of the Company’s former U.S.

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Pursuant to the tax matters agreement, the Company recorded a $ 12 million tax indemnification receivable from Perspecta related to other tax receivables and a $ 1 million tax indemnification payable to Perspecta related to income tax and other tax payables.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In connection with the sale of its healthcare provider software business (“HPS”), the Company entered into a tax matters agreement with Dedalus.

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The total cash tax payment the IRS is seeking is approximately $ 486 million, inclusive of penalties and interest, which continues to accrue.

The matter is currently scheduled for trial in August 2025.

In August 2025, the U.S.

Tax Court held a trial on this matter, with additional testimony heard in October 2025.

The proceedings have concluded, and a post-trial briefing schedule is pending.

The second issue pertains to the Company’s deduction for restructuring expenses in fiscal year 2013 in the amount of $ 146 million, which the IRS has disputed.

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1.367(a)-8(p) to correct the issue.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company’s fiscal years 2009, 2010, and 2013 are in the U.S.

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Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future.

For the three months ended June 30, 2025, the Company’s liability for uncertain tax positions increased by $ 2 million (excluding interest and penalties and related tax attributes).

For the three months ended September 30, 2025, the Company’s liability for uncertain tax positions decreased by $ 1 million (excluding interest and penalties and related tax attributes).

DXC TECHNOLOGY COMPANY

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Share Repurchase Program

During the first quarter of fiscal 2026, there were 3,275,268 shares repurchased under our Share Repurchase Program.

There were no share repurchases during the first quarter of fiscal 2025.

During the first six months of fiscal 2026, the Company repurchased 8,593,166 shares under our Share Repurchase Program.

There were no share repurchases during the first six months of fiscal 2025.

Fiscal Period Number of Shares Repurchased Average Price Per Share Amount

(in millions)

Open market purchases 3,275,268 $ 15.27 $ 50

1st Quarter 3,275,268 $ 15.27 $ 50

2nd Quarter 5,317,898 $ 14.10 75

Total 8,593,166 $ 14.55 $ 125

Accumulated Other Comprehensive Loss

The following table shows the changes in accumulated other comprehensive loss, net of taxes:

The following table provides the changes in accumulated other comprehensive loss, net of taxes:

(in millions) Foreign Currency Translation Adjustments Cash Flow Hedges Pension and Other Post-retirement Benefit Plans Accumulated Other Comprehensive Loss

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$ ( 948 ) $ ( 7 ) $ 193 $ ( 762 )

Other comprehensive loss before reclassifications

Other comprehensive income before reclassifications

( 106 ) ( 19 ) — ( 125 )

Amounts reclassified from accumulated other comprehensive loss — 8 ( 2 ) 6

Balance at June 30, 2025

Balance at September 30, 2025

$ ( 1,054 ) $ ( 18 ) $ 191 $ ( 881 )

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$ ( 939 ) $ — $ 207 $ ( 732 )

Other comprehensive income before reclassifications

Other comprehensive loss before reclassifications 82 ( 12 ) — 70

Amounts reclassified from accumulated other comprehensive loss — 1 ( 2 ) ( 1 )

Balance at June 30, 2024

Balance at September 30, 2024

$ ( 857 ) $ ( 11 ) $ 205 $ ( 663 )

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DXC also issued PSU awards that are considered to have a market condition.

Settlement of shares for these PSU awards will be made shortly subsequent to the end of third fiscal year, subject to certain market conditions and continued employment through the last day of the third fiscal year.

Settlement of shares for these PSU awards will be made shortly subsequent to the end of the third fiscal year, subject to certain market conditions and continued employment through the last day of the third fiscal year.

The fair value of RSUs and PSUs is based on the Company’s common stock closing price on the grant date.

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Canceled/Forfeited ( 2,071,705 ) $ 23.72 — $ —

Outstanding as of June 30, 2025

Outstanding as of September 30, 2025

14,680,866 $ 17.27 250,235 $ 20.41

Share-Based Compensation

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Total share-based compensation cost $ 24 $ 25 $ 46 $ 48

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Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Six Months Ended

(in millions) September 30, 2025 September 30, 2024

Cash paid for:

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Capital expenditures through finance lease obligations $ 4 $ 17

Assets acquired under long-term financing $ 3 $ —

Shares repurchased but not settled in cash (4)

(1) Income tax refunds were $ 4 million and $ 16 million for the three months ended June 30, 2025 and June 30, 2024, respectively.

(2) Net of $ 214 million and $ 237 million in lease modifications and terminations for the three months ended June 30, 2025 and June 30, 2024, respectively.

_____________

(1) Income tax refunds were $ 35 million and $ 33 million for the six months ended September 30, 2025 and September 30, 2024, respectively.

(2) Net of $ 406 million and $ 332 million in lease modifications and terminations during the first six months of fiscal 2026 and 2025, respectively.

(3) Accrued expenses includes both short-term and long-term liabilities.

(4) On August 16, 2022, the U.S.

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In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 16 – Segment Information

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Segment profit is defined as segment revenues less costs of services, selling, general and administrative, depreciation and amortization, and other segment items.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company allocates certain costs such as real estate costs, information technology costs and costs for certain other shared corporate functions to its segments using a proportional share of either revenue or headcount for each segment.

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The tables below reflect those revised assumptions.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Segment Measures

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(in millions) CES

GIS Insurance

Total Reportable Segments

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Revenues $ 1,255 $ 1,586 $ 320 $ 3,161

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Segment profit $ 145 $ 122 $ 28 $ 295

Three Months Ended September 30, 2024

Revenues $ 1,279 $ 1,656 $ 306 $ 3,241

Costs of services

( 965 ) ( 1,248 ) ( 216 ) ( 2,429 )

Three Months Ended June 30, 2024

Selling, general and administrative

( 133 ) ( 116 ) ( 36 ) ( 285 )

Depreciation and amortization (1)

( 22 ) ( 193 ) ( 21 ) ( 236 )

Other segment items (2)

Segment profit $ 175 $ 120 $ 37 $ 332

(in millions) CES

GIS Insurance

Total Reportable Segments

Six Months Ended September 30, 2025

Revenues $ 2,501 $ 3,186 $ 633 $ 6,320

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Segment profit $ 250 $ 219 $ 61 $ 530

Six Months Ended September 30, 2024

Revenues $ 2,560 $ 3,314 $ 603 $ 6,477

Costs of services

( 1,981 ) ( 2,517 ) ( 425 ) ( 4,923 )

Selling, general and administrative

( 270 ) ( 238 ) ( 64 ) ( 572 )

Depreciation and amortization (1)

( 47 ) ( 384 ) ( 42 ) ( 473 )

Other segment items (2)

Segment profit $ 298 $ 221 $ 81 $ 600

_____________

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets.

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Reconciliation of Reportable Segment Profit to Consolidated Total

Three Months Ended

(in millions) June 30, 2025 June 30, 2024

Three Months Ended Six Months Ended

(in millions) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Total profit for reportable segments $ 295 $ 332 $ 530 $ 600

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( 41 ) ( 53 ) ( 60 ) ( 97 )

Subtotal $ 216 $ 224

$ 254 $ 279 $ 470 $ 503

Restructuring costs ( 35 ) ( 42 ) ( 72 ) ( 81 )

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Merger related indemnification — — ( 2 ) —

Losses on real estate and facility sales

Gains on dispositions 1 5 1 5

Gains (losses) on real estate and facility sales

7 ( 27 ) 7 ( 29 )

Impairment losses — — ( 14 ) —

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Interest expense

Income before income taxes $ 67 $ 68

( 53 ) ( 69 ) ( 107 ) ( 141 )

Income before income tax

$ 131 $ 93 $ 198 $ 161

Management does not use total assets by segment to evaluate segment performance or allocate resources.

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Note 17 – Commitments and Contingencies

Minimum purchase commitments as of June 30, 2025 were as follows:

Minimum purchase commitments as of September 30, 2025 were as follows:

Fiscal year Minimum Purchase Commitment (1)

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Remainder of 2026

Thereafter 457

Total $ 2,182

_____________

(1) During the three months ended September 30, 2025, the Company entered into multi-year, third-party software agreements for software licenses and maintenance that are included in the table above.

This resulted in increases to both assets and liabilities for the software licenses included in the agreements.

Contingencies

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In June 2025, the Company reached an agreement in principle to resolve all claims in the action.

In October 2025, the parties executed a Stipulation of Settlement and submitted it to the Court for approval.

A decision from the Court is pending.

The Company’s share of the settlement will be funded by its insurance carriers.

The Company expects the settlement to be finalized in the coming weeks and submitted to the Court for approval.

On August 2, 2024, a purported class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against the Company and certain of its current and former officers.

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false and/or misleading statements regarding the Company’s transformation journey.

The putative class of plaintiffs includes investors who acquired DXC stock during the period of May 26, 2021 to May 16, 2024.

In March 2025, the Court entered an order granting the Company’s motion to dismiss the lawsuit and closing the case.

In April 2025, the deadline to file an appeal passed and no appeal was filed.

The matter is now closed.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

After the filing of the August 2024 securities class action, five shareholder derivative suits were filed against the Company’s Board of Directors and certain of its current and former officers, alleging a breach of fiduciary duties arising from the claims asserted in the August 2024 securities class action.

Three derivative suits were filed in the United States District Court for the Eastern District of Virginia, and two derivative suits were filed in the District Court of the State of Nevada, Clark County.

All of the derivative suits had been temporarily stayed, pending an outcome in the August 2024 securities class action.

Following the dismissal of the securities class action, the Company secured the voluntary dismissal of all shareholder derivative suits.

The matter is now closed.

Tax Examinations:

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For more detail, see Note 12 – “Income Taxes.”

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

TCS Litigation:

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Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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Forward-looking statements often include words such as “anticipates,” “believes,” “estimates,” “expects,” “forecast,” “goal,” “intends,” “objective,” “plans,” “projects,” “strategy,” “target,” and “will” and words and terms of similar substance in discussions of future operating or financial performance.

Forward-looking statements include, among other things, statements with respect to our future financial condition, results of operations, cash flows, business strategies, operating efficiencies or synergies, potential acquisitions and divestitures, competitive position, growth opportunities, effective tax rates, liquidity and capital resources, capital return strategy, plans and objectives of management, the outcome of and costs associated with regulatory and litigation matters, and other matters.

We may also make forward-looking statements in other reports filed with the Securities and Exchange Commission (“SEC”), in materials delivered to stockholders and in press releases.

In addition, our representatives may from time to time make oral forward-looking statements.

Forward-looking statements represent current expectations and beliefs, and no assurance can be given that the results, goals or plans described in such statements can or will be achieved, and readers are cautioned not to place undue reliance on such statements, which speak only as of the date they are made.

In addition, our representatives may from time to time make oral forward-looking statements represent current expectations and beliefs, and no assurance can be given that the results, goals or plans described in such statements can or will be achieved, and readers are cautioned not to place undue reliance on such statements, which speak only as of the date they are made.

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law.

Important factors that could cause actual results to differ materially from those described in forward-looking statements, many of which are outside of our control, include, but are not limited to:

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• failure to maintain our credit rating and ability to manage working capital, refinance and raise additional capital for future needs;

• difficulty in understanding the changes to our business model by equity research or industry analysts or our failure to meet our publicly announced financial guidance;

• difficulty in understanding the changes to our business model by the investment community or industry analysts or our failure to meet our publicly announced financial guidance;

• public health crises;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements