What changed in this filing

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Item 1. Financial Statements

2026-01-30 compared with 2025-10-31 · 200 added, 175 removed, 835 unchanged (31% of the section changed)

1 unchanged sentence

Index to Condensed Consolidated Financial Statements

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)

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2025 and December 31, 2024 (unaudited)

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2025 and December 31, 2024 (unaudited)

Condensed Consolidated Balance Sheets as of December 31, 202 5 and March 31, 202 5 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 202 5 and December 31, 202 4 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended December 31, 202 5 and December 31, 202 4 (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1–Summary of Significant Accounting Policies

Note 2–Divestitures

Note 3–Earnings Per Share

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions, except per-share amounts) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Revenues $ 3,194 $ 3,225 $ 9,514 $ 9,702

5 unchanged sentences

Interest income ( 46 ) ( 51 ) ( 138 ) ( 153 )

Gain on disposition of businesses

— ( 7 ) — ( 7 )

Other income, net ( 32 ) ( 28 ) ( 127 ) ( 94 )

10 unchanged sentences

DXC TECHNOLOGY COMPANY

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

Three Months Ended Six Months Ended

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

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

$ 110 $ 63 $ 168 $ 133

Other comprehensive (loss) income, net of taxes:

Other comprehensive income (loss), net of taxes:

Foreign currency translation adjustments, net of tax (1)

6 unchanged sentences

Pension and other post-retirement benefit plans, net of tax ( 1 ) ( 1 ) ( 3 ) ( 3 )

Other comprehensive (loss) income, net of taxes

( 81 ) 64 ( 120 ) 69

Comprehensive (loss) income

Other comprehensive income (loss), net of taxes

11 ( 56 ) ( 109 ) 13

Comprehensive income

comprehensive income attributable to non-controlling interest

Comprehensive (loss) income attributable to DXC common stockholders

Comprehensive income attributable to DXC common stockholders

$ 118 $ 2 $ 51 $ 139

_______________

(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.

(1) Tax (benefit) expense related to foreign currency translation adjustments was $ 0 and $( 15 ) for the three and nine months ended December 31, 2025, respectively, and $ 13 and $ 7 for the three and nine months ended December 31, 2024, respectively.

(2) Tax expense (benefit) related to cash flow hedges adjustments was $ 1 and $( 3 ) for the three and nine months ended December 31, 2025, respectively, and $ 1 and $( 2 ) for the three and nine months ended December 31, 2024, respectively.

(3) Tax benefit related to amortization of prior service costs was $ 1 and $ 1 for the three and nine months ended December 31, 2025, respectively, and $ 0 and $ 1 for the three and nine months ended December 31, 2024, respectively.

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

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

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

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

Current assets:

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DXC stockholders’ equity:

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

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

Common stock, par value $ 0.01 per share, 750,000,000 shares authorized, 176,466,937 issued as of December 31, 2025 and 186,856,421 issued as of March 31, 2025

Additional paid-in capital 7,193 7,677

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Accumulated other comprehensive loss ( 870 ) ( 762 )

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

Treasury stock, at cost, 6,429,925 and 5,653,666 shares as of December 31, 2025 and March 31, 2025

( 248 ) ( 237 )

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Six Months Ended

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

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024

Cash flows from operating activities:

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Operating right-of-use expense 229 235

Pension & other post-employment benefits, actuarial & settlement losses 11 —

Share-based compensation 69 59

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Provision for losses on accounts receivable 6 9

Unrealized foreign currency exchange gain ( 38 ) ( 2 )

Unrealized foreign currency exchange (gain) loss ( 54 ) 33

Impairment losses and contract write-offs 4 25

9 unchanged sentences

Software purchased and developed ( 179 ) ( 230 )

Business dispositions — 26

Proceeds from sale of assets 26 126

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Repayments of commercial paper — ( 369 )

Principal payments on long-term debt ( 1,062 ) —

Payments on finance leases and borrowings for asset financing ( 154 ) ( 242 )

Proceeds from bond issuance 747 —

Taxes paid related to net share settlements of share-based compensation awards ( 13 ) ( 18 )

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents ( 35 ) 16

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

Net (decrease) increase in cash and cash equivalents ( 65 ) 499

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 September 30, 2025

Three Months Ended December 31, 2025

(in millions, except

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Shares Amount

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

Balance at September 30, 2025

180,921 $ 2 $ 7,360 $ ( 3,162 ) $ ( 881 ) $ ( 248 ) $ 3,071 $ 265 $ 3,336

Net Income 107 107 3 110

Other comprehensive loss

( 80 ) ( 80 ) ( 1 ) ( 81 )

Share-based compensation expense 23 23 23

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

Share repurchase program (2)

1 unchanged sentence

Stock option exercises and other common stock transactions 40 — —

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

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

Balance at December 31, 2025

176,467 $ 1 $ 7,193 $ ( 2,931 ) $ ( 870 ) $ ( 248 ) $ 3,145 $ 268 $ 3,413

Three Months Ended December 31, 2024

(in millions, except

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Shares Amount

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

Balance at September 30, 2024

186,521 $ 2 $ 7,647 $ ( 3,771 ) $ ( 663 ) $ ( 234 ) $ 2,981 $ 255 $ 3,236

Other comprehensive income

( 55 ) ( 55 ) ( 1 ) ( 56 )

Share-based compensation expense 11 11 11

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Non-controlling interest distributions and other $ ( 1 ) ( 1 ) $ ( 1 ) ( 3 ) $ 2 ( 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

Balance at December 31, 2024

186,610 $ 2 $ 7,657 $ ( 3,715 ) $ ( 719 ) $ ( 235 ) $ 2,990 $ 262 $ 3,252

Nine Months Ended December 31, 2025

(in millions, except

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Balance at March 31, 2025

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

Net income 159 159 9 168

Other comprehensive loss

Other comprehensive income

( 108 ) ( 108 ) ( 1 ) ( 109 )

5 unchanged sentences

Non-controlling interest distributions and other ( 1 ) ( 1 ) ( 1 ) ( 2 )

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

Balance at December 31, 2025

176,467 $ 1 $ 7,193 $ ( 2,931 ) $ ( 870 ) $ ( 248 ) $ 3,145 $ 268 $ 3,413

Nine Months Ended December 31, 2024

(in millions, except

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Balance at March 31, 2024

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

Net income 125 125 8 133

Other comprehensive income

14 14 ( 1 ) 13

Share-based compensation expense 59 59 59

2 unchanged sentences

Non-controlling interest distributions and other ( 1 ) ( 1 ) ( 1 ) ( 3 ) ( 3 )

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

Balance at December 31, 2024

186,610 $ 2 $ 7,657 $ ( 3,715 ) $ ( 719 ) $ ( 235 ) $ 2,990 $ 262 $ 3,252

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

_______________

(1) 6,429,925 treasury shares as of December 31, 2025.

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

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Note 1 – Summary of Significant Accounting Policies

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) is a leading global provider of IT services.

We are a trusted partner to many of the world’s most innovative organizations, building solutions that move industries and companies forward.

Our engineering, consulting, and technology experts help clients simplify, optimize, and modernize their systems and processes, manage their most critical workloads, integrate AI-powered intelligence into their operations, and put security and trust at the forefront.

Through innovative solutions, we help clients achieve competitive advantages in the marketplace.

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed.

With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world’s most complex technology estates.

New Segment Structure

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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 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 Income (Loss) 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.

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These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 (“fiscal 2025”).

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Use of Estimates

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The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Recent Accounting Pronouncements

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

Description Impact

Date Issued and ASU DXC Effective Date Description Impact

December 2023

ASU 2023-09, “Improvements to Income Tax Disclosures”

The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.

ASU 2023-09, “Improvements to Income Tax Disclosures” Fiscal 2026 The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.

Early adoption of this update is permitted.

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

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

The Company will include the expanded income tax disclosures in its Consolidated Financial Statements for the fiscal year ended March 31, 2026, applied on a prospective basis.

Otherwise, adoption of this ASU will not impact the consolidated financial statements.

November 2024

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.

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.

Early adoption of this update is permitted.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 2 – Divestitures

During the first nine months of fiscal 2025, the Company sold insignificant businesses and made adjustments to estimated amounts from prior years’ dispositions that resulted in a gain of $ 7 million.

Note 3 – Earnings per Share

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

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:

Three Months Ended Nine Months Ended

(in millions, except per-share amounts) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Net income attributable to DXC common stockholders:

$ 107 $ 57 $ 159 $ 125

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Diluted $ 0.61 $ 0.31 $ 0.88 $ 0.68

Certain share-based equity awards were excluded from the dilutive EPS calculation because they would have an anti-dilutive effect.

Certain share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have an anti-dilutive effect.

The number of awards excluded were as follows:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Stock Options 274,899 899,937 318,893 911,471

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

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

(in millions) December 31, 2025 December 31, 2024

Beginning balance $ 32 $ 35

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

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.

As of December 31, 2025, the total availability under the Receivables Facility was $ 394 million and the amount sold to the Purchasers was $ 400 million, which was derecognized from the Company’s balance sheet.

As of December 31, 2025, the Company recorded a $ 6 million liability within accounts payable because the amount of cash proceeds received by the Company under the Receivables Facility was more 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.

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

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 .

Its leases have remaining lease terms of one to 10 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 Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Operating lease cost $ 76 $ 75 $ 229 $ 235

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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.

Six Months Ended

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

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024

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

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_______________

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

(1) Net of $ 459 million and $ 528 million in lease modifications and terminations during the first nine months of fiscal 2026 and 2025, respectively.

See Note 16 – “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 September 30, 2025 March 31, 2025

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

ROU operating lease assets Operating right-of-use assets, net $ 667 $ 635

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Total operating lease liabilities $ 699 $ 671

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:

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

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

The following maturity analysis presents expected undiscounted cash payments for operating leases as of December 31, 2025:

(in millions)

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The components of finance lease expense were as follows:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Amortization of right-of-use assets $ 11 $ 17 $ 39 $ 66

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

Six Months Ended

(in millions) September 30, 2025

September 30, 2024

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024

Interest paid for finance lease liabilities – Operating cash flows

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The following table presents finance lease balances:

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

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

ROU finance lease assets Property and Equipment, net $ 94 $ 145

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(1) See Note 9 – “Debt” for further information on finance lease liabilities.

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:

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

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

The following maturity analysis presents expected undiscounted cash payments for finance leases as of December 31, 2025:

(in millions)

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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 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.

The notional amounts of foreign currency forward contracts designated as cash flow hedges as of December 31, 2025 and March 31, 2025 were $ 307 million and $ 668 million, respectively.

As of December 31, 2025, the related forecasted transactions extend through December 2026.

During the three and nine months ended December 31, 2025 and December 31, 2024, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

See Note 14 - “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting.

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.

As of December 31, 2025, $ 18 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

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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 September 30, 2025 and March 31, 2025 were $ 2.0 billion and $ 1.9 billion, respectively.

The net notional amounts of the foreign currency forward contracts outstanding as of December 31, 2025 and March 31, 2025 were $ 1.1 billion and $ 1.9 billion, respectively.

DXC TECHNOLOGY COMPANY

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Three Months Ended

Six Months Ended

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

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Foreign currency remeasurement (1)

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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 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.

With respect to its foreign currency derivatives, as of December 31, 2025, there were two counterparties 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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Non-Derivative Financial Instruments Designated for Hedge Accounting

The Company applies hedge accounting for foreign currency-denominated debt used to manage foreign currency exposures on its net investments in certain non-U.S.

The Company applies hedge accounting for foreign currency-denominated intercompany debt used to manage foreign currency exposures on its net investments in certain non-U.S.

To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged.

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DXC seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain non-U.S.

operations with foreign currency-denominated debt.

For foreign currency-denominated debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates.

operations with foreign currency-denominated intercompany debt.

For foreign currency-denominated intercompany debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates.

For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation.

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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.

As of December 31, 2025, DXC had $ 244 million of foreign currency-denominated intercompany debt designated as hedges of net investments in non-U.S.

subsidiaries.

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.

For the three and nine months ended December 31, 2025, the pre-tax loss on foreign currency-denominated intercompany debt designated for hedge accounting recognized in other comprehensive income was immaterial.

DXC TECHNOLOGY COMPANY

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Intangible assets consisted of the following:

As of September 30, 2025

As of December 31, 2025

As of March 31, 2025

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The components of amortization expense were as follows:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Intangible asset amortization $ 170 $ 182 $ 530 $ 548

Transition and transformation contract cost amortization (1)

43 51 129 152

Total amortization expense $ 213 $ 233 $ 659 $ 700

_______________

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

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

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

Estimated future amortization related to intangible assets as of December 31, 2025 is as follows:

Fiscal Year (in millions)

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The change to the Company’s operating segments resulted in a change to the Company’s reporting units, which are aligned to the Company’s operating and reportable segments.

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)

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

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, as of September 30, 2025.

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of December 31, 2025.

(in millions) Global Business Solutions

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Foreign currency translation (2)

Balance as of September 30, 2025, net

Balance as of December 31, 2025, net

$ — $ 380 $ — $ 150 $ 530

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

Balance as of September 30, 2025, net

Balance as of December 31, 2025, net

$ 380 $ — $ 150 $ 530

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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 September 30, 2025 (1)

(in millions) Interest Rates Fiscal Year Maturities December 31, 2025 (1)

March 31, 2025 (1)

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4.25 % 2031 744 —

€ 600 million Senior notes

0.95 % 2032 700 644

Finance lease liabilities 0.53 % - 14.59 %

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_______________

(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.

(1) The carrying amounts of the senior notes as of December 31, 2025 and March 31, 2025, include the remaining principal outstanding of $ 3,399 million and $ 3,510 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $ 28 million and $ 11 million, respectively.

During the third quarter of fiscal 2026, the Company issued € 650 million aggregate principal amount of 4.25 % senior notes due fiscal 2031.

The net proceeds from the issuance were used to repay in full the Company’s € 650 million senior notes due fiscal 2026.

In addition, the Company redeemed $ 300 million aggregate principal amount of its $ 700 million senior notes due fiscal 2027.

Fair Value of Debt

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.

The estimated fair value of the Company’s senior notes was $ 3.2 billion and $ 3.3 billion as of December 31, 2025 and March 31, 2025, compared with carrying value of $ 3.4 billion and $ 3.5 billion as of December 31, 2025 and March 31, 2025, respectively.

Senior notes are classified as Level 2 within the fair value hierarchy.

DXC TECHNOLOGY COMPANY

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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 Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

United States $ 805 $ 902 $ 2,454 $ 2,688

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Remaining Performance Obligations

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

As of December 31, 2025, approximately $ 16.4 billion of revenue is expected to be recognized from remaining performance obligations.

We expect to recognize revenue on approximately 14 % of these remaining performance obligations in fiscal 2026, with the remainder of the balance recognized thereafter.

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(in millions) Balance Sheet Line Item

September 30, 2025 March 31, 2025

December 31, 2025 March 31, 2025

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

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Change in contract liabilities were as follows:

Six Months Ended

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

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024

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

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Note 11 – Restructuring Costs

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

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

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

(in millions) December 31, 2025 March 31, 2025

Accrued expenses and other current liabilities $ 24 $ 33

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Cash Paid Other (2)

Restructuring Liability as of September 30, 2025

Restructuring Liability as of December 31, 2025

Fiscal 2026 Plan

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_______________

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

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.

(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.

Restructuring costs for the nine months ended December 31, 2025 includes $ 6 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 Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Service cost $ 12 $ 13 $ 38 $ 39

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Amortization of prior service costs ( 1 ) ( 2 ) ( 3 ) ( 4 )

( 30 ) ( 27 ) ( 90 ) ( 81 )

Settlement/curtailment gain

( 4 ) — ( 4 ) —

Recognition of actuarial loss

Net periodic pension income $ ( 19 ) $ ( 27 ) $ ( 79 ) $ ( 81 )

The service cost component of net periodic pension income is presented in costs of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net.

In November 2025, the Government of India consolidated multiple labor statutes into a unified framework.

Certain provisions of this framework revised the definition of wages used in determining employee benefit obligations.

During the third quarter of fiscal 2026, the Company evaluated the impact of these changes and recognized an increase of approximately $ 15 million in its projected benefit obligations in India.

In accordance with the Company’s accounting policy to recognize actuarial gains and losses immediately through a mark-to-market adjustment, a non-cash charge of $ 15 million was recorded in Other income, net, during the period.

Note 13 – Income Taxes

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.

The Company’s effective tax rate (“ETR”) was 35.7 % and 51.9 % for the three months ended December 31, 2025, and December 31, 2024, respectively, and 54.5 % and 54.5 % for the nine months ended December 31, 2025, and December 31, 2024, respectively.

For the three months ended December 31, 2025, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, and tax benefits resulting from the expiration of the statute of limitations relating to uncertain tax positions.

For the nine months ended December 31, 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.

For the three months ended December 31, 2024, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, and the foreign tax credit.

For the nine months ended December 31, 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.

As of December 31, 2025, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and a deferred tax liability of $ 28 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.

If future events, including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective tax rate.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In connection with the merger of Computer Sciences Corporation (“CSC”) and the Enterprise Services business of Hewlett Packard Enterprise Company (the “HPES Merger”), the Company entered into a tax matters agreement with Hewlett Packard Enterprise Company (“HPE”).

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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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The total cash tax payment the IRS is seeking is approximately $ 495 million, inclusive of penalties and interest, which continues to accrue.

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.

Tax Court held a trial on this matter in two sessions in August and October 2025.

Post-trial briefing is scheduled to conclude in April 2026.

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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These amounts are net of an expected $ 81 million interest deduction tax benefit.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

During fiscal 2024, the Company determined there were inadvertent omissions on previously filed tax returns related to gain recognition agreements and certain related tax forms and disclosures.

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

For the three months ended December 31, 2025, the Company’s liability for uncertain tax positions decreased by $ 13 million (excluding interest and penalties and related tax attributes) primarily due to the expiration of the statute of limitations.

DXC TECHNOLOGY COMPANY

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Share Repurchase Program

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.

During the first nine months of fiscal 2026, the Company repurchased 13,087,310 shares under our Share Repurchase Program.

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

Fiscal Period Number of Shares Repurchased Average Price Per Share Amount

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2nd Quarter 5,317,898 $ 14.10 75

4,494,144 $ 14.46 65

Total 13,087,310 $ 14.52 $ 190

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Amounts reclassified from accumulated other comprehensive loss — 14 ( 3 ) 11

Balance at September 30, 2025

Balance at December 31, 2025

$ ( 1,045 ) $ ( 15 ) $ 190 $ ( 870 )

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Amounts reclassified from accumulated other comprehensive loss — 1 ( 3 ) ( 2 )

Balance at September 30, 2024

Balance at December 31, 2024

$ ( 916 ) $ ( 7 ) $ 204 $ ( 719 )

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Canceled/Forfeited ( 2,372,655 ) $ 22.86 — $ —

Outstanding as of September 30, 2025

Outstanding as of December 31, 2025

14,430,911 $ 17.23 250,235 $ 20.41

Share-Based Compensation

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Total share-based compensation cost $ 23 $ 11 $ 69 $ 59

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

Six Months Ended

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

Nine Months Ended

(in millions) December 31, 2025 December 31, 2024

Cash paid for:

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_______________

(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.

(1) Income tax refunds were $ 47 million and $ 36 million for the nine months ended December 31, 2025 and December 31, 2024, respectively.

(2) Net of $ 459 million and $ 528 million in lease modifications and terminations during the nine months ended December 31, 2025 and December 31, 2024, respectively.

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

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Total Reportable Segments

Three Months Ended September 30, 2025

Three Months Ended December 31, 2025

Revenues $ 1,266 $ 1,607 $ 321 $ 3,194

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Segment profit $ 144 $ 113 $ 35 $ 292

Three Months Ended September 30, 2024

Three Months Ended December 31, 2024

Revenues $ 1,267 $ 1,651 $ 307 $ 3,225

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Total Reportable Segments

Six Months Ended September 30, 2025

Nine Months Ended December 31, 2025

Revenues $ 3,767 $ 4,793 $ 954 $ 9,514

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Segment profit $ 394 $ 332 $ 96 $ 822

Six Months Ended September 30, 2024

Nine Months Ended December 31, 2024

Revenues $ 3,827 $ 4,965 $ 910 $ 9,702

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Reconciliation of Reportable Segment Profit to Consolidated Total

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Total profit for reportable segments $ 292 $ 326 $ 822 $ 926

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( 29 ) ( 40 ) ( 89 ) ( 137 )

$ 254 $ 279 $ 470 $ 503

Subtotal 263 286 733 789

Restructuring costs ( 20 ) ( 43 ) ( 92 ) ( 124 )

Transaction, separation and integration-related costs

— ( 3 ) ( 2 ) ( 25 )

Amortization of acquired intangible assets ( 87 ) ( 87 ) ( 262 ) ( 263 )

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Gains on dispositions

Gains (losses) on real estate and facility sales

(Losses) gains on real estate and facility sales

— ( 3 ) 7 ( 32 )

Impairment losses — ( 12 ) ( 14 ) ( 12 )

Pension and OPEB actuarial and settlement losses

( 11 ) — ( 11 ) —

Interest income 46 51 138 153

Interest expense ( 54 ) ( 66 ) ( 161 ) ( 207 )

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

Income before income tax

Income before income taxes

$ 171 $ 131 $ 369 $ 292

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Note 18 – Commitments and Contingencies

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

Minimum purchase commitments as of December 31, 2025 were as follows:

Fiscal year Minimum Purchase Commitment

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Total $ 2,298

_____________

(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 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.

In December 2025, the Court entered an order granting preliminary approval of the settlement.

Notice of the pending settlement has been sent to class members.

A final approval hearing has been scheduled for June 2026.

The Company’s share of the settlement has been funded by its insurance carriers.

Tax Examinations:

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In April 2025, the Court of Appeals heard oral argument on the appeal.

A decision from the Court of Appeals is pending.

In November 2025, the Court of Appeals issued an order affirming the monetary award to the Company.

The Court vacated the injunction and remanded to the District Court for the issuance of a revised injunction with a narrower scope.

In December 2025, TCS filed petitions with the Court of Appeals seeking panel rehearing and rehearing en banc.

The Court denied both petitions.

TCS’s deadline to petition the U.S.

Supreme Court for review is March 2026.

Proceedings in the District Court regarding a revised injunction are pending.

The Company has not recognized any portion of the award in its financial statements and will continue to monitor the progress of the case.

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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 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 representing our 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.

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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