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Item 1. Financial Statements

2026-07-31 compared with 2026-01-30 · 243 added, 395 removed, 640 unchanged (50% of the section changed)

1 unchanged sentence

Index to Condensed Consolidated Financial Statements

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)

Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2026 and June 30, 2025 (unaudited)

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended June 30, 2026 and June 30, 2025 (unaudited)

Condensed Consolidated Balance Sheets as of June 30, 2026 and March 31, 2026 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2026, and June 30, 2025 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended June 30, 202 6 and June 30, 202 5 (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1–Summary of Significant Accounting Policies

Note 2–Divestitures

Note 2–Earnings Per Share

12 unchanged sentences

Note 16–Segment Information

Note 17–Other Liabilities

Note 18–Commitments and Contingencies

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions, except per-share amounts) June 30, 2026 June 30, 2025

Revenues $ 2,999 $ 3,159

5 unchanged sentences

Interest income ( 89 ) ( 46 )

Gain on disposition of businesses

— ( 7 ) — ( 7 )

Other income, net ( 217 ) ( 39 )

11 unchanged sentences

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

Three Months Ended

(in millions)

June 30, 2026 June 30, 2025

Net income $ 126 $ 18

Other comprehensive income (loss), net of taxes:

Foreign currency translation adjustments, net of tax (1)

9 ( 59 ) ( 98 ) 23

Cash flow hedges adjustments, net of tax (2)

3 4 ( 8 ) ( 7 )

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

Cash flow hedges adjustments, net of tax expense (benefit) of $ 3 and $( 2 )

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

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

( 1 ) ( 1 ) ( 3 ) ( 3 )

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

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

Other comprehensive income (loss), net of taxes 54 ( 39 )

11 ( 56 ) ( 109 ) 13

Comprehensive income

Comprehensive income (loss) 180 ( 21 )

comprehensive income attributable to non-controlling interest 3 2

Comprehensive income attributable to DXC common stockholders

$ 118 $ 2 $ 51 $ 139

_______________

(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.

Comprehensive income (loss) attributable to DXC common stockholders $ 177 $ ( 23 )

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) December 31, 2025 March 31, 2025

(in millions, except per-share and share amounts) June 30, 2026 March 31, 2026

Current assets:

16 unchanged sentences

Accrued payroll and related costs 587 564

Current operating lease liabilities 233 227

Operating lease liabilities

Accrued expenses and other current liabilities 1,129 1,261

10 unchanged sentences

DXC stockholders’ equity:

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

Preferred stock, par value $ 0.01 per share;

authorized 1,000,000 shares;

none issued as of June 30, 2026 and March 31, 2026

Common stock, par value $ 0.01 per share;

authorized 750,000,000 shares;

issued 168,276,567 as of June 30, 2026 and 171,946,069 as of March 31, 2026

Additional paid-in capital 6,749 7,016

1 unchanged sentence

Accumulated other comprehensive loss ( 835 ) ( 890 )

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

Treasury stock, at cost, 7,392,532 and 6,460,358 shares as of June 30, 2026 and March 31, 2026

( 257 ) ( 249 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Nine Months Ended

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

Three Months Ended

(in millions)

June 30, 2026 June 30, 2025

Cash flows from operating activities:

4 unchanged sentences

Operating right-of-use expense 72 76

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

Share-based compensation 17 22

Deferred taxes 49 ( 12 )

(Gain) loss on dispositions ( 3 ) 30

Provision for losses on accounts receivable 6 9

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

Gain on dispositions ( 2 ) ( 1 )

Unrealized foreign currency exchange gain ( 7 ) ( 47 )

Impairment losses and contract write-offs — 1

1 unchanged sentence

Changes in assets and liabilities:

Decrease in assets 260 334

(Increase) decrease in assets ( 20 ) 90

Decrease in operating lease liability ( 72 ) ( 76 )

5 unchanged sentences

Software purchased and developed ( 22 ) ( 16 )

Business dispositions — 26

Proceeds from sale of assets 5 10

2 unchanged sentences

Cash flows from financing activities:

Borrowings of commercial paper — 367

Repayments of commercial paper — ( 369 )

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

Payments on finance leases and borrowings for asset financing ( 38 ) ( 49 )

Proceeds from bond issuance 747 —

Taxes paid related to net share settlements of share-based compensation awards ( 10 ) ( 12 )

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 21 ( 3 )

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

Net increase (decrease) in cash and cash equivalents 220 ( 4 )

Cash and cash equivalents at beginning of year 1,737 1,796

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

Three Months Ended December 31, 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 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

Share-based compensation expense 23 23 23

Share repurchase program (2)

( 4,494 ) ( 1 ) ( 189 ) 124 ( 66 ) ( 66 )

Stock option exercises and other common stock transactions 40 — —

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

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 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

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

Stock option exercises and other common stock transactions 89 — —

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

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

Three Months Ended June 30, 2026

(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)

DXC Equity Non-

Controlling Interest Total Equity

Treasury Stock Total

Controlling Interest

Shares Amount

Balance at March 31, 2026 171,946 $ 1 $ 7,016 $ ( 2,937 ) $ ( 890 ) $ ( 249 ) $ 2,941 $ 268 $ 3,209

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

Net income 122 122 4 126

Other comprehensive income

Other comprehensive loss

55 55 ( 1 ) 54

2 unchanged sentences

Share repurchase program ( 6,704 ) ( 284 ) 214 ( 70 ) ( 70 )

( 13,087 ) ( 1 ) ( 552 ) 361 ( 192 ) ( 192 )

Stock option exercises and other common stock transactions 3,035 — —

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

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

Balance at June 30, 2026 168,277 $ 1 $ 6,749 $ ( 2,601 ) $ ( 835 ) $ ( 257 ) $ 3,057 $ 271 $ 3,328

Three Months Ended June 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 Total

DXC Equity Non-

Controlling Interest Total Equity

Controlling Interest

Shares Amount

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

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

Net income 16 16 2 18

3 unchanged sentences

Acquisition of treasury stock ( 10 ) ( 10 ) ( 10 )

Share repurchase program ( 3,275 ) ( 138 ) 88 ( 50 ) ( 50 )

Stock option exercises and other common stock transactions 2,397 — —

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

Balance at December 31, 2024

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

_______________

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

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

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

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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

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services.

The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources:

Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Services ("Insurance").

Segment Structure

The Company’s three reportable segments align with how management assesses performance of the business and allocates resources:

Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Software & Services ("Insurance").

Across these segments, we embed AI, automation and data-driven capabilities into our solutions to improve efficiency, enhance operations and support better business outcomes for clients.

See Note 16 - "Segment Information" for more information.

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The implementation of secure, reliable technology improves employee experiences and productivity by streamlining daily operations—such as device management, helpdesk support, and AI-powered automation—enabling seamless collaboration, reducing IT support demands, and lowering costs through intuitive, self-service tools.

• Insurance Services – Provides software and services for Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations.

We help insurers modernize their technology landscape from heritage systems to advanced AI-powered solutions that enhances operational efficiency, improves customer experiences, and enables insurers to adopt a digital-first approach.

• Insurance Software & Services – Provides software and services for Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations.

We help insurers modernize their technology landscape from heritage systems to advanced AI-powered solutions that enhance operational efficiency, improve customer experiences, and enable insurers to adopt a digital-first approach.

Complementing our software solutions, we provide comprehensive business process services, leveraging deep industry expertise to support the full spectrum of insurance operations.

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 Income (Loss) as the “statements of comprehensive income (loss),” (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.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

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 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.

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

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 income (loss).

All intercompany transactions and balances have been eliminated.

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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

December 2023

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 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.

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

Date Issued and ASU DXC Effective Date

Description Impact

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”

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.

1 unchanged sentence

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.

“Targeted Improvements to the Accounting for Internal-Use Software” Fiscal 2029 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.

3 unchanged sentences

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 2 – Earnings per Share

2 unchanged sentences

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

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

Three Months Ended

(in millions, except per-share amounts)

June 30, 2026 June 30, 2025

Net income attributable to DXC common shareholders:

Common share information:

5 unchanged sentences

Diluted $ 0.73 $ 0.09

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

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

The number of awards excluded were as follows:

Three Months Ended Nine Months Ended

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

Three Months Ended

June 30, 2026 June 30, 2025

Stock Options 192,738 407,095

1 unchanged sentence

Performance Stock Units 4,152,795 144,891

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:

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Beginning balance $ 27 $ 32

Provisions for losses on accounts receivable 6 9

Other adjustments to allowance and write-offs ( 2 ) ( 2 )

3 unchanged sentences

The Receivables Facility was amended on July 24, 2026, extending the termination date to July 23, 2027.

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.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As of June 30, 2026, the total availability under the Receivables Facility was $ 359 million and the amount sold to the Purchasers was $ 367 million, which was derecognized from the Company’s balance sheet.

As of June 30, 2026, the Company recorded a $ 8 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.

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 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 .

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 .

Operating Leases

The components of operating lease expense were as follows:

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Operating lease cost $ 72 $ 76

3 unchanged sentences

Total operating costs $ 86 $ 93

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 stated below.

Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows $ 72 $ 76

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

_______________

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

(1) Net of $ 150 million and $ 214 million in lease modifications and terminations for the three months ended June 30, 2026 and June 30, 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 December 31, 2025 March 31, 2025

(in millions) Balance Sheet Line Item June 30, 2026 March 31, 2026

ROU operating lease assets Operating right-of-use assets, net $ 637 $ 663

2 unchanged sentences

Total operating lease liabilities $ 670 $ 695

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:

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The weighted-average operating lease term was 3.6 years and 3.7 years as of June 30, 2026 and March 31, 2026, respectively.

The weighted-average operating lease discount rate was 4.8 % and 4.9 % as of June 30, 2026 and March 31, 2026, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of June 30, 2026:

(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 Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Amortization of right-of-use assets $ 9 $ 15

Interest on lease liabilities 2 3

Total finance lease expense $ 13 $ 21 $ 47 $ 77

Total finance lease cost $ 11 $ 18

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

Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Interest paid for finance lease liabilities – Operating cash flows $ 2 $ 3

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 December 31, 2025 March 31, 2025

(in millions) Balance Sheet Line Item June 30, 2026 March 31, 2026

ROU finance lease assets Property and Equipment, net $ 67 $ 74

2 unchanged sentences

Total finance lease liabilities (1)

_______________

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

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:

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The weighted-average finance lease term was 2.3 years and 2.3 years as of June 30, 2026 and March 31, 2026, respectively.

The weighted-average finance lease discount rate was 6.1 % and 6.0 % as of June 30, 2026 and March 31, 2026, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2026:

(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 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.

The notional amounts of foreign currency forward contracts designated as cash flow hedges as of June 30, 2026 and March 31, 2026 were $ 105 million and $ 197 million, respectively.

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

During the three months ended June 30, 2026 and June 30, 2025, 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 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.

As of June 30, 2026, $ 6 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.

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 December 31, 2025 and March 31, 2025 were $ 1.1 billion and $ 1.9 billion, respectively.

The net notional amounts of the foreign currency forward contracts outstanding as of June 30, 2026 and March 31, 2026 were $ 1.1 billion and $ 1.3 billion, respectively.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

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

Three Months Ended

Nine Months Ended

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

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

For the Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Foreign currency remeasurement (1)

$ 8 $ 48 $ ( 50 ) $ 29

Undesignated foreign currency forward contracts (2)

( 8 ) ( 49 ) 43 ( 29 )

Total - Foreign currency (gain) loss

$ ( 1 ) $ ( 5 )

_______________

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

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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 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.

With respect to its foreign currency derivatives, as of June 30, 2026, 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.

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 intercompany 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 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 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.

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.

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

Gains or losses on individual 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 December 31, 2025, DXC had $ 244 million of foreign currency-denominated intercompany debt designated as hedges of 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, 2026, DXC had $ 637 million of foreign currency-denominated debt designated as hedges of net investments in non-U.S.

subsidiaries.

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.

For the three months ended June 30, 2026, the pre-tax impact of gain on foreign currency-denominated debt designated for hedge accounting recognized in other comprehensive income (loss) was $ 5 million.

DXC TECHNOLOGY COMPANY

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Intangible assets consisted of the following:

As of December 31, 2025

As of March 31, 2025

As of June 30, 2026 As of March 31, 2026

(in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value

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Customer related intangible assets 3,936 3,406 530 3,941 3,326 615

3,964 3,256 708 3,886 2,933 953

Other intangible assets 265 149 116 265 144 121

290 165 125 284 142 142

Total intangible assets $ 7,554 $ 6,036 $ 1,518 $ 7,589 $ 5,977 $ 1,612

The components of amortization expense were as follows:

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Intangible asset amortization

Transition and transformation contract cost amortization (1)

43 51 129 152

Total amortization expense $ 200 $ 225

_______________

(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:

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

The balance within other assets was $ 560 million and $ 577 million as of June 30, 2026 and March 31, 2026, respectively.

Estimated future amortization related to intangible assets as of June 30, 2026 is as follows:

Fiscal Year (in millions)

2 unchanged sentences

Total $ 1,518

Note 8 – Goodwill

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure that includes three operating and reportable segments:

1) CES, 2) GIS, and 3) Insurance.

These segments align with how management assesses performance of the business and allocates resources.

See Note 17 - "Segment Information" for more information.

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.

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 December 31, 2025.

(in millions) Global Business Solutions

Consulting & Engineering Services

Note 7 – Goodwill

The following table summarizes the changes in the carrying amount of goodwill by segment for the three months ended June 30, 2026.

(in millions) Consulting & Engineering Services

Global Infrastructure Services

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Balance as of March 31, 2026, net $ 378 $ — $ 149 $ 527

$ 526 $ — $ — $ — $ 526

Reallocation of goodwill

$ ( 526 ) $ 367 $ 14 $ 145 $ —

Impairment losses (1)

— ( 14 ) — ( 14 )

Foreign currency translation (1)

Balance as of December 31, 2025, net

$ — $ 380 $ — $ 150 $ 530

Balance as of June 30, 2026, net $ 378 $ — $ 149 $ 527

Goodwill, gross 3,597 5,080 1,420 10,097

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

Balance as of December 31, 2025, net

$ 380 $ — $ 150 $ 530

_______________

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

Balance as of June 30, 2026, net $ 378 $ — $ 149 $ 527

(1) The foreign currency translation amount reflects the impact of currency movements on non-U.S.

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

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

(in millions) Interest Rates Fiscal Year Maturities June 30, 2026 (1)

March 31, 2026 (1)

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1.80 % 2027 400 400

$ 700 million Senior notes

1.80 % 2027 399 —

Current maturities of finance lease liabilities 0.59 % - 14.59 %

2027 - 2028 82 92

Current maturities of long-term debt Various 2026 - 2027 34 55

Current maturities of other long-term debt Various 2027 - 2028 19 28

Short-term debt and current maturities of long-term debt $ 501 $ 520

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0.95 % 2032 683 687

€ 600 million Senior notes

0.95 % 2032 700 644

Finance lease liabilities 0.59 % - 14.59 %

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$ 3,504 $ 3,552

_______________

(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.

(1) The carrying amounts of the senior notes as of June 30, 2026 and March 31, 2026, include the remaining principal outstanding of $ 3,313 million and $ 3,328 million, respectively, net of total unamortized debt (discounts) and premiums, and deferred debt issuance costs of $ 24 million and $ 27 million, respectively.

Fair Value of Debt

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.

The estimated fair value of the Company’s senior notes was $ 3.2 billion and $ 3.1 billion as of June 30, 2026 and March 31, 2026, respectively, compared with carrying value of $ 3.3 billion and $ 3.3 billion as of June 30, 2026 and March 31, 2026, respectively.

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

Revolving Credit Facility

As of June 30, 2026, the Company's total liquidity was $ 5.0 billion, consisting of $ 2.0 billion of cash and cash equivalents and $ 3.0 billion of available borrowings under our revolving credit facility, with no outstanding borrowings under the facility during or as of the three months ended June 30, 2026.

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 Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

United States $ 742 $ 828

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Remaining Performance Obligations

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

As of June 30, 2026, approximately $ 16.3 billion of revenue is expected to be recognized from remaining performance obligations.

We expect to recognize revenue on approximately 33 % of these remaining performance obligations in fiscal 2027, with the remainder of the balance recognized thereafter.

Contract Balances

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

December 31, 2025 March 31, 2025

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, 2026 March 31, 2026

Trade receivables, net Receivables and contract assets, net of allowance for doubtful accounts $ 1,929 $ 1,940

$ 1,920 $ 2,041

Contract assets Receivables and contract assets, net of allowance for doubtful accounts $ 401 $ 379

Contract liabilities Deferred revenue and advance contract payments and Non-current deferred revenue $ 1,274 $ 1,307

$ 1,295 $ 1,397

Change in contract liabilities were as follows:

Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Balance, beginning of period $ 1,307 $ 1,397

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Note 10 – Restructuring Costs

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

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

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

(in millions) June 30, 2026 March 31, 2026

Accrued expenses and other current liabilities $ 20 $ 20

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Restructuring Liability Reconciliations by Plan

Restructuring Liability as of March 31, 2025

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

Cash Paid Other (2)

Restructuring Liability as of December 31, 2025

Restructuring Liability as of March 31, 2026 Costs Expensed, Net of Reversals Costs Not Affecting Restructuring Liability (1)

Cash Paid Restructuring Liability as of June 30, 2026

Fiscal 2027 Plan

11 unchanged sentences

Total $ 23 $ 26 $ ( 1 ) $ ( 25 ) $ 23

_______________

(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 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.

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

Included in restructuring costs for the first quarter of fiscal 2027 is $ 1 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

3 unchanged sentences

The components of net periodic pension income were:

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Service cost $ 12 $ 13

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Expected return on assets ( 125 ) ( 117 )

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

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

Settlement/curtailment gain

( 4 ) — ( 4 ) —

Recognition of actuarial loss

Amortization of prior service credit ( 1 ) ( 1 )

Net periodic pension income $ ( 33 ) $ ( 30 )

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 12 – Income Taxes

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 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.

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’s effective tax rate (“ETR”) was 47.7 % and 73.1 % for the three months ended June 30, 2026, and June 30, 2025, respectively.

For the three months ended June 30, 2026, the primary drivers of the ETR were the global mix of income, U.S.

tax on foreign income, and a reduction in a deferred tax asset for stock based compensation.

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.

As of June 30, 2026, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and had a deferred tax liability of $ 20 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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The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods.

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.

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

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.

Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of the HPS business.

The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal years 2009 through the tax year ended October 31, 2018.

The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal years 2009 through 2021.

With respect to CSC’s fiscal years 2009 through 2017 federal tax returns, the Company participated in settlement negotiations with the IRS Office of Appeals.

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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.

Post-trial briefing concluded in April 2026.

A decision from the court is now pending.

The second issue pertains to the Company’s deduction for restructuring expenses in fiscal year 2013 in the amount of $ 139 million, which the IRS has disputed.

The total cash tax payment the IRS is seeking is approximately $ 110 million, inclusive of penalties and interest, which continues to accrue.

In January 2025, the Court denied the IRS’s motion for summary judgment.

In January 2025, the Court denied the IRS’ motion for summary judgment.

A trial date is pending.

2 unchanged sentences

The total cash tax payment the IRS is seeking is approximately $ 127 million, inclusive of penalties and interest, which continues to accrue.

The IRS has filed a motion for summary judgment.

A decision on the motion is pending.

As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the U.S.

Tax Court, the above matters are not fully reserved and would result in incremental federal and state tax expense of approximately $ 569 million (including estimated interest and penalties) for the unreserved portion of these items and cash tax payments of approximately $ 652 million if we do not prevail.

In March 2026, the Court granted the IRS’ motion for summary judgment.

In June, 2026, the Company’s motion for reconsideration was denied.

A final decision on the Company’s tax liability is pending.

As we believe we will ultimately prevail on the technical merits of the first and second issues above and are continuing to challenge them in the U.S.

Tax Court, the first and second issues are not fully reserved and would result in incremental federal and state tax expense of approximately $ 530 million (including estimated interest and penalties) for the unreserved portion of these items, if we do not prevail.

The total cash tax exposure across all three issues above is approximately $ 664 million.

These amounts are net of an expected $ 84 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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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 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.

For the three months ended June 30, 2026, the Company’s liability for uncertain tax positions decreased by $ 3 million (excluding interest and penalties and related tax attributes).

DXC TECHNOLOGY COMPANY

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Share Repurchase Program

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.

During the first quarter of fiscal 2027 and fiscal 2026, there were 6,704,651 and 3,275,268 shares repurchased under our Share Repurchase Program, respectively.

Fiscal 2027 Fiscal 2026

Fiscal Period Number of Shares Repurchased Average Price Per Share Amount

(in millions) Number of Shares Repurchased Average Price Per Share Amount

(in millions)

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

2nd Quarter 5,317,898 $ 14.10 75

4,494,144 $ 14.46 65

Open market purchases 6,704,651 $ 10.42 $ 70 3,275,268 $ 15.27 $ 50

Total 6,704,651 $ 10.42 $ 70 3,275,268 $ 15.27 $ 50

Accumulated Other Comprehensive Loss

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

The following table shows 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

Balance at March 31, 2026 $ ( 1,060 ) $ ( 19 ) $ 189 $ ( 890 )

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

Other comprehensive income before reclassifications 46 ( 1 ) — 45

( 97 ) ( 22 ) — ( 119 )

Amounts reclassified from accumulated other comprehensive loss — 11 ( 1 ) 10

Balance at December 31, 2025

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

Balance at June 30, 2026 $ ( 1,014 ) $ ( 9 ) $ 188 $ ( 835 )

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

Balance at March 31, 2025 $ ( 948 ) $ ( 7 ) $ 193 $ ( 762 )

$ ( 939 ) $ — $ 207 $ ( 732 )

Other comprehensive loss before reclassifications ( 32 ) ( 10 ) — ( 42 )

Amounts reclassified from accumulated other comprehensive loss — 3 — 3

Balance at December 31, 2024

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

Balance at June 30, 2025 $ ( 980 ) $ ( 14 ) $ 193 $ ( 801 )

DXC TECHNOLOGY COMPANY

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Outstanding as of March 31, 2026 13,441,505 $ 17.15 250,235 $ 20.41

9,073,741 $ 22.23 201,017 $ 26.63

Granted 7,832,632 $ 9.91 — $ —

1 unchanged sentence

Canceled/Forfeited ( 731,721 ) $ 26.86 — $ —

Outstanding as of December 31, 2025

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

Outstanding as of June 30, 2026 17,484,222 $ 13.14 250,235 $ 20.41

Share-Based Compensation

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Total share-based compensation cost $ 17 $ 22

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

Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Cash paid for:

5 unchanged sentences

Capital expenditures through finance lease obligations $ 4 $ 1

Assets acquired under long-term financing $ 3 $ —

Shares repurchased but not settled in cash $ 1 $ 2

_______________

(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.

(1) Income tax refunds were $ 6 million and $ 4 million for the three months ended June 30, 2026 and June 30, 2025, respectively.

(2) Net of $ 150 million and $ 214 million in lease modifications and terminations for the three months ended June 30, 2026 and June 30, 2025, respectively.

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

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

government enacted the IRA into law.

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

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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Our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") serve as our Chief Operating Decision Makers ("CODM") and are responsible for obtaining, reviewing, and managing the Company’s financial performance based on these segments.

The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources:

The Company reports its financial results under a segment structure designed to reflect the Company’s operational structure and the delivery of end-to-end IT services.

The structure includes three reportable segments that align with how management assesses performance of the business and allocates resources:

CES, GIS, and Insurance, as previously described above in Note 1 - “Summary of Significant Accounting Policies.” In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation.

1 unchanged sentence

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.

3 unchanged sentences

The tables below reflect those revised assumptions.

DXC TECHNOLOGY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Segment Measures

1 unchanged sentence

(in millions) CES

GIS Insurance

Total Reportable Segments

Three Months Ended December 31, 2025

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

Costs of services

( 982 ) ( 1,239 ) ( 226 ) ( 2,447 )

Selling, general and administrative

( 137 ) ( 125 ) ( 40 ) ( 302 )

Depreciation and amortization (1)

( 20 ) ( 151 ) ( 24 ) ( 195 )

Other segment items (2)

Segment profit $ 144 $ 113 $ 35 $ 292

Three Months Ended December 31, 2024

Three Months Ended June 30, 2026

Revenues $ 1,231 $ 1,449 $ 319 $ 2,999

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Segment profit

(in millions) CES

GIS Insurance

Total Reportable Segments

Nine Months Ended December 31, 2025

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

Costs of services

$ 100 $ 38 $ 34 $ 172

Selling, general and administrative

( 443 ) ( 410 ) ( 125 ) ( 978 )

Depreciation and amortization (1)

( 68 ) ( 478 ) ( 72 ) ( 618 )

Other segment items (2)

Segment profit $ 394 $ 332 $ 96 $ 822

Nine Months Ended December 31, 2024

Three Months Ended June 30, 2025

Revenues $ 1,246 $ 1,600 $ 313 $ 3,159

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Reconciliation of Reportable Segment Profit to Consolidated Total

Three Months Ended Nine Months Ended

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

Three Months Ended

(in millions) June 30, 2026 June 30, 2025

Total profit for reportable segments $ 172 $ 235

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Transaction, separation and integration-related costs

— ( 3 ) ( 2 ) ( 25 )

Amortization of acquired intangible assets ( 87 ) ( 87 )

Merger related indemnification

Gain on litigation award 168 —

Gains on dispositions 2 —

(Losses) gains on real estate and facility sales

— ( 3 ) 7 ( 32 )

Impairment losses — ( 14 )

Pension and OPEB actuarial and settlement losses

( 11 ) — ( 11 ) —

Interest income 89 46

1 unchanged sentence

Income before income taxes $ 241 $ 67

$ 171 $ 131 $ 369 $ 292

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

As a result, assets are not tracked by segment, and therefore, total assets by segment are not disclosed.

Note 17 – Other Liabilities

The following table provides the components of other liabilities:

(in millions)

June 30, 2026 March 31, 2026

Accrued Expenses and Other Current Liabilities

Indirect tax expenses 268 316

Employee-related obligations (1)

Operating expenses and other current liabilities (2)

Total $ 1,129 $ 1,261

Other Long-term Liabilities

Indemnification obligations $ 87 $ 83

Employee-related obligations (1)

Operating expenses and other long-term liabilities (2)

Total $ 1,184 $ 1,186

(1) Includes the Company’s pension obligations and other certain employee-related obligations.

(2) Includes multi-year third-party software license agreements and accrued services for professional service providers and other vendors primarily related to program-level activities.

DXC TECHNOLOGY COMPANY

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Note 18 – Commitments and Contingencies

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

Minimum purchase commitments as of June 30, 2026 were as follows:

Fiscal year Minimum Purchase Commitment

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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.

Notice of the pending settlement was thereafter sent to class members.

In June 2026, the Court entered an order granting final approval of the settlement.

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

This matter is now closed.

Tax Examinations:

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The Court also awarded the Company $ 26 million in prejudgment interest, post-judgment interest at an annual rate of 4.824 %, and its attorney’s fees and costs, in an amount to be determined in a later order.

The total award to the Company is $ 194 million, plus its attorney’s fees and costs.

The total award to the Company was $ 194 million, plus its attorney’s fees and costs.

The Court also issued a permanent injunction enjoining TCS from, among other things, possessing, accessing, or using any of the Company’s trade secrets that were at issue in the case, and appointing a monitor to confirm, among other things, that TCS does not do so.

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

The District Court has issued an amended injunction, which preserved the ten-year monitorship imposed on TCS.

The Company has moved to enforce the amended injunction, and will continue to do so where necessary.

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.

In March 2026, TCS filed a petition for writ of certiorari with the U.S.

Supreme Court.

The Company filed its response to the petition in May 2026.

In June 2026, the U.S.

Supreme Court denied TCS’s petition for writ of certiorari, thereby concluding the appeals process.

Thereafter, the Company collected the full amount of the judgment, plus interest, in the amount of $ 214 million.

The Company will continue to pursue collection of its previously awarded attorney’s fees and costs, the amount of which will be adjudicated in the District Court.

This matter is otherwise closed.

In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies.

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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 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.

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.

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.

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,restructuring plans, potential acquisitions and divestitures, competitive position, growth opportunities, artificial intelligence and technology initiatives, 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.

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:

• our inability to succeed in our strategic objectives;

• the risk of liability, reputational damages or adverse impact to business due to service interruptions, from security breaches, cyber-attacks, other security incidents or disclosure of confidential information or personal data;

• our inability to effectively manage and improve our sales organization, including structural challenges related to sales execution, pipeline development, and talent management;

• our inability to develop and expand our service offerings to address emerging business demands and technological trends, and the competitive pressures faced by our business;

• our inability to attract and retain key personnel, including sales talent and employees with artificial intelligence and technical expertise, and to maintain relationships with key partners;

• risks associated with AI, including our adoption, deployment, and governance of AI technologies, reliance on third-party AI platforms, AI-related cybersecurity and data privacy risks, evolving AI regulations, and competitive displacement from AI;

• our inability to accurately estimate the cost of services and the timeline for completion of contracts, or if we or third parties fail to deliver on commitments or otherwise breach obligations to our customers;

• systems failures, catastrophic events, and resulting interruptions in the availability of our products or services;

• the risk of liability, reputational damages or adverse impact to our business due to security breaches, cyber-attacks, other cybersecurity events or incidents or disclosure of confidential information or personal data;

• compliance, or failure to comply, with obligations arising under new or existing laws, regulations, and customer contracts relating to the privacy, security and handling of personal data;

• our product and service quality issues;

• our inability to develop and expand our service offerings to address emerging business demands and technological trends, including our inability to sell differentiated services amongst our offerings and the competitive pressures faced by our business;

• our inability to compete in certain markets and expand our capacity in certain offshore locations;

• 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 the investment community or industry analysts or our failure to meet our publicly announced financial guidance;

• public health crises;

• our indebtedness and potential material adverse effect on our financial condition and results of operations;

• our inability to accurately estimate the cost of services, and the completion timeline of contracts;

• failure by us or third party partners to deliver on commitments or otherwise breach obligations to our customers;

• our inability to comply with existing and new laws and regulations, including economic sanctions, export controls, AI regulations, and social and environmental responsibility regulations, policies, and provisions, as well as customer and investor demands;

• failure to maintain our credit rating, manage our indebtedness, and raise additional capital for future needs, which could adversely affect our liquidity, capital position, borrowing costs, and access to capital markets;

• the risks associated with our international operations, including fluctuations in exchange rates, geopolitical conflicts such as the ongoing conflict between Russia and Ukraine and hostilities in the Middle East, and disruptions to our operations;

• the risks associated with prolonged periods of inflation or macroeconomic conditions, including reduced customer spending, the uncertainty related to our cost-takeout efforts, and our ability to close new deals in the event of an economic slowdown;

• our inability to compete effectively, maintain and grow our customer relationships over time, collect receivables from customers experiencing financial difficulties, or comply with customer contracts or government contracting regulations or requirements;

• our inability to succeed in our strategic transactions, including acquisitions, divestitures, and strategic partnerships;

• disruption of our supply chain or increases in procurement costs, including as a result of ongoing trade tensions, tariff charges, supplier non-performance, or armed hostilities;

• the risks associated with climate change and natural disasters;

• increased scrutiny of, and evolving expectations for, sustainability and environmental, social and governance ("ESG") initiatives;

• our inability to attract and retain key personnel and maintain relationships with key partners;

• the risks associated with prolonged periods of inflation or current macroeconomic conditions, including the possibility of reduced spending by customers in the areas we serve, the uncertainty related to our cost-takeout efforts, and our ability to close new deals in the event of an economic slowdown;

• the risks associated with our international operations, such as risks related to currency exchange rates;

• our inability to comply with existing and new laws and regulations, including social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands;

• our inability to achieve the expected benefits of our restructuring plans;

• our inadvertent infringement of third-party intellectual property rights or infringement of our intellectual property rights by third parties;

• our inability to procure third-party licenses required for the operation of our products and service offerings;

• risks associated with disruption of our supply chain or increases in procurement costs, including as a result of ongoing trade tensions and tariff charges;

• our inability to achieve the expected benefits of our restructuring plans, including risks associated with workforce reductions and increased reliance on automation and AI;

• our inability to maintain effective disclosure controls and internal control over financial reporting;

• potential losses due to asset impairment charges;

• potential losses due to asset impairment charges, including but not limited to intangibles and deferred tax assets;

• our inability to pay dividends or repurchase shares of our common stock;

• pending investigations, claims and disputes and any adverse impact on our profitability and liquidity;

• disruptions in the credit markets, including disruptions that reduce our customers’ access to credit and increase the costs to our customers of obtaining credit;

• counterparty default risk in our hedging program;

• our failure to bid on projects effectively;

• financial difficulties of our customers and our inability to collect receivables;

• our inability to maintain and grow our customer relationships over time and to comply with customer contracts or government contracting regulations or requirements;

• our inability to succeed in our strategic transactions;

• changes in tax rates, tax laws, and the timing and outcome of tax examinations;

• risks following the merger of Computer Sciences Corporation (“CSC”) and Enterprise Services business of Hewlett Packard Enterprise Company’s (“HPES”) businesses, including anticipated tax treatment, unforeseen liabilities, and future capital expenditures;

• volatility of the price of our securities, which is subject to market and other conditions;

• risks following the merger of Computer Sciences Corporation (“CSC”) and Enterprise Services business of Hewlett Packard Enterprise Company's (“HPE”) businesses, including anticipated tax treatment, unforeseen liabilities and future capital expenditures;

• risks following the spin-off of our former U.S.

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(including its successors and permitted assigns, “Perspecta”) (collectively, the "USPS Separation and Mergers");

• volatility of the price of our securities, which is subject to market and other conditions;

• the other factors described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and subsequent SEC filings, including Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

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