More annual reports from DXC Technology Company:
2024 ReportPeers and competitors of DXC Technology Company:
IBEX Limited Delivering
eXcellence for our
Customers and Colleagues
2024 Annual Report
B
WE LIVE OUR VALUES
Deliver
We do what we say we are going to do.
Do the right thing
We act with integrity.
Care
We take care of each other and foster a
culture of inclusion and belonging.
Collaborate
We work as a team — globally and locally.
Community
We believe in stewardship and building
a sustainable company that supports
our communities.
1
“I am confident that our
strategy will position us on
a path toward sustainable
and profitable growth in
the coming years, and I am
excited to lead DXC at this
pivotal time in its history.”
Raul Fernandez
President and Chief Executive
Officer of DXC Technology
Message from our
president and CEO
To the shareholders of DXC Technology,
It is my privilege to write to you as DXC’s new
president and chief executive officer.
During my first months as CEO, I have focused
on assessing the strengths, opportunities and
challenges across DXC. I have met with customers,
partners, employees and investors across the world
to hear their insights, perceptions and feedback.
These discussions have provided me with a deeper
and richer understanding and appreciation of this
outstanding company, and they have helped me
formulate our path forward for creating long-term
shareholder value.
We have an impressive portfolio of assets and
technologies; however, it is clear that there
are many compelling attributes of DXC that
are underappreciated outside of the company.
My leadership team is relentlessly focused on
unlocking that value through operational discipline,
integration, flawless execution and a series of
strategic initiatives. We are improving our sales
execution by employing an enhanced operating
model that better highlights our differentiated
offerings and aligns our sales organization by
geographic markets. While the path ahead is not
without challenges, and it will take some time to
achieve our intended results, I am confident you will
note our steady progress in the coming quarters.
I believe we have the right team and capabilities in
place to capitalize on the many opportunities ahead
and continue delivering impactful outcomes for
our customers.
2
In Global Business Services (GBS):
• We are merging Analytics & Engineering and
Applications into a combined Consulting &
Engineering Services business to improve
our customer experience and employee
engagement while removing areas of
duplication to drive better profitability. This
business has an extensive history of driving
change for some of the world’s biggest
brands. Our deep domain expertise in areas
including financial services, automotive
and manufacturing, and the public sector,
coupled with our rich analytics, AI and
software development capabilities, equips us
to lead our customers through their digital
transformation journeys.
• In our Insurance Software & Business
Process Services (BPS) business, we are the
category leader in software and services for life
and wealth, global specialty, and reinsurance
providers. Our technology and services process
1 in 5 property and casualty transactions
worldwide, and our customer base includes
21 of the top 25 global insurance carriers.
This business boasts strong recurring and
reoccurring revenue, along with very strong
customer retention and an average customer
tenure of 18 years, and we see opportunities to
explore new geographic markets and revenue
mix with our innovative software products.
In Global Infrastructure Services (GIS):
• Our Cloud Infrastructure & IT Outsourcing
(ITO) offering helps many of the world’s most
recognized brands modernize their technology
stack. As one of the largest service providers
in the industry with a strong customer NPS, we
are well positioned to help customers securely
operate the systems their businesses rely on.
Many of the world’s largest airlines, energy
companies and financial institutions, as well as
large government organizations, count on DXC
for the systems at the heart of their business.
We are helping our customers modernize
securely for the future and operate confidently
across a wide range of environments, from
legacy core mainframes to cutting edge
serverless cloud environments such as
Microsoft Azure, Google Cloud Platform and
Amazon Web Services, for which we have more
than 30,000 overall cloud certifications. Building
on this foundation, we are increasing our focus
on delivering as-a-service offerings across
multiple platforms.
• In Modern Workplace, our solutions play a
pivotal role in providing easy access to the
services our customers’ employees need. The
employee experience is more important than
ever, and we support more than 7 million
devices for our customers’ employees, all day,
every day. In support of our customers’ digital
strategies, we are driving more AI embedded
solutions aimed at delivering near-touchless
support for quick resolution of problems,
enabling greater productivity and enhanced
levels of engagement.
• Cybersecurity is a top C-suite concern and a
core competency for DXC. Our Security offering
equips customers with essential solutions that
help them assess risks and fortify resilience in
their IT infrastructure and operations. Around
the world, more than 3,000 DXC security
professionals work in eight security operations
centers to provide around-the-clock coverage
for our customers. As the pace and complexity
of cybersecurity incidents increase, we are
extending our focus beyond integration with
DXC’s other offerings to better support the
changing needs of our customers and to
enable growth.
Raul Fernandez
President and Chief Executive Officer
3
*Please see non-GAAP reconciliations of EBIT margin and adjusted EBIT margin to GAAP net income margin provided at the end of this annual
report. Please see non-GAAP reconciliations of organic revenue growth, EBIT, adjusted EBIT and non-GAAP diluted EPS to their respective most
directly comparable GAAP measures in the Form 10-K for the year ended March 31, 2024 (the “Form 10-K”), included as part of this annual report.
All statements in this annual report that do not directly and exclusively relate to historical facts constitute “forward-looking statements.”
For more information, please see “Cautionary Statement Regarding Forward-Looking Statements” included in the Form 10-K.
Fiscal year 2024 performance
Our fiscal year 2024 results were impacted
by the challenges related to macroeconomic
uncertainty and geopolitical risks affecting the
markets of the customers we serve. Despite
this difficult operating environment, DXC
continued to distinguish itself as a provider
of critical and transformational services and
solutions for our customers and was able
to generate significant cash flow and return
capital to shareholders. Financial results for the
year include the following:*
• Total revenue was $13.7 billion, representing
a 5.3% year-over-year decline, or a decline of
4.1% on an organic basis.
• GBS revenue declined 2.0% year over year, or
was up 1.4% on an organic basis.
• GIS revenue declined 8.3% year over year, or
declined 9.3% on an organic basis.
• EBIT was $193 million, with a corresponding
margin of 1.4%, and adjusted EBIT was $1.0
billion, with a corresponding margin of 7.4%.
• Diluted earnings per share (EPS) was $0.46,
increased from $(2.48) in the prior year, and
non-GAAP diluted EPS was $3.13, down 10%
year over year.
• Operating cash flow of $1,361 million, less
capital expenditures of $605 million, resulted
in free cash flow of $756 million, representing
the third consecutive year where DXC
generated more than $700 million in free
cash flow.
• We returned more than $880 million of
capital to shareholders, repurchasing
approximately 18% of our outstanding
shares in fiscal year 2024.
In conclusion, it is an honor to lead this
renowned global IT services company that
is dedicated to delivering excellence for our
customers and colleagues. Our global teams
are committed to helping our customers run
their mission-critical systems and operations,
which is why we are a trusted partner to more
than 200 companies in the Fortune 500.
We are embarking on a journey to simplify and
improve our operational efficiency. By doing
so, we will create a more streamlined, agile
and competitive organization. To lead these
changes, we have assembled an accomplished
team of leaders with proven records of success.
I am confident that our strategy will position
us on a path toward sustainable and profitable
growth in the coming years, and I am excited
to lead DXC at this pivotal time in its history.
Our success will be defined by our ability to
execute, and I am determined to drive the
transformation of our company as quickly
as possible.
Lastly, I would like to thank our global teams,
whose dedication and tireless efforts enable
us to deliver the mission-critical services our
customers entrust to us.
Regards,
4
RECOGNITION HIGHLIGHTS
DXC Technology achieved an A- rating for leadership in corporate
disclosure transparency and performance on climate change
from global environmental nonprofit CDP.
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