DXC Technology Company

star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one. Thank you. And I would now like to turn the conference over to Roger Sachs, Head of Investor Relations. Roger, you may begin.

Thank you, Operator. Good afternoon, everybody, and welcome to DXC Technologies' third quarter earnings call. We hope you had a chance to review our earnings release to the IR section of DXC's website. Speakers on today's call are Raul Fernandez, our President and CEO, and Rob DelBene, our Chief Financial Officer. Our agenda will be as follows. Raul will provide an overview of our results and an update on our strategic initiatives. Rob will then walk you through our financial performance for the quarter, as well as update you on our full year outlook and provide some thoughts on our fourth quarter. Raul and Rob will then take your questions. Certain comments made during today's call are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those expressed on the call. You can find details of those risks and uncertainties in our annual report on Form 10-K and other SEC filings. We do not commit to updating any forward-looking statements during today's call. Additionally, during this call, we will be discussing non-GAAP financial measures that we believe provide useful information to our investors. Reconciliations to the most comparable GAAP measures are included in the tables that are in today's earnings release. And with that, let me turn the call over to Raul.

Thank you, Roger. Good afternoon, everyone, and thank you for joining us today for our third quarter fiscal 2025 earnings call. I'm pleased with our third quarter performance. Our operating model changes and focused on disciplined execution is reflected in our results. Revenue, adjusted EBIT margin, and non-GAAP EPS all came in ahead of guidance. We also delivered strong free cash flow. Our revamped go-to-market approach is paying off, driving a meaningful uptick in bookings. Reflecting on my first year as CEO, I'm more convinced than ever that we are on the right path. Our top priority is to drive profitable and sustainable revenue growth. Our evolving leadership team is establishing a culture grounded in client centricity, performance management, and accountability. As a result, we're becoming more innovative, faster, and better positioned to win in the market. We have a strong portfolio of complementary and transformative IT services all of which we plan to invest in and grow. Specifically, during the quarter, total revenue declined 4.2% year-over-year on an organic basis. Adjusted EBIT margin equaled 8.9%, expanding 140 basis points year-over-year. Non-GAAP diluted EPS was $0.92, up 7% year-over-year, and we generated free cash flow of $483 million. for a year-to-date total of $576 million, exceeding our full-year fiscal 2025 guidance. Global uncertainties ranging from trade policy, geopolitical conflicts, inflation, and labor costs continue to pressure corporate spending for discretionary projects. At the same time, clients are balancing cost optimization with investments in AI-driven transformation programs. We also see some clients committing to projects for the full year ahead. Our revamped go-to-market approach is beginning to deliver results. As expected, bookings across our offerings improved significantly over the last quarter, with gains in both large and shorter cycle projects, a clear sign we're connecting better with customers. This momentum is evident in our book to bill ratio of 1.3X, the highest in eight quarters. Our pipeline continues to grow, including a higher mix of larger deals in consulting and engineering services. While these engagements have less near-term revenue impact, we believe they build on a solid foundation for future growth. We continue to invest in training our client partners and refining our performance management processes to drive the continued expansion of our pipeline and grow future bookings. Additionally, during the third quarter, we continued to progress on the tactical actions we began earlier in the fiscal year. In our global business services segment, where we help clients accelerate digital transformations, we continued to drive more scalable and standardized solutions to support growth. specifically in consulting and engineering. First, we expanded our enterprise application capabilities that help clients leverage AI, driving increased bookings. Examples include collaborating with SAP to incorporate their business AI solutions into our industry frameworks and helping clients accelerate their SAP S4 HANA cloud projects, as well as the formation of a new center of excellence with ServiceNow, combining DXC's deep IT industry expertise with ServiceNow's GenAI solutions, creating a powerful platform to help clients increase their AI adoption. And second, we are also helping clients unlock the full potential of GenAI by ensuring their data is clean, current, and reliable, paving the way for secure deployments and scalable solutions tailored to their evolving needs. Let me highlight details of two examples of recent gen AI engagements. We worked with Singapore General Hospital to create an AI-powered solution to help doctors quickly analyze clinical data to improve patient treatment plans and alleviate the overuse of antibiotics. With just a few clicks, doctors can assess if antibiotics are needed and recommend the right treatment and dosage quickly. Next, building on DXC's deep automotive expertise, we expanded our partnership with Ferrari to develop the software that powers the next-gen infotainment system for the recently launched F80 supercar. The new digital cockpit delivers an enhanced user experience, providing real-time performance data through seamless high-speed displays for public road use that transforms into a racing display when the drivers are on the track. Our capabilities in the insurance business remain strong. We are the category-leading software and services provider for life and wealth, global specialty, and reinsurance industries. We continue to invest to grow our cloud-based software solutions and are well-positioned to help clients migrate their workloads to the cloud for scalability and cost efficiency. At the same time, we're exploring new markets to drive further growth. In our global infrastructure services segment, which represents our portfolio of technology solutions, we focused on delivering secure, cutting-edge services to meet our clients' evolving needs. During the quarter, we laid the groundwork for the redesign and expansion of our AI capabilities in the software platforms across our cloud and ITO security and modern workplace offerings. We are partnering with clients to design and build industry-specific AI accelerators that will drive innovation in cloud infrastructure, security, and data management. We continue to improve our delivery metrics and overall quality of service, leading to record net promoter scores. These efforts reflect our commitment to driving innovation and measurable value for our clients. I'm also excited to announce that Brad Novak has joined our leadership team as our new CIO, bringing over 30 years of experience in data architecture and technology strategy. Brad's mission is clear. Increase AI usage across DXC's infrastructure and operations, advance our data strategy, and deliver on our ERP consolidation roadmap. Brad is the latest example of top-tier talent DXC is able to attract. I am pleased with our ability to bring in new leaders, both on my executive team and throughout the organization, to help execute on our strategic priorities. To conclude, we believe that our biggest near-term opportunities lie in our initiatives to improve effectiveness across the full cycle of capturing new business, including better solutioning, using the right pricing models and driving better economics on renewals. With revenue growth being our clear goal, I'm encouraged by the positive progress we've made in expanding our pipelines and bookings. Looking back over my first year as CEO, I've gained a deeper appreciation of the essential services we provide. We play a pivotal role in driving global commerce. We have strong and lasting relationships with clients that view us as strategic partners, leveraging our global delivery capabilities to help them with their transformation journeys. That said, our goal remains clear, to drive profitable revenue growth. Together with our experienced leadership team, I'm confident we have a strong portfolio of complementary and transformative IT services to deliver long term success and continue building strong value for all stakeholders. The past is history. Today, we are a coordinated team running fast, breaking out of silos and bringing out the best in each other. With that, let me turn the call over to Rob for a detailed review of our third quarter results.