DXC Technology Company

Hello and welcome to the DXC Technology fourth quarter and fiscal year end 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during this time, please press star one on your telephone keypad. I would now like to turn the conference over to Roger Sachs, Vice President of Investor Relations. You may begin.

Thank you, Operator. Good afternoon, everybody, and welcome to DXC Technologies' fourth quarter and fiscal year-end 2025 earnings call. We hope you had a chance to review our earnings release posted to the IR section of DXC's website. Speaking on today's call are Raul Fernandez, our president and CEO, and Rob Delveny, our chief financial officer. Let me walk you through today's agenda. First, Raul will share an overview of our results. and provide an update on our strategic initiatives, and Rob will take you through our financial performance, full year fiscal 2026 guidance, and offer some thoughts on our outlook for the first quarter. After that, both Raul and Rob will 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 these 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. Our fourth quarter results represent another important step towards our goal of achieving sustainable, profitable revenue growth. We are gaining momentum with bookings up more than 20%, resulting in a book-to-bill ratio of 1.2. This marks our second consecutive quarter above 1.0. bringing us to a second half bookings growth rate of 24%, a clear indication of traction in the market and building the foundation to drive long-term top line growth. Reversing eight consecutive years of revenue decline remains the highest priority for me, our leadership team, and the entire DXE organization. The rebuilding of our operational capabilities is deeper and more extensive than I originally appreciated. But the work the team is doing is addressing structural, operational, and cultural issues that will better position us going forward. Great companies are built by teams of experienced people who share an intense passion to win. I am proud that we have recruited 22 great new members of our extended leadership team in the last 15 months. Each brings exceptional skills with the intensity to win. And in that time, we also rotated out 14 executives. DXC has had significant turnover in top executive leadership since its inception. And leadership stability is absolutely critical to ensuring we give our turnaround the time, attention, and persistence it deserves. In that spirit, I'm happy to announce that Rob and I have received equity grants designed to secure our continued leadership through fiscal year 2028. These grants align our compensation with sustainable long-term shareholder value creation. Another area of critical importance to us is to deepen our customer relationships and identify new opportunities to expand our pipeline. I recognize this gap in our organization and started rebuilding these capabilities from the ground up with an eye toward operational discipline and improved execution. My team and I have reviewed quota attainment data and segmented the existing population based on achievement We developed strict quantitative performance criteria for 2025 year-end reviews with a documented process. We held CEO calls with HR business partners and sales leaders to communicate changing expectations and initiated better reporting for tracking sales performance. In preparation for our new fiscal year, we completed a quota deployment audit to ensure proper coverage for fiscal year 2026. further aligned pay incentives for our sales organization, and onboarded our first chief revenue officer, T.R. Newcomb, someone I've worked with in the past and who brings an incredible amount of focus, energy, and operational excellence to the role. Our work has led to continuous improvement in our systems, processes, and pay structures, all of which will lay an even stronger foundation. DXC has been a significant global technology player for over 40 years in four major technology cycles, personal computing in the 80s, internet computing in the 90s, mobile and cloud computing in the 2000 era, and now AI in 2020 and beyond. This is a company with tremendous assets, loyal customers, deep and broad capabilities, and a global footprint with local excellence. The impact of AI is just beginning to accelerate within our client base, and AI spending is increasing year to year. This comes at a time when our customers are favoring further consolidation of their IT spending, putting DXE in a unique position to compete with the combined power of our full-stack infrastructure and app management capabilities. We have built an early but strong track record of delivering real bottom line results for our customers in key areas, including modernization, technical support, development time, testing, process improvement, deployment, and maintenance by harnessing the power of AI. While it's very early in the gen AI adoption cycle, It is clear to me that we are very well positioned to lead our clients into what I believe is the largest transformational technology opportunity of our lifetime. One of my top commitments as President and CEO is to spend as much time with our current and prospective customers as possible. During my tenure, I've met with over 100 customers, which has equipped me to better understand how we can more effectively meet their changing needs and identify new opportunities for mutual growth. New logos of significant size have been scarce in DXC's recent history, and this is something we have been laser focused on improving. We are thrilled to share that Carnival Cruise Line just tapped DXC to manage its critical infrastructure, powering operations across the entire fleet. This was a highly competitive bid, with ISG advising throughout the selection process. And we won. We won because we are uniquely qualified. We brought the full weight of our infrastructure capabilities, enterprise applications, and technical muscle to the table. And DXC was chosen to be their critical partner. Carnival is one of the largest cruise lines in the world that hosts over 6 million guests a year. Their bar is very high. Everything must run safely and flawlessly. from shore to ship with great customer experiences. That's where we come in. We deliver complete operational confidence so Carnival can focus on their customers, knowing every system is firing on all cylinders and running smoothly no matter where they are. This win isn't just about one client. It's a clear signal that we are a trusted partner and operator for some of the world's largest brands. Creating a winning culture which sets the foundation for us to win consistently in the marketplace is not an overnight mission. It requires experienced leaders who are able to translate vision into action with sustainable results. Since becoming CEO, I have focused on increasing the clarity, consistency, and transparency of internal communication embedding a startup ethos that emphasizes flat, fast, and learning-focused collaboration, and ensuring that we all think in terms of generating sound financial results while driving profitable growth, not just growth for growth's sake. Over the past year, we've made targeted investments and brought in new leaders to jumpstart innovation across all our offerings. redesign and expand our AI capabilities and software platforms, and streamline how we develop applications using GenAI. We expect fiscal 2026 to be a year of continued disciplined execution to sharpen operations and drive efficiencies. Despite near-term uncertainty over tariffs, we are clear on our strategy confident in our team, and committed to executing with the discipline required for DXC to generate sustainable and profitable growth. Reflecting our confidence in the company's future, we will restart our share repurchase program. This underscores our commitment to delivering long-term value to shareholders. With that, let me turn it over to Rob.