7/31/2025

speaker
Operator

To ask a question, simply press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the call over to Roger Sachs, Vice President of Investor Relations. You may begin.

speaker
Roger Sachs
Vice President, Investor Relations

Thank you, operator. Good afternoon, everybody, and welcome to DXC Technologies' first quarter fiscal 2026 earnings conference call. We hope you've 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, Ramnet Venkataraman, our new President of our Consulting and Engineering Services segment, and Rob DelBene, our Chief Financial Officer. Let me walk you through today's agenda. First, Raul will provide an overview of our results and update on our strategic initiatives. Rob will then walk you through our financial performance for the quarter, as well as provide some thoughts on our second quarter and fiscal full-year guidance. Rob and Raul will then take your questions. Certain comments made during today's call are forward-looking and subject to risks and uncertainties that can 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 10K 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. Reconciliation to the most comparable GAAP measures are included in the tables included in today's earnings release. And with that, let me turn the call over to Raul.

speaker
Raul Fernandez
President and Chief Executive Officer

Thank you, Roger. We delivered first quarter results at the high end of our guided ranges for both organic revenue growth and adjusted EBIT margin with non-GAAP EPS above the high end of guidance. Specifically, during the quarter, total revenue declined .3% year to year on an organic basis. Adjusted EBIT margin was 6.8%. Non-GAAP diluted EPS was 68 cents. And we also had another strong quarter of free cash flow generating 97 million compared to 45 million last year in Q1. Bookings increased 14% year over year, our third consecutive quarter of double-digit growth, resulting in a trailing 12-month -to-bill ratio of 1.06 up from 1.03 at the end of fiscal 2025. Growth was broad-based across many of our industry verticals. This trajectory underscores the emerging stronghold of our new -to-market initiatives and improved execution. We saw strong bookings in both Europe and Asia-Pacific this quarter with -to-bill ratios well above one, driven by public sector strength across both regions and solid deal flow in manufacturing and consumer goods slash retail in Europe. With a healthy pipeline and steady deal inflows, we remain confident in our ability to consistently drive a trailing 12-month -to-bill ratio above 1.0. We continue to attract top-tier experienced talent to our leadership team with a shared passion to win. I'm thrilled to welcome industry veteran Ramnath Venkataraman as president of consulting and engineering services to lead the business into its next phase of growth. Ramnath brings nearly 30 years of global experience from Accenture. Where he built and grew high-performing businesses across industries and regions. He has a strong track record of helping clients embrace next generation technologies, especially AI, and delivering operational excellence through innovation and disciplined execution. Ramnath brings fresh perspective to CES and we're confident his leadership will help sharpen our -to-market focus, drive growth, and unlock the segment's full potential. Let me hand the call to Ramnath to make a few brief comments.

Disclaimer

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