DXC Technology Company

Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Calvin, and I will be your conference operator today. At this time, I would like to welcome everyone to DXC Technologies' fourth quarter and fifth quarter 2026 earnings conference 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. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Roger Sachs, head of investor relations. Please go ahead.

Thank you, operator. Good afternoon, everybody, and welcome to DXC Technologies' fourth quarter and fiscal year-end 2026 earnings conference call. We hope you've had a chance to review our earnings release, which is available in the IR section of DXC's website. Speaking on today's call, are Raul Fernandez, our President and CEO, and Rob DelBemi, our Chief Financial Officer. Here's today's agenda. First, Raul will update you on our strategic initiatives. Rob will then cover our quarterly financial performance, as well as provide thoughts on our first quarter and fiscal full year 2027 guidance. Raul and Rob will then take your questions. Please note, certain comments on today's call are forward-looking and subject to the risks and uncertainties that could cause actual results to differ materially from those expressed on this call. Details of these risks and uncertainties are in our annual report on Form 10-J and other SEC filings. We do not commit to updating any forward-looking statements during today's call. In addition, when we refer to year-over-year or quarter-over-quarter revenue growth rates, He will be discussing organic revenue changes on a non-GAAP basis, which exclude the impact of foreign exchange and any inorganic activity. He will also be discussing certain other 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 included in today's earnings release. And with that, let me turn the call over to Raul.

Thank you, Roger. In Q4, we delivered a strong quarter on profitability with adjusted EBIT margin and free cash flow ahead of guidance. That balance of expanding margin and free cash flow while transforming DXC into an AI-led company is central to how we're operating the business. On revenue, we delivered just over $3.1 billion, missing our organic guide by approximately $75 million, or two points. When you break that down, closing the gap required less than $1 million per day. That's not just a pipeline and demand issue. It's execution, and we continue to work on both. And the focus going forward is also tightening in quarter conversion, smaller, faster start opportunities that can land and deliver within the period. As we close FY26, One of the clear positives is our ability to reach the final stages of large competitive pursuits. As an example, across the globe, we pursued 13 large opportunities in this quarter that we expected to close before fiscal year end. This represented more than $2 billion of potential total contract value that could have been booked in Q4. On a dollar-weighted basis, DXC won 32% of that $2 billion. We lost 40%, and roughly 28% remains outstanding. With that level of advancement in the competitive process, I personally expected a higher win rate. We didn't get it. But the learnings we take from those losses and wins are being applied to our sales process, and we will continue to make progress here. And like anything else in this business, Once you understand precisely where you're falling short, you can fix it. That's exactly what we're doing now. Getting to those finals wasn't accidental. It reflects the work we've been doing over the past year. Better qualification, clearer positioning, and more discipline in where we choose to compete. You saw part of that transformation in Q3 with our brand and storytelling refresh. AI is advancing every workflow in every business. We view our AI transformation as a way to be more competitive. Inside DXC, we're moving with intent on AI enablement, and we're applying the customer zero principle, using ourselves as the first proving ground for what we deliver to customers. Every DXC employee now has full access to enterprise-grade AI tools supported by a company-wide knowledge hub, AI playgrounds for safe experimentation, and internal agents that help employees apply AI responsibly. We're measuring this work with the same discipline we'd expect for our customers, tracking adoption and productivity and embedding governance from the start. What we learn inside is sharpening what we deliver outside. One example of how this is taking shape We recently ran a four-week internal AI challenge inside one of our corporate organizations, designed not as a one-off event, but as a blueprint we could test, learn from, and scale. More than 100 teams formed on their own, built nearly 1,300 working AI agents, and started solving problems that had been sitting on backlogs for months. But the real signal was what happened after. Other parts of the company have to launch similar initiatives. That organic and viral pull tells you adoption is real, not mandated. We continue to launch additional AI challenges across DXC, applying what we learned and extending the model enterprise-wide. This is what Customer Zero looks like in practice. We test inside, we measure what works, and we scale what earns the right to scale. The impact is showing up across the business. In sales, we're automating the end-to-end cycle, increasing capacity, accuracy, and consistency. In legal, we're compressing contract cycles while improving quality. In HR and marketing, we're driving both efficiency and better outcomes. The result is not just cost takeout. It's reimagined capacity, and that reimagined capacity, driven by AI, is what allows us to move faster and engage more deeply with clients. FastTrack is about building AI-native products and services at a much faster pace. We built our initial FastTrack offerings around modes that are unique to DXC, deep knowledge of complex workflows, data that must remain secure, and critical business functions that have to operate at 99.9% uptime in highly regulated industries where systems cannot fail. These carry a margin profile that looks nothing like traditional services. They're AI services delivered as software, recurring, scalable, and platform agnostic. Let me preview two of them. You'll hear much more about these and other AI offerings at Investor Day on June 11th. Core Ignite allows banks to modernize and innovate without touching the core. connecting capabilities like buy now, pay later, stablecoin, and modern remittance into legacy environments like Hogan, so banks can move at fintech speed without core banking risk. Oasis is our agentic orchestration platform that is rewriting how we deliver managed services. It moves beyond monitoring and incident correlation to autonomous remediation and service optimization, orchestrating across a client's full ecosystem. At its base, Oasis replaces a legacy product set with a modern platform layer that sits on top of every managed services contract, creating a recurring, scalable revenue stream with structurally higher margins. We launched Oasis with 10 customers on April 28th. and the early traction is real. It's already contributing to new business, including a large new logo win with a major European insurer, where it was a deciding factor in how we won the deal. In parallel, our core track is about execution, pricing discipline, utilization, delivery quality, running a better services company consistently and at scale. That foundation matters even more as we layer AI into the business. What's becoming clear is that the differentiator in AI is not just technology. It's how quickly organizations adopt and deploy it. That's a focus area for us as we scale these capabilities across DXC. You're also seeing a shift in how these services are priced, away from time and materials and toward outcome-based and consumption models. At DXC, about 80% of our revenue already sits in outcome-based categories with only 20% in time and materials. That's a real advantage for us. It allows us to apply AI-driven productivity in a way that expands margin while also evolving how we deliver value to clients. We'll go much deeper on all of this at Investor Day on June 11th in New York City. We'll walk through the strategy, the products, the metrics, and the roadmap over the next 12 to 24 months with live demos and direct engagement with the teams building these offerings. We're looking forward to that conversation. Raul Fernandez, and delivered using my custom AI voice model built with 11 labs and shared simultaneously in six languages. This is customer zero in practice. We build it, we use it, and then we bring it to clients. And now let me turn it over to Rob to review FY26 results.