DXC Technology (DXC) 8 Aug 242025 Q1 Earnings call transcript

Hello, and welcome to the DXC Technology Q1 Fiscal Year 2025 Earnings Call. [Operator Instructions]

I would now like to turn the call over to Roger Sachs, VP of Investor Relations.

You may begin.

Thank you, operator. welcome Technology's and conference quarter everybody, call. afternoon, to first DXC earnings Good had review chance posted hope a We you to IR of to section our DXC's website. the release earnings

President call Raul Bene, today's Chief Officer. Financial and on Speakers our Fernandez, our Rob and are Del CEO;

update our initiatives. financial will follows. as Rob and provide year as walk through your our of take will for full agenda an the update well questions. provide an will Raul Rob our then on Our and will on performance outlook quarter thoughts be then some Raul overview fiscal as our results you our strategic you quarter. second and on

is release uncertainties and which from undertake our and or Certain update other the risks to filings. today's These will comments report discussion are forward-looking. XX-K those any call. make We SEC results A these be included call do on not to differ any cause expressed forward-looking any could on to actual Form and statements. on materially in subject we uncertainties, of revisions statements to obligation risks annual

investors. of in the Also accordance we will found included call, and non-GAAP our financial tables today's during comparable reconciliations with which believe these reconciliation provide GAAP information to provide respective release. this SEC we a measures to rules, direct discuss most These be can earnings useful measures, we In their measures. in

over turn call me to let that, the with Raul. And

joining today fiscal earnings XXXX Thank you, everyone, quarter first Roger. for call. our you afternoon, thank us Good and for

expectations on margin adjusted quarter results that I'm in and pleased of EPS. EBIT came first line, with our ahead top adjusted diluted our

teams by the improved is performance testament an many fronts. Our our along execution early to

addressable on solutions industry market. engineering designing technology focused AI expanding opportunities capture that are and embed in implementing an teams Our expertise to skills, and

operating shareholder greater we performance, for drive us our deliver long-term and As model value. to improve value believe customers, gains traction, positions well it our financial enhanced

on up year. $X.XX an $XX cash margin during organic last XX declined quarter we year-over-year, of free X% and X.X% million the year-over-year, expanding points total quarter, year-over-year basis negative was of EBIT XX% first of basis, of versus the EPS $XX million during Specifically revenue flow generated adjusted diluted non-GAAP

with uncertainty, cautious many In customers. an to level ongoing ongoing had and full both quarter during Global overall modestly our this from of behavior along year, has continue discretionary May. on work, across Services lower bookings that Infrastructure first Business Services to we we for going factored resulted segments. our the see This of this into bookings short-term We past provided approach down market pressure. light restrained our under Therefore, spending prior environment the deals, outlook of the new Global project selective remained in year

include: A between examples dedicated structure includes are sales account and We partners approach to new expertise our and to significant bookings, within our organizations. profitability, few teams. a domain existing and go-to-market client client relationships; incentives well updated expand as tied compensation that as and elevated revenue clients clear having delineation logo specific revamping industries;

early success some from see to our beginning are We efforts.

Consulting expanded inflows has pipeline & deal Our driven nicely segment. which new by largest Services, our in is largely Engineering

seeing progressing stages our to sales the deals mix the of larger within greater we a pipe, cycle. Additionally, of are later

expected are solid a engagements these they for lesser we foundation Although near-term provide to believe a contribution stability. to have revenue, long-term

wins to engineering knowledge. X and our new quickly deal by expertise, minute vertical details a led take highlight together domain deep with technology me Let of

greater and is strategic insights This Engineering the drive one migration a effort Services consolidate of to for our actionable optimization multiple new suppliers, provides legacy leading performance. business Consulting across platform. SAP ContiTech, & the process business industrial SAP company world's to For decision-making ERP allows the to leading systems timely, S/XHANA

mainframe IBM Infrastructure & Cloud ongoing long-term with First service management managed and into recently a Bank our support. Within agreement business, Horizon for we entered

several During model. initiated quarter, our tactical enhanced first operating we under actions the

digital doing and help streamlines Last now Howard under Consulting are & veteran scalable where call to enterprise offering Within it we our our accelerate business market go more our GBS, the Engineering Engineering and Analytics, to transformation, clients with consolidated Services we Applications enhances applications. ability following. Boville. design industry and & standardized, we This structure quarter,

have aligned life services, financial X Additionally, health sciences, address under sector, and airlines to where the verticals, expertise, Howard's leadership, us and targeted solutions allowing to care industry-specific and develop manufacturing, we we've to significant automotive domain public very business challenges.

on capabilities and the leverage gen development, to geographic execute and the To during management available quarter, a market the maintenance; further following we operating pyramids our enhance new began system conditions in manage planning modeling; and to of application better to model, delivery workforce regions; implementing predictive optimizing AI restructuring talent delivery. adoption account drive for best increasing and resources all testing initiatives: our offshore through to global network our delivery identify quickly in

& of continue Software explore a providing opportunities BPS, Insurance than Services you further near a that revenue. Insurance our to we in unit more performance generates billion anticipate Software We $X the range strong update already the annual & Within future. accelerate market-leading to of of

which our solutions. GIS, to portfolio Moving of represents technology

leadership deliver and develop a security, better secure enables technology teams and mission-critical We solutions and our needs meet Drumgoole, workplace DXC unique together modern under This Chris tenured trusted customers. to the of are of bringing our executive. evolving to us infrastructure, the

Cloud, of AWS, experienced Azure be almost most Our one over XX certifications the security in across as and These as of practitioners specialized technologies. workforce the countries largest, XX,XXX Microsoft have best will equipped marketplace. professionals well and across GIS Google integrated XX,XXX

combination seamlessly. to distinct and our sold, and of helps that designed, offerings are together innovate built, maintain continue solutions market will to each identities, operated work While our this

intelligent are data-driven automation future AI on occur. issues and targeted Specifically helps winding set select platform in within before down top-performing problems cloud, and growing that developing ITO quickly accounts resolve prevents driving and they a and and of offerings, nonperforming security, we the IT of customers executing penetration investing following: and deeper accounts, our detect

handle Modern AI we're service gen continuing increasing inbound tools Within to to AI our the Workplace, and requests. capability enhance to chatbots implement of

took we We model. efficiency. business, and quarter, a consolidate, steps shared sales, eliminate account implementation our services the during improve redundant global our standardize, operations to of operational began and through processes to across Additionally, the

As start part later year. of are this final of consolidation plan, to we migrations our our initial in upgrading and system the to ERP phase in targeted of expect stages S/XHANA an

more metrics our Revamping and are services that our infrastructure improvement approach quality we resulted to enables across as GBS, of overhead towards felt GIS, as The Net front-end and initiatives. we overall reduce our being the go-to-market actions investments in impact a already is delivery as notable taking and value-added, client Scores. has satisfaction redirect are higher internal us realizing in well Promoter

want I on mission At cornerstone DXC, has and our how comment ethically as to transformation helping customers our been career now IP defining a my digital confidence. stakeholder are we This a believe a that to to take protection to We commitment and an value. area deeply I'm represents investor, navigate moment property. embrace intellectual and with to company advancement innovation cornerstone responsibly, in a passionate entrepreneur. leader, protecting briefly about:

while ensuring also measures our own excellence. extensive take We safeguard technology to

property Court, the commitment such, competitors, United of innovation District from As actions endorses TCS. the our which judgment pleased our our one I'm favorable certain responsible and by very States to intellectual by with recent protecting

express to that global CrowdStrike with by that worked who concluding, were Before widespread disruption. led impacted want our software gratitude recently I team to the diligently my update to customers

similar dedicated beyond a their team that response that a goes operations. We incidents. implemented demonstrated customers assembled experience leveraging well Our with our transforming our recovery plan, dedication extensive to quickly our

technicians worked end Our guiding customers, with operations processes them customers' and running. to through complex directly restoration keep up

a efforts our have company, global worldwide and their manufacturing company example, restored after event, regional global a minimizing company, a airline logistics For enabled operations shortly petroleum disruption. a the carrier, to

from opportunities being renewals. of believe life incorporating our across solutioning more proper for creating new conclude, models and much the near-term better capturing To cycle economic greatest correctly, effective we it come business, pricing will

am quickly be our as And to to Our ability drive possible. by these the execute our success opportunities. against of defined as company will transformation I determined

call turn our Rob quarter me to first to let Now over the review results.

and you, Raul, Thank afternoon, good everyone.

quarter year regarding latest second with I'll the view results along our with details and our for our quarter. then full outlook, thinking of Today, XXXX first review our fiscal provide you

that available as made note an historically we as convenience. financial for an information being have provided additional to now Please Excel your the appendix presentation file is slide our

immediately You download website can it from IR of following section DXC's our the call.

have Additionally, how given changes Raul report our results. discussed, leadership will we we reassessed

our revenue, disclose Moving ratios, forward, and by segments: Services continue book-to-bill Services. to Global Global profitability Infrastructure Business X will and we

Cloud, for we disclose Modern & we now for as Within and offerings. Workplace & revenue & BPS for Consulting our Software GIS, Insurance ratios Services well now book-to-bill and Security will Engineering book-to-bill offerings. will and revenue ratios Under GBS, as our report ITO

revenue on was Total X% now now declined revenue, XX% $X.X revenue, And an of results. on year-over-year. our represents on revenue, GBS better revenue, than of an total year-over-year which expectation. increased billion our organic total declined XX% organic of GIS basis. X% which which represents to basis, year-over-year X%

X.XX, spending our XX-month with ratio selective the our a declining X.XX quarter more new quarter. With continued trailing was and of pressure to from customer to deals, book-to-bill book-to-bill discretionary for approach modestly last ratio

basis line due expanded year-over-year of our This results XX top to performance better-than-anticipated Adjusted ahead EBIT points to largely was margin X.X%. expectations.

driven by XX.X%, was management disciplined the year-over-year, Gross GIS. expanding margin cost points first within quarter for basis largely XX

revenue X.X%, of year-over-year, management. flat prudent due percentage SG&A spending as largely was a to

net attributable million Non-GAAP to income was $X DXC year-over-year. shareholders

of up EPS lower primarily the related $X.XX $X.XX increase benefit Non-GAAP to quarter $X.XX, last in the from first from was The outstanding shares. XX% was year.

was $XX cash quarter million. flow the Free for

results. our segment Now to turning

are to The For margin to basis future our of CES by growth GBS, our to & Insurance Profit declined including organic restructuring provide we making margin XX.X%. the actions largely growth. the BPS mid-single-digit X% business, year-over-year Software changes points year-over-year we targeting, XX expected are model revenue increased are of operating driven business.

book-to-bill reflected project stable revenue for consistent the was & on last short-term by year-over-year an and The trailing the in bookings quarter-over-quarter ratio our book-to-bill X.XX saw ratio the of trends both Consulting at X% X.XX. declined we Services ongoing XX-month quarter. organic impacted pressures basis, The with was quarter. Engineering

ratio BPS X% was Horizontal which approximately book-to-bill our the up on & XXXX. of in an this total, Insurance X.XX. X% saw Embedded & is year-over-year, performance year-over-year basis. the grew XX% was during continuing Insurance we organically business, The momentum Software organic strong representing core

As quarter tend bookings in this variation business to to be with lumpy quarter. a reminder, significant

organic with recent Moving our of X% year-over-year to line declined in ahead and expectations. on GIS. Revenue an trends basis,

performed declined by revenues revenue as down services volumes. resale XX% higher-than-anticipated While in-quarter year-over-year, expected, X% helped

the X.X%. resource optimize of year-to-year data our margin expanded points centers and management was to performance as margin driven take mix lower delivery X embedded actions networks. our to and automation we largely to revenue This improvement. processes over in by cost Profit better also disciplined resale contributed The

ITO Within book-to-bill challenging ratio & primarily X.XX. trailing to on XX%, attributed X% Cloud, GIS, The X.XX the to with growth ongoing disciplined the organic The XX-month year-over-year by ITO resale about revenue down X rate ratio basis impacting approach deals. new an book-to-bill Security declined our equaled with total coupled market, point. was

XX% was quarter. organic down ratio a of trailing Modern with an of consistent year-over-year XX-month and ratio Workplace last on with X.XX X.XX, basis book-to-bill

our flows balance Turning to cash and sheet.

cash defined period driven During CapEx we in This a less was sequential in well capital operating saw a working the as stronger by same as million compared DSO lower position last quarter, our the and as to million equaled of primarily spending. as our CapEx, use improvement $XX free a cash $XX flow, year. improvement flow

down $X $XXX expenditures were down and from million, lease $X last Capital year. million, million year-over-year; originations million $XX new equaled

XXXX. lease cap revenue to as X.X% X.X% and for expenditures together, improved to first originations the Taken of declined year-over-year compared quarter fiscal million of $XX and percent a

$XXX execute of we incremental We upon million restructuring announced quarter. began to last the initiatives

minimal back-half we being While of we throughout the cash loaded. majority saw year first program a the impact with flow will in expect the our the to ramp quarter, spending

Our balance billion. cash cash equivalents with strong totaling and remains $X.X sheet

plan billion balances, generation As have planned, our execute cash to we allocation on we invest debt due needs. flow and a capital to With first our cash to flexibility our ample incurred business. to seasonal and increase levels modest in existing our $X.X quarter

originations for As capital reducing $XXX the reminder, that year year $XXX prioritize equaled debt our allocation fiscal incremental a which plans as XXXX. lease well includes during levels, of restructuring financial million minimizing our as million new

me outlook. thinking let latest full you with year our Now our on provide

in on We year, year-over-year total decline basis. a to X% remain achieve revenue start revenue organic an confident continue year full to With expect better-than-expected outlook. X% to to the to ability between we our our

single-digit roughly GBS, growth to for rates. in to be For are pipeline now our outlook flat we line maintaining revenues half growth. half top slightly year expect given first calling improving full stable the year-over-year, low our We positive conversion and second

given and selectivity. to anticipate lower decline full year continue revenues double-digit rates line top resale expected at low GIS We to deal

first EBIT we view the on updated outlook be full of of initiatives, quarter expect our margin to prior savings with Based now X.X% compared to in X% projected X.X% performance to of and cost range to year adjusted X.X%. our

We effective mix approximately is compared of now income. non-GAAP tax XX% expect of updated year jurisdictional This our to expectation increase approximately an to XX%. due rate a full of prior largely

Full is to EPS outlook. the be $X. primarily year to driven and by prior outlook of diluted EBIT is increase anticipated non-GAAP adjusted our $X between of now to margin compared This $X.XX $X.XX update our

our due is now from view for expected an the our as year second of around the million. of to prior the increased increase improved the million skewed largely We year-over-year of $XXX be outlook flow be increase cash is $XXX EBIT of Free million, outlook to $XXX well about to approximately as performance working expect still the to capital restructuring year. the adjusted for year. better level This half

a expectation expect as well year's cash as to is line new expenditures our driven lead elements, minimize efforts these our free XXXX. free restructuring financial XXXX our in the flow last fiscal flow originations would cash incremental be for levels million performance. As to lease $XXX by capital higher program more fiscal to that compared with largely of reminder, to Absent year-over-year

is activity. of in X.X% based decline we from to of backlog margins now year-over-year. $X.XX adjusted organic of and volume quarter, to contract diluted rate QX view anticipate $X.XX. EPS for current non-GAAP EBIT X.X% total range our the second growth We And projected and revenue the on decline finally, This expect to the X.X% to the X%;

let Raul with over back remarks. And that, for turn some me the closing to call

Thank you, Rob.

market reporting I questions, break not and the to policy on speculative turn today. Before to that from policy for It briefly to on is rumors, it over like press. we the not do comment in I would recent our comment intend

As we enhanced executing account offering organization against global building focused markets. company on differentiated by sales and aligns operating have our our XXX% geographic by been discussing, highlights are we great a model that industry-focused and our

our coming more help during efforts business outcomes for I quarters. Our confident our continued commitment of drive deliver we remain and in will significant see the value will progress customers. results our

for Thank your you. we'll turn now over And it questions.

Huang question [Operator Instructions] Our JPMorgan. from first comes Tien-Tsin from

with ahead this give was upside you a Good quarter, quarter the here. terrific. you deterioration of there any detail on in can that more like expectations. some in I'll where ask Because forward? so would Can on be sources second the little coming revenue does revenue the fiscal of assume look And came share anything pull here from?

didn't base. in-quarter so it ITO came concentrated strength Rob. it client customers. activity The fairly -- it's of Tien-Tsin, the list widespread, come our our our increase came And that Yes. came primarily question. was expectation versus Thanks in volume from ITO primarily in short business, for and in activity from in a really volume

really to outperformance original our relative drove guidance. that's the So what

an in in Now increased quarter our activity factored we second the outlook. haven't

you XQ comparisons, on a So counting to in repeat second increase of quarter. we're increase, come XQ that when that to the not

the Got to just the all know Raul, My then talk, discipline to more curious a delivery price. Is network. just it's mentioned in I to some those disciplined if mind, that are cost attack follow-up I you to if your there's available think sure a think, need it. be that No, more you global related. I'm here, prudent. of about little I'm I lower these deals. talked curious, optimizing to just a deals? order than that's delivery bit. I for you able be new the then, just I'm know don't there approach

execution. I is with Look, time more Yes. I we XX, years one spend relentless a I think plus a is us more that that have headline because beachhead. to XX been more more and think focus have XX, at that continued X, as incredible things macro customers an of appreciate and of on the with that with level, aspects existing starts I've all customers And the

work to our Our of. and very is off build base a professionals great valued, are is that valued,

over line it's nicely. think and execution quarter, renewals a those The deals, So for of focus pricing sight existing what sure on about on new I those at last those is cost. from both both all very well doing growing as been pipeline good you The and new the of level aspects focusing and of hadn't It's making sides, when of also logos. pipeline customers and we've number getting seen economics on been having renewals are renewals logos new is a in that the before. that's net as the

to compensation basic on to from of it's execution take first in little delivery, level, can my mentioned management, being focus and right them in weren't are the So updated to that calls, we're client up right to weave as done I you lot metrics, the sales, at that things the beginning pre-solutioning the to few a level.

are that more good the lot we're early seeing news it. early done. a We work not but ahead, results returns on is and There's

Our of next Cowen. line Bergin the Bryan from question from comes

on room here, Bryan. is you've last into the that early put areas date? point, seen near-term the initiatives that more to that prioritized? This picking Maybe can on the of self-help you play do where maybe some Ajzenman update you the us And just focus for Raul, Zach up for has just most where continue on improvement? company progression to have And you see

level of good improvement, of that's nowhere it a punch company. with it, I'd operational the operational, commensurate list excellence. execution call even discipline won't getting and a through getting for room near We're kind I of Well, call to everywhere.

just in small delivery, the follow-up the it and in. lot both networks where talent. was locations it's we're new here wasn't we are is teammates that of now, with existing there with our we've past global so that brought where really investing the It's existing plus bring new delivery But and in initiatives that but a existing team and And clients, accountability to here the balanced. existing servicing it's

The obviously having mix a knowledge. we very combination but about a industry talent, with are is fit better of bit which appreciated, little better talked technology or also talent, having, a

& deep capabilities. really have our build various We areas, and Consulting is expertise continuing up group industry to in those Engineering

step to head marketing. a few just here And couple of the then has world-class got impact. a a having We've calls been I on talked a that a second, about first recruited frankly, marketing back storytelling but huge in lot of we months who

So And it across execution. in level go there's really still good of areas. is up across all the again, taking are terms long board, it early way results those operational just to a but a

on noteworthy there's it. piece then say what terms further can about in Consulting And within recently & is or Got still call-out stabilization? kind any that Engineering And clients begin seeing of in you're services. confidence to area at here? play the either deterioration that, of releasing vertical GBS, has Or within that in deferred some spend Just curious and delayed been give what geo within more that you will what direction?

think industry differs I group group. by it industry vertical, Look, Yes. by vertical

the better in all much get overall that us much a got so to, but at aspects factor a in execution, execution, have environment. the have focus that on execution, as and by affects going The all, For front we've of obviously us, than everything of spend environment is bigger relentless overall on self-help a based getting upside is our from bigger multiples we the business impact said, than environment. us ability better with you to

think with we our other it's I beyond in areas market the comments, signs But you and where and hearing again, early we show some I have, have think customers uptick above again, talking beginning are right, tepid. as the their companies environment, my is. it's checking some CEOs, do heard, other to in spend and invested to that where and from of

Rob. it to turn over me Let

pretty industry remarks, operating in so significant establishing verticals. Yes, Raul And Zach, shoots. green business. on CES enhancement opening we're a undergoing described there's focused in his our a couple model of and practices as We're

to change And margins So that's quarter GBS. in bit we've year-to-year drive the in this primary first in the help for invested the reason a marketplace. the resources CES in declined little

and from in of But progress industry as which verticals, organize we X/X we're that applications custom applications, these business, is those shifting enterprise to around specific verticals.

areas, AI days applications, early growth, we're custom in practice to and new in quarter, revenue in SAP enterprise but on. those and certain beginning and benefits we other pipeline accrue. of team rather, seeing growth; applications is focusing and terms terms green Howard's in so than like see to areas shoots And other are in the It's starting of first data

from the Our line Friedman from next comes Susquehanna. of question Jamie

the is on, full on Star this? I perspective on Raul, was expansion points prioritizing contracts due year-over-year. year How some your Is you how perspective that some or competitors XXX growth the GIS you're I'm the helpful. or up the on to leaving on margin get would specifically and the disclosed to hoping of stop money? GIS It's renewal inputs this losing relative wondering, of margin to margin relative to any new are Any And anything. unpack can be have that much North margin. this, that of margin And signings. revenue basis you expansion do

cetera. correct, you're renewal the it's like then both the your There factor utilization is net other cetera. and about correct, your an for numbers being holistic. is first of third-party labor you existing pass-throughs, lever then renewals, on how one smart analysis looking base pull magic pricing value-add, can are that new all, you're you're installed at et the is, how level, it at et at, Sure. front. software your where work Look, mix and net your gross isn't and to costs It offering, doing and this the But pricing

can lever one point not to. it's I So that

their their have little and their I color commentary, a their Rob business, at to think looking profitability, making a bottoms-up talent. unit, decisions at looking pricing net and be of business we more at table. competing they business will customers, looking looking to the give effectively by each bit customer, taken by approach bring that show deal, to able they're new then things And and opportunity, differentiated by to the mix value at smart by

So get holistic it's correctly again, And story the that board just and are we not complete in it value telling returns cycle. numeric early to so the that we're that beginning get better also delivering. are spreadsheet across life we is from but can actually the the

Yes.

it's accounts a Jamie, add driving very the nice costs, think to of I'll are so so job And we'll the done becoming automation margins bulk continue more any And Rob. just driven change will. estate cost they're that those into getting networking that I that, the has thing I is of in team new very will labor costs, margins. delivering seen to sustainable deals, efficient, have an down better so the see your I if signed But on margins. good in say important you real on job improvement management. On point is the a

Focus delivery incurring driving SLA high plays focus So I terms we customer paramount to automation executing delivering the in which on structure quality and fixed on started the of the rates. meeting not is enabling. is have and an at all-time amazingly low penalties, a have, at say they're SLA means maniacal penalties. team commitments down that already we've with cost

driving costs, with they're automation. quality, improving So delivering

X All above of in the first the quarter. led the points to

trend the positive. is So

would at that guiding share trajectory, helpful. margins for you At could be the if a you And I sorry it, for are segment my level a follow-up, least but Rob, year? if missed

but we margins see No, margins haven't a GBS in both level, guided stability I think in GIS. at and we'll segment

question Kupferberg comes Bank next from Our Jason of from America.

talked lumpy there. thinking go but... be give you more selective the to I year? how I out you're a you being it's some deals large book-to-bill good on and know spending are discretionary the Just as you're wanted that environment, the through you're book-to-bill. on But in any know to evolving come about We soft back the us quarter, it fiscal about can given see you of on think sense can

Yes.

little but question a commentary cut out You I on think color book-to-bill. the bit, is

Yes.

So Jason, let me...

Yes, sorry.

on book-to-bill, about forward-looking it. how Just you're thinking

Yes.

take low cover book-to-bill GBS GIS. trailing So really digits, of in digits, factored to that quarter mid-single the a our is first as the In that's are rates the single And down into market, consistent. had then was of let are just stable. parts, of me our two the CES line pipelines in months in mentioned our GBS, low reflection right? and revenue conversion outlooks. And so improving our earlier, was with and Raul We forecast, expectation XX book-to-bill all our that that and and

in So I the to on that really expect see, business, will CES, in it depend marketplace. would really

counting conversion counting higher we're So extraordinarily outsized an rates. in on not not We're improvement on bookings.

based there, We very have, those we're units. we of named the GIS is bookings be. we have through within again, GIS, the And There, occur so pipelines lumpy larger had and stability, are has that a the and deals in expect on business XX% encouraging. predict improving Workplace typically GBS. In it's significant we that in are in that in I decline. supports Modern with counting in on around ITO. rest bookings pipeline the improvements so will deals stability, a more larger deals will the both based opportunities year-to-year It though, quarter certainty pipeline, nature on of The the list what the to do hard year. say was

pursuits, new really does the I've net the the to involved just teams in And are and pipeline very, been very reiterate, where quality start a again pursuit. large at cases, both level. for And the of Yes. operating renewal in with the new multiple quality business it of really

solid a And factors encouraged those all so XX-month will I'm number. book-to-bill very, that lead period, very to, a over

And that insight in mind, distinction will months to know, on lead and existing pipeline book-to-bill XX gotten you the good confident book-to-bill that I've next full year our my that and there's the As a But in. think in customers I'm beyond I that's that. burns that burns that. a better

to of fully I Okay. I mean, sense, come go-to-market long operating implement organization? back No, general good you the across then that Raul, think model. new and the your color. wanted And take it how what's strategy that's to will just on the

that making you're processes, I putting are Look, full sure in new followed. it's I mentioned a journey because think those you're processes year earlier

You're cases, at a of you've followed. if fully being at taking of it to any couple they're sort of right got have quarters' an But stage. action kind in of not execution many to least initial get worth

expect improvement today. aspects see one businesses that over It's beginning deliver across progress stair a to all Again, going quarter that'll for see these to step. all we to the you continued quarter. are all continue steady is not I across to give metrics that it's So the lever results

Our next of comes Guggenheim. question Lee line Jonathan from from the

It's toward any in early team. tremendous the given or Are signs of more so push the far? sales to hear some there changes success the of business you've effective a clients made signs from of there

Yes.

number we the logos got think get to about about have to in you've the of new them, permission more them these, talk so detail talk get permission with hopefully, won, that I next call. more to

strongest the and looking out the quarters win a and and renewal, We're going we're lose least we had learnings. not that better think resell, many, me, I new in traditionally, on on we lot lot looking renewal on are, the making then better early lot at wins renewal, planning possible in business the than many the a for deals the why. logo into fashion, resale, sure a detail, planning signs lot lot that the of at on positioning a more in a -- that better we what at deals period

And we for that of encouraging been I've ones errors on I the can deep been lost, lot gotten we've that it's a committed it's that that we think fix. on really because me,

sales of wins that have to and credentials. was can the capture. other look didn't great process didn't it it's back some how better the continue we and wasn't the go So part and we And the fine-tune at it. on to wasn't It have been that we to really get It losses talent.

So I'm very encouraged.

Appreciate there. your insight

relative follow-up, to how current you're And discipline both and it's the would earlier good year? you this GIS across How a pricing environment project evolved As has the characterize GBS? to see showing. that

Jonathan. have, I my been pricing we data and from stable. Rob, mean, It's the the perspective has

pricing or the down So I environment. notable changes seen haven't up in any

stable. as it characterize So I would just

Our the of from [Operator next DeepDive question Bourgeois Instructions] Rod line Equity. comes from

over about DXC count. want has buybacks plans. share into couple and years ask of to I past the share leaned reduced the first investment

cash You're free also flow. improve working to

the you do growth? So in free key are I you markets capacity sufficient to improvement? room also to doing competitive your feeling how future are much to And currently where ask, while and to in investments buybacks flow have and that your invest? cash So want have essentially, the be making you invest you

more of do about Board early on entities, off and that, one I functions, talked was a there came lot cetera. that integration, as of was themes legal back-office de-duplication et So of the on deep, de-duplication got to the in I

way, So get reinvest a thorough around into the the a we their weren't into ability things an That's just are into going at level, at on begin in some differentiation generative to back innovation to very AI, into to consistent look back data generative that plan innovation, helping AI. customers before. back at industry then and our business, streamlined talent, a use around innovation providing us to taking back more ready into the operate back better and looked of that training,

obviously there's around that, a of correct. of lot lot think talk been a I and which is hype

ours you I cleanup The all one all discussed the industry. business generative these is of can to actually is that tools, hasn't the data apply before the do others some AI begin is that and fuel and for companies to going But in that of place been things currently of like in what to companies of really data process the think do. the

a So a internal and great customers. we Many capture we're our well positioned help great data their to positioned that. mix And know, gen well got operations look and at business very in leader with run their to customers, partner so them a of be we're we've space. you very AI as the for

But investments? I question to with comments regards to there that on some on make think do want you board, some the across go-to-market, your

now Yes, investing organization Rod, in in Howard investing so with with up. that market Raul And standing practices gen the mentioned, we're AI, CES the we're that as geographic we the establishing, markets. is are

in flexibility investing in. the areas particular in we have are And as ample cash business. is is our those see very that we to strong, So our sheet fit invest balance two so we're stable, generation

really leadership on prior sales operating model the an the this it a second outlook, for year, in a sounds it clarification the it's the operating to takes get that And Makes encouraging outlook model is that on Great. the while it geography-oriented the this Last And sense pivoting operating one. operating model. was half. My bookings called model. like, model. been question it's Okay. offering-led the year, but encouraging to emphasizing you've traction

clarify, us operating feel to being the So the it's and, better current that you how operating model model give one assume, being how that than the last prior and maybe I it's was pursued? year. little with model color I different more just a like pursued geography-oriented was wanted just the sales on Can juxtapose you

Yes.

I that a and and a the got right? and it's and macro span other are across company got level, a the coordination think located the you've across that better in across and You've the geography be can at tighter may resources theme and at globe. you've collaboration, offerings technical level, skills leveraged company got

So it, a different is the talent two. it's think the got I that we've other. or better fact of in It one the say, the coordination of parts don't world. would what is I

to to and find the come they're that better roll that availability find have off to to they talent, as now projects. tools projects available manage on that talent, new We talent of to

and before. what's would of than geographies having like call impact between different it's collaboration now offerings it a the the better as So I and kind closer why

local, Yes. right? and is relationships are The so best And just managed the to in supplement Rod, sales that's market. that, local,

the develop the before. of it's market presence on here once, offerings then shift fundamental side pools And developing missing invest global skills. one of that having is that was that, in flip is So

business solutioning, sales local. delivery core competency, is So development, and is a unit

we're that, a trying to what new is in nutshell, the So accomplish model. with

Our Peller comes Darrin next Wolfe from question from Research.

developing room and to need industry do help the in in & what for you invest Consulting there's of Engineering areas you where verticals businesses, think us terms to improve in just just still expertise understand Just further around that.

an Tightening once but then that that getting it to replicable we replicable and with terms replicability, up level customer an terms industry right in bases how in of of in could continue use IP some code where through walk within build basis. invest often defined us on solution be the how solutions and we industry-wide and the and take there's of frameworks

left can mix So got ahead mix I think us bigger from of stronger in what's say that be but impact. that and today, much have terms of we've a improvement, I'd that

previous I've in on and that area other communication. internal collaboration The is internal calls touched

help us Can customer. send know XXX% opportunity we're doing you're And you sharing I on is and being for We somebody I them, this?" time, take technical solutions, into I didn't in truly out also being partner so all far, are putting them. Every taking you there?" that. better they've of making aware a you and also to around the And and a time obviously sure know always they've spotlight did to they're them, collaborating, me are of in know sharing that that have I lot say, if customer, studies, everyone and case what the "No, a internally, upside that that that said, a innovative that the for do that we back things of "And do done, exposing figure go world, come

you collaboration internal it we level. all about back that a to beginning goes surface the are cross-selling, and the internal a execution just to upside on. different And there stuff, that that basic scratch just So at of lot think there's again, when

about, accounts. excited excited there. parts I'm base business the we've got installed I'm And ability great about able to and to be our of the into the tag So in runway again, that different

the about and quick to I'm talked sorry, -- we're XXX% guess to it think timing make you GIS. and quarter from Can bookings was the ask just almost understand GBS I move. And X.XX, one GBS macro book-to-bill dynamics. last seems follow-up, what in timing sure I it I to just I quick understanding shift it's so, X.X a just or down on was But like, booking volatility like in

anything curious one in a your little better there's And just macro, confidence control. seeing you bit that if category so substantially particular can that's I'm you or some getting work really in anything do on can you're beyond

the of quality the of better. to and and has back goes existing the bids pipeline new being as in, wins It come Yes. team losses scorecard

solution So as X can I and our think competitive the good quarter technical the so big, on the need right, you more like those next clarity So be how encouraged to a both And in very, better of of these then really ability execution and big are and and clarity qualified the good opportunities be on forget, business it's address place. And of in it will, big be XX both pricing. are well. how until team don't can basis, the the well at that the multiyear because parts I starting opportunities than deals, a way, funnel, X-year is in really as with and said, I've more that competed because that with them right? full starting number I'm that it. deals our that, signed, like months in be you that talk as very, year how are, to a book-to-bill, it of funnel, some been look working they're can very funnel the about can't has very them on really but multiple deals And

confident we're why good in that's I'm there. So a place that

Yes. prepared And due And Raul's in expansion a did Darrin, of was part good CES it's inflows he might remarks, the mention Roger. to the you recall in pipeline business.

in the opportunity So it's an direction standpoint. from right

All team. right. we to the more have queue time, I'll Roger this it no in the And at back and turn questions Sachs over so

forward everybody, look today, with you Thank to Great. speaking we quarter. us again next and joining for you,

pleasant a That concludes today's Have day. call.