Brendan Biles

Brendan Biles asked for confirmation on DXC Technology's Q3 free cash flow performance, questioning if it exceeded internal expectations and why the full-year guidance remained at $650 million. He also inquired if any outperformance in free cash flow would be allocated to Fast-Track initiatives.

Answer

CFO Rob Del Bene confirmed Q3 free cash flow slightly outperformed expectations but attributed it to a pull-forward from Q4, thus maintaining the full-year guide of $650 million. He clarified that cash deployment priorities are growth investments, maintaining a strong balance sheet, and returning capital to shareholders through debt repayments and share repurchases, with specific guidance provided for H1 fiscal 2027.

Brendan Biles inquired about DXC Technology's Q3 free cash flow performance, asking if it exceeded internal expectations and why the full-year guidance remained at $650 million, specifically if any outperformance was allocated to Fast-Track initiatives.

Answer

CFO Rob Del Bene confirmed that Q3 free cash flow was slightly better than anticipated, attributing it to a pull-forward of working capital benefits from Q4, which changed the usual quarterly free cash flow pattern. He clarified that this outperformance was more of a timing shift rather than an addition to the full-year guide, which remains at $650 million. Del Bene also outlined capital allocation priorities for the first half of fiscal 2027, including share repurchases and debt repayments, with investment in business growth as the top priority.