DXC TECHNOLOGY CO, 10-Q filed on 1/30/2026
Quarterly Report
v3.25.4
Cover Page - shares
 9 Months Ended
Dec. 31, 2025
Jan. 20, 2026
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 31, 2025  
Document Transition Report false  
Entity File Number 001-38033  
Entity Registrant Name DXC TECHNOLOGY COMPANY  
Entity Incorporation, State or Country Code NV  
Entity Tax Identification Number 61-1800317  
Entity Address, Address Line One 20408 Bashan Drive, Suite 231  
Entity Address, City or Town Ashburn  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 20147  
City Area Code 703  
Local Phone Number 972-7000  
Title of 12(b) Security Common Stock, $0.01 par value per share  
Trading Symbol DXC  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   169,759,963
Entity Central Index Key 0001688568  
Current Fiscal Year End Date --03-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Income Statement [Abstract]        
Revenues $ 3,194 $ 3,225 $ 9,514 $ 9,702
Costs of services (excludes depreciation and amortization and restructuring costs) 2,435 2,416 7,206 7,369
Selling, general and administrative (excludes depreciation and amortization and restructuring costs) 309 335 1,069 989
Depreciation and amortization 283 320 882 975
Restructuring costs 20 43 92 124
Interest expense 54 66 161 207
Interest income (46) (51) (138) (153)
Gain on disposition of businesses 0 (7) 0 (7)
Other income, net (32) (28) (127) (94)
Total costs and expenses 3,023 3,094 9,145 9,410
Income before income taxes 171 131 369 292
Income tax expense 61 68 201 159
Net income 110 63 168 133
Less: net income attributable to non-controlling interest, net of tax 3 6 9 8
Net income attributable to DXC common stockholders $ 107 $ 57 $ 159 $ 125
Income per common share:        
Basic (in dollars per share) $ 0.62 $ 0.31 $ 0.90 $ 0.69
Diluted (in dollars per share) $ 0.61 $ 0.31 $ 0.88 $ 0.68
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Statement of Comprehensive Income [Abstract]        
Net income $ 110 $ 63 $ 168 $ 133
Other comprehensive income (loss), net of taxes:        
Foreign currency translation adjustments, net of tax [1] 9 (59) (98) 23
Cash flow hedges adjustments, net of tax [2] 3 4 (8) (7)
Pension and other post-retirement benefit plans, net of tax:        
Amortization of prior service cost, net of tax [3] (1) (1) (3) (3)
Pension and other post-retirement benefit plans, net of tax (1) (1) (3) (3)
Other comprehensive income (loss), net of taxes 11 (56) (109) 13
Comprehensive income 121 7 59 146
Less: comprehensive income attributable to non-controlling interest 3 5 8 7
Comprehensive income attributable to DXC common stockholders $ 118 $ 2 $ 51 $ 139
[1] Tax (benefit) expense related to foreign currency translation adjustments was $0 and $(15) for the three and nine months ended December 31, 2025, respectively, and $13 and $7 for the three and nine months ended December 31, 2024, respectively.
[2] Tax expense (benefit) related to cash flow hedges adjustments was $1 and $(3) for the three and nine months ended December 31, 2025, respectively, and $1 and $(2) for the three and nine months ended December 31, 2024, respectively.
[3] Tax benefit related to amortization of prior service costs was $1 and $1 for the three and nine months ended December 31, 2025, respectively, and $0 and $1 for the three and nine months ended December 31, 2024, respectively.
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustments, tax (benefit) expense $ 0 $ 13 $ (15) $ 7
Cash flow hedges adjustments, tax expense (benefit) 1 1 (3) (2)
Amortization of prior service cost, tax benefit $ 1 $ 0 $ 1 $ 1
v3.25.4
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Current assets:    
Cash and cash equivalents $ 1,731 $ 1,796
Receivables and contract assets, net of allowance of $24 and $32 2,908 2,972
Prepaid expenses 518 477
Other current assets 113 118
Total current assets 5,270 5,363
Intangible assets, net of accumulated amortization of $6,158 and $6,241 1,767 1,642
Operating right-of-use assets, net 667 635
Goodwill 530 526
Deferred income taxes, net 783 819
Property and equipment, net of accumulated depreciation of $3,362 and $3,409 1,165 1,253
Other assets 2,995 2,967
Total Assets 13,177 13,205
Current liabilities:    
Short-term debt and current maturities of long-term debt 532 880
Accounts payable 582 549
Accrued payroll and related costs 543 571
Current operating lease liabilities 233 227
Accrued expenses and other current liabilities 1,295 1,358
Deferred revenue and advance contract payments 724 762
Income taxes payable 0 64
Total current liabilities 3,909 4,411
Long-term debt, net of current maturities 3,092 2,996
Non-current deferred revenue 571 635
Non-current operating lease liabilities 466 444
Non-current income tax liabilities and deferred tax liabilities 500 495
Other long-term liabilities 1,226 734
Total Liabilities 9,764 9,715
Commitments and contingencies
DXC stockholders’ equity:    
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized, none issued as of December 31, 2025 and March 31, 2025 0 0
Common stock, par value $0.01 per share, 750,000,000 shares authorized, 176,466,937 issued as of December 31, 2025 and 186,856,421 issued as of March 31, 2025 1 2
Additional paid-in capital 7,193 7,677
Accumulated deficit (2,931) (3,451)
Accumulated other comprehensive loss (870) (762)
Treasury stock, at cost, 6,429,925 and 5,653,666 shares as of December 31, 2025 and March 31, 2025 (248) (237)
Total DXC stockholders’ equity 3,145 3,229
Non-controlling interest in subsidiaries 268 261
Total Equity 3,413 3,490
Total Liabilities and Equity $ 13,177 $ 13,205
v3.25.4
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 24 $ 32
Intangible assets, accumulated amortization 6,158 6,241
Property and equipment, accumulated depreciation $ 3,362 $ 3,409
DXC stockholders’ equity:    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 750,000,000 750,000,000
Common stock, issued (in shares) 176,466,937 186,856,421
Treasury shares (in shares) 6,429,925 5,653,666
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash flows from operating activities:    
Net income $ 168 $ 133
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 899 995
Goodwill impairment losses 14 0
Operating right-of-use expense 229 235
Pension & other post-employment benefits, actuarial & settlement losses 11 0
Share-based compensation 69 59
Deferred taxes 65 (182)
(Gain) loss on dispositions (3) 30
Provision for losses on accounts receivable 6 9
Unrealized foreign currency exchange (gain) loss (54) 33
Impairment losses and contract write-offs 4 25
Other non-cash charges, net (8) 3
Changes in assets and liabilities:    
Decrease in assets 260 334
Decrease in operating lease liability (229) (235)
Decrease in other liabilities (422) (356)
Net cash provided by operating activities 1,009 1,083
Cash flows from investing activities:    
Purchases of property and equipment (142) (171)
Payments for transition and transformation contract costs (85) (106)
Software purchased and developed (179) (230)
Business dispositions 0 26
Proceeds from sale of assets 26 126
Other investing activities, net 15 12
Net cash used in investing activities (365) (343)
Cash flows from financing activities:    
Borrowings of commercial paper 0 367
Repayments of commercial paper 0 (369)
Principal payments on long-term debt (1,062) 0
Payments on finance leases and borrowings for asset financing (154) (242)
Proceeds from bond issuance 747 0
Taxes paid related to net share settlements of share-based compensation awards (13) (18)
Repurchase of common stock (188) (14)
Other financing activities, net (4) 19
Net cash used in financing activities (674) (257)
Effect of exchange rate changes on cash and cash equivalents (35) 16
Net (decrease) increase in cash and cash equivalents (65) 499
Cash and cash equivalents at beginning of year 1,796 1,224
Cash and cash equivalents at end of period $ 1,731 $ 1,723
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($)
shares in Thousands, $ in Millions
Total
Total DXC Equity
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Non- Controlling Interest
Beginning balance (in shares) at Mar. 31, 2024     183,431          
Beginning balance at Mar. 31, 2024 $ 3,066 $ 2,811 $ 2 $ 7,599 $ (3,839) $ (732) $ (219) $ 255
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 133 125     125     8
Other comprehensive income (loss) 13 14       14   (1)
Share-based compensation expense 59 59   59        
Acquisition of treasury stock (16) (16)         (16)  
Stock option exercises and other common stock transactions (in shares)     3,179          
Non-controlling interest distributions and other (3) (3)   (1) (1) (1)    
Ending balance (in shares) at Dec. 31, 2024     186,610          
Ending balance at Dec. 31, 2024 3,252 2,990 $ 2 7,657 (3,715) (719) (235) 262
Beginning balance (in shares) at Sep. 30, 2024     186,521          
Beginning balance at Sep. 30, 2024 3,236 2,981 $ 2 7,647 (3,771) (663) (234) 255
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 63 57     57     6
Other comprehensive income (loss) (56) (55)       (55)   (1)
Share-based compensation expense 11 11   11        
Acquisition of treasury stock (1) (1)         (1)  
Stock option exercises and other common stock transactions (in shares)     89          
Non-controlling interest distributions and other (1) (3)   (1) (1) (1)   2
Ending balance (in shares) at Dec. 31, 2024     186,610          
Ending balance at Dec. 31, 2024 3,252 2,990 $ 2 7,657 (3,715) (719) (235) 262
Beginning balance (in shares) at Mar. 31, 2025     186,856          
Beginning balance at Mar. 31, 2025 3,490 3,229 $ 2 7,677 (3,451) (762) (237) [1] 261
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 168 159     159     9
Other comprehensive income (loss) (109) (108)       (108)   (1)
Share-based compensation expense 69 69   69        
Acquisition of treasury stock (11) (11)         (11) [1]  
Share repurchase program (in shares) [2]     (13,087)          
Share repurchase program [2] (192) (192) $ (1) (552) 361      
Stock option exercises and other common stock transactions (in shares)     2,698          
Non-controlling interest distributions and other (2) (1)   (1)       (1)
Ending balance (in shares) at Dec. 31, 2025     176,467          
Ending balance at Dec. 31, 2025 3,413 3,145 $ 1 7,193 (2,931) (870) (248) [1] 268
Beginning balance (in shares) at Sep. 30, 2025     180,921          
Beginning balance at Sep. 30, 2025 3,336 3,071 $ 2 7,360 (3,162) (881) (248) [1] 265
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 110 107     107     3
Other comprehensive income (loss) 11 11       11    
Share-based compensation expense 23 23   23        
Share repurchase program (in shares) [2]     (4,494)          
Share repurchase program [2] (66) (66) $ (1) (189) 124      
Stock option exercises and other common stock transactions (in shares)     40          
Non-controlling interest distributions and other (1) (1)   (1)        
Ending balance (in shares) at Dec. 31, 2025     176,467          
Ending balance at Dec. 31, 2025 $ 3,413 $ 3,145 $ 1 $ 7,193 $ (2,931) $ (870) $ (248) [1] $ 268
[1] 6,429,925 treasury shares as of December 31, 2025.
[2] On August 16, 2022, the U.S. Government enacted the Inflation Reduction Act (the “IRA”) into law. The IRA imposes a 1% excise tax on
share repurchases completed after December 31, 2022. We reflect the excise tax within equity as part of the repurchase of the common
stock.
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - shares
Dec. 31, 2025
Mar. 31, 2025
Statement of Stockholders' Equity [Abstract]    
Treasury shares (in shares) 6,429,925 5,653,666
v3.25.4
Summary of Significant Accounting Policies
 9 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Business

DXC Technology Company (“DXC,” the “Company,” “we,” “us,” or “our”) is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world’s most complex technology estates.

New Segment Structure

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services. The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources: Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Services ("Insurance"). See Note 17 - "Segment Information" for more information. Descriptions for each segment are provided below:

•Consulting & Engineering Services – Helps businesses use AI and data analytics to improve operations, automate tasks, and speed up their digital transformation. We provide software engineering, consulting, and custom and enterprise applications solutions that help companies manage essential functions, modernize processes, and drive innovation. We have strong expertise in industries like finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. Our solutions help businesses stay competitive by improving efficiency, launching new products faster, expanding into new markets, and achieving their strategic goals.

•Global Infrastructure Services – Implements and operates the technology underpinning the critical systems of global businesses and governments. Clients trust us to secure, modernize, and operate their critical systems and improve workplace experience to support business growth. Services include the design, migration, and management of complex data center, mainframe, cloud, and network environments, with an emphasis on scalability, security, compliance, and cost efficiency. By leveraging a human-led, AI-driven Intelligent Operations approach, we deliver secure, reliable IT operations that clients trust. We also provide cross-industry business process services, which streamline clients’ core enterprise functions such as finance, HR, procurement, and customer service. The implementation of secure, reliable technology improves employee experiences and productivity by streamlining daily operations—such as device management, helpdesk support, and AI-powered automation—enabling seamless collaboration, reducing IT support demands, and lowering costs through intuitive, self-service tools.

•Insurance Services – Provides software and services for Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations. We help insurers modernize their technology landscape from heritage systems to advanced AI-powered solutions that enhances operational efficiency, improves customer experiences, and enables insurers to adopt a digital-first approach. Complementing our software solutions, we provide comprehensive business process services, leveraging deep industry expertise to support the full spectrum of insurance operations.
Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) as the “statements of comprehensive income,” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 (“fiscal 2025”).

Use of Estimates

The preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.
Recent Accounting Pronouncements

The following Accounting Standards Updates (“ASU”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:

Date Issued and ASUDXC Effective DateDescriptionImpact
December 2023

ASU 2023-09, “Improvements to Income Tax Disclosures”		Fiscal 2026The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Early adoption of this update is permitted.
The Company will include the expanded income tax disclosures in its Consolidated Financial Statements for the fiscal year ended March 31, 2026, applied on a prospective basis. Otherwise, adoption of this ASU will not impact the consolidated financial statements.
November 2024

ASU 2024-03, “Disaggregation of Income Statement Expenses”		Fiscal 2028
The update requires disclosure, in the notes to financial statements, of specified quantitative information about certain costs and expenses presented in the income statement and certain qualitative information about costs that are not disaggregated. Early adoption of this update is permitted.
The Company is in the process of assessing the impacts and method of adoption. This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.
September 2025

ASU 2025-06, “Targeted Improvements to the Accounting for Internal-Use Software”

Fiscal 2029
The update amends the guidance for capitalizing internal-use software so that it is neutral to different software development methods, primarily by removing the previous “development stage” model to more closely align the capitalization of internal use software to that of software to be sold or marketed externally. Early adoption of this update is permitted.
The Company is in the process of assessing the impact of the ASU on our consolidated financial statements as well as its method of adoption.

Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC’s condensed consolidated financial statements.
v3.25.4
Divestitures
 9 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures Divestitures During the first nine months of fiscal 2025, the Company sold insignificant businesses and made adjustments to estimated amounts from prior years’ dispositions that resulted in a gain of $7 million.
v3.25.4
Earnings per Share
 9 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
Basic earnings per share (“EPS”) is computed using the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the incremental shares issuable upon the assumed exercise of stock options and equity awards. The following table reflects the calculation of basic and diluted EPS:

Three Months EndedNine Months Ended
(in millions, except per-share amounts)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Net income attributable to DXC common stockholders:
$107 $57 $159 $125 
Common share information:
Weighted average common shares outstanding for basic EPS173.13 181.02 177.21 180.54 
Dilutive effect of stock options and equity awards2.62 3.75 2.95 4.11 
Weighted average common shares outstanding for diluted EPS175.75 184.77 180.16 184.65 
Earnings per share:
Basic$0.62 $0.31 $0.90 $0.69 
Diluted$0.61 $0.31 $0.88 $0.68 

Certain share-based equity awards were excluded from the computation of dilutive EPS because inclusion of these awards would have an anti-dilutive effect. The number of awards excluded were as follows:

Three Months EndedNine Months Ended
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Stock Options274,899 899,937 318,893 911,471 
Restricted Stock Units476,222 224,415 926,928 1,524,055 
Performance Stock Units39,939 6,982 12,659 113,051 
v3.25.4
Receivables
 9 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Receivables Receivables
Allowance for Doubtful Accounts

The following table presents the change in balance for the allowance for doubtful accounts:

As of
(in millions)December 31, 2025December 31, 2024
Beginning balance$32 $35 
Provisions for losses on accounts receivable6 9 
Other adjustments to allowance and write-offs(14)(7)
Ending balance$24 $37 

Receivables Facility

The Company has an accounts receivable sales facility (as amended, restated, supplemented or otherwise modified, the “Receivables Facility”) with certain unaffiliated financial institutions (the “Purchasers”) for the sale of commercial accounts receivable in the United States up to a maximum amount of $400 million. The Receivables Facility was amended on July 25, 2025, extending the termination date to July 24, 2026.

As of December 31, 2025, the total availability under the Receivables Facility was $394 million and the amount sold to the Purchasers was $400 million, which was derecognized from the Company’s balance sheet. As of December 31, 2025, the Company recorded a $6 million liability within accounts payable because the amount of cash proceeds received by the Company under the Receivables Facility was more than the total availability.

The fair value of the sold receivables approximated book value due to the short-term nature, and as a result, no gain or loss on sale of receivables was recorded.
v3.25.4
Leases
 9 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Operating lease cost$76 $75 $229 $235 
Short-term lease cost 3 7 11 19 
Variable lease cost 18 12 52 38 
Sublease income(3)(4)(10)(14)
Total operating costs$94 $90 $282 $278 
Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows
$229 $235 
ROU assets obtained in exchange for operating lease liabilities(1)
$228 $180 
_______________

(1) Net of $459 million and $528 million in lease modifications and terminations during the first nine months of fiscal 2026 and 2025, respectively. See Note 16 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU operating lease assetsOperating right-of-use assets, net$667 $635 
Operating lease liabilitiesCurrent operating lease liabilities$233 $227 
Operating lease liabilities Non-current operating lease liabilities466 444 
Total operating lease liabilities $699 $671 

The weighted-average operating lease term was 3.6 years and 3.8 years as of December 31, 2025 and March 31, 2025, respectively. The weighted-average operating lease discount rate was 4.7% and 4.9% as of December 31, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Operating lease payments
$74 $242 $203 $139 $44 $53 $755 
Less: imputed interest
(56)
Total operating lease liabilities
$699 
Finance Leases

The components of finance lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Amortization of right-of-use assets$11 $17 $39 $66 
Interest on lease liabilities2 4 8 11 
Total finance lease expense$13 $21 $47 $77 

The following table provides supplemental cash flow information related to the Company’s finance leases:

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Interest paid for finance lease liabilities – Operating cash flows
$8 $11 
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows
109 159 
Total cash paid in the measurement of finance lease obligations$117 $170 
Capital expenditures through finance lease obligations(1)
$6 $20 
_______________

(1) See Note 16 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU finance lease assetsProperty and Equipment, net $94 $145 
Finance lease Short-term debt and current maturities of long-term debt $99 $123 
Finance leaseLong-term debt, net of current maturities 98 155 
Total finance lease liabilities(1)
$197 $278 
_______________

(1) See Note 9 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.4 years and 2.7 years as of December 31, 2025 and March 31, 2025, respectively. The weighted-average finance lease discount rate was 5.8% and 5.6% as of December 31, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Finance lease payments
$30 $99 $55 $22 $3 $4 $213 
Less: imputed interest
(16)
Total finance lease liabilities
$197 
Leases Leases
The Company has operating and finance leases for data centers, corporate offices, and certain equipment. Its leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Operating lease cost$76 $75 $229 $235 
Short-term lease cost 3 7 11 19 
Variable lease cost 18 12 52 38 
Sublease income(3)(4)(10)(14)
Total operating costs$94 $90 $282 $278 
Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows
$229 $235 
ROU assets obtained in exchange for operating lease liabilities(1)
$228 $180 
_______________

(1) Net of $459 million and $528 million in lease modifications and terminations during the first nine months of fiscal 2026 and 2025, respectively. See Note 16 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU operating lease assetsOperating right-of-use assets, net$667 $635 
Operating lease liabilitiesCurrent operating lease liabilities$233 $227 
Operating lease liabilities Non-current operating lease liabilities466 444 
Total operating lease liabilities $699 $671 

The weighted-average operating lease term was 3.6 years and 3.8 years as of December 31, 2025 and March 31, 2025, respectively. The weighted-average operating lease discount rate was 4.7% and 4.9% as of December 31, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Operating lease payments
$74 $242 $203 $139 $44 $53 $755 
Less: imputed interest
(56)
Total operating lease liabilities
$699 
Finance Leases

The components of finance lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Amortization of right-of-use assets$11 $17 $39 $66 
Interest on lease liabilities2 4 8 11 
Total finance lease expense$13 $21 $47 $77 

The following table provides supplemental cash flow information related to the Company’s finance leases:

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Interest paid for finance lease liabilities – Operating cash flows
$8 $11 
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows
109 159 
Total cash paid in the measurement of finance lease obligations$117 $170 
Capital expenditures through finance lease obligations(1)
$6 $20 
_______________

(1) See Note 16 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU finance lease assetsProperty and Equipment, net $94 $145 
Finance lease Short-term debt and current maturities of long-term debt $99 $123 
Finance leaseLong-term debt, net of current maturities 98 155 
Total finance lease liabilities(1)
$197 $278 
_______________

(1) See Note 9 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.4 years and 2.7 years as of December 31, 2025 and March 31, 2025, respectively. The weighted-average finance lease discount rate was 5.8% and 5.6% as of December 31, 2025 and March 31, 2025, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Finance lease payments
$30 $99 $55 $22 $3 $4 $213 
Less: imputed interest
(16)
Total finance lease liabilities
$197 
v3.25.4
Derivative Instruments
 9 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In the normal course of business, the Company is exposed to interest rate and foreign exchange rate fluctuations. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures. The Company’s objective is to reduce earnings volatility by offsetting gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them. The Company does not use derivative instruments for trading or any speculative purposes.

Derivatives Designated for Hedge Accounting

Cash flow hedges

The Company has designated certain foreign currency forward contracts as cash flow hedges to reduce foreign currency risk related to certain Indian Rupee-denominated obligations and forecasted transactions. The notional amounts of foreign currency forward contracts designated as cash flow hedges as of December 31, 2025 and March 31, 2025 were $307 million and $668 million, respectively. As of December 31, 2025, the related forecasted transactions extend through December 2026.

During the three and nine months ended December 31, 2025 and December 31, 2024, respectively, the Company had no cash flow hedges for which it was probable that the hedged transaction would not occur.

See Note 14 - “Stockholders’ Equity” for changes in accumulated other comprehensive loss, net of taxes, related to the Company’s derivatives designated for hedge accounting. As of December 31, 2025, $18 million of loss related to the cash flow hedge reported in accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months.

Derivatives Not Designated for Hedge Accounting

The derivative instruments not designated as hedges for purposes of hedge accounting include certain short-term foreign currency forward contracts. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates.

Foreign currency forward contracts

The Company manages the exposure to fluctuations in foreign currencies by using primarily short-term foreign currency forward contracts to hedge certain foreign currency denominated assets and liabilities, including intercompany accounts and forecasted transactions. The net notional amounts of the foreign currency forward contracts outstanding as of December 31, 2025 and March 31, 2025 were $1.1 billion and $1.9 billion, respectively.
The following table presents the foreign currency (gain) loss to Other income, net:
Three Months Ended
Nine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Foreign currency remeasurement (1)
$8 $48 $(50)$29 
Undesignated foreign currency forward contracts (2)
(8)(49)43 (29)
Total - Foreign currency (gain) loss
$— $(1)$(7)$— 
_______________

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.
(2) Movements from hedges used to manage the Company’s foreign currency remeasurement exposure, and the associated costs of the hedging program.

Other Risks for Derivative Instruments

The Company is exposed to the risk of losses in the event of non-performance by the counterparties to its derivative contracts. The amount subject to credit risk related to derivative instruments is generally limited to the amount, if any, by which a counterparty’s obligations exceed the obligations of the Company with that counterparty. To mitigate counterparty credit risk, the Company regularly reviews its credit exposure and the creditworthiness of the counterparties. With respect to its foreign currency derivatives, as of December 31, 2025, there were two counterparties with concentration of credit risk, and based on gross fair value, the maximum amount of loss that the Company could incur is $1 million.

The Company also enters into enforceable master netting arrangements with some of its counterparties. However, for financial reporting purposes, it is the Company’s policy not to offset derivative assets and liabilities despite the existence of enforceable master netting arrangements. The potential effect of such netting arrangements on the Company’s balance sheets is not material for the periods presented.

Non-Derivative Financial Instruments Designated for Hedge Accounting

The Company applies hedge accounting for foreign currency-denominated intercompany debt used to manage foreign currency exposures on its net investments in certain non-U.S. operations. To qualify for hedge accounting, the hedging instrument must be highly effective at reducing the risk from the exposure being hedged.

Net Investment Hedges

DXC seeks to reduce the impact of fluctuations in foreign exchange rates on its net investments in certain non-U.S. operations with foreign currency-denominated intercompany debt. For foreign currency-denominated intercompany debt designated as a hedge, the effectiveness of the hedge is assessed based on changes in spot rates. For qualifying net investment hedges, all gains or losses on the hedging instruments are included in currency translation. Gains or losses on individual net investments in non-U.S. operations are reclassified to earnings from accumulated other comprehensive income (loss) when such net investments are sold or substantially liquidated.
As of December 31, 2025, DXC had $244 million of foreign currency-denominated intercompany debt designated as hedges of net investments in non-U.S. subsidiaries. For the three and nine months ended December 31, 2025, the pre-tax loss on foreign currency-denominated intercompany debt designated for hedge accounting recognized in other comprehensive income was immaterial.
v3.25.4
Intangible Assets
 9 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consisted of the following:

As of December 31, 2025
As of March 31, 2025
(in millions)Gross Carrying ValueAccumulated AmortizationNet Carrying ValueGross Carrying ValueAccumulated AmortizationNet Carrying Value
Software$3,671 $2,737 $934 $3,713 $3,166 $547 
Customer related intangible assets
3,964 3,256 708 3,886 2,933 953 
Other intangible assets
290 165 125 284 142 142 
Total intangible assets$7,925 $6,158 $1,767 $7,883 $6,241 $1,642 


The components of amortization expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Intangible asset amortization$170 $182 $530 $548 
Transition and transformation contract cost amortization(1)
43 51 129 152 
Total amortization expense$213 $233 $659 $700 

_______________

(1)Transition and transformation contract costs are included within other assets on the balance sheets.

Estimated future amortization related to intangible assets as of December 31, 2025 is as follows:

Fiscal Year (in millions)
Remainder of 2026$165 
2027584 
2028332 
2029230 
2030186 
Thereafter270 
Total$1,767 
v3.25.4
Goodwill
 9 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure that includes three operating and reportable segments: 1) CES, 2) GIS, and 3) Insurance. These segments align with how management assesses performance of the business and allocates resources. See Note 17 - "Segment Information" for more information. The change to the Company’s operating segments resulted in a change to the Company’s reporting units, which are aligned to the Company’s operating and reportable segments.
As a result of the realignment, the Company reallocated goodwill to the new reporting units on a relative fair value basis.

In connection with the goodwill reallocation described above, the Company assessed whether there were events or changes in circumstances that would more likely than not reduce the fair value of any of its reporting units below their carrying amount and require goodwill to be tested for impairment. As a result, the Company concluded that the goodwill balance reallocated to the GIS segment was fully impaired in the first quarter of fiscal 2026.

The following table summarizes the changes in the carrying amount of goodwill, by segment, as of December 31, 2025.

(in millions)
Global Business Solutions
Consulting & Engineering Services
Global Infrastructure Services
Insurance Services
Total
Balance as of March 31, 2025, net
$526 $— $— $— $526 
Reallocation of goodwill
$(526)$367 $14 $145 $— 
Impairment losses(1)
— (14)— (14)
Foreign currency translation(2)
13 — 5 18 
Balance as of December 31, 2025, net
$— $380 $— $150 $530 
Goodwill, gross3,599 5,080 1,421 10,100 
Accumulated impairment losses$(3,219)$(5,080)$(1,271)$(9,570)
Balance as of December 31, 2025, net
$380 $— $150 $530 
_______________

(1) Impairment losses are included within Other income, net on the statements of operations.
(2)The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances.
v3.25.4
Debt
 9 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
The following is a summary of the Company’s debt:

(in millions)Interest RatesFiscal Year Maturities
December 31, 2025(1)
March 31, 2025(1)
Short-term debt and
current maturities of long-term debt
€650 million Senior notes
1.75%2026$— $702 
$700 million Senior notes
1.80%2027399 — 
Current maturities of finance lease liabilities
0.53% - 14.59%
2026 - 202799 123 
Current maturities of long-term debtVarious2026 - 202734 55 
Short-term debt and current maturities of long-term debt$532 $880 
Long-term debt, net of current maturities
$700 million Senior notes
1.80%2027— 698 
€750 million Senior notes
0.45%2028879 808 
$650 million Senior notes
2.375%2029648 647 
€650 million Senior notes
4.25%2031744 — 
€600 million Senior notes
0.95%2032700 644 
Finance lease liabilities
0.53% - 14.59%
2027 - 203598 155 
Borrowings for assets acquired under long-term financing
0.00% - 7.55%
2027 - 20298 28 
Other borrowingsVarious2027 - 203515 16 
Long-term debt, net of current maturities3,092 2,996 
Total debt
$3,624 $3,876 
_______________

(1)The carrying amounts of the senior notes as of December 31, 2025 and March 31, 2025, include the remaining principal outstanding of $3,399 million and $3,510 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $28 million and $11 million, respectively.

Senior Notes

During the third quarter of fiscal 2026, the Company issued €650 million aggregate principal amount of 4.25% senior notes due fiscal 2031. The net proceeds from the issuance were used to repay in full the Company’s €650 million senior notes due fiscal 2026. In addition, the Company redeemed $300 million aggregate principal amount of its $700 million senior notes due fiscal 2027.

Fair Value of Debt

The estimated fair value of the Company’s senior notes was $3.2 billion and $3.3 billion as of December 31, 2025 and March 31, 2025, compared with carrying value of $3.4 billion and $3.5 billion as of December 31, 2025 and March 31, 2025, respectively. Senior notes are classified as Level 2 within the fair value hierarchy.
v3.25.4
Revenue
 9 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue Recognition

The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
United States$805 $902 $2,454 $2,688 
United Kingdom451 441 1,395 1,340 
Other Europe1,094 1,041 3,172 3,106 
Australia278 286 812 894 
Other International566 555 1,681 1,674 
Total Revenues$3,194 $3,225 $9,514 $9,702 

The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 17 – “Segment Information” for the Company’s segment disclosures.

Remaining Performance Obligations

As of December 31, 2025, approximately $16.4 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 14% of these remaining performance obligations in fiscal 2026, with the remainder of the balance recognized thereafter.

Contract Balances

The following table provides information about the balances of the Company’s trade receivables and contract assets and contract liabilities:
As of
(in millions)
Balance Sheet Line Item
December 31, 2025March 31, 2025
Trade receivables, net
Receivables and contract assets, net of allowance for doubtful accounts
$1,920 $2,041 
Contract assets
Receivables and contract assets, net of allowance for doubtful accounts
$368 $338 
Contract liabilities
Deferred revenue and advance contract payments and Non-current deferred revenue
$1,295 $1,397 

Change in contract liabilities were as follows:
Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Balance, beginning of period$1,397 $1,537 
Deferred revenue 1,322 1,221 
Recognition of deferred revenue(1,423)(1,289)
Currency translation adjustment52 (28)
Other(53)(100)
Balance, end of period$1,295 $1,341 
v3.25.4
Restructuring Costs
 9 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
The composition of restructuring liabilities by financial statement line item is as follows:
As of
(in millions)December 31, 2025March 31, 2025
Accrued expenses and other current liabilities$24 $33 
Other long-term liabilities5 6 
Total$29 $39 

Summary of Restructuring Plans

Fiscal 2026 Plan

During fiscal 2026, management approved global cost savings initiatives designed to better align the Company’s workforce, facility and data center requirements (the “Fiscal 2026 Plan”).

Restructuring Liability Reconciliations by Plan
Restructuring Liability as of March 31, 2025
Costs Expensed, Net of Reversals
Costs Not Affecting Restructuring Liability(1)
Cash Paid
Other(2)
Restructuring Liability as of December 31, 2025
Fiscal 2026 Plan
Workforce Reductions$— $64 $— $(51)$— $13 
Facilities Costs— 2 (1)— (1)— 
— 66 (1)(51)(1)13 
Fiscal 2025 Plan
Workforce Reductions$26 $4 $— $(23)$1 $8 
Facilities Costs— 18 (1)(17)— — 
26 22 (1)(40)1 8 
Other Prior Year and Acquired Plans
Workforce Reductions$12 $(1)$— $(5)$1 $7 
Facilities Costs1 5 (3)(3)1 1 
13 4 (3)(8)2 8 
Total$39 $92 $(5)$(99)$2 $29 
_______________

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.
(2) Foreign currency translation adjustments.

Restructuring costs for the nine months ended December 31, 2025 includes $6 million related to amortization of the right-of-use asset and interest expense for leased facilities that have been vacated but are being actively marketed for sublease or we are in negotiations with the landlord to potentially terminate or modify those leases.
v3.25.4
Pension and Other Benefit Plans
 9 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension and Other Benefit Plans Pension and Other Benefit Plans
Defined Benefit Plans

The components of net periodic pension income were:
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Service cost$12 $13 $38 $39 
Interest cost75 75 226 225 
Expected return on assets(116)(113)(351)(341)
Amortization of prior service costs(1)(2)(3)(4)
Subtotal
(30)(27)(90)(81)
Settlement/curtailment gain
(4)— (4)— 
Recognition of actuarial loss
15 — 15 — 
Net periodic pension income$(19)$(27)$(79)$(81)

The service cost component of net periodic pension income is presented in costs of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net.

In November 2025, the Government of India consolidated multiple labor statutes into a unified framework. Certain provisions of this framework revised the definition of wages used in determining employee benefit obligations. During the third quarter of fiscal 2026, the Company evaluated the impact of these changes and recognized an increase of approximately $15 million in its projected benefit obligations in India. In accordance with the Company’s accounting policy to recognize actuarial gains and losses immediately through a mark-to-market adjustment, a non-cash charge of $15 million was recorded in Other income, net, during the period.
v3.25.4
Income Taxes
 9 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate (“ETR”) was 35.7% and 51.9% for the three months ended December 31, 2025, and December 31, 2024, respectively, and 54.5% and 54.5% for the nine months ended December 31, 2025, and December 31, 2024, respectively. For the three months ended December 31, 2025, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and tax benefits resulting from the expiration of the statute of limitations relating to uncertain tax positions. For the nine months ended December 31, 2025, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, the tax benefit of a worthless stock deduction under section 165(g) of the Internal Revenue Code related to the Company’s investment in a wholly owned subsidiary, and a decrease in a deferred tax asset for stock based compensation. For the three months ended December 31, 2024, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, and the foreign tax credit. For the nine months ended December 31, 2024, the primary drivers of the ETR were the global mix of income, U.S. tax on foreign income, the foreign tax credit, and an increase in interest receivables due from tax authorities.

As of December 31, 2025, the Company had undistributed earnings from foreign subsidiaries that were not indefinitely reinvested and a deferred tax liability of $28 million for the estimated taxes associated with the repatriation of these earnings. The Company also had undistributed earnings and other outside basis differences in foreign subsidiaries that were indefinitely reinvested for which no taxes have been provided and the quantification of the deferred tax liability, if any, was not practicable. If future events, including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective tax rate.
In connection with the merger of Computer Sciences Corporation (“CSC”) and the Enterprise Services business of Hewlett Packard Enterprise Company (the “HPES Merger”), the Company entered into a tax matters agreement with Hewlett Packard Enterprise Company (“HPE”). HPE generally will be responsible for tax liabilities arising prior to the HPES Merger, and DXC is liable to HPE for income tax receivables it receives related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $13 million tax indemnification receivable related to uncertain tax positions, a $33 million tax indemnification receivable related to other tax payables, and a $94 million tax indemnification payable related to other tax receivables.

In connection with the spin-off of the Company’s former U.S. public sector business (the “USPS Separation”), the Company entered into a tax matters agreement with Perspecta Inc. (including its successors and permitted assigns, “Perspecta”). The Company generally will be responsible for tax liabilities arising prior to the USPS Separation, and Perspecta is liable to the Company for income tax receivables related to pre-spin-off periods. Income tax liabilities transferred to Perspecta primarily relate to pre-HPES Merger periods, for which the Company is indemnified by HPE pursuant to the tax matters agreement between the Company and HPE. The Company remains liable to HPE for tax receivables transferred to Perspecta related to pre-HPES Merger periods. Pursuant to the tax matters agreement, the Company recorded a $12 million tax indemnification receivable from Perspecta related to other tax receivables and a $1 million tax indemnification payable to Perspecta related to income tax and other tax payables.

In connection with the sale of its healthcare provider software business (“HPS”), the Company entered into a tax matters agreement with Dedalus. Pursuant to the tax matters agreement, the Company generally will be responsible for tax liabilities arising prior to the sale of the HPS business.

The Internal Revenue Service (the “IRS”) has examined, or is examining, the Company’s federal income tax returns for fiscal years 2009 through the tax year ended October 31, 2018. With respect to CSC’s fiscal years 2009 through 2017 federal tax returns, the Company participated in settlement negotiations with the IRS Office of Appeals. The IRS examined several issues for these tax years that resulted in various audit adjustments. The Company and the IRS Office of Appeals have settled various audit adjustments, and we disagree with the IRS’ disallowance of certain losses and deductions resulting from restructuring costs, foreign exchange losses, and a third-party financing transaction in previous years.

We have received notices of deficiency and a final partnership administrative adjustment with respect to fiscal years 2009, 2010, 2011 and 2013 and have timely filed petitions with the U.S. Tax Court.

The U.S. Tax Court cases generally involve three primary issues. The first issue pertains to a capital loss the Company claimed in fiscal year 2013 in the amount of $651 million, which the IRS subsequently disallowed, and for which it proposed a substantial understatement penalty. The total cash tax payment the IRS is seeking is approximately $495 million, inclusive of penalties and interest, which continues to accrue. The U.S. Tax Court held a trial on this matter in two sessions in August and October 2025. Post-trial briefing is scheduled to conclude in April 2026.

The second issue pertains to the Company’s deduction for restructuring expenses in fiscal year 2013 in the amount of $146 million, which the IRS has disputed. The total cash tax payment the IRS is seeking is approximately $107 million, inclusive of penalties and interest, which continues to accrue. In January 2025, the Court denied the IRS’s motion for summary judgment. A trial date is pending.

The third issue primarily pertains to foreign currency losses from 2009 that the Company claimed in fiscal years 2010 and 2011 in the amount of $165 million, resulting from the depreciation of the U.S. dollar against the Euro over an eight-year period (from 2001 to 2009) upon termination of a partnership interest involving two entities with different functional currencies. The total cash tax payment the IRS is seeking is approximately $131 million, inclusive of penalties and interest, which continues to accrue. The IRS has filed a motion for summary judgment. A decision on the motion is pending.

As we believe we will ultimately prevail on the technical merits of the disagreed items and are challenging them in the U.S. Tax Court, the above matters are not fully reserved and would result in incremental federal and state tax expense of approximately $569 million (including estimated interest and penalties) for the unreserved portion of these items and cash tax payments of approximately $652 million if we do not prevail. These amounts are net of an expected $81 million interest deduction tax benefit.
During fiscal 2024, the Company determined there were inadvertent omissions on previously filed tax returns related to gain recognition agreements and certain related tax forms and disclosures. The Company notified the IRS promptly and filed for relief under Treas. Reg. Sec. 1.367(a)-8(p) to correct the issue.

The Company’s fiscal years 2009, 2010, and 2013 are in the U.S. Tax Court, and consequently these years will remain open until such proceedings have concluded. The Company has agreed to extend the statute of limitations for fiscal and tax return years 2014 through 2021 to December 31, 2026. The Company expects to reach resolution for fiscal and tax return years 2009 through 2011 no earlier than fiscal year 2027. The Company expects to reach resolution for fiscal and tax return years 2012 and 2013 no earlier than fiscal year 2028. The Company expects to reach resolution for fiscal and tax return years 2014 through 2021 no earlier than fiscal year 2027.

The Company may settle certain other tax examinations for different amounts than the Company has accrued as uncertain tax positions. Consequently, the Company may need to accrue and ultimately pay additional amounts or pay lower amounts than previously estimated and accrued when positions are settled in the future. For the three months ended December 31, 2025, the Company’s liability for uncertain tax positions decreased by $13 million (excluding interest and penalties and related tax attributes) primarily due to the expiration of the statute of limitations.
v3.25.4
Stockholders' Equity
 9 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share Repurchase Program

During the first nine months of fiscal 2026, the Company repurchased 13,087,310 shares under our Share Repurchase Program. There were no share repurchases during the first nine months of fiscal 2025.

Fiscal 2026
Fiscal PeriodNumber of Shares RepurchasedAverage Price Per ShareAmount
(in millions)
1st Quarter3,275,268 $15.27 $50 
2nd Quarter5,317,898 $14.10 75 
3rd Quarter
4,494,144 $14.46 65 
Total13,087,310 $14.52 $190 

Accumulated Other Comprehensive Loss

The following table provides the changes in accumulated other comprehensive loss, net of taxes:

(in millions)Foreign Currency Translation AdjustmentsCash Flow HedgesPension and Other Post-retirement Benefit PlansAccumulated Other Comprehensive Loss
Balance at March 31, 2025
$(948)$(7)$193 $(762)
Other comprehensive income before reclassifications
(97)(22)— (119)
Amounts reclassified from accumulated other comprehensive loss— 14 (3)11 
Balance at December 31, 2025
$(1,045)$(15)$190 $(870)

(in millions)Foreign Currency Translation AdjustmentsCash Flow HedgesPension and Other Post-retirement Benefit PlansAccumulated Other Comprehensive Loss
Balance at March 31, 2024
$(939)$— $207 $(732)
Other comprehensive loss before reclassifications23 (8)— 15 
Amounts reclassified from accumulated other comprehensive loss— 1 (3)(2)
Balance at December 31, 2024
$(916)$(7)$204 $(719)
v3.25.4
Stock Incentive Plans
 9 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock Incentive Plans Stock Incentive Plans
Restricted Stock Units and Performance-Based Restricted Stock Units

Restricted stock units (“RSUs”) represent the right to receive one share of DXC common stock upon a future settlement date, subject to vesting and other terms and conditions of the award, plus any dividend equivalents accrued during the award period.

The RSUs vest one-third ratably over a three-year period. In general, if the employees’ status as a full-time employee is terminated prior to the vesting of the RSU grant in full, then the RSU grant is automatically canceled on the termination date, and any unvested shares and dividend equivalents are forfeited.

The Company also grants performance-based restricted stock units (“PSUs”), which generally vest at the end of a three-year period. The number of PSUs that ultimately vest is dependent upon the Company’s achievement of certain specified financial performance criteria over a three-year period. If the specified performance criteria are met, awards are settled for shares of DXC common stock and dividend equivalents shortly subsequent to the end of the performance period, subject to continued employment through the last day of the third fiscal year. DXC also issued PSU awards that are considered to have a market condition. Settlement of shares for these PSU awards will be made shortly subsequent to the end of the third fiscal year, subject to certain market conditions and continued employment through the last day of the third fiscal year.

The fair value of RSUs and PSUs is based on the Company’s common stock closing price on the grant date. For PSUs with a market-based condition, DXC uses a Monte Carlo simulation model to value the grants.

Employee Equity PlanDirector Equity Plan
Number of
Shares		Weighted Average Grant Date
Fair Value		Number of
Shares
Weighted Average Grant Date
Fair Value
Outstanding as of March 31, 2025
9,073,741 $22.23 201,017 $26.63 
Granted10,334,552 $16.19 170,500 $13.23 
Settled(2,604,727)$25.39 (121,282)$20.64 
Canceled/Forfeited(2,372,655)$22.86 — $— 
Outstanding as of December 31, 2025
14,430,911 $17.23 250,235 $20.41 


Share-Based Compensation

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Total share-based compensation cost$23 $11 $69 $59 
Related income tax benefit $3 $3 $9 $10 
v3.25.4
Cash Flows
 9 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Cash Flows Cash Flows
Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Cash paid for:
Interest$153 $189 
Taxes on income, net of refunds (1)
$201 $305 
Non-cash activities:
Operating:
ROU assets obtained in exchange for lease, net (2)
$228 $180 
Investing:
Capital expenditures in accounts payable and accrued expenses (3)
$493 $13 
Capital expenditures through finance lease obligations$6 $20 
Assets acquired under long-term financing$3 $— 
Financing:
Shares repurchased but not settled in cash (4)
$4 $— 
_______________

(1) Income tax refunds were $47 million and $36 million for the nine months ended December 31, 2025 and December 31, 2024, respectively.
(2) Net of $459 million and $528 million in lease modifications and terminations during the nine months ended December 31, 2025 and December 31, 2024, respectively.
(3) Accrued expenses includes both short-term and long-term liabilities.
(4) On August 16, 2022, the U.S. government enacted the IRA into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.
v3.25.4
Segment Information
 9 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
DXC has a matrix form of organization and is managed in several different and overlapping groupings including services, industries and geographic regions. As a result, and in accordance with accounting standards, operating segments are organized by the type of services provided. Our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) serve as our Chief Operating Decision Makers ("CODM") and are responsible for obtaining, reviewing, and managing the Company’s financial performance based on these segments.

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services. The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources: CES, GIS, and Insurance, as previously described above in Note 1 - “Summary of Significant Accounting Policies.” In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation.

The Company's CODM uses segment profit to measure operational strength and performance, assist in evaluation of underlying trends, and allocate resources through periodic budget and forecasting processes. Segment profit is defined as segment revenues less costs of services, selling, general and administrative, depreciation and amortization, and other segment items.

The Company allocates certain costs such as real estate costs, information technology costs and costs for certain other shared corporate functions to its segments using a proportional share of either revenue or headcount for each segment. The Company does not allocate to its segments certain operating expenses managed at the corporate level. These unallocated expenses generally include certain corporate function costs, pension and other post-retirement benefit (“OPEB”) actuarial and settlement gains and losses, restructuring costs, transaction, separation, and integration-related costs, amortization of acquired intangible assets, impairment losses, gains/(losses) on dispositions of businesses, gains/(losses) on real estate and facility sales, and other costs that do not reflect ongoing segment operating performance. As part of the transition to the new segment structure, the Company updated the assumptions that define which expenses remain in corporate post allocation. The tables below reflect those revised assumptions.
Segment Measures

The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)
CES
GIS
Insurance
Total Reportable Segments
Three Months Ended December 31, 2025
Revenues$1,266 $1,607 $321 $3,194 
Costs of services
(982)(1,239)(226)(2,447)
Selling, general and administrative
(137)(125)(40)(302)
Depreciation and amortization(1)
(20)(151)(24)(195)
Other segment items(2)
17 21 4 42 
Segment profit$144 $113 $35 $292 
Three Months Ended December 31, 2024
Revenues$1,267 $1,651 $307 $3,225 
Costs of services
(953)(1,245)(199)(2,397)
Selling, general and administrative
(139)(132)(39)(310)
Depreciation and amortization(1)
(28)(184)(22)(234)
Other segment items(2)
17 22 3 42 
Segment profit$164 $112 $50 $326 
(in millions)
CES
GIS
Insurance
Total Reportable Segments
Nine Months Ended December 31, 2025
Revenues$3,767 $4,793 $954 $9,514 
Costs of services
(2,920)(3,646)(674)(7,240)
Selling, general and administrative
(443)(410)(125)(978)
Depreciation and amortization(1)
(68)(478)(72)(618)
Other segment items(2)
58 73 13 144 
Segment profit$394 $332 $96 $822 
Nine Months Ended December 31, 2024
Revenues$3,827 $4,965 $910 $9,702 
Costs of services
(2,934)(3,762)(624)(7,320)
Selling, general and administrative
(409)(370)(103)(882)
Depreciation and amortization(1)
(75)(568)(64)(707)
Other segment items(2)
53 68 12 133 
Segment profit$462 $333 $131 $926 
_______________

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets.
(2) Other segment items as presented includes non-service cost components of net periodic pension income and other miscellaneous segment gains/(losses).
Reconciliation of Reportable Segment Profit to Consolidated Total

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Profit
Total profit for reportable segments$292 $326 $822 $926 
Corporate expenses
(29)(40)(89)(137)
Subtotal263 286 733 789 
Restructuring costs(20)(43)(92)(124)
Transaction, separation and integration-related costs
— (3)(2)(25)
Amortization of acquired intangible assets(87)(87)(262)(263)
Merger related indemnification34 — 32 — 
Gains on dispositions
— 8 1 13 
(Losses) gains on real estate and facility sales
— (3)7 (32)
Impairment losses— (12)(14)(12)
Pension and OPEB actuarial and settlement losses
(11)— (11)— 
Interest income46 51 138 153 
Interest expense(54)(66)(161)(207)
Income before income taxes
$171 $131 $369 $292 
Management does not use total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.
v3.25.4
Commitments and Contingencies
 9 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments

Minimum purchase commitments as of December 31, 2025 were as follows:
Fiscal yearMinimum Purchase Commitment
(in millions)
Remainder of 2026
$100 
2027501 
2028504 
2029387 
2030336 
Thereafter470 
Total$2,298 
Contingencies

Securities Litigation: On August 20, 2019, a purported class action lawsuit was filed in the Superior Court of the State of California, County of Santa Clara, against the Company, directors of the Company, and a former officer of the Company, among other defendants. The action asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, and is premised on allegedly false and/or misleading statements, and alleged non-disclosure of material facts, regarding the Company’s prospects and expected performance. The putative class of plaintiffs includes former shareholders of Computer Sciences Corporation (“CSC”) who exchanged their CSC shares for the Company’s common stock pursuant to the offering documents filed with the Securities and Exchange Commission in connection with the April 2017 transaction that formed DXC.

The State of California action had been stayed pending the outcome of the substantially similar federal action filed in the United States District Court for the Northern District of California. The federal action was dismissed with prejudice in December 2021. Thereafter, the state court lifted the stay and entered an order permitting additional briefing by the parties. In March 2022, Plaintiffs filed an amended complaint, which the Company moved to dismiss. In August 2022, the Court granted the Company’s motion to dismiss but permitted Plaintiffs to amend and refile their complaint. In September 2022, Plaintiffs filed a second amended complaint, which the Company moved to dismiss. In January 2023, the Court issued an order denying the Company’s motion to dismiss the second amended complaint. In March 2023, the Court entered a scheduling order setting a trial date for September 2025. The trial date has since been extended to May 2026. In May 2024, the Court entered an order granting Plaintiffs’ motion for class certification. In July 2024, notice was provided to potential class members.

In June 2025, the Company reached an agreement in principle to resolve all claims in the action. In October 2025, the parties executed a Stipulation of Settlement and submitted it to the Court for approval. In December 2025, the Court entered an order granting preliminary approval of the settlement. Notice of the pending settlement has been sent to class members. A final approval hearing has been scheduled for June 2026. The Company’s share of the settlement has been funded by its insurance carriers.

Tax Examinations: The Company is under IRS examination in the U.S. on its federal income tax returns for certain fiscal years and is in disagreement with the IRS on certain tax positions, which are currently being contested in the U.S. Tax Court. For more detail, see Note 13 – “Income Taxes.”
TCS Litigation: In April 2019, the Company filed a lawsuit against Tata Consultancy Services Limited (“TCS”) and Tata America International Corporation alleging misappropriation of certain of the Company’s trade secrets. In November 2023, a trial was held in the United States District Court for the Northern District of Texas, and a jury found TCS liable for misappropriating the Company’s trade secrets and awarded the Company $70 million in compensatory damages and $140 million in punitive damages, for a total award of $210 million. In June 2024, the Court entered a final order in the case, affirming the jury’s verdict in the Company’s favor and revising the monetary award to $56 million in compensatory damages and $112 million in punitive damages. The Court also awarded the Company $26 million in prejudgment interest, post-judgment interest at an annual rate of 4.824%, and its attorney’s fees and costs, in an amount to be determined in a later order. The total award to the Company is $194 million, plus its attorney’s fees and costs. The Court also issued a permanent injunction enjoining TCS from, among other things, possessing, accessing, or using any of the Company’s trade secrets that were at issue in the case, and appointing a monitor to confirm, among other things, that TCS does not do so.

In August 2024, TCS filed a Notice of Appeal to the U.S. Court of Appeals for the Fifth Circuit. In April 2025, the Court of Appeals heard oral argument on the appeal. In November 2025, the Court of Appeals issued an order affirming the monetary award to the Company. The Court vacated the injunction and remanded to the District Court for the issuance of a revised injunction with a narrower scope. In December 2025, TCS filed petitions with the Court of Appeals seeking panel rehearing and rehearing en banc. The Court denied both petitions. TCS’s deadline to petition the U.S. Supreme Court for review is March 2026. Proceedings in the District Court regarding a revised injunction are pending.

The Company has not recognized any portion of the award in its financial statements and will continue to monitor the progress of the case.

In addition to the matters noted above, the Company is currently subject in the normal course of business to various claims and contingencies arising from, among other things, disputes with customers, vendors, employees, contract counterparties and other parties, as well as securities matters, environmental matters, matters concerning the licensing and use of intellectual property, and inquiries and investigations by regulatory authorities and government agencies. Some of these disputes involve or may involve litigation. The financial statements reflect the treatment of claims and contingencies based on management’s view of the expected outcome. DXC consults with outside legal counsel on issues related to litigation and regulatory compliance and seeks input from other experts and advisors with respect to matters in the ordinary course of business. Although the outcome of these and other matters cannot be predicted with certainty, and the impact of the final resolution of these and other matters on the Company’s results of operations in a particular subsequent reporting period could be material and adverse, management does not believe based on information currently available to the Company, that the resolution of any of the matters currently pending against the Company will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. Unless otherwise noted, the Company is unable to determine at this time a reasonable estimate of a possible loss or range of losses associated with the foregoing disclosed contingent matters.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
New Segment Structure
New Segment Structure

During the first quarter of fiscal 2026, the Company began reporting its financial results under a new segment structure designed to better reflect the Company’s operational structure and the delivery of end-to-end IT services. The new structure includes three reportable segments that align with how management assesses performance of the business and allocates resources: Consulting & Engineering Services ("CES"), Global Infrastructure Services ("GIS"), and Insurance Services ("Insurance"). See Note 17 - "Segment Information" for more information. Descriptions for each segment are provided below:

•Consulting & Engineering Services – Helps businesses use AI and data analytics to improve operations, automate tasks, and speed up their digital transformation. We provide software engineering, consulting, and custom and enterprise applications solutions that help companies manage essential functions, modernize processes, and drive innovation. We have strong expertise in industries like finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. Our solutions help businesses stay competitive by improving efficiency, launching new products faster, expanding into new markets, and achieving their strategic goals.

•Global Infrastructure Services – Implements and operates the technology underpinning the critical systems of global businesses and governments. Clients trust us to secure, modernize, and operate their critical systems and improve workplace experience to support business growth. Services include the design, migration, and management of complex data center, mainframe, cloud, and network environments, with an emphasis on scalability, security, compliance, and cost efficiency. By leveraging a human-led, AI-driven Intelligent Operations approach, we deliver secure, reliable IT operations that clients trust. We also provide cross-industry business process services, which streamline clients’ core enterprise functions such as finance, HR, procurement, and customer service. The implementation of secure, reliable technology improves employee experiences and productivity by streamlining daily operations—such as device management, helpdesk support, and AI-powered automation—enabling seamless collaboration, reducing IT support demands, and lowering costs through intuitive, self-service tools.

•Insurance Services – Provides software and services for Life and Wealth, Property & Casualty and Reinsurance providers, helping them optimize, run and digitally transform their operations. We help insurers modernize their technology landscape from heritage systems to advanced AI-powered solutions that enhances operational efficiency, improves customer experiences, and enables insurers to adopt a digital-first approach. Complementing our software solutions, we provide comprehensive business process services, leveraging deep industry expertise to support the full spectrum of insurance operations.
Basis of Presentation
Basis of Presentation

In order to make this report easier to read, DXC refers throughout to (i) the interim unaudited Condensed Consolidated Financial Statements as the “financial statements,” (ii) the Condensed Consolidated Statements of Operations as the “statements of operations,” (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) as the “statements of comprehensive income,” (iv) the Condensed Consolidated Balance Sheets as the “balance sheets,” and (v) the Condensed Consolidated Statements of Cash Flows as the “statements of cash flows.” In addition, references are made throughout to the numbered Notes to the Condensed Consolidated Financial Statements (“Notes”) in this Quarterly Report on Form 10-Q.

The accompanying financial statements include the accounts of DXC, its consolidated subsidiaries, and those business entities in which DXC maintains a controlling interest. Investments in business entities in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for by the equity method. Other investments are accounted for by the cost method. Non-controlling interests are presented as a separate component within equity in the balance sheets. Net earnings attributable to the non-controlling interests are presented separately in the statements of operations and comprehensive income attributable to non-controlling interests are presented separately in the statements of comprehensive income. All intercompany transactions and balances have been eliminated.

The financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports and accounting principles generally accepted in the United States (“GAAP”). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 (“fiscal 2025”).
Use of Estimates
Use of Estimates
The preparation of the financial statements, in accordance with GAAP, requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on assumptions regarding historical experience, currently available information, and anticipated developments that it believes are reasonable and appropriate. However, because the use of estimates involves an inherent degree of uncertainty, actual results could differ from those estimates. Estimates are used for, but are not limited to, contracts accounted for using the percentage-of-completion method, cash flows used in the evaluation of impairment of goodwill and other long-lived assets, reserves for uncertain tax positions, valuation allowances on deferred tax assets, loss accruals for litigation, and obligations related to our pension plans. In the opinion of the Company’s management, the accompanying financial statements contain all adjustments necessary, including those of a normal recurring nature, to fairly present the financial statements. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

The following Accounting Standards Updates (“ASU”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:

Date Issued and ASUDXC Effective DateDescriptionImpact
December 2023

ASU 2023-09, “Improvements to Income Tax Disclosures”		Fiscal 2026The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Early adoption of this update is permitted.
The Company will include the expanded income tax disclosures in its Consolidated Financial Statements for the fiscal year ended March 31, 2026, applied on a prospective basis. Otherwise, adoption of this ASU will not impact the consolidated financial statements.
November 2024

ASU 2024-03, “Disaggregation of Income Statement Expenses”		Fiscal 2028
The update requires disclosure, in the notes to financial statements, of specified quantitative information about certain costs and expenses presented in the income statement and certain qualitative information about costs that are not disaggregated. Early adoption of this update is permitted.
The Company is in the process of assessing the impacts and method of adoption. This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.
September 2025

ASU 2025-06, “Targeted Improvements to the Accounting for Internal-Use Software”

Fiscal 2029
The update amends the guidance for capitalizing internal-use software so that it is neutral to different software development methods, primarily by removing the previous “development stage” model to more closely align the capitalization of internal use software to that of software to be sold or marketed externally. Early adoption of this update is permitted.
The Company is in the process of assessing the impact of the ASU on our consolidated financial statements as well as its method of adoption.

Other recently issued ASUs that have not yet been adopted are not expected to have a material effect on DXC’s condensed consolidated financial statements.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Recently Adopted Accounting Pronouncements and New Accounting Pronouncements
The following Accounting Standards Updates (“ASU”) were issued by the Financial Accounting Standards Board but have not yet been adopted by DXC:

Date Issued and ASUDXC Effective DateDescriptionImpact
December 2023

ASU 2023-09, “Improvements to Income Tax Disclosures”		Fiscal 2026The update requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Early adoption of this update is permitted.
The Company will include the expanded income tax disclosures in its Consolidated Financial Statements for the fiscal year ended March 31, 2026, applied on a prospective basis. Otherwise, adoption of this ASU will not impact the consolidated financial statements.
November 2024

ASU 2024-03, “Disaggregation of Income Statement Expenses”		Fiscal 2028
The update requires disclosure, in the notes to financial statements, of specified quantitative information about certain costs and expenses presented in the income statement and certain qualitative information about costs that are not disaggregated. Early adoption of this update is permitted.
The Company is in the process of assessing the impacts and method of adoption. This ASU will impact the Company’s financial statement disclosures, but not its consolidated financial statements.
September 2025

ASU 2025-06, “Targeted Improvements to the Accounting for Internal-Use Software”

Fiscal 2029
The update amends the guidance for capitalizing internal-use software so that it is neutral to different software development methods, primarily by removing the previous “development stage” model to more closely align the capitalization of internal use software to that of software to be sold or marketed externally. Early adoption of this update is permitted.
The Company is in the process of assessing the impact of the ASU on our consolidated financial statements as well as its method of adoption.
v3.25.4
Earnings per Share (Tables)
 9 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings per Share The following table reflects the calculation of basic and diluted EPS:
Three Months EndedNine Months Ended
(in millions, except per-share amounts)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Net income attributable to DXC common stockholders:
$107 $57 $159 $125 
Common share information:
Weighted average common shares outstanding for basic EPS173.13 181.02 177.21 180.54 
Dilutive effect of stock options and equity awards2.62 3.75 2.95 4.11 
Weighted average common shares outstanding for diluted EPS175.75 184.77 180.16 184.65 
Earnings per share:
Basic$0.62 $0.31 $0.90 $0.69 
Diluted$0.61 $0.31 $0.88 $0.68 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share The number of awards excluded were as follows:
Three Months EndedNine Months Ended
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Stock Options274,899 899,937 318,893 911,471 
Restricted Stock Units476,222 224,415 926,928 1,524,055 
Performance Stock Units39,939 6,982 12,659 113,051 
v3.25.4
Receivables (Tables)
 9 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Allowance for Doubtful Accounts for Trade Accounts Receivable
The following table presents the change in balance for the allowance for doubtful accounts:

As of
(in millions)December 31, 2025December 31, 2024
Beginning balance$32 $35 
Provisions for losses on accounts receivable6 9 
Other adjustments to allowance and write-offs(14)(7)
Ending balance$24 $37 
v3.25.4
Leases (Tables)
 9 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Components of Lease Expense and Supplemental Cash Flow Information Related to Leases
The components of operating lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Operating lease cost$76 $75 $229 $235 
Short-term lease cost 3 7 11 19 
Variable lease cost 18 12 52 38 
Sublease income(3)(4)(10)(14)
Total operating costs$94 $90 $282 $278 
The components of finance lease expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Amortization of right-of-use assets$11 $17 $39 $66 
Interest on lease liabilities2 4 8 11 
Total finance lease expense$13 $21 $47 $77 

The following table provides supplemental cash flow information related to the Company’s finance leases:

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Interest paid for finance lease liabilities – Operating cash flows
$8 $11 
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows
109 159 
Total cash paid in the measurement of finance lease obligations$117 $170 
Capital expenditures through finance lease obligations(1)
$6 $20 
_______________

(1) See Note 16 – ”Cash Flows” for further information on non-cash activities affecting cash flows.
Schedule of Supplemental Balance Sheet Information Related to Leases
Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows
$229 $235 
ROU assets obtained in exchange for operating lease liabilities(1)
$228 $180 
_______________

(1) Net of $459 million and $528 million in lease modifications and terminations during the first nine months of fiscal 2026 and 2025, respectively. See Note 16 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU operating lease assetsOperating right-of-use assets, net$667 $635 
Operating lease liabilitiesCurrent operating lease liabilities$233 $227 
Operating lease liabilities Non-current operating lease liabilities466 444 
Total operating lease liabilities $699 $671 
The following table presents finance lease balances:

As of
(in millions)Balance Sheet Line ItemDecember 31, 2025March 31, 2025
ROU finance lease assetsProperty and Equipment, net $94 $145 
Finance lease Short-term debt and current maturities of long-term debt $99 $123 
Finance leaseLong-term debt, net of current maturities 98 155 
Total finance lease liabilities(1)
$197 $278 
_______________

(1) See Note 9 – “Debt” for further information on finance lease liabilities.
Schedule of Maturities of Operating Lease Liabilities
The following maturity analysis presents expected undiscounted cash payments for operating leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Operating lease payments
$74 $242 $203 $139 $44 $53 $755 
Less: imputed interest
(56)
Total operating lease liabilities
$699 
Schedule of Maturities of Finance Lease Liabilities
The following maturity analysis presents expected undiscounted cash payments for finance leases as of December 31, 2025:

Fiscal Year
(in millions)
Remainder of 2026
2027202820292030
Thereafter
Total
Finance lease payments
$30 $99 $55 $22 $3 $4 $213 
Less: imputed interest
(16)
Total finance lease liabilities
$197 
v3.25.4
Derivative Instruments (Tables)
 9 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivatives Not Designated For Hedge Accounting
The following table presents the foreign currency (gain) loss to Other income, net:
Three Months Ended
Nine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Foreign currency remeasurement (1)
$8 $48 $(50)$29 
Undesignated foreign currency forward contracts (2)
(8)(49)43 (29)
Total - Foreign currency (gain) loss
$— $(1)$(7)$— 
_______________

(1) Movements from exchange rates on the Company’s foreign currency-denominated assets and liabilities.
(2) Movements from hedges used to manage the Company’s foreign currency remeasurement exposure, and the associated costs of the hedging program.
v3.25.4
Intangible Assets (Tables)
 9 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Amortizable Intangible Assets
Intangible assets consisted of the following:

As of December 31, 2025
As of March 31, 2025
(in millions)Gross Carrying ValueAccumulated AmortizationNet Carrying ValueGross Carrying ValueAccumulated AmortizationNet Carrying Value
Software$3,671 $2,737 $934 $3,713 $3,166 $547 
Customer related intangible assets
3,964 3,256 708 3,886 2,933 953 
Other intangible assets
290 165 125 284 142 142 
Total intangible assets$7,925 $6,158 $1,767 $7,883 $6,241 $1,642 
Schedule of Components of Amortization Expense
The components of amortization expense were as follows:

Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Intangible asset amortization$170 $182 $530 $548 
Transition and transformation contract cost amortization(1)
43 51 129 152 
Total amortization expense$213 $233 $659 $700 

_______________

(1)Transition and transformation contract costs are included within other assets on the balance sheets.
Schedule of Estimated Future Amortization of Intangible Assets
Estimated future amortization related to intangible assets as of December 31, 2025 is as follows:

Fiscal Year (in millions)
Remainder of 2026$165 
2027584 
2028332 
2029230 
2030186 
Thereafter270 
Total$1,767 
v3.25.4
Goodwill (Tables)
 9 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Carrying Amount of Goodwill by Segment
The following table summarizes the changes in the carrying amount of goodwill, by segment, as of December 31, 2025.

(in millions)
Global Business Solutions
Consulting & Engineering Services
Global Infrastructure Services
Insurance Services
Total
Balance as of March 31, 2025, net
$526 $— $— $— $526 
Reallocation of goodwill
$(526)$367 $14 $145 $— 
Impairment losses(1)
— (14)— (14)
Foreign currency translation(2)
13 — 5 18 
Balance as of December 31, 2025, net
$— $380 $— $150 $530 
Goodwill, gross3,599 5,080 1,421 10,100 
Accumulated impairment losses$(3,219)$(5,080)$(1,271)$(9,570)
Balance as of December 31, 2025, net
$380 $— $150 $530 
_______________

(1) Impairment losses are included within Other income, net on the statements of operations.
(2)The foreign currency translation amount reflects the impact of currency movements on non-U.S. dollar-denominated goodwill balances.
v3.25.4
Debt (Tables)
 9 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Debt
The following is a summary of the Company’s debt:

(in millions)Interest RatesFiscal Year Maturities
December 31, 2025(1)
March 31, 2025(1)
Short-term debt and
current maturities of long-term debt
€650 million Senior notes
1.75%2026$— $702 
$700 million Senior notes
1.80%2027399 — 
Current maturities of finance lease liabilities
0.53% - 14.59%
2026 - 202799 123 
Current maturities of long-term debtVarious2026 - 202734 55 
Short-term debt and current maturities of long-term debt$532 $880 
Long-term debt, net of current maturities
$700 million Senior notes
1.80%2027— 698 
€750 million Senior notes
0.45%2028879 808 
$650 million Senior notes
2.375%2029648 647 
€650 million Senior notes
4.25%2031744 — 
€600 million Senior notes
0.95%2032700 644 
Finance lease liabilities
0.53% - 14.59%
2027 - 203598 155 
Borrowings for assets acquired under long-term financing
0.00% - 7.55%
2027 - 20298 28 
Other borrowingsVarious2027 - 203515 16 
Long-term debt, net of current maturities3,092 2,996 
Total debt
$3,624 $3,876 
_______________
(1)The carrying amounts of the senior notes as of December 31, 2025 and March 31, 2025, include the remaining principal outstanding of $3,399 million and $3,510 million, respectively, net of total unamortized debt discounts and premiums, and deferred debt issuance costs of $28 million and $11 million, respectively.
v3.25.4
Revenue (Tables)
 9 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue Disaggregated by Geography
The following table presents DXC’s revenues disaggregated by geography, based on the location of incorporation of the DXC entity providing the related goods or services:
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
United States$805 $902 $2,454 $2,688 
United Kingdom451 441 1,395 1,340 
Other Europe1,094 1,041 3,172 3,106 
Australia278 286 812 894 
Other International566 555 1,681 1,674 
Total Revenues$3,194 $3,225 $9,514 $9,702 
Schedule of Contract Assets and Liabilities
The following table provides information about the balances of the Company’s trade receivables and contract assets and contract liabilities:
As of
(in millions)
Balance Sheet Line Item
December 31, 2025March 31, 2025
Trade receivables, net
Receivables and contract assets, net of allowance for doubtful accounts
$1,920 $2,041 
Contract assets
Receivables and contract assets, net of allowance for doubtful accounts
$368 $338 
Contract liabilities
Deferred revenue and advance contract payments and Non-current deferred revenue
$1,295 $1,397 

Change in contract liabilities were as follows:
Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Balance, beginning of period$1,397 $1,537 
Deferred revenue 1,322 1,221 
Recognition of deferred revenue(1,423)(1,289)
Currency translation adjustment52 (28)
Other(53)(100)
Balance, end of period$1,295 $1,341 
v3.25.4
Restructuring Costs (Tables)
 9 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Expense
The composition of restructuring liabilities by financial statement line item is as follows:
As of
(in millions)December 31, 2025March 31, 2025
Accrued expenses and other current liabilities$24 $33 
Other long-term liabilities5 6 
Total$29 $39 
Schedule of Restructuring Liability
Restructuring Liability as of March 31, 2025
Costs Expensed, Net of Reversals
Costs Not Affecting Restructuring Liability(1)
Cash Paid
Other(2)
Restructuring Liability as of December 31, 2025
Fiscal 2026 Plan
Workforce Reductions$— $64 $— $(51)$— $13 
Facilities Costs— 2 (1)— (1)— 
— 66 (1)(51)(1)13 
Fiscal 2025 Plan
Workforce Reductions$26 $4 $— $(23)$1 $8 
Facilities Costs— 18 (1)(17)— — 
26 22 (1)(40)1 8 
Other Prior Year and Acquired Plans
Workforce Reductions$12 $(1)$— $(5)$1 $7 
Facilities Costs1 5 (3)(3)1 1 
13 4 (3)(8)2 8 
Total$39 $92 $(5)$(99)$2 $29 
_______________

(1) Pension benefit augmentations recorded as pension liabilities, asset impairments and restructuring costs associated with right-of-use assets.
(2) Foreign currency translation adjustments.
v3.25.4
Pension and Other Benefit Plans (Tables)
 9 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The components of net periodic pension income were:
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Service cost$12 $13 $38 $39 
Interest cost75 75 226 225 
Expected return on assets(116)(113)(351)(341)
Amortization of prior service costs(1)(2)(3)(4)
Subtotal
(30)(27)(90)(81)
Settlement/curtailment gain
(4)— (4)— 
Recognition of actuarial loss
15 — 15 — 
Net periodic pension income$(19)$(27)$(79)$(81)
v3.25.4
Stockholders' Equity (Tables)
 9 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Class of Treasury Stock
Fiscal 2026
Fiscal PeriodNumber of Shares RepurchasedAverage Price Per ShareAmount
(in millions)
1st Quarter3,275,268 $15.27 $50 
2nd Quarter5,317,898 $14.10 75 
3rd Quarter
4,494,144 $14.46 65 
Total13,087,310 $14.52 $190 
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table provides the changes in accumulated other comprehensive loss, net of taxes:

(in millions)Foreign Currency Translation AdjustmentsCash Flow HedgesPension and Other Post-retirement Benefit PlansAccumulated Other Comprehensive Loss
Balance at March 31, 2025
$(948)$(7)$193 $(762)
Other comprehensive income before reclassifications
(97)(22)— (119)
Amounts reclassified from accumulated other comprehensive loss— 14 (3)11 
Balance at December 31, 2025
$(1,045)$(15)$190 $(870)

(in millions)Foreign Currency Translation AdjustmentsCash Flow HedgesPension and Other Post-retirement Benefit PlansAccumulated Other Comprehensive Loss
Balance at March 31, 2024
$(939)$— $207 $(732)
Other comprehensive loss before reclassifications23 (8)— 15 
Amounts reclassified from accumulated other comprehensive loss— 1 (3)(2)
Balance at December 31, 2024
$(916)$(7)$204 $(719)
v3.25.4
Stock Incentive Plans (Tables)
 9 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Disclosure of Share Based Compensation Arrangements by Share Based Payment Award
Employee Equity PlanDirector Equity Plan
Number of
Shares		Weighted Average Grant Date
Fair Value		Number of
Shares
Weighted Average Grant Date
Fair Value
Outstanding as of March 31, 2025
9,073,741 $22.23 201,017 $26.63 
Granted10,334,552 $16.19 170,500 $13.23 
Settled(2,604,727)$25.39 (121,282)$20.64 
Canceled/Forfeited(2,372,655)$22.86 — $— 
Outstanding as of December 31, 2025
14,430,911 $17.23 250,235 $20.41 
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Total share-based compensation cost$23 $11 $69 $59 
Related income tax benefit $3 $3 $9 $10 
v3.25.4
Cash Flows (Tables)
 9 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Payments for Interest on Indebtedness and for Taxes
Cash payments for interest on indebtedness and income taxes and other select non-cash activities are as follows:

Nine Months Ended
(in millions)December 31, 2025December 31, 2024
Cash paid for:
Interest$153 $189 
Taxes on income, net of refunds (1)
$201 $305 
Non-cash activities:
Operating:
ROU assets obtained in exchange for lease, net (2)
$228 $180 
Investing:
Capital expenditures in accounts payable and accrued expenses (3)
$493 $13 
Capital expenditures through finance lease obligations$6 $20 
Assets acquired under long-term financing$3 $— 
Financing:
Shares repurchased but not settled in cash (4)
$4 $— 
_______________

(1) Income tax refunds were $47 million and $36 million for the nine months ended December 31, 2025 and December 31, 2024, respectively.
(2) Net of $459 million and $528 million in lease modifications and terminations during the nine months ended December 31, 2025 and December 31, 2024, respectively.
(3) Accrued expenses includes both short-term and long-term liabilities.
(4) On August 16, 2022, the U.S. government enacted the IRA into law. The IRA imposes a 1% excise tax on share repurchases completed after December 31, 2022. In our cash flow statement we reflect the excise tax as a financing activity relating to the repurchase of common stock.
v3.25.4
Segment Information (Tables)
 9 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Operating Results by Reportable Segment
The following table summarizes operating results regularly provided to the CODM by reportable segment and a reconciliation to the financial statements:

(in millions)
CES
GIS
Insurance
Total Reportable Segments
Three Months Ended December 31, 2025
Revenues$1,266 $1,607 $321 $3,194 
Costs of services
(982)(1,239)(226)(2,447)
Selling, general and administrative
(137)(125)(40)(302)
Depreciation and amortization(1)
(20)(151)(24)(195)
Other segment items(2)
17 21 4 42 
Segment profit$144 $113 $35 $292 
Three Months Ended December 31, 2024
Revenues$1,267 $1,651 $307 $3,225 
Costs of services
(953)(1,245)(199)(2,397)
Selling, general and administrative
(139)(132)(39)(310)
Depreciation and amortization(1)
(28)(184)(22)(234)
Other segment items(2)
17 22 3 42 
Segment profit$164 $112 $50 $326 
(in millions)
CES
GIS
Insurance
Total Reportable Segments
Nine Months Ended December 31, 2025
Revenues$3,767 $4,793 $954 $9,514 
Costs of services
(2,920)(3,646)(674)(7,240)
Selling, general and administrative
(443)(410)(125)(978)
Depreciation and amortization(1)
(68)(478)(72)(618)
Other segment items(2)
58 73 13 144 
Segment profit$394 $332 $96 $822 
Nine Months Ended December 31, 2024
Revenues$3,827 $4,965 $910 $9,702 
Costs of services
(2,934)(3,762)(624)(7,320)
Selling, general and administrative
(409)(370)(103)(882)
Depreciation and amortization(1)
(75)(568)(64)(707)
Other segment items(2)
53 68 12 133 
Segment profit$462 $333 $131 $926 
_______________

(1) Depreciation and amortization as presented excludes amortization of acquired intangible assets.
(2) Other segment items as presented includes non-service cost components of net periodic pension income and other miscellaneous segment gains/(losses).
Schedule of Reconciliation of Consolidated Operating Income to Income Before Taxes
Three Months EndedNine Months Ended
(in millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Profit
Total profit for reportable segments$292 $326 $822 $926 
Corporate expenses
(29)(40)(89)(137)
Subtotal263 286 733 789 
Restructuring costs(20)(43)(92)(124)
Transaction, separation and integration-related costs
— (3)(2)(25)
Amortization of acquired intangible assets(87)(87)(262)(263)
Merger related indemnification34 — 32 — 
Gains on dispositions
— 8 1 13 
(Losses) gains on real estate and facility sales
— (3)7 (32)
Impairment losses— (12)(14)(12)
Pension and OPEB actuarial and settlement losses
(11)— (11)— 
Interest income46 51 138 153 
Interest expense(54)(66)(161)(207)
Income before income taxes
$171 $131 $369 $292 
v3.25.4
Commitments and Contingencies (Tables)
 9 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Long-term Purchase Agreements
Minimum purchase commitments as of December 31, 2025 were as follows:
Fiscal yearMinimum Purchase Commitment
(in millions)
Remainder of 2026
$100 
2027501 
2028504 
2029387 
2030336 
Thereafter470 
Total$2,298 
v3.25.4
Summary of Significant Accounting Policies (Details)
 9 Months Ended
Dec. 31, 2025
segment
Accounting Policies [Abstract]  
Number of reportable segments 3
v3.25.4
Divestitures (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Gain on dispositions $ 0 $ 7 $ 0 $ 7
Series of Insignificant Disposal Groups | Discontinued Operations, Disposed of by Sale        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Gain on dispositions       $ 7
v3.25.4
Earnings per Share - Schedule of Earnings (Loss) per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Earnings Per Share [Abstract]        
Net income attributable to DXC common stockholders: $ 107 $ 57 $ 159 $ 125
Common share information:        
Weighted average common shares outstanding for basic EPS (in shares) 173,130 181,020 177,210 180,540
Dilutive effect of stock options and equity awards (in shares) 2,620 3,750 2,950 4,110
Weighted average common shares outstanding for diluted EPS (in shares) 175,750 184,770 180,160 184,650
Earnings per share:        
Basic (in dollars per share) $ 0.62 $ 0.31 $ 0.90 $ 0.69
Diluted (in dollars per share) $ 0.61 $ 0.31 $ 0.88 $ 0.68
v3.25.4
Earnings per Share - Schedule of Antidilutive Securities (Details) - shares
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Stock Options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of diluted EPS (in shares) 274,899 899,937 318,893 911,471
Restricted Stock Units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of diluted EPS (in shares) 476,222 224,415 926,928 1,524,055
Performance Stock Units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of diluted EPS (in shares) 39,939 6,982 12,659 113,051
v3.25.4
Receivables - Allowance for Doubtful Accounts (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ 32 $ 35
Provisions for losses on accounts receivable 6 9
Other adjustments to allowance and write-offs (14) (7)
Ending balance $ 24 $ 37
v3.25.4
Receivables - Narrative (Details) - Purchasers
 9 Months Ended
Dec. 31, 2025
USD ($)
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]  
Receivables facility, amount $ 400,000,000
Availability under receivable facility 394,000,000
Drawn amount 400,000,000
Receivables facility liability 6,000,000
Gain (loss) on sale of receivables $ 0
v3.25.4
Leases - Narrative (Details)
 9 Months Ended
Dec. 31, 2025
Mar. 31, 2025
Lessee, Lease, Description [Line Items]    
Renewal term, operating leases 10 years  
Renewal term, finance leases 10 years  
Weighted-average operating lease term 3 years 7 months 6 days 3 years 9 months 18 days
Weighted-average operating lease discount rate 4.70% 4.90%
Weighted-average finance lease term 2 years 4 months 24 days 2 years 8 months 12 days
Weighted-average finance lease discount rate 5.80% 5.60%
Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term, operating leases 1 year  
Remaining lease term, finance leases 1 year  
Termination term 1 year  
Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term, operating leases 10 years  
Remaining lease term, finance leases 10 years  
Termination term 3 years  
v3.25.4
Leases - Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Operating lease expense        
Operating lease cost $ 76 $ 75 $ 229 $ 235
Short-term lease cost 3 7 11 19
Variable lease cost 18 12 52 38
Sublease income (3) (4) (10) (14)
Total operating costs 94 90 282 278
Finance lease expense        
Amortization of right-of-use assets 11 17 39 66
Interest on lease liabilities 2 4 8 11
Total finance lease expense $ 13 $ 21 $ 47 $ 77
v3.25.4
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Operating Leases, Supplemental Cash Flow Information [Abstract]    
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows $ 229 $ 235
ROU assets obtained in exchange for operating lease liabilities 228 180
Change in lease classification from operating to finance lease 459 528
Finance Leases, Supplemental Cash Flow Information [Abstract]    
Interest paid for finance lease liabilities – Operating cash flows 8 11
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows 109 159
Total cash paid in the measurement of finance lease obligations 117 170
Capital expenditures through finance lease obligations $ 6 $ 20
v3.25.4
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Operating Lease, Supplemental Balance Sheet Information [Abstract]    
Operating right-of-use assets, net $ 667 $ 635
Current operating lease liabilities 233 227
Non-current operating lease liabilities 466 444
Total operating lease liabilities $ 699 $ 671
Finance Lease, Supplemental Balance Sheet Information [Abstract]    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net of accumulated depreciation of $3,362 and $3,409 Property and equipment, net of accumulated depreciation of $3,362 and $3,409
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Short-term debt and current maturities of long-term debt Short-term debt and current maturities of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-Term Debt and Lease Obligation Long-Term Debt and Lease Obligation
ROU finance lease assets $ 94 $ 145
Finance lease, liability, current 99 123
Finance lease, liability, noncurrent 98 155
Total finance lease liabilities $ 197 $ 278
v3.25.4
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Operating Leases    
Remainder of 2026 $ 74  
2027 242  
2028 203  
2029 139  
2030 44  
Thereafter 53  
Operating lease payments 755  
Less: imputed interest (56)  
Total operating lease liabilities 699 $ 671
Finance Leases    
Remainder of 2026 30  
2027 99  
2028 55  
2029 22  
2030 3  
Thereafter 4  
Finance lease payments 213  
Less: imputed interest (16)  
Total finance lease liabilities $ 197 $ 278
v3.25.4
Derivative Instruments - Narrative (Details)
$ in Millions
 9 Months Ended
Dec. 31, 2025
USD ($)
counterparty
Mar. 31, 2025
USD ($)
Derivative [Line Items]    
Foreign currency cash flow hedge loss to be reclassified during next 12 months $ 18  
Number of counterparties with concentration of credit risk | counterparty 2  
Maximum exposure to loss $ 1  
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Forward Contracts    
Derivative [Line Items]    
Notational amount of derivative 307 $ 668
Designated as Hedging Instrument | Net Investment Hedging | Foreign Currency Denominated Debt    
Derivative [Line Items]    
Notational amount of derivative 244  
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts    
Derivative [Line Items]    
Notational amount of derivative $ 1,100 $ 1,900
v3.25.4
Derivative Instruments - Nondesignated Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]        
Foreign currency remeasurement $ 8 $ 48 $ (50) $ 29
Undesignated foreign currency forward contracts (8) (49) 43 (29)
Total - Foreign currency (gain) loss $ 0 $ (1) $ (7) $ 0
v3.25.4
Intangible Assets - Summary of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 7,925 $ 7,883
Accumulated Amortization 6,158 6,241
Net Carrying Value 1,767 1,642
Software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 3,671 3,713
Accumulated Amortization 2,737 3,166
Net Carrying Value 934 547
Customer related intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 3,964 3,886
Accumulated Amortization 3,256 2,933
Net Carrying Value 708 953
Other intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 290 284
Accumulated Amortization 165 142
Net Carrying Value $ 125 $ 142
v3.25.4
Intangible Assets - Components of Amortization Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]        
Amortization expense $ 213 $ 233 $ 659 $ 700
Intangible asset amortization        
Finite-Lived Intangible Assets [Line Items]        
Amortization expense 170 182 530 548
Transition and transformation contract cost amortization        
Finite-Lived Intangible Assets [Line Items]        
Amortization expense $ 43 $ 51 $ 129 $ 152
v3.25.4
Intangible Assets - Estimated Future Amortization (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2026 $ 165  
2027 584  
2028 332  
2029 230  
2030 186  
Thereafter 270  
Net Carrying Value $ 1,767 $ 1,642
v3.25.4
Goodwill - Narrative (Details)
 9 Months Ended
Dec. 31, 2025
segment
Goodwill and Intangible Assets Disclosure [Abstract]  
Number of operating segments 3
Number of reportable segments 3
v3.25.4
Goodwill - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Changes in the carrying amount of goodwill by segment [Roll Forward]    
Goodwill, beginning balance $ 526  
Reallocation of goodwill 0  
Impairment losses (14) $ 0
Foreign currency translation 18  
Goodwill, gross 10,100  
Accumulated impairment losses (9,570)  
Goodwill, ending balance 530  
Global Business Solutions    
Changes in the carrying amount of goodwill by segment [Roll Forward]    
Goodwill, beginning balance 526  
Reallocation of goodwill (526)  
Impairment losses  
Foreign currency translation  
Goodwill, ending balance 0  
Consulting & Engineering Services    
Changes in the carrying amount of goodwill by segment [Roll Forward]    
Goodwill, beginning balance 0  
Reallocation of goodwill 367  
Impairment losses 0  
Foreign currency translation 13  
Goodwill, gross 3,599  
Accumulated impairment losses (3,219)  
Goodwill, ending balance 380  
Global Infrastructure Services    
Changes in the carrying amount of goodwill by segment [Roll Forward]    
Goodwill, beginning balance 0  
Reallocation of goodwill 14  
Impairment losses (14)  
Foreign currency translation 0  
Goodwill, gross 5,080  
Accumulated impairment losses (5,080)  
Goodwill, ending balance 0  
Insurance Services    
Changes in the carrying amount of goodwill by segment [Roll Forward]    
Goodwill, beginning balance 0  
Reallocation of goodwill 145  
Impairment losses 0  
Foreign currency translation 5  
Goodwill, gross 1,421  
Accumulated impairment losses (1,271)  
Goodwill, ending balance $ 150  
v3.25.4
Debt - Schedule of Debt (Details)
€ in Millions, $ in Millions
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Mar. 31, 2025
USD ($)
Short-term debt and current maturities of long-term debt      
Current maturities of finance lease liabilities $ 99   $ 123
Short-term debt and current maturities of long-term debt 532   880
Long-term debt, net of current maturities      
Finance lease liabilities 98   155
Long-term debt, net of current maturities 3,092   2,996
Total debt $ 3,624   3,876
Current maturities of finance lease liabilities | Minimum      
Debt Information [Abstract]      
Effective interest rate 0.53% 0.53%  
Current maturities of finance lease liabilities | Maximum      
Debt Information [Abstract]      
Effective interest rate 14.59% 14.59%  
Senior notes      
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 3,399   3,510
Unamortized debt discounts (premiums) and deferred debt issuance costs $ 28   11
Senior notes | Senior Notes Due 2026      
Debt Information [Abstract]      
Face amount | €   € 650  
Effective interest rate 1.75% 1.75%  
Short-term debt and current maturities of long-term debt      
Current maturities of long-term debt $ 0   702
Senior notes | Senior Notes Due 2027      
Debt Information [Abstract]      
Face amount $ 700    
Effective interest rate 1.80% 1.80%  
Short-term debt and current maturities of long-term debt      
Current maturities of long-term debt $ 399   0
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 0   698
Senior notes | Senior Notes Due 2028      
Debt Information [Abstract]      
Face amount | €   € 750  
Effective interest rate 0.45% 0.45%  
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 879   808
Senior notes | Senior Notes Due 2029      
Debt Information [Abstract]      
Face amount $ 650    
Effective interest rate 2.375% 2.375%  
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 648   647
Senior notes | Senior Notes Due 2031      
Debt Information [Abstract]      
Face amount | €   € 650  
Effective interest rate 4.25% 4.25%  
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 744   0
Senior notes | Senior Notes Due 2032      
Debt Information [Abstract]      
Face amount | €   € 600  
Effective interest rate 0.95% 0.95%  
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 700   644
Other long-term debt      
Short-term debt and current maturities of long-term debt      
Current maturities of long-term debt $ 34   55
Finance lease liabilities | Minimum      
Debt Information [Abstract]      
Effective interest rate 0.53% 0.53%  
Finance lease liabilities | Maximum      
Debt Information [Abstract]      
Effective interest rate 14.59% 14.59%  
Borrowings for assets acquired under long-term financing      
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 8   28
Borrowings for assets acquired under long-term financing | Minimum      
Debt Information [Abstract]      
Effective interest rate 0.00% 0.00%  
Borrowings for assets acquired under long-term financing | Maximum      
Debt Information [Abstract]      
Effective interest rate 7.55% 7.55%  
Other borrowings      
Long-term debt, net of current maturities      
Long-term debt, net of current maturities $ 15   $ 16
v3.25.4
Debt - Narrative (Details)
€ in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2025
EUR (€)
Mar. 31, 2025
USD ($)
Debt Instrument [Line Items]            
Repayments of debt     $ 1,062 $ 0    
Fair value            
Debt Instrument [Line Items]            
Long-term debt, excluding finance lease liabilities $ 3,200   3,200     $ 3,300
Carrying value            
Debt Instrument [Line Items]            
Long-term debt, excluding finance lease liabilities $ 3,400   $ 3,400     $ 3,500
Senior Notes Due 2031 | Senior notes            
Debt Instrument [Line Items]            
Face amount | €         € 650  
Effective interest rate 4.25%   4.25%   4.25%  
Senior Notes Due 2026 | Senior notes            
Debt Instrument [Line Items]            
Face amount | €         € 650  
Effective interest rate 1.75%   1.75%   1.75%  
Repayments of debt | €   € 650        
Senior Notes Due 2027 | Senior notes            
Debt Instrument [Line Items]            
Face amount $ 700   $ 700      
Effective interest rate 1.80%   1.80%   1.80%  
Repayments of debt $ 300          
v3.25.4
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Disaggregation of Revenue [Line Items]        
Revenues $ 3,194 $ 3,225 $ 9,514 $ 9,702
United States        
Disaggregation of Revenue [Line Items]        
Revenues 805 902 2,454 2,688
United Kingdom        
Disaggregation of Revenue [Line Items]        
Revenues 451 441 1,395 1,340
Other Europe        
Disaggregation of Revenue [Line Items]        
Revenues 1,094 1,041 3,172 3,106
Australia        
Disaggregation of Revenue [Line Items]        
Revenues 278 286 812 894
Other International        
Disaggregation of Revenue [Line Items]        
Revenues $ 566 $ 555 $ 1,681 $ 1,674
v3.25.4
Revenue - Narrative (Details)
$ in Billions
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 16.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation percentage 14.00%
Remaining performance obligation period 3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation period
v3.25.4
Revenue - Contract Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]        
Trade receivables, net $ 1,920 $ 2,041    
Contract assets 368 338    
Contract liabilities $ 1,295 $ 1,397 $ 1,341 $ 1,537
v3.25.4
Revenue - Change in Contract Liabilities (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change In Contract With Customer, Liability [Roll Forward]    
Balance, beginning of period $ 1,397 $ 1,537
Deferred revenue 1,322 1,221
Recognition of deferred revenue (1,423) (1,289)
Currency translation adjustment 52 (28)
Other (53) (100)
Balance, end of period $ 1,295 $ 1,341
v3.25.4
Restructuring Costs - Composition of Restructuring Liability (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Mar. 31, 2025
Restructuring and Related Activities [Abstract]    
Accrued expenses and other current liabilities $ 24 $ 33
Other long-term liabilities 5 6
Total $ 29 $ 39
v3.25.4
Restructuring Costs - Restructuring Liability (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     $ 39  
Costs Expensed, Net of Reversals $ 20 $ 43 92 $ 124
Costs Not Affecting Restructuring Liability     (5)  
Cash Paid     (99)  
Other     2  
Restructuring Liability, ending balance 29   29  
Fiscal 2026 Plan        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     0  
Costs Expensed, Net of Reversals     66  
Costs Not Affecting Restructuring Liability     (1)  
Cash Paid     (51)  
Other     (1)  
Restructuring Liability, ending balance 13   13  
Fiscal 2026 Plan | Workforce Reductions        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     0  
Costs Expensed, Net of Reversals     64  
Costs Not Affecting Restructuring Liability     0  
Cash Paid     (51)  
Other     0  
Restructuring Liability, ending balance 13   13  
Fiscal 2026 Plan | Facilities Costs        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     0  
Costs Expensed, Net of Reversals     2  
Costs Not Affecting Restructuring Liability     (1)  
Cash Paid     0  
Other     (1)  
Restructuring Liability, ending balance 0   0  
Fiscal 2025 Plan        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     26  
Costs Expensed, Net of Reversals     22  
Costs Not Affecting Restructuring Liability     (1)  
Cash Paid     (40)  
Other     1  
Restructuring Liability, ending balance 8   8  
Fiscal 2025 Plan | Workforce Reductions        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     26  
Costs Expensed, Net of Reversals     4  
Costs Not Affecting Restructuring Liability     0  
Cash Paid     (23)  
Other     1  
Restructuring Liability, ending balance 8   8  
Fiscal 2025 Plan | Facilities Costs        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     0  
Costs Expensed, Net of Reversals     18  
Costs Not Affecting Restructuring Liability     (1)  
Cash Paid     (17)  
Other     0  
Restructuring Liability, ending balance 0   0  
Other Prior Year and Acquired Plans        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     13  
Costs Expensed, Net of Reversals     4  
Costs Not Affecting Restructuring Liability     (3)  
Cash Paid     (8)  
Other     2  
Restructuring Liability, ending balance 8   8  
Other Prior Year and Acquired Plans | Workforce Reductions        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     12  
Costs Expensed, Net of Reversals     (1)  
Costs Not Affecting Restructuring Liability     0  
Cash Paid     (5)  
Other     1  
Restructuring Liability, ending balance 7   7  
Other Prior Year and Acquired Plans | Facilities Costs        
Restructuring Reserve [Roll Forward]        
Restructuring Liability, beginning balance     1  
Costs Expensed, Net of Reversals     5  
Costs Not Affecting Restructuring Liability     (3)  
Cash Paid     (3)  
Other     1  
Restructuring Liability, ending balance $ 1   $ 1  
v3.25.4
Restructuring Costs - Narrative (Details)
$ in Millions
 9 Months Ended
Dec. 31, 2025
USD ($)
Fiscal 2026 Plan  
Restructuring Cost and Reserve [Line Items]  
Amortization of right-of-use assets and interest expense for leases vacated $ 6
v3.25.4
Pension and Other Benefit Plans - Pension Plan, Net Periodic Costs and Other Changes (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]        
Service cost $ 12 $ 13 $ 38 $ 39
Interest cost 75 75 226 225
Expected return on assets (116) (113) (351) (341)
Amortization of prior service costs (1) (2) (3) (4)
Subtotal (30) (27) (90) (81)
Settlement/curtailment gain (4) 0 (4) 0
Recognition of actuarial loss 15 0 15 0
Net periodic pension income $ (19) $ (27) $ (79) $ (81)
v3.25.4
Pension and Other Benefit Plans - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Retirement Benefits [Abstract]        
Benefit obligation, increase for amendment $ 15      
Recognition of actuarial loss $ 15 $ 0 $ 15 $ 0
v3.25.4
Income Taxes - Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
USD ($)
issue
Dec. 31, 2024
USD ($)
Dec. 31, 2025
USD ($)
issue
Dec. 31, 2024
Apr. 01, 2017
USD ($)
Income Tax Contingency [Line Items]          
Effective income tax rate 35.70% 51.90% 54.50% 54.50%  
Deferred tax liability, undistributed foreign earnings $ 28   $ 28    
Number of tax examination primary issues | issue 3   3    
Potential federal and state cost from tax examinations     $ 569    
Potential cash tax payments     652    
Interest deduction tax benefit     81    
Decrease in liability for uncertain tax positions   $ 13      
Income Tax Examination, Issue One          
Income Tax Contingency [Line Items]          
Tax examination disputed amount     651    
Potential federal and state cost from tax examinations     495    
Income Tax Examination, Issue Two          
Income Tax Contingency [Line Items]          
Tax examination disputed amount     146    
Potential federal and state cost from tax examinations     107    
Income Tax Examination, Issue Three          
Income Tax Contingency [Line Items]          
Tax examination disputed amount     165    
Potential federal and state cost from tax examinations     $ 131    
Tax examination period     8 years    
Discontinued Operations | USPS Separation          
Income Tax Contingency [Line Items]          
Tax indemnification receivable related to disposal $ 12   $ 12    
Tax indemnification payable related to disposal $ 1   $ 1    
HPES          
Income Tax Contingency [Line Items]          
Tax indemnification receivable, uncertain tax positions         $ 13
Tax indemnification receivable, tax indemnification payable         33
Tax indemnification payable related to other tax receivables         $ 94
v3.25.4
Stockholders' Equity - Capital Stock and Share Repurchases (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Equity [Abstract]          
Number of shares repurchased (in shares) 4,494,144 5,317,898 3,275,268 13,087,310 0
Average price per share (in dollars per share) $ 14.46 $ 14.10 $ 15.27 $ 14.52  
Amount $ 65 $ 75 $ 50 $ 190  
v3.25.4
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance $ 3,490 $ 3,066
Other comprehensive income (loss) before reclassifications (119) 15
Amounts reclassified from accumulated other comprehensive loss 11 (2)
Ending balance 3,413 3,252
Foreign Currency Translation Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (948) (939)
Other comprehensive income (loss) before reclassifications (97) 23
Amounts reclassified from accumulated other comprehensive loss 0 0
Ending balance (1,045) (916)
Cash Flow Hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (7) 0
Other comprehensive income (loss) before reclassifications (22) (8)
Amounts reclassified from accumulated other comprehensive loss 14 1
Ending balance (15) (7)
Pension and Other Post-retirement Benefit Plans    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 193 207
Other comprehensive income (loss) before reclassifications 0 0
Amounts reclassified from accumulated other comprehensive loss (3) (3)
Ending balance 190 204
Accumulated Other Comprehensive Loss    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (762) (732)
Ending balance $ (870) $ (719)
v3.25.4
Stock Incentive Plans - Narrative (Details)
 9 Months Ended
Dec. 31, 2025
shares
Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares to be received (in shares) 1
Vesting period 3 years
Restricted Stock Units | Share-Based Payment Arrangement, Tranche One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights, percentage 33.33%
Restricted Stock Units | Share-Based Payment Arrangement, Tranche Two  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights, percentage 33.33%
Restricted Stock Units | Share-Based Payment Arrangement, Tranche Three  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting rights, percentage 33.33%
Performance Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
v3.25.4
Stock Incentive Plans - Schedule of RSUs (Details) - Restricted Stock Units
 9 Months Ended
Dec. 31, 2025
$ / shares
shares
Employee Equity Plan  
Number of Shares  
Equity instruments other than options nonvested - beginning balance (in shares) | shares 9,073,741
Equity instruments other than options nonvested - granted (in shares) | shares 10,334,552
Equity instruments other than options nonvested - settled (in shares) | shares (2,604,727)
Equity instruments other than options nonvested - canceled/forfeited (in shares) | shares (2,372,655)
Equity instruments other than options nonvested - ending balance (in shares) | shares 14,430,911
Weighted Average Grant Date Fair Value  
Weighted average fair value other than options - beginning balance (in dollars per share) | $ / shares $ 22.23
Weighted average fair value other than options - granted (in dollars per share) | $ / shares 16.19
Weighted average fair value other than options - settled (in dollars per share) | $ / shares 25.39
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | $ / shares 22.86
Weighted average fair value other than options - ending balance (in dollars per share) | $ / shares $ 17.23
Director Equity Plan  
Number of Shares  
Equity instruments other than options nonvested - beginning balance (in shares) | shares 201,017
Equity instruments other than options nonvested - granted (in shares) | shares 170,500
Equity instruments other than options nonvested - settled (in shares) | shares (121,282)
Equity instruments other than options nonvested - canceled/forfeited (in shares) | shares 0
Equity instruments other than options nonvested - ending balance (in shares) | shares 250,235
Weighted Average Grant Date Fair Value  
Weighted average fair value other than options - beginning balance (in dollars per share) | $ / shares $ 26.63
Weighted average fair value other than options - granted (in dollars per share) | $ / shares 13.23
Weighted average fair value other than options - settled (in dollars per share) | $ / shares 20.64
Weighted average fair value other than options - canceled/forfeited (in dollars per share) | $ / shares 0
Weighted average fair value other than options - ending balance (in dollars per share) | $ / shares $ 20.41
v3.25.4
Stock Incentive Plans - Schedule of Stock-Based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]        
Total share-based compensation cost $ 23 $ 11 $ 69 $ 59
Related income tax benefit $ 3 $ 3 $ 9 $ 10
v3.25.4
Cash Flows (Details) - USD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash paid for:    
Interest $ 153 $ 189
Taxes on income, net of refunds 201 305
Operating:    
ROU assets obtained in exchange for lease, net 228 180
Investing:    
Capital expenditures in accounts payable and accrued expenses 493 13
Capital expenditures through finance lease obligations 6 20
Assets acquired under long-term financing 3 0
Financing:    
Shares repurchased but not settled in cash 4 0
Income tax refunds 47 36
Change in lease classification from operating to finance lease $ 459 $ 528
v3.25.4
Segment Information - Narratives (Details)
 9 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.25.4
Segment Information - Operating Results by Reportable Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Segment Reporting Information [Line Items]        
Revenues $ 3,194 $ 3,225 $ 9,514 $ 9,702
Costs of services (2,435) (2,416) (7,206) (7,369)
Selling, general and administrative (309) (335) (1,069) (989)
Segment profit 263 286 733 789
Operating segments        
Segment Reporting Information [Line Items]        
Revenues 3,194 3,225 9,514 9,702
Costs of services (2,447) (2,397) (7,240) (7,320)
Selling, general and administrative (302) (310) (978) (882)
Depreciation and amortization (195) (234) (618) (707)
Other segment items 42 42 144 133
Segment profit 292 326 822 926
Operating segments | CES        
Segment Reporting Information [Line Items]        
Revenues 1,266 1,267 3,767 3,827
Costs of services (982) (953) (2,920) (2,934)
Selling, general and administrative (137) (139) (443) (409)
Depreciation and amortization (20) (28) (68) (75)
Other segment items 17 17 58 53
Segment profit 144 164 394 462
Operating segments | GIS        
Segment Reporting Information [Line Items]        
Revenues 1,607 1,651 4,793 4,965
Costs of services (1,239) (1,245) (3,646) (3,762)
Selling, general and administrative (125) (132) (410) (370)
Depreciation and amortization (151) (184) (478) (568)
Other segment items 21 22 73 68
Segment profit 113 112 332 333
Operating segments | Insurance        
Segment Reporting Information [Line Items]        
Revenues 321 307 954 910
Costs of services (226) (199) (674) (624)
Selling, general and administrative (40) (39) (125) (103)
Depreciation and amortization (24) (22) (72) (64)
Other segment items 4 3 13 12
Segment profit $ 35 $ 50 $ 96 $ 131
v3.25.4
Segment Information - Reconciliation of Reportable Segment Profit to Consolidated Total (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Segment Reporting Information [Line Items]        
Profit $ 263 $ 286 $ 733 $ 789
Restructuring costs (20) (43) (92) (124)
Transaction, separation and integration-related costs 0 (3) (2) (25)
Amortization of acquired intangible assets (87) (87) (262) (263)
Merger related indemnification 34 0 32 0
Gains on dispositions 0 8 1 13
(Losses) gains on real estate and facility sales 0 (3) 7 (32)
Impairment losses 0 (12) (14) (12)
Pension and OPEB actuarial and settlement losses (11) 0 (11) 0
Interest income 46 51 138 153
Interest expense (54) (66) (161) (207)
Income before income taxes 171 131 369 292
Operating segments        
Segment Reporting Information [Line Items]        
Profit 292 326 822 926
Corporate expenses        
Segment Reporting Information [Line Items]        
Profit $ (29) $ (40) $ (89) $ (137)
v3.25.4
Commitments and Contingencies - Minimum Purchase Commitments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Minimum Purchase Commitment  
Remainder of 2026 $ 100
2027 501
2028 504
2029 387
2030 336
Thereafter 470
Total $ 2,298
v3.25.4
Commitments and Contingencies - Contingencies (Details) - TCS Litigation - USD ($)
$ in Millions
 1 Months Ended
Jun. 30, 2024
Nov. 30, 2023
Loss Contingencies [Line Items]    
Proceeds from litigation settlement $ 194 $ 210
Compensatory Damages    
Loss Contingencies [Line Items]    
Proceeds from litigation settlement 56 70
Punitive Damages    
Loss Contingencies [Line Items]    
Proceeds from litigation settlement 112 $ 140
Prejudgment Interest    
Loss Contingencies [Line Items]    
Proceeds from litigation settlement $ 26  
Post-Judgment Interest Rate    
Loss Contingencies [Line Items]    
Settlement interest rate 4.824%