DXC 10-Q Details Q2: EPS $0.15, GIS Profit -45.9%, $551M IRS Exposure
DXC sits 65% above its 52-week low of $7.9.
Summary
DXC's Q2 10-Q confirms $0.15 diluted EPS on $3.03 billion of revenue, with GIS segment profit down 45.9% and Insurance up 60.7%. It also quantifies roughly $551 million of IRS cash tax exposure and shows total debt down $493 million to $3.06 billion.
Key Events · Earnings and Guidance · DXC
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Q2 EPS $0.15, Revenue Down 4.0%
Revenue of $3.03 billion fell 4.0% organically; net income attributable to DXC was $24 million, or $0.15 diluted, versus $0.20 a year ago.
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GIS Profit Collapses 45.9%
Global Infrastructure Services segment profit fell to $66 million on a 10.0% organic revenue decline; Insurance segment profit rose 60.7% to $45 million on 23.1% organic growth.
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IRS Exposure ~$551M Quantified
Total cash tax exposure across three Tax Court issues is about $551 million after the $122 million Section 6603 deposit; roughly $537 million on the first two issues is unreserved.
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Debt Cut $493M, Revolver Extended
Total debt fell to $3.06 billion from $3.55 billion, including a $400 million principal payment; $2.8 billion of the $3.0 billion revolver was extended to November 1, 2031.
Analysis · DXC · Technology
The headline Q2 numbers were already out on October 29, but the full 10-Q adds the detail that matters for the thesis. GIS, the largest segment, saw profit fall 45.9% to $66 million on a 10.0% organic revenue decline, while Insurance grew profit 60.7% to $45 million — reinforcing that the business being shopped to Eldridge is the one performing. The filing also puts a hard number on the long-running IRS dispute: roughly $551 million of total cash tax exposure after the $122 million deposit made in August 2026, with about $537 million unreserved on the first two issues. Against that, debt fell $493 million to $3.06 billion and liquidity stands at $4.6 billion, so the balance sheet can absorb a loss. The $2.8 billion revolver extension to November 2031 removes near-term refinancing risk.
How filings like this one have moved
In the 30 days to Oct 30, 2026, 30.7% of the 1581 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.02%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DXC was trading at $13.05 on NYSE in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $7.90 to $16.38. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.