DXC Technology CoDXC

DXC Technology Co Revenue Disclosure

10-KFiled May 15, 20253 min read
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:
Twelve Months Ended
(in millions)March 31, 2025March 31, 2024March 31, 2023
United States$3,560 $3,909 $4,320 
United Kingdom1,817 1,881 1,883 
Other Europe4,128 4,267 4,429 
Australia1,145 1,261 1,449 
Other International2,221 2,349 2,349 
Total Revenues$12,871 $13,667 $14,430 

The revenue by geography pertains to both of the Company’s reportable segments. Refer to Note 19 - "Segment and Geographic Information" for the Company’s segment disclosures.

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that has not materialized and adjustments for currency. As of March 31, 2025, approximately $16.9 billion of revenue is expected to be recognized from remaining performance obligations. The Company expects to recognize revenue on approximately 39% 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 ItemMarch 31, 2025March 31, 2024
Trade receivables, net Receivables and contract assets, net of allowance for doubtful accounts$2,041 $2,195 
Contract assets
Receivables and contract assets, net of allowance for doubtful accounts$338 $362 
Contract liabilitiesDeferred revenue and advance contract payments and Non-current deferred revenue $1,397 $1,537 

Change in contract liabilities were as follows:
(in millions)
Twelve Months Ended March 31, 2025
Twelve Months Ended March 31, 2024
Balance, beginning of period$1,537 $1,842 
Deferred revenue1,727 1,845 
Recognition of deferred revenue(1,751)(2,081)
Currency translation adjustment(4)(3)
Other(112)(66)
Balance, end of period$1,397 $1,537 
The following tables provides information about the Company’s capitalized costs to obtain and fulfill a contract:
As of
(in millions)March 31, 2025March 31, 2024
Capitalized sales commission costs(1)
$94 $89 
Transition and transformation contract costs, net(2)
$668 $751 

Amortization expense of capitalized sales commission and transition and transformation contract costs were as follows:
Fiscal Years Ended
(in millions)March 31, 2025March 31, 2024March 31, 2023
Capitalized sales commission costs amortization(1)
$47 $61 $76 
Transition and transformation contract cost amortization(2)
$205 $212 $204 
        

(1)Capitalized sales commission costs are included within other assets in the accompanying balance sheets and amortization expense related to the capitalized sales commission assets are included in selling, general, and administrative expenses in the accompanying statements of operations.
(2)Transition and transformation contract costs, net reflect the Company’s setup costs incurred upon initiation of an outsourcing contract and are included within other assets in the accompanying balance sheets and amortization expense are included within depreciation and amortization in the accompanying statements of operations.
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Historical Timeline

Fiscal YearFiled
2025May 15, 2025Showing above
2024May 17, 2024

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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