DXC Technology CoDXC
DXC Technology Co Segments Disclosure
Segment and Geographic 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 | ||||||||||||||||||||||
Fiscal Year Ended March 31, 2026 | ||||||||||||||||||||||||||
| Revenues | $ | 5,023 | $ | 6,342 | $ | 1,279 | $ | 12,644 | ||||||||||||||||||
Costs of services | (3,909) | (4,843) | (908) | (9,660) | ||||||||||||||||||||||
Selling, general and administrative | (582) | (535) | (164) | (1,281) | ||||||||||||||||||||||
Depreciation and amortization (1) | (88) | (626) | (97) | (811) | ||||||||||||||||||||||
Other segment items (2) | 74 | 94 | 19 | 187 | ||||||||||||||||||||||
| Segment Profit | $ | 518 | $ | 432 | $ | 129 | $ | 1,079 | ||||||||||||||||||
Fiscal Year Ended March 31, 2025 | ||||||||||||||||||||||||||
| Revenues | $ | 5,062 | $ | 6,596 | $ | 1,213 | $ | 12,871 | ||||||||||||||||||
Costs of services | (3,903) | (5,012) | (843) | (9,758) | ||||||||||||||||||||||
Selling, general and administrative | (548) | (500) | (140) | (1,188) | ||||||||||||||||||||||
Depreciation and amortization (1) | (102) | (745) | (85) | (932) | ||||||||||||||||||||||
Other segment items (2) | 71 | 92 | 17 | 180 | ||||||||||||||||||||||
| Segment Profit | $ | 580 | $ | 431 | $ | 162 | $ | 1,173 | ||||||||||||||||||
Fiscal Year Ended March 31, 2024 | ||||||||||||||||||||||||||
| Revenues | $ | 5,274 | $ | 7,230 | $ | 1,163 | $ | 13,667 | ||||||||||||||||||
Costs of services | (4,088) | (5,577) | (805) | (10,470) | ||||||||||||||||||||||
Selling, general and administrative | (573) | (492) | (123) | (1,188) | ||||||||||||||||||||||
Depreciation and amortization (1) | (118) | (831) | (96) | (1,045) | ||||||||||||||||||||||
Other segment items (2) | 71 | 99 | 16 | 186 | ||||||||||||||||||||||
| Segment Profit | $ | 566 | $ | 429 | $ | 155 | $ | 1,150 | ||||||||||||||||||
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(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 Consolidation
| Fiscal Years Ended | ||||||||||||||||||||
| (in millions) | March 31, 2026 | March 31, 2025 | March 31, 2024 | |||||||||||||||||
Profit | ||||||||||||||||||||
| Total profit for reportable segments | $ | 1,079 | $ | 1,173 | $ | 1,150 | ||||||||||||||
Corporate expenses | (109) | (154) | (141) | |||||||||||||||||
| Subtotal | $ | 970 | $ | 1,019 | $ | 1,009 | ||||||||||||||
| Restructuring costs | (115) | (153) | (111) | |||||||||||||||||
| Transaction, separation and integration-related costs | (3) | (25) | (7) | |||||||||||||||||
| Amortization of acquired intangibles | (349) | (348) | (354) | |||||||||||||||||
| Merger related indemnification | 35 | (2) | (16) | |||||||||||||||||
| Gains on dispositions | 1 | 13 | 115 | |||||||||||||||||
| (Losses) gains on real estate and facility sales | — | (23) | 7 | |||||||||||||||||
| Impairment losses | (17) | (17) | (5) | |||||||||||||||||
Pension and OPEB actuarial and settlement (losses) gains | (169) | 232 | (445) | |||||||||||||||||
| Interest income | 181 | 199 | 214 | |||||||||||||||||
| Interest expense | (216) | (265) | (298) | |||||||||||||||||
Income before income taxes | $ | 318 | $ | 630 | $ | 109 | ||||||||||||||
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.
Geographic Information
See Note 11 - "Revenue" for the Company's revenue by geography.
Property and equipment, net, which is based on the physical location of the assets, was as follows:
| As of | ||||||||||||||
| (in millions) | March 31, 2026 | March 31, 2025 | ||||||||||||
| United States | $ | 349 | $ | 398 | ||||||||||
| United Kingdom | 292 | 317 | ||||||||||||
| Australia | 27 | 34 | ||||||||||||
| Other Europe | 203 | 236 | ||||||||||||
| Other International | 251 | 268 | ||||||||||||
| Total Property and Equipment, net | $ | 1,122 | $ | 1,253 | ||||||||||
No single customer exceeded 10% of the Company’s revenues during fiscal 2026, fiscal 2025 or fiscal 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 8, 2026 | Showing above |
| 2025 | May 15, 2025 | |
| 2024 | May 17, 2024 | |
| 2023 | May 19, 2023 | |
| 2022 | May 26, 2022 | |
| 2021 | May 28, 2021 | |
| 2020 | Jun 1, 2020 | |
| 2019 | Jun 13, 2019 | |
| 2018 | May 29, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.