• Q2 Earnings per Share was $0.88, including the cumulative impact of certain items of $1.05 per share, reflecting restructuring costs, transaction and integration-related costs, and amortization of acquired intangible assets
• Q2 Non-GAAP Earnings per Share was $1.93, compared with $0.76 in the prior year on a pro forma basis
• Q2 Net Income was $265 million, including the cumulative impact of certain items of $301 million, reflecting restructuring costs, transaction and integration-related costs, and amortization of acquired intangible assets
• Q2 EBIT of $449 million, adjusted for certain items is $876 million and Adjusted EBIT Margin on a comparable basis is 14.2%, compared with 6.0% in the prior year on a pro forma basis
• Q2 Net Cash from Operating Activities was $1,009 million
• Q2 Adjusted Free Cash Flow of $589 million

TYSONS, Va. — (BUSINESS WIRE) — November 7, 2017 — DXC Technology Company (NYSE: DXC) today reported results for the second quarter of fiscal year 2018.

“In the second quarter, DXC Technology delivered growth in earnings per share, margins and cash flow,” said Mike Lawrie, chairman, president and CEO. "We are executing on our integration plans and are on track to deliver $1 billion of year one cost savings as well as $1.5 billion of run-rate cost savings exiting fiscal 2018. We continue to strengthen our Digital offerings and capabilities through our recent acquisitions of Logicalis and Tribridge. We also launched the separation of the US Public Sector business and combination with Vencore and KeyPoint Government Solutions.”

Financial Highlights - Second Quarter Fiscal 2018

• Diluted earnings per share was $0.88 in the second quarter, including $0.50 per share of restructuring costs, $0.15 per share of transaction and integration-related costs, and $0.39 per share of amortization of acquired intangible assets. This compares with $(0.46) in the year ago period on a pro forma combined company basis.
• Diluted earnings per share included a cumulative benefit of $0.26 per share, of which $0.13 related to the prior interim period, from the reclassification of HPES operating leases to capitalized leases and the corresponding adjustment of the related assets to fair value.
• Non-GAAP diluted earnings per share was $1.93, compared with $0.76 in the year ago period on a pro forma combined company basis.
• Income before income taxes was $387 million in the second quarter, including $192 million of restructuring costs, $66 million of transaction and integration-related costs, and $169 million of amortization of acquired intangibles. This compares with $(231) million in the year ago period on a pro forma combined company basis.
• Income before income taxes includes a cumulative benefit of $108 million from the reclassification of HPES operating leases to capitalized leases and the corresponding adjustment of the related assets to fair value.
• Non-GAAP income before income taxes was $814 million compared with $311 million in the year ago period on a pro forma combined company basis.
• Net income was $265 million for the second quarter, including $146 million of restructuring costs, $43 million of transaction and integration-related costs, and $112 million of amortization of acquired intangibles. This compares with $(123) million in the prior year period.
• Adjusted EBIT was $876 million in the second quarter compared with $380 million in the prior year on a pro forma basis. Adjusted EBIT margin was 14.2% compared with 6.0% in the year ago quarter which was recast on a pro forma basis.
• Net cash provided by operating activities was $1,009 million in the second quarter, compared with $192 million in the year ago period.
• Adjusted free cash flow was $589 million in the second quarter.

Global Business Services (GBS)

GBS revenue was $2,311 million in the quarter as compared to $1,035 million for the comparable period of the prior fiscal year. Excluding the impact of purchase price accounting, GBS revenue decreased 4.3% year-over-year in constant currency on a pro forma combined company basis, primarily driven by the completion of two large government contracts in the UK. GBS profit margin in the quarter was 16.4%, up from 11.1% in the prior year on a pro forma basis, reflecting ongoing cost actions in the business. New business awards for GBS were $2.5 billion in the second quarter.