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DXC

DXC Technology Co
NYSE · TECHNOLOGY · SERVICES-COMPUTER PROCESSING & DATA PREPARATION
16.30
+0.21 +1.31%
USD · close Oct 26
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MKT CAP $2.6BP/E 21.4DIV YIELD —FCF YIELD 48.07%REV TTM $12.5B −2.4%NET INCOME $124M −67.3%NET DEBT $6.7B52W 8.22 – 16.30SEC XBRL · TTM TO Invalid Date

How DXC rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026
Text kept
56%
of sentences unchanged
Added
130
new sentences
Dropped
134
sentences removed
Length
−153
words, now 16,374

New in FY2026

  • RISK FACTORS Our operations and financial results are subject to various risks and uncertainties.
  • Any of the following risks could have a material adverse effect on our business, financial condition, results of operations, or prospects, and the actual outcome of matters as to which forward-looking statements are made in this Annual Report on Form 10-K.
  • Other variables and risks and uncertainties not currently known or that are currently expected to be immaterial may also have a material adverse effect on our business, financial condition, results of operations, or prospects, or on the price of shares of our common stock in the future.
  • Risk Factor Summary Risks Related to Our Business • If we do not effectively manage and improve our sales organization, we may have difficulty acquiring new customers or increasing sales to existing customers. • We may fail to develop and expand service offerings to address emerging demands and technological trends and remain competitive. • Our ability to provide customers with competitive services is dependent on our ability to attract and retain qualified personnel. • Risks associated with artificial intelligence, including our adoption, deployment, and governance of AI technologies, could adversely affect our business. • If we are unable to accurately estimate the cost of services and the timeline for completion of contracts, or if we or third parties fail to deliver on commitments to our customers, the profitability of our contracts may be adversely affected. • Systems failures, catastrophic events, and resulting interruptions in the availability of our products or services could harm our business. • We are vulnerable to security breaches, cyber-attacks, other cybersecurity events or incidents or disclosure of confidential information or personal data. • Failure to comply with obligations arising under new or existing laws, regulations, and customer contracts relating to the privacy, security and handling of personal data could adversely affect our business. • Our business operations are subject to various and changing federal, state, local and foreign laws and regulations that could result in costs or sanctions that adversely affect our business. • Failure to maintain our credit rating, manage our indebtedness, and raise additional capital for future needs could adversely affect our liquidity and financial condition. • We are exposed to risks inherent to our international operations, including fluctuations in exchange rates and geopolitical conflicts. • Prolonged periods of inflation and related economic conditions could adversely affect our profitability and results of operations. • We face aggressive competition and may fail to compete effectively in certain markets. • We may fail to maintain and grow our customer relationships over time or to comply with customer contracts or government contracting regulations or requirements. • Our strategic transactions may prove unsuccessful. • The price of our securities may be volatile. • Disruption of our supply chain or increases in procurement costs, including as a result of ongoing trade tensions and tariff charges, could adversely impact our business. • We are subject to a series of risks relating to climate change and natural disasters. • Increased scrutiny of, and evolving expectations for, sustainability and ESG initiatives could increase our costs, harm our reputation, or otherwise adversely impact our business. • We may be subject to intellectual property related risks and may fail to procure necessary third-party licenses. • Our restructuring plans may not benefit us and may adversely affect our business. • We may fail to maintain effective disclosure controls and internal control over financial reporting. • We could suffer additional losses due to asset impairment charges. • We may fail to pay dividends or repurchase shares of our common stock. • Pending litigations may have a material and adverse impact on our profitability and liquidity. • Changes in tax rates, tax laws, and uncertainty of tax examinations could affect our results of operations and liquidity.
  • Risks Related to Our Business If we do not effectively manage and improve our sales organization, we may have difficulty acquiring new customers or increasing sales to existing customers, and our business and results of operations may be adversely affected.
  • We depend on our sales organization to obtain new customers, expand relationships with existing customers, and drive revenue growth.
  • There is significant competition for sales personnel with the skills, industry knowledge, and technical expertise that we require, and our ability to achieve revenue growth will depend, in large part, on our success in recruiting, training, and retaining sufficient numbers of qualified sales personnel.
  • We may face structural challenges within our sales organization that could adversely impact our performance, including fragmentation in our sales operating model, inconsistent sales enablement, limited visibility into client relationships and pipeline, and challenges in managing and developing sales talent.
  • If we are unable to address such structural issues effectively, we may experience underperformance across key sales metrics, including win rates, pipeline development, and overall sales productivity, and we may be unable to attract and retain high-performing sales personnel.
  • If we are unable to structure our sales organization effectively, hire and train sufficient numbers of qualified sales personnel, address existing structural deficiencies, or align our compensation programs with our strategic priorities, or if our sales personnel are not successful in obtaining new customers or increasing sales to our existing customer base, our business, operating results, and prospects may be materially and adversely affected.
  • We may fail to develop and expand our service offerings to address emerging business demands and technological trends and remain competitive.
  • Our ability to develop and implement innovative technology solutions that meet evolving customer needs and industry standards in analytics, software engineering, applications, business process services, digital cloud, IT outsourcing and consulting, and in areas such as artificial intelligence ("AI"), automation, Internet of Things and software as-a-service solutions, among others, in a timely or cost-effective manner, will impact our ability to retain and attract customers and our future revenue growth and earnings.
  • In addition, markets for new technologies, such as AI, may not develop as we have anticipated.
  • If we do not make the right strategic investments to respond to these developments, our ability to develop and maintain a competitive advantage and to execute our growth strategy could be negatively affected.
  • Risks associated with artificial intelligence, including our adoption, deployment, and governance of AI technologies, could adversely affect our business, reputation, financial condition, and results of operations.
  • We are integrating AI, including generative AI and other advanced or autonomous AI systems, into our internal operations, service offerings, and client solutions.
  • We have made, and expect to continue to make, significant investments in developing, deploying, and supporting AI capabilities, including our Fast Track portfolio of AI-enabled solutions.
  • Our ability to realize the expected benefits of these investments depends on a number of factors, including our ability to develop commercially viable AI‑enabled offerings, attract and retain personnel with relevant expertise, and deploy AI technologies responsibly across the enterprise.
  • If we are unable to develop, adopt, scale, or effectively integrate AI technologies, or if the AI‑enabled solutions we bring to market do not achieve sufficient customer acceptance, our competitive position, growth, and financial performance could be adversely affected.
  • Our AI‑enabled offerings and internal AI tools may produce inaccurate, incomplete, biased, or otherwise flawed outputs, including as a result of limitations or deficiencies in training data, algorithmic design, system architecture, or implementation.
  • Such outputs could result in operational errors, flawed decision‑making, customer dissatisfaction, reputational harm, or claims of discrimination, bias, or violation of applicable law.
  • We may also face allegations that our use of AI infringes, misappropriates, or otherwise violates third‑party intellectual property rights, or that AI‑generated outputs incorporate protected or proprietary content.
  • The legal framework governing the ownership, use, and protectability of AI‑generated works remains uncertain and continues to evolve across jurisdictions, which could limit the value or usability of our AI‑enabled deliverables and expose us to infringement, misappropriation, or other legal claims.
  • Many of our AI‑enabled offerings and internal tools rely on third‑party AI platforms, foundation models, cloud‑hosted AI services, or other vendor‑provided technologies.
  • Defects, service interruptions, security vulnerabilities, changes in licensing terms, pricing, or usage restrictions, or the discontinuation or modification of support by these third‑party providers could disrupt our service delivery, degrade the quality or reliability of our offerings, or require us to identify, integrate, or transition to alternative solutions on short notice.
  • In addition, we may have limited visibility into the design, training data, or operational parameters of third‑party AI systems, which may constrain our ability to identify, explain, mitigate, or remediate errors, biases, or other deficiencies in their outputs.
  • Our clients may expect us to assume responsibility for the performance, reliability, and compliance of solutions that incorporate third‑party AI components and may be unwilling to accept contractual limitations or exclusions of liability offered by AI platform providers, which could expose us to risks or liabilities that we cannot fully control or mitigate.
  • AI technologies are increasingly presenting substantially heightened cybersecurity, information security, and data privacy risks.
  • AI systems may be vulnerable to adversarial manipulation, data poisoning, prompt injection, model extraction, or other evolving or novel attack vectors.
  • The use of AI in connection with personal data, confidential information, or automated decision‑making processes may trigger additional obligations under data protection, consumer protection, employment, or sector‑specific laws relating to transparency, consent, human oversight, data minimization, explainability, and lawful processing.
  • Any failure, or perceived failure, to comply with applicable requirements could result in regulatory scrutiny or enforcement actions, fines or penalties, contractual disputes, litigation, or reputational harm.
  • The legal and regulatory environment governing AI is rapidly evolving and differs significantly across jurisdictions.
  • Various jurisdictions in which we operate have adopted, proposed, or are considering AI‑specific legislation, regulations, and regulatory guidance, including the EU Artificial Intelligence Act, U.S. executive orders and federal agency initiatives, and various U.S. state laws.
  • These frameworks may impose obligations relating to risk classification, transparency, documentation, human oversight, conformity assessments, record‑keeping, or registration, and may require us to modify our products, services, internal processes, or business practices.
  • Regulatory requirements may develop unevenly, change frequently, or be interpreted inconsistently across jurisdictions, increasing compliance complexity, operational burden, and cost.
  • While we have implemented governance and risk assessment processes intended to monitor and address AI‑related regulatory developments, there can be no assurance that these efforts will be sufficient to address all applicable requirements, anticipate regulatory changes, or mitigate all associated risks.
  • In addition, the rapid adoption of AI technologies by our clients and competitors may reduce demand for certain of our traditional services.
  • Clients may increasingly use AI‑driven tools to develop, customize, operate, or maintain technology solutions internally, reducing their reliance on third‑party service providers.
  • If a significant number of our existing or prospective clients adopt AI as a substitute for services we currently provide, or if competitors deploy AI‑enabled offerings more effectively or efficiently than we do, our revenues, growth prospects, and results of operations could be materially and adversely affected.
  • If we are unable to accurately estimate the cost of services and the timeline for completion of contracts, or if we or third parties fail to deliver on commitments to our customers, the profitability of our contracts may be materially and adversely affected.

and 90 more.

Gone since FY2025

  • RISK FACTORS Our operations and financial results are subject to various risks and uncertainties, which may materially and adversely affect our business, financial condition, and results of operations, and the actual outcome of matters as to which forward-looking statements are made in this Annual Report on Form 10-K.
  • Other variables and risks and uncertainties not currently known or that are currently expected to be immaterial may also materially and adversely affect our business, financial condition, and results of operations or the price of shares of our common stock in the future.
  • Risk Factor Summary Risks Related to Our Business • We may not succeed in our strategic objectives. • We are vulnerable to security breaches, cyber-attacks, other cybersecurity events or incidents or disclosure of confidential information or personal data. • We are subject to obligations arising under new or existing laws, regulations, and customer contracts relating to the privacy, security and handling of personal data. • We are vulnerable to product and service quality issues. • We may fail to continue to develop and expand service offerings to address emerging demands in the highly competitive markets we serve. • We may fail to compete in certain markets or continue to expand our capacity, and are subject to risks, in certain offshore locations. • We may fail to maintain our credit rating, manage working capital, refinance and raise additional capital. • Changes to our business model may be hard to understand by the market and we may fail to meet our guidance. • Our business and financial results could be materially adversely affected by public health crises. • Our indebtedness could have a material adverse effect on our financial condition and results of operations. • We may fail to accurately estimate the cost of services and the timeline for completion of contracts. • We or our third parties may fail to deliver on commitments or otherwise breach obligations to our customers. • We are subject to a series of risks relating to climate change and natural disasters; and increased scrutiny of, and evolving expectations for, sustainability and ESG initiatives could also adversely impact our business. • We may fail to attract and retain qualified personnel. • Prolonged periods of inflation have an adverse effect on general economic conditions and consumer budgeting, and could adversely impact our profitability and results of operations. • Our international operations are exposed to risks, including fluctuations in exchange rates. • Failure to comply with federal, state, local and foreign laws and regulations could result in costs or sanctions that adversely affect our business.
  • Social and environmental responsibility regulations, policies and provisions, as well as customer and investor demands, may adversely affect our relationships with customers and investors. • Our restructuring plans may not benefit us and may adversely affect our business. • We may be subject to intellectual property related risks and may fail to procure necessary third-party licenses. • Disruption of our supply chain or increases in procurement costs, including as a result of ongoing trade tensions and tariff charges, could adversely impact our business. • We may fail to maintain effective disclosure controls and internal control over financial reporting. • We could suffer additional losses due to asset impairment charges. • We may fail to pay dividends or repurchase shares of our common stock. • Pending litigations may have a material and adverse impact on our profitability and liquidity. • Disruptions in the credit markets may reduce our customers' access to credit and increase the costs to our customers of obtaining credit, and our hedging program is subject to counterparty default risk. • We may not achieve revenue and profit objectives if we fail to competitively bid on our projects effectively. • If our customers experience financial difficulties, we may not be able to collect our receivables. • We may fail to maintain and grow our customer relationships over time or to comply with customer contracts or government contracting regulations or requirements. • Our strategic transactions may prove unsuccessful. • Changes in tax rates, tax laws, and uncertainty of tax examinations could affect our results of operations. • The price of our securities may be volatile.
  • Risks Related to Our Business We may not succeed in our strategic objectives, which could adversely affect our business, financial condition, results of operations and cash flows.
  • Our strategic priorities are focused on our customers, optimizing costs and seizing the market.
  • We may not be able to implement our strategic priorities in accordance with our expectations for a variety of reasons, including failure to execute on our plans in a timely fashion, lack of adequate skills, ineffective management, inadequate incentives, customer resistance to new initiatives, inability to control costs or maintain competitive offerings.
  • We also cannot be certain that executing on our strategy will generate the benefits we expect.
  • If we fail to execute successfully on our strategic priorities, or if we pursue strategic priorities that prove to be unsuccessful, our business, financial position, results of operations and cash flows may be materially and adversely affected.
  • We regularly experience cyber events and sometimes have security incidents, including unauthorized efforts to access our IT Systems, and we expect such attacks and incidents to continue in varying degrees.
  • Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments increase the likelihood that our encryption and other algorithms that we use to protect our data and that of customers, including sensitive customer transaction data, may fail.
  • Computer programmers and hackers have deployed and may continue to develop and deploy ransomware, malware and other malicious software programs through phishing and other methods that attack our products.
  • Given the nature of complex systems, hardware, software and services like ours, and the scanning tools that we deploy across our infrastructure, environment and products, we regularly identify and track security vulnerabilities.
  • In other situations, vulnerabilities persist even after we have issued security patches because our customers may fail to apply patches or update their systems to newer software versions.
  • From time to time, we also identify security vulnerabilities and deficiencies to our IT Systems from risk assessments, penetration testing, internal audit activities and third-party reports.
  • Remediation of such vulnerabilities and deficiencies is a continuous process, and there is no guarantee that such remediation efforts will be successful.
  • Sophisticated hardware, software and applications produced or procured from third parties, notwithstanding our third-party risk management process and our efforts to test and remediate cyber vulnerabilities before integrating them into our IT systems, may still contain defects in design or manufacture, including “bugs” or other vulnerabilities that may be exploited.
  • We have acquired and may continue to acquire companies with cybersecurity vulnerabilities and/or unsophisticated security measures, which exposes us to cybersecurity, operational, and financial risks.
  • In addition, continued remote and hybrid working arrangements present potentially increased risk associated with security vulnerabilities present in non-corporate and home networks.
  • And, as we and various third parties continue to explore and integrate AI into various products and services, we are likely exposed to new and unknown cybersecurity risks and threats.
  • Compliance, or failure to comply, with obligations arising under new or existing laws, regulations, and customer contracts relating to the privacy, security and handling of personal data could adversely affect our financial condition, results of operations and cash flows.
  • To the extent our customers are required by laws, rules, or regulations to impose such contractual obligations on us, we may have limited ability to reject them or negotiate them in our favor.
  • Moreover, some of our customer contracts may not limit our liability for the loss of confidential information (including personal data), data breaches or other cybersecurity incidents or other business impact.
  • Product and service quality issues could impact our business, operating results and financial condition.
  • Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends, including our ability to sell differentiated services and compete in the highly competitive markets we serve, may impact our future growth.
  • If we are not successful in meeting these business challenges, our results of operations and cash flows may be materially and adversely affected.
  • Our ability to develop and implement innovative technology solutions that meet evolving customer needs and industry standards in analytics, software engineering, applications, business process services, digital cloud, IT outsourcing and consulting, and in areas such as AI, automation, Internet of Things and software as-a-service solutions, among others, in a timely or cost-effective manner, will impact our ability to retain and attract customers and our future revenue growth and earnings.
  • For example, we have been integrating AI, particularly generative AI, into our services and solutions to meet client demand and to maintain competitiveness in a highly competitive and rapidly evolving market.
  • We have made substantial investments in developing and supporting AI capabilities and services, and we anticipate making further investments in the future.
  • If we are unable to quickly develop, adopt, and deploy generative AI technologies, we risk falling behind our industry competitors.
  • Furthermore, generative AI is changing how we identify, recruit, hire, retain, and deploy our professionals, as well as how we price their services.
  • Our clients may increasingly expect that we integrate generative AI with human delivery teams to develop solutions at lower costs compared to traditional, human-only approaches.
  • Customers may be less inclined to pay premium rates for human labor if they perceive that the same services can be delivered more cost-effectively through generative AI.
  • This could prompt clients to explore alternative providers or seek price reductions, which may negatively impact our results of operations and financial performance.
  • The AI algorithms that we use may be flawed or may be based on datasets that are biased or insufficient, and our AI features may not achieve sufficient levels of accuracy or may have unintended consequences, including allegations of bias, discrimination, legal and regulatory violations, or violation of third-party intellectual property rights.
  • There is no guarantee that our products or services that integrate AI capabilities will achieve market acceptance and help us maintain or enhance our competitive position.
  • Our competitiveness is based on factors including technology (including building AI capabilities into our offerings), innovation, performance, price, quality, reliability, brand, reputation, range of products and services, account relationships, customer training, service and support and security.
  • Such delays can negatively impact our results of operations if the pace and level of spending on new technologies by some of our customers are not sufficient to make up any shortfall by other customers.
  • Our growth strategy focuses on responding to these types of developments by driving innovation that will enable us to expand our business into new growth areas.
  • However, markets for new technologies, such as AI, may not develop as we have anticipated.

and 94 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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