DXC Technology Company (NYSE:DXC) Q3 2023 Earnings Call Transcript

You’ve never heard me say, all right, flat to 1% within a very short timeframe. And look, I mean, we’re pretty happy about the fact that two years ago we called 1% to 3% and we’re still looking at that at 1% pretty closely. So Bryan, do you have a second question?

Bryan Keane: Yes. My second one is just on the €“ I know you can’t comment about what’s going on with the strategic kind of review. But usually these things take one or two months. This one seems to be taking longer. I’m just curious why the length of period, and I’m a little concerned, does it have any impact on the business fundamentals, the length of the review?

Mike Salvino: I mean, look, I reiterated that we weren’t commenting on any further. I mean, look, the press release still stands that confirms that we’re still having discussions. And Bryan, that’s about all I’m going to say.

Bryan Keane: Anything on the €“ has it hurt anything in the fundamentals of the business, the review or you think that’s not been

Mike Salvino: No, not at all. I mean, there’s no way you can go expand margins, increase GBS, GPS or EPS, drive the free cash flow and book 1.34x if it was really having a big problem.

Bryan Keane: Got it. Thanks so much.

Mike Salvino: All right, thanks Bryan. Brent, next question.

Operator: Your next question is from the line of Darrin Peller with Wolfe Research. Your line is open.

Mike Salvino: Hi, Darrin.

Darrin Peller: Hey guys. Thanks. Hey, Mike. It’s good to see the momentum on this the trajectory you guys have been showing. I guess, I just want to sort of circle back to a couple of the answers you gave on whether it’s the question Brian was just asking or the question around M&A, but broadly, I mean, is the portfolio that you have now, Mike, the right portfolio of assets for the next few years for DXC, I mean, I know you mentioned some tuck-ins, but anything else to divest? And then really where are you focused from a tuck-in standpoint if you’re going to make some moves? Or are we going to just digest what we have now, and let the company operate, and see if we can execute towards those fiscal 2024 targets?

Mike Salvino: Well, I mean, look, I think it’s a combination of all those. And what I would tell you is where the market is right now, there should be some pretty good buys. If we did do anything, we would do it in GBS, because what we’ve been saying the whole time is we need to change our mix, change our mix. Now having said that, I’ve also said over and over again that the GIS business can be a good business for us, and we do think that can produce good cash for us. So, when I look at it, there is now a part of me that you know my past history that I did eight tactical tuck-ins in seven years. So now in terms of stuff that we are continuing to look at, you’ve now heard Ken say for two quarters that we have $250 million of data centers and facilities that were going hard after and we sold a few this quarter.