DXC Technology's stock surged 5.04% in intraday trading on Wednesday, driven by the company's better-than-expected third quarter fiscal 2025 results and an optimistic outlook for the future.

The company reported revenue of $3.2 billion, down 4.2% year-over-year organically, but its adjusted EBIT margin of 8.9% expanded by 140 basis points compared to the same period last year. DXC's non-GAAP earnings per share of $0.92 also represented a 7% increase year-over-year. Additionally, the company delivered strong free cash flow of $483 million for the quarter and $576 million year-to-date, exceeding its full-year fiscal 2025 guidance.

One of the key highlights for DXC was the significant improvement in its bookings, with a book-to-bill ratio of 1.33 – the highest in eight quarters. This robust bookings performance, driven by the company's revamped go-to-market approach, boosted investor confidence in DXC's growth prospects.

DXC's strategic initiatives, including partnerships with industry leaders like SAP and ServiceNow to enhance its AI-driven transformation offerings, have positioned the company favorably to capitalize on the growing demand for digital transformation services. Furthermore, the company's insurance and horizontal BPS segment demonstrated robust organic revenue growth of 5.6% year-over-year, underscoring the strength of its diversified portfolio.