DXC Technology Company (NYSE: DXC) has reported the adjusted earnings per share of $2.15 in the third quarter of FY 18, beating the analysts’ estimates for the adjusted earnings per share of $1.99. The adjusted earnings per share includes $(0.56) per share of restructuring costs, $0.05 per share of pension and OPEB actuarial and settlement gains, $(0.23) per share of transaction and integration-related costs, $(0.36) per share of amortization of acquired intangible assets and $1.63 per share of tax adjustment related to U.S. tax reform. Overall the company has reported in the third quarter of FY 18, the net income of $779 million compared to $37 million in the prior year period.

The company had reported the adjusted revenue growth of 35.9 percent to $6.19 billion in the third quarter of FY 18, missing the analysts’ estimates for revenue of $6.23 billion. The revenue grew up sequentially, due to the strong project sales in the third quarter. Further, the company is also on track to achieve the year-one cost savings targets. The separation of the U.S. Public Sector business and combination with Vencore and KeyPoint Government Solutions are continuing to progress along with the filing of the Form 10 with the U.S. Securities and Exchange Commission.

Moreover, in the third quarter of FY 18, DXC has posted Non-GAAP income before income taxes was $877 million compared with $589 million in the year ago period on a pro forma combined company basis. The digital revenue has increased by 13% year-over-year and was down 3.3% sequentially due to the contract milestone achievements in the second quarter. However, the year-to-date digital revenue was up 16%. Further, Industry IP and BPS revenue fell 0.4% year-over-year and grew 1.1% sequentially. In the third quarter the company’s digital book-to-bill was 1.1x and the industry IP and BPS book-to-bill was 1.6x, including a large BPS life insurance deal that was completed in the third quarter.

Additionally, DXC has enhanced the workforce management process to more cost effectively deliver existing business, while staffing the required labor for new business. In supply chain the company continues to tighten controls on contractor spend, which resulted in the elimination or conversion of thousands of contractor roles. DXC are also executing several initiatives to optimize non-labor spend, including ongoing rate negotiations, vendor consolidation, demand management and reductions in maintenance expense. In addition, the company has collectively the third quarter cost actions had generated approximately $130 million of in-quarter savings, which means DXC are on track to deliver the $1.1 billion or more of in-year synergy realization compared to the target of $1 billion.