Chairman, President and Chief Executive Officer at DXC Technology
Thanks, John, and I appreciate everyone joining the call today, and I hope you and your families are doing well. Today's agenda will begin with an overview of our Q2 results. Next, I will update you on the progress we are making on our transformation journey. Our Q2 results show that our transformation journey is back, producing the kind of results that we've grown accustomed to. Ken will then discuss our financial results in more detail and provide our guidance. And finally, I will make some closing remarks before opening the call up for questions. Our Q2 results for organic revenue, adjusted EBIT margin and non-GAAP EPS were all at the top end of our guidance. In Q2, revenue was $3.57 billion, and organic revenue was negative 1.5%. Our organic revenue is one of the best results that we've produced for a quarter since I've been at DXC.
Our adjusted EBIT margin was 7.5%, a 50 basis point improvement compared to Q1, driven by our execution of our cost optimization efforts. Our non-GAAP EPS was $0.75. Our trailing 12-month book-to-bill was 1.04, and our Q2 book-to-bill was 0.83. I look at both of these numbers to see if we are driving the kind of new work to grow GBS and continue to shrink the negative revenue declines in GIS. The trailing 12-month book-to-bill of over one means that we are still on track with our plans. And the Q2 book-to-bill reflects us breaking in a new sales model for GBS and GIS that I will comment on shortly. Overall, I'm pleased with how we have delivered in Q2. And more importantly, we have our execution momentum back. So let me give you some additional color around our transformation journey.
The first step is to inspire and take care of our colleagues. The good news is that our attrition remains well under control. Our growth in GBS demonstrates that we can recruit and retain top talent like engineers and software developers who create innovative solutions for our customers. These engineers and software developers are highly sought after in the market, and we're doing a great job of recruiting and retaining them. The reason for all this is my leadership team is focused on changing the culture of DXC. We are making sure we're taking care of our people, we're working together, and we know how to make positive business impact for our customers. The next step is to focus on our customers. The key metric here is our Net Promoter Score. And our most recent NPS score was 33, above the top end of the industry benchmark. It's clear that our customers value our services. The value that customers place on delivery has helped us stabilize our revenue.
In Q2, we achieved sequential organic revenue growth as well as driving our yearly organic revenue to minus 1.5%. Our focus on delivering for our customers has enabled us to grow GBS for six consecutive quarters and shrink the negative organic revenue growth of GIS to minus 5.8% in Q2. This was 140 basis point improvement over Q1 and the best organic revenue result for GIS since I've been at DXC. On our last earnings call, we committed to $500 million of cost takeout in FY '23, and I'm pleased to report that we're delivering. We've made progress on all five levers while taking care of our customers and colleagues. As a reminder, the five levers are: staff optimization, contractor conversions, office and data centers, network and telecommunications, and third-party spend. Our progress so far has allowed us to expand our margin from 7% in Q1 to 7.5% in Q2, and we are on track to hit our FY '23 margin goals.
This is a testament to our leadership team. I mentioned on the last earnings call that my leadership team had delivered a similar cost takeout plan in FY '21, and the team is delivering again as I expected. In the area of seize the market, we are implementing a new sales model. This model distinguishes between our two businesses of GBS and GIS as we believe they require two different sales organizations. The GBS sales organization is focused on relationship selling. This means selling to our executives based on value, which we define as helping them increase revenue and decrease costs. In the automotive industry, our engineering team works with over 90% of all automotive manufacturers. Software development is increasingly important with the change to software-defined vehicles as it improves the in-car experience and connects the driver to the automotive manufacturer.
An example of one of our relationships in this space is with Cariad, the Volkswagen Group's in-house automotive software company. We have worked with them to develop a uniform, scalable software platform that will be adopted across vehicles for most of the Volkswagen Group's brands. Drivers will experience 24/7 connectivity, lower maintenance downtimes and higher residual values for their cars. As you can see, our distinct engineering work drives value for our customers. I firmly believe that our engineering and software development capability is one of the best-kept secrets, but we are gaining momentum changing this perception. In GIS, our sales organization is oriented toward RFP-focused selling, which is highly price competitive. We continue to implement a disciplined sales approach with the deals we are bringing into GIS. Our belief is we can be disciplined as customers are seeking us out against our competition because of our strong delivery reputation.
We are beginning to see this disciplined sales approach pay off internally, which gives us confidence that we're on the right path with GIS. Overall, we continue to see demand in the market. And with the new sales model for GBS and GIS, you will see us accelerating new work versus renewals. In this quarter, our new work was 63% of our total sales, one of the best new results yet. And finally, I'm pleased with our financial foundation and the steps we have taken to make DXC a quality company. Our debt and our capital allocation are two steps that I would like to highlight. We have effectively managed our debt below our target level of $5 billion. Our debt in Q2 was $4.5 billion, down from $4.8 billion in Q1. Concerning capital allocation, we have delivered $500 million of cash back to shareholders since we announced our buyback program in February.
Now before I turn the call over to Ken, I want to comment on our press release we issued on October 4. We have been approached by a financial sponsor regarding a potential acquisition of DXC. Consistent with our fiduciary responsibility to maximize shareholder value, we have engaged in preliminary discussions and are sharing information. However, to date, no formal proposal has been received. Also, there are no assurances that any proposal will be received or determined as adequate by our Board of Directors. We do not intend to comment further on this matter. As you can see by our Q2 results, our leadership team remains focused on our transformation journey and delivering for our customers and colleagues.
Now let me turn the call over to Ken.