On November 21 2025, the U.S. Court of Appeals for the Fifth Circuit affirmed a district‑court decision that awarded $194 million in damages to Computer Sciences Corporation (CSC), a subsidiary of DXC Technology, for trade‑secret misappropriation by Tata Consultancy Services (TCS). The appellate ruling was announced by DXC on January 14 2026, confirming that TCS willfully and maliciously used CSC’s proprietary information to secure a $2.6 billion contract and develop its own software platform.
The award is composed of $56 million in compensatory damages and $112 million in punitive damages, with additional prejudgment interest bringing the total to approximately $194 million. The Fifth Circuit also vacated the injunction that had been granted by the district court and directed the lower court to reassess the injunction, a procedural change that could affect future litigation strategy.
For DXC, the confirmation of the award removes a significant legal liability that had lingered for years. The $194 million judgment is expected to improve the company’s balance sheet by reducing contingent liabilities and potentially freeing up capital for strategic investments, such as AI‑driven services and infrastructure expansion. The ruling also signals to investors that DXC’s intellectual‑property safeguards are effective, which may bolster confidence in the company’s governance and risk management practices.
In its recent earnings, DXC reported revenue of $4.3 billion, a 3.5 % decline from the prior year, driven by a 5 % drop in its Global Business Services segment while its Global Infrastructure Services segment grew 2 %. Operating income fell 4 % to $1.1 billion, reflecting margin compression in the services segment due to higher labor costs and a shift toward lower‑margin contracts. Management reiterated its guidance for full‑year revenue of $4.4 billion and operating income of $1.2 billion, citing continued investment in AI and cloud services as the primary growth engine.
CEO Raul Fernandez said, “Trust, ethics, and responsible innovation define how DXC operates. Our customers rely on us to safeguard the integrity of the mission‑critical systems we manage for them, and that responsibility demands the highest standards of accountability.” The comment underscores the company’s commitment to protecting intellectual property and maintaining customer confidence amid the legal victory.
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