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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________

FORM 10-Q

For the transition period from _________________ to _________________

Commission File No. 1-4850

Registrant's Telephone Number, Including Area Code: (310) 615-0311

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes [X]   No [   ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes [X]   No [   ]

187,128,668 shares of Common Stock, $1.00 par value, were outstanding on July 31, 2003.

See accompanying notes.

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See accompanying notes.

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See accompanying notes.

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Revenues

During the first quarter ended July 4, 2003, the Company's total revenues increased 29.1%, or $801.1 to $3,554.8 million, over the same period last year. On a constant currency basis, total revenues increased approximately 23%. The operations of DynCorp which the Company acquired on March 7, 2003, provided approximately 25 percentage points of the Company's overall revenue growth. The Company utilizes a fiscal reporting calendar and the first quarter of fiscal 2004 includes an additional week of business operations compared to the same period last year. Excluding the former DynCorp operations, the additional week of operations is estimated to have contributed approximately 4 percentage points in revenue growth with the estimate taking into account CSC's outsourcing and professional services arrangements.

U.S. Federal sector revenue increased 90.5%, or $715.2 to $1,505.9 million during the first quarter. Revenue growth was fueled by the acquisition of DynCorp, which contributed approximately 87 percentage points of revenue growth in the U.S. Federal sector. Federal sector's other operations provided the remaining revenue growth.

Global Commercial sector revenue increased 4.4%, or $85.9 million to $2,048.9, over the same quarter of last year. Global Commercial revenue benefited by approximately 8 percentage points due to currency fluctuations in Europe, Australia and Asia.

U.S. Commercial revenue declined 5.9%, or $59.1 million to $937.9 million during the first quarter of fiscal 2004 compared to the same period last year. The decrease was principally driven by lower revenue in outsourcing activities due to contract completions and reduced billable outsourcing activities. Lower outsourcing activities were partially offset by several new projects, which in aggregate contributed approximately $65 million in revenue. New projects include most notably Bombardier Transportation, British Telecom North America, and Motorola.

European revenue of $819.2 million for the first quarter increased 20.7%, or $140.4 million compared to the same period in the prior year. Currency fluctuations favorably impacted revenue growth by approximately 19 percentage points. New outsourcing contracts contributed approximately $65 million in revenue growth including Royal Mail Group, Bombardier Transportation, and the United Kingdom's Department of Health. Declines in the European consulting and integration services as well as the financial services market sector were offset by revenue gains in outsourcing activities.

Other International revenue for the first quarter was up 1.6% to $291.8 million. Currency fluctuations favorably impacted revenue growth by approximately 10 percentage points. The favorable currency impact was principally offset by a $17 million decline in outsourcing activities in Australia. The remaining decline, net of currency impact, was a result of weak demand in Asia.

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During the first quarter of fiscal 2004, the Company announced new business awards of $4.3 billion, including $474 million related to new U.S. federal contract awards and $3.8 billion related to Global Commercial activities. The Company's growth has created a broad, long-term global revenue base across numerous customers, industries, geographic regions and service offerings. CSC earned over 80% of its revenues from long-term contracts including Global Commercial outsourcing and U.S. federal government engagements.

Costs and Expenses

The Company's costs and expenses as a percentage of revenue are as follows (in millions):

	Dollar Amount				Percentage of Revenue
	First Quarter				First Quarter
	Fiscal				Fiscal
	2004		2003		2004		2003
Costs of services	$2,931.7		$2,231.7		82.5%		81.0%
Selling, general and administrative	208.7		182.6		5.9		6.6
Depreciation and amortization	235.0		195.6		6.6		7.1
Interest expense, net	40.1		32.6		1.1		1.2
Special items	6.2				0.2
Total	$3,421.7     =========		$2,642.5     =========		96.3%    =======		95.9%     =========

Comparing the first quarter results of fiscal 2004 to fiscal 2003, total costs and expenses increased as a percentage of revenue. Higher costs of services as a percentage of revenue and the impact of the special items were partially offset by lower depreciation and amortization, and selling, general and administrative costs. The Company matches revenues and costs to the same currency. Therefore, the foreign currency impact of approximately 6 percentage points on revenues and costs did not have a material impact on costs and expenses as a percentage of revenue.

The increase in costs of services as a percentage of revenue was principally caused by the former DynCorp operations, for which the expense mix is weighted more toward cost of services. The former DynCorp operations increased CSC's consolidated cost of services as a percentage of revenue by approximately 1.6 percentage points. Other CSC operations had a slight performance improvement of .1 percentage point.

Lower selling, general and administrative expenses (SG&A) as a percentage of revenue were also significantly impacted by the former DynCorp operations, which carry a lower SG&A expense as a percentage of revenue than the composite of other CSC operations. Excluding the effects of the former DynCorp operations, the Company's SG&A expense as a percentage of revenue would have been approximately 6.4%. The remaining decrease of .2 percentage points is primarily related to European performance improvement from cost containment and centralization of back-office functions conducted during the third and fourth quarters of fiscal 2003.

The decrease in depreciation and amortization expense is attributable to the former DynCorp operations, which carry lower depreciation and amortization expense as a percentage of revenue than the composite of other CSC operations. Due to a shift in business mix that includes more long-term outsourcing and less project work, depreciation and amortization expense increased to 7.9% of revenues excluding DynCorp operations.

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Net Interest expense remained virtually unchanged as a percentage of revenue compared to the same period in the prior year. The increase of $7.5 million is principally related to additional borrowing compared to the same period last year.

Special Items

As disclosed in the Company's fiscal 2003 Annual Report on Form 10-K, the Company reviewed its operations, product strategies and the carrying value of its assets to identify any potential exit or disposal activities in connection with the DynCorp acquisition in March 2003. As a result, during the first quarter ended July 4, 2003, special items of $6.2 million ($3.9 million after tax) or 2 cents per share (diluted) were recorded. The charge represents equipment that can not accommodate the larger, integrated U.S. Federal sector business, and its use has been discontinued. The Company anticipates completing the exit and disposal activities related to the DynCorp acquisition by the end of the second quarter of fiscal 2004. The Company currently estimates the additional special charges will not exceed $16 million.

Additionally, as disclosed in the Company's fiscal 2003 Annual Report on Form 10-K, the Company incurred costs to exit and consolidate activities, involuntarily terminate employees, and other costs to integrate DynCorp into the Company. As of July 4, 2003, 37 of the 75 employees have been involuntarily terminated. The components of the acquisition integration liabilities included in the purchase price allocation for DynCorp are as follows:

Income Before Taxes

Income before taxes increased to $133.1 million compared with $111.2 million reported for last year's first quarter. The resulting pre-tax margin was 3.7% compared with 4.0% for the same period last year.

Net Income

Net income was $92.3 million for the first quarter of fiscal 2004, up from $79.0 million for the corresponding period last year. This year's first quarter diluted earnings per share was 49 cents (including 2 cent per share impact of special items) versus 46 cents reported for last year's first quarter.

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Cash Flows

Cash provided by operating activities was $20.3 million for the three months ended July 4, 2003, compared with cash provided by operating activities of $21.7 million during the same period last year. The decrease of $1.4 million primarily resulted from unfavorable changes in working capital and was substantially offset by an increase in earnings and an increase in depreciation and amortization expense and other non-cash charges.

The Company's net cash used in investing activities totaled $359.0 million for the most recent three months compared to $195.4 million during the same period last year. The increase principally relates to investments in property and equipment and outsourcing contract costs in support of major new contract activities including Motorola, Marconi, and the Royal Mail Group.

Cash provided by financing activities was $179.8 million for the most recent quarter versus $145.3 million for the same period a year ago. The change is principally driven by higher borrowing activity in connection with the DynCorp acquisition.

Financial Condition

During the first quarter of fiscal 2004, the Company's capital outlays included $317.5 million of business investments in the form of fixed asset purchases and outsourcing contract costs. These investments were funded from additional borrowings and existing cash balances, which decreased from $299.6 million as of March 28, 2003 to $143.3 million at July 4, 2003. The Company's debt-to-total capitalization ratio increased from 35.0% at March 28, 2003 to 35.4% at July 4, 2003. During fiscal 2002, the Company filed a shelf registration statement covering up to $1.5 billion of debt and/or equity securities. As of July 4, 2003, the shelf registration has $900 million of unissued debt or equity securities.

The Company has an option to require a subsidiary of Equifax Inc. to purchase the Company's credit reporting business as further described in Note 13 of the Company's Annual Report on Form 10-K for fiscal 2003. The exercise price of this put option is equal to the appraised value of the business.

It is management's opinion that the Company will be able to meet its liquidity and cash needs for the foreseeable future through a combination of cash flows from operating activities, cash balances, unused borrowing capacity and other financing activities, including the issuance of debt and/or equity securities, and/or the exercise of the put option described above.

The Company's sources of liquidity include the issuance of commercial paper and short-term borrowings. If the Company were unable to sell commercial paper or if the Company determined it was too costly to do so, the Company has the ability to borrow under two syndicated backstop credit facilities.

At July 4, 2003, the Company's syndicated credit facilities were comprised of a $321 million facility, which expires on August 18, 2005 and a $350.0 million facility which expires on August 15, 2003. As of July 4, 2003, the Company had no borrowings under these facilities and is in compliance with all terms of the agreements. The Company expects to renew the $350 million facility prior to its expiration date.

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At July 4, 2003, the Company had $252.7 million of short-term debt and current maturities of long-term debt and $2.4 billion of long-term debt, including $99.4 million of commercial paper borrowings. As further described in Note 7 of the Company's Annual Report on Form 10-K for fiscal 2003, the classification of the Company's outstanding commercial paper is determined by the expiration dates of its backstop credit facilities.

The Company has not changed its critical accounting policies. These policies are described in "Management's Discussion and Analysis" of the Company's Annual Report on Form 10-K for fiscal 2003.

In November 2002 and May 2003, the EITF reached a consensus on Issue No. 00-21, "Revenue Arrangements with Multiple Deliverables." EITF Issue No. 00-21 provides guidance and criteria for determining when a multiple deliverable arrangement contains more than one unit of accounting. The guidance also addresses methods of measuring and allocating arrangement consideration to separate units of accounting. The guidance is effective for all revenue arrangements entered into after July 5, 2003. The Company presently intends to adopt this statement prospectively and the Company does not anticipate a material impact to the Company's financial condition or results of operations as a result of adoption.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities." SFAS No. 149 amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives) and for hedging activities under FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement was effective for contracts entered into or modified after June 30, 2003. Adoption of this statement did not have a significant effect on the Company's consolidated financial position or results of operations.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity." SFAS No. 150 establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. This statement was effective for financial instruments entered into or modified after May 31, 2003. Adoption of this statement did not have a significant effect on the Company's consolidated financial position or results of operations.

In May 2003, the EITF reached a consensus on Issue No. 01-08, "Determining Whether an Arrangement Contains a Lease." EITF Issue No. 01-08 provides guidance on how to determine whether an arrangement contains a lease that is within the scope of FASB Statement No. 13, "Accounting for Leases." The guidance in Issue No. 01-08 is based on whether the arrangement conveys to the purchaser (lessee) the right to use a specific asset. Issue No. 01-08 will be effective for arrangements entered into or modified in the Company's second quarter of fiscal 2004. The guidance could require CSC and its customers to apply lease accounting to certain elements of information technology outsourcing arrangements depending on the specific terms of individual contracts. The Company is currently evaluating EITF Issue No. 01-08 and has not determined the impact this statement will have on its consolidated financial position and results of operations.

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Forward-Looking Statements

All statements in this quarterly report on Form 10-Q and in the documents attached or incorporated by reference that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements represent current expectations and beliefs of CSC, and no assurance can be given that the results described in such statements will be achieved.

Forward-looking information contained in these statements include, among other things, statements with respect to the Company's financial condition, results of operations, cash flows, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities, plans and objectives of management, and other matters. Such statements are subject to numerous assumptions, risks, uncertainties and other factors, many of which are outside of the Company's control, that could cause actual results to differ materially from the results described in such statements.

These factors include, without limitation, the following: (i) changes in the Global Commercial demand for information technology outsourcing, business process outsourcing and consulting and systems integration services; (ii) changes in U.S. federal government spending levels for information technology and other services; (iii) competitive pressures; (iv) the credit worthiness of the Company's commercial customers; (v) the Company's ability to recover its accounts receivable; (vi) the Company's ability to recover its capital investment in outsourcing contracts; (vii) the Company's ability to continue to develop and expand its service offerings to address emerging business demands and technological trends; (viii) the future profitability of the Company's long-term contracts with customers; (ix) the future profitability of the Company's fixed-price contracts; (x) the Company's ability to consummate and integrate acquisitions and form alliances; (xi) the Company's ability to attract and retain qualified personnel; (xii) early termination of client contracts; and (xiii) general economic conditions and fluctuations in currency exchange rates in countries in which the Company does business.

Forward-looking statements in this quarterly report on Form 10-Q speak only as of the date hereof, and forward-looking statement in documents attached or incorporated by reference speak only as to the date of those documents. The Company does not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

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For a discussion of the Company's market-risk associated with interest rates and foreign currencies as of March 28, 2003, see "Quantitative and Qualitative Disclosures about Market Risk" in the Part II, Item 7A, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of the Company's Annual Report on Form 10-K for the fiscal year then ended. For the three months ended July 4, 2003, there has been no significant change in related market risk factors.

"Disclosure controls and procedures" are the controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. "Disclosure controls and procedures" include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in its Exchange Act reports is accumulated and communicated to the issuer's management, including its principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

The Company's Chief Executive Officer and Chief Financial Officer have evaluated the Company's disclosure controls and procedures as of July 4, 2003 and, based upon this evaluation, have concluded that they are effective in all material respects.

"Internal control over financial reporting" is a process designed by, or under the supervision of, the issuer's principal executive and financial officers, and effected by the issuer's board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

During the fiscal quarter ended July 4, 2003, there was no change in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

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1. The Company held its Annual Meeting of Stockholders on August 11, 2003.
2. Proxies for the Annual Meeting were solicited pursuant to Regulation 14 under the Securities Exchange Act of 1934; there were no solicitations in opposition to management's nominees for director as listed in the Proxy Statement; and all such nominees were elected.

The directors elected were Irving W. Bailey, II, Stephen L. Baum, Rodney F. Chase, Van B. Honeycutt, William R. Hoover, Leon J. Level, Thomas A. McDonnell, F. Warren McFarlan, James R. Mellor and William P. Rutledge.

With respect to each nominee, the results of the vote were as follows:

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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.