DXC Technology (NYSE:DXC) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

DXC Technology (NYSE:DXC) released its quarterly earnings data on Friday. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.74 by $0.03, FiscalAI reports. The company had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a return on equity of 17.01% and a net margin of 0.14%.DXC Technology’s quarterly revenue was down 1.2% on a year-over-year basis. During the same period last year, the business posted $0.84 EPS.

DXC Technology Stock Down 21.4%

NYSE DXC traded down $2.57 during midday trading on Friday, hitting $9.45. 16,627,765 shares of the company traded hands, compared to its average volume of 3,666,390. DXC Technology has a 52 week low of $8.40 and a 52 week high of $17.26. The company’s 50-day simple moving average is $12.24 and its 200-day simple moving average is $13.41. The company has a market cap of $1.60 billion, a PE ratio of 157.42 and a beta of 0.85. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.35 and a quick ratio of 1.35.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on DXC shares. Wall Street Zen downgraded DXC Technology from a “buy” rating to a “hold” rating in a research report on Saturday, March 28th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of DXC Technology in a research note on Wednesday, April 8th. BMO Capital Markets increased their target price on shares of DXC Technology from $15.00 to $17.00 and gave the stock a “market perform” rating in a report on Tuesday, February 3rd. TD Cowen cut their target price on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating on the stock in a research report on Monday, April 6th. Finally, Stifel Nicolaus set a $12.00 price target on shares of DXC Technology in a report on Friday. Eight investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $14.38.

Key Stories Impacting DXC Technology

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC beat fourth-quarter adjusted earnings estimates, reporting non-GAAP EPS of $0.77 versus $0.74 expected, while free cash flow rose to $713 million for the full year and the company repurchased $250 million of stock. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Neutral Sentiment: The company also posted strong bookings of $3.3 billion, with a book-to-bill ratio of 1.07x, suggesting demand was still adequate even as revenue softened. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Negative Sentiment: Revenue fell 1.2% year over year in the quarter, and management signaled ongoing weakness in demand, which tempered the benefit of the earnings beat. DXC Technology Q4 Earnings Beat Estimates, Revenues Decline Y/Y
• Negative Sentiment: FY2027 guidance came in below Wall Street expectations, with management forecasting organic revenue decline of 3% to 5% and EPS of $2.40 to $2.90 versus a higher consensus estimate, raising concerns about next year’s growth trajectory. DXC forecasts FY 2027 organic revenue decline of 3%-5% with EPS of $2.40-$2.90
• Negative Sentiment: Reports that DXC employees have begun strike action add an operational risk that could further weigh on sentiment if service disruption continues. DXC employees commence strike action

Institutional Investors Weigh In On DXC Technology

A number of hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its position in DXC Technology by 240.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company’s stock valued at $27,000 after purchasing an additional 1,227 shares in the last quarter. CIBC Private Wealth Group LLC lifted its position in shares of DXC Technology by 13,258.8% during the fourth quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company’s stock valued at $33,000 after buying an additional 2,254 shares during the last quarter. Headlands Technologies LLC purchased a new stake in shares of DXC Technology during the second quarter valued at about $39,000. Caitlin John LLC boosted its holdings in shares of DXC Technology by 358.0% in the 4th quarter. Caitlin John LLC now owns 3,224 shares of the company’s stock valued at $49,000 after buying an additional 2,520 shares in the last quarter. Finally, Parallel Advisors LLC boosted its holdings in shares of DXC Technology by 36.9% in the 3rd quarter. Parallel Advisors LLC now owns 8,513 shares of the company’s stock valued at $116,000 after buying an additional 2,295 shares in the last quarter. 96.20% of the stock is currently owned by hedge funds and other institutional investors.

DXC Technology Company Profile

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology’s core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.