DXC Technology (NYSE:DXC) Issues Quarterly Earnings Results

DXC Technology (NYSE:DXC) released its quarterly earnings results on Thursday. The company reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02), FiscalAI reports. DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The firm had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same period in the prior year, the business earned $0.68 EPS. The company’s revenue for the quarter was down 5.0% compared to the same quarter last year. DXC Technology updated its Q2 2027 guidance to 0.550-0.550 EPS.

Here are the key takeaways from DXC Technology’s conference call:

• Revenue declined 6.7% year over year to $3.0 billion in Q1, while adjusted EBIT margin fell 180 basis points to 5%. Management expects Q2 revenue to decline 5.5%-6.5% and fiscal 2027 organic revenue to decline 3%-5%.
• Bookings increased 5% overall, with GIS bookings up 35% and a 1.11 book-to-bill ratio, supported by several large new-logo and renewal wins. DXC said DXC OASIS was deployed across 57 customer environments and expects 125 customer deployments by fiscal year-end.
• The company’s expected second-half improvement depends heavily on GIS, with roughly 90% of the projected recovery coming from that segment. Management has substantial visibility from opening backlog but still requires modest in-year sales improvement and assumes no macroeconomic improvement.
• DXC reported early evidence that its agentic AI offerings are shortening customer sales cycles and improving operational results, including reducing intrusion-detection time in its own security operations from about 21 minutes to six seconds. It also cited a multi-year, multi-million-dollar Agentic SOC contract and 86 newly trained forward-deployed engineers.
• Free cash flow was $314 million, including a $214 million benefit from the TCS litigation settlement; excluding that benefit, free cash flow was $100 million, modestly above the prior year. Net debt declined by approximately $270 million quarter over quarter, and DXC plans to retire $400 million of bonds and repurchase about $250 million of shares during the fiscal year.

DXC Technology Price Performance

Shares of DXC Technology stock traded down $0.49 during trading on Thursday, hitting $11.28. 5,443,477 shares of the company’s stock traded hands, compared to its average volume of 3,781,650. DXC Technology has a twelve month low of $7.90 and a twelve month high of $15.68. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.36 and a quick ratio of 1.36. The company has a market cap of $1.84 billion, a PE ratio of 3.62 and a beta of 0.82. The firm’s fifty day moving average price is $9.36 and its 200 day moving average price is $11.47.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on DXC shares. Weiss Ratings lowered shares of DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Royal Bank Of Canada restated a “sector perform” rating and set a $16.00 price target on shares of DXC Technology in a report on Friday, June 12th. Morgan Stanley lowered their price target on DXC Technology from $15.00 to $9.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 14th. Zacks Research upgraded DXC Technology from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Finally, BMO Capital Markets cut their price objective on DXC Technology from $17.00 to $10.00 and set a “market perform” rating for the company in a research report on Monday, May 11th. Seven research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, DXC Technology presently has an average rating of “Reduce” and an average price target of $12.25.

Insider Buying and Selling

In related news, CEO Raul J. Fernandez purchased 28,051 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average price of $8.90 per share, with a total value of $249,653.90. Following the purchase, the chief executive officer directly owned 844,052 shares in the company, valued at $7,512,062.80. This represents a 3.44% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.13% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC grew its stake in DXC Technology by 97.0% during the second quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company’s stock worth $60,150,000 after buying an additional 1,936,726 shares during the last quarter. UBS Group AG raised its holdings in shares of DXC Technology by 131.2% in the third quarter. UBS Group AG now owns 2,047,395 shares of the company’s stock valued at $27,906,000 after buying an additional 1,161,879 shares during the last quarter. Qube Research & Technologies Ltd lifted its position in DXC Technology by 1,156.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,132,578 shares of the company’s stock worth $17,317,000 after buying an additional 1,042,409 shares in the last quarter. Balyasny Asset Management L.P. grew its holdings in DXC Technology by 7,434.7% during the 4th quarter. Balyasny Asset Management L.P. now owns 823,161 shares of the company’s stock worth $12,059,000 after acquiring an additional 812,236 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in DXC Technology by 126.7% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,130,560 shares of the company’s stock worth $15,410,000 after acquiring an additional 631,905 shares during the last quarter. 96.20% of the stock is owned by institutional investors.

About DXC Technology

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.