DXC Technology (NYSE:DXC) Announces Quarterly Earnings Results

DXC Technology (NYSE:DXC) released its quarterly earnings data on Thursday. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.13, FiscalAI reports. DXC Technology had a return on equity of 17.55% and a net margin of 3.34%.The business had revenue of $3.19 billion during the quarter, compared to analysts’ expectations of $3.18 billion. During the same quarter last year, the business posted $0.92 EPS. The business’s revenue was down 1.0% on a year-over-year basis.

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

• DXC announced a unified AI-first strategy and centralized sales enablement, launching Fast-Track products (e.g., Core Ignite, Agentic SOC, OASIS) built on an orchestration layer that connects legacy systems to AI; management targets 10% of run-rate revenue by Q2 FY2029.
• Third-quarter revenue was $3.2 billion (down 4.3% YoY) and the company guides Q4 organic revenue down 4–5% and FY26 organic decline of ~4.3%, signaling continued near-term top-line pressure.
• Bookings and pipeline show improvement — Q3 book-to-bill was 1.12 and trailing 12-month book-to-bill 1.02 (fourth consecutive quarter >1) with several large new wins, including the London Metropolitan Police master vendor deal.
• Adjusted EBIT margin was 8.2% in Q3 (slightly above guidance) but fell 70 bps YoY; Q4 margin guidance of 6.5–7.5% reflects near-term margin pressure from increased investment in Fast-Track product development and go-to-market activities.
• Cash generation and capital allocation remain strong — Q3 FCF $266M (YTD $603M) with a ~$650M full-year FCF guide, ~\$970M net debt reduction, increased share repurchases (~$250M) and planned ~$400M bond retirements, providing balance-sheet flexibility.

DXC Technology Stock Up 0.1%

Shares of DXC Technology stock opened at $14.42 on Friday. DXC Technology has a 1 year low of $11.82 and a 1 year high of $23.75. The firm has a market cap of $2.51 billion, a price-to-earnings ratio of 6.19 and a beta of 1.04. The company has a 50-day moving average of $14.60 and a 200 day moving average of $14.01. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.09 and a quick ratio of 1.09.

Insiders Place Their Bets

In other DXC Technology news, SVP Christopher Anthony Voci sold 2,500 shares of the company’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $15.15, for a total value of $37,875.00. Following the sale, the senior vice president owned 88,605 shares in the company, valued at approximately $1,342,365.75. This represents a 2.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.61% of the company’s stock.

Institutional Trading of DXC Technology

Hedge funds have recently made changes to their positions in the stock. CANADA LIFE ASSURANCE Co increased its position in DXC Technology by 23.6% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 251,248 shares of the company’s stock valued at $3,424,000 after buying an additional 48,040 shares in the last quarter. Parvin Asset Management LLC bought a new stake in DXC Technology in the third quarter worth $245,000. Mariner LLC grew its stake in shares of DXC Technology by 149.9% in the third quarter. Mariner LLC now owns 25,754 shares of the company’s stock worth $351,000 after acquiring an additional 15,448 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in shares of DXC Technology by 31.6% during the third quarter. Mercer Global Advisors Inc. ADV now owns 22,227 shares of the company’s stock valued at $303,000 after acquiring an additional 5,338 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of DXC Technology by 126.7% in 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 purchasing an additional 631,905 shares during the last quarter. 96.20% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on DXC shares. Wall Street Zen lowered DXC Technology from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of DXC Technology in a research report on Wednesday, October 8th. Wolfe Research set a $13.00 target price on shares of DXC Technology and gave the company an “underperform” rating in a research note on Friday. Stifel Nicolaus decreased their price target on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating for the company in a research note on Friday, October 31st. Finally, Susquehanna set a $14.00 price objective on shares of DXC Technology and gave the stock a “neutral” rating in a report on Friday, October 31st. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $14.71.

More DXC Technology News

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

• Positive Sentiment: Q3 EPS beat and solid cash flow — DXC reported non‑GAAP EPS of $0.96 (above estimates) and delivered $266M free cash flow in the quarter (YTD $603M); management also repurchased $65M of stock and redeemed $300M of senior notes, which supports shareholder returns and deleveraging. PR Newswire: DXC Reports Q3 FY2026 Results
• Positive Sentiment: Bookings and book-to-bill look healthy — bookings were $3.6B with a book-to-bill of 1.12x, indicating demand for services that could support revenue recovery going forward; company reiterated FY revenue around $12.7B and issued FY EPS guidance roughly in line with Street. MarketBeat: DXC Earnings and Materials
• Positive Sentiment: Longer-term AI strategy — DXC is targeting ~10% run‑rate revenue from AI Fast Track initiatives by Q2 2029 as part of a dual‑track growth strategy, which investors may view as incremental upside if execution scales. MSN: DXC Targets 10% AI Run Rate by Q2 2029
• Neutral Sentiment: Full earnings materials and call transcripts available — the slide deck and call transcript give more detail on segment trends, margin drivers and client wins; useful for investors doing deeper diligence. Yahoo Finance: DXC Q3 2026 Earnings Transcript
• Negative Sentiment: Revenue weakness and organic decline — total revenue was $3.19B (down 1.0% YoY, down ~4.3% on an organic basis). Even with an EPS beat, the top‑line decline and mixed revenue metrics prompted investor concern and share weakness. PR Newswire: DXC Q3 Results
• Negative Sentiment: Softer short‑term guidance — DXC set Q4 EPS guidance of $0.65–$0.75, below consensus (~$0.79), which amplified the negative reaction despite the quarterly EPS beat; near‑term guidance and revenue trends are the primary catalysts driving downward pressure. Zacks: Earnings Beat But Shares Fall on Revenue Miss

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.