DXC Technology (NYSE:DXC) Issues Q2 2027 Earnings Guidance

DXC Technology (NYSE:DXC) issued an update on its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.550-0.550 for the period, compared to the consensus estimate of 0.710. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.0 billion.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Weiss Ratings cut shares of DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. TD Cowen lowered their target price on shares of DXC Technology from $11.00 to $10.00 and set a “hold” rating on the stock in a research note on Thursday, July 9th. Morgan Stanley dropped their target price on shares of DXC Technology from $15.00 to $9.00 and set an “equal weight” rating on the stock in a report on Thursday, May 14th. Zacks Research raised shares of DXC Technology from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Finally, 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. Seven analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $12.25.

DXC Technology Stock Performance

DXC stock traded down $0.49 during trading on Thursday, reaching $11.28. 5,443,477 shares of the stock were exchanged, 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 current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.94. The company has a market capitalization of $1.84 billion, a P/E ratio of 187.92 and a beta of 0.82. The stock has a 50 day simple moving average of $9.40 and a 200-day simple moving average of $11.44.

DXC Technology (NYSE:DXC) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.40 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.02). 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 analyst estimates of $2.99 billion. During the same period last year, the company earned $0.68 EPS. The company’s revenue was down 5.0% on a year-over-year basis. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. As a group, sell-side analysts anticipate that DXC Technology will post 2.61 earnings per share for the current year.

Insider Activity at DXC Technology

In other news, CEO Raul J. Fernandez bought 28,051 shares of DXC Technology stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average cost of $8.90 per share, with a total value of $249,653.90. Following the completion of the transaction, the chief executive officer directly owned 844,052 shares in the company, valued at $7,512,062.80. This trade represents a 3.44% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.13% of the company’s stock.

Key DXC Technology News

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

• Positive Sentiment: DXC reported $314 million in free cash flow, up from $97 million a year earlier, and repurchased $70 million of stock. First-quarter bookings increased 5% year over year to $3.0 billion, although the book-to-bill ratio was slightly below 1.0x. DXC Technology Reports First Quarter Fiscal Year 2027 Results
• Positive Sentiment: The company announced leadership changes intended to support an AI-centric strategy, naming Paul Taylor president and Dan Gray head of Global Infrastructure Services. DXC also expanded its AI offerings through a strategic partnership with voice-AI company ElevenLabs. DXC Announces Leadership Appointments DXC and ElevenLabs Strategic Partnership
• Neutral Sentiment: First-quarter revenue of approximately $3.0 billion was slightly above analyst expectations of $2.99 billion, while reported EBIT margin was 6.9% and adjusted EBIT margin was 5.0%. Management’s earnings call emphasized the company’s ongoing transformation and AI-focused growth plans. DXC Q1 2027 Earnings Call Transcript
• Negative Sentiment: Non-GAAP EPS was $0.40, below the $0.42 consensus estimate and down 41.2% year over year. Revenue fell 5.1% year over year, or 6.7% organically, while the prior-year quarter produced $0.68 EPS. DXC Lags Q1 Earnings Estimates
• Negative Sentiment: DXC’s second-quarter fiscal 2027 EPS guidance of $0.55 was well below the $0.71 analyst consensus. Revenue guidance of approximately $3.0 billion was in line with expectations, but the weak profit outlook likely drove the negative reaction. DXC Quarterly Earnings Report

Institutional Trading of DXC Technology

Institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC increased its stake in DXC Technology by 240.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company’s stock valued at $27,000 after acquiring an additional 1,227 shares during the period. CIBC Private Wealth Group LLC boosted its holdings in 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 purchasing an additional 2,254 shares in the last quarter. Headlands Technologies LLC acquired a new stake in DXC Technology during the second quarter valued at approximately $39,000. Caitlin John LLC grew its stake 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 purchasing an additional 2,520 shares during the period. Finally, Parallel Advisors LLC grew its stake 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 purchasing an additional 2,295 shares during the period. 96.20% of the stock is currently owned by institutional investors and hedge funds.

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.