DXC Technology (DXC) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.08
• Revenue Growth: -5.82%
• EPS Growth: 469.88%
• Country: US
• Employees: 130,000
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.84
• Shares Outstanding: 181,960,780
• 10 Day Avg. Volume: 1,525,964
• 30 Day Avg. Volume: 1,769,089
• PEG Ratio: 0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.12
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: 0.32
• 1Y Price Target: $16.71
• Price Target Upside: 16.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $16.50 ▲(15.38%Upside)

DXC's financial recovery, with improved margins and reduced debt, positively impacts the stock score. However, ongoing revenue declines and bearish technical indicators pose challenges. Valuation is a bright spot, with potential upside due to a low P/E ratio. Mixed guidance and earnings call results reflect both opportunities and risks ahead.

Positive Factors

Bookings Growth

Two consecutive quarters of book-to-bill greater than 1.0x in the back-half of FY25 is encouraging.

Cash Flow

Free cash flow less capital leases improved 19% in FY25 to $389M and this is forecasted to be up nearly 10% in FY26.

Financial Performance

4Q performance exceeded DXC's outlook across metrics, and it posted a consecutive quarter with healthy bookings growth.

Negative Factors

Earnings Guidance

Initial FY26 guidance and 1Q forecast missed consensus, reflecting a challenging macro environment and ongoing organizational changes.

Earnings Impact

The needed investments weigh on margin and this flows through to earnings per share, which is below Street expectations.

Growth Targets

FY26 growth targets underwhelm investors and suggest a more gradual return to growth than expected.

DXC Technology Business Overview & Revenue Model

Company Description

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also uses various technologies and methods to accelerate the creation, modernization, delivery, and maintenance of secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership. In addition, this segment offers business process services, which include integration and optimization of front and back office processes, and agile process automation. The GIS segment adapts legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments; and offers security solutions help predict attacks, proactively respond to threats, and ensure compliance, as well as to protect data, applications, and infrastructure. It also provides IT outsourcing services to help customers securely and cost-effectively run mission-critical systems and IT infrastructure. In addition, this segment offers workplace services to fit its customer's employee, business, and IT needs from intelligent collaboration; and modern device management, digital support services, and mobility services. DXC Technology Company is headquartered in Ashburn, Virginia.

How the Company Makes Money

DXC Technology generates revenue primarily through its extensive portfolio of IT services and solutions. The company's revenue model is centered around providing IT outsourcing services, including infrastructure management, application development and management, and business process services. Cloud and platform services also constitute a significant part of its earnings, as businesses increasingly migrate to cloud-based systems. Additionally, DXC earns from offering cybersecurity services and consulting, which are crucial in the digital age. Key partnerships with technology giants like Microsoft, AWS, and VMware enhance its service offerings and expand its market reach, thereby contributing significantly to its revenue streams.

DXC Technology Financial Statement Overview

Summary

DXC Technology shows signs of financial recovery with improved profitability and reduced leverage. Despite a consistent revenue decline, improved margins and reduced debt reflect strategic improvements. Continued focus on cost efficiency and debt management is crucial for sustained growth.

Income Statement

DXC Technology has shown a consistent decline in revenue over the past several years, with a noticeable drop from $19.58 billion in 2020 to $12.87 billion in 2025. The gross profit margin has remained stable, but the net profit margin has improved significantly from a loss to 3.02% in 2025, indicating better cost management and operational efficiency. EBIT and EBITDA margins have been volatile, but recent improvements signal a positive trend.

Balance Sheet

The company's balance sheet shows a reduction in total debt from $11.49 billion in 2020 to $1.55 billion in 2025, significantly improving the debt-to-equity ratio. Stockholders' equity has increased, leading to a healthier equity ratio and enhancing financial stability. However, the total assets have decreased over the years, which might limit future growth opportunities.

Cash Flow

DXC Technology's cash flow from operations has remained strong, with a noticeable improvement in free cash flow, now at $1.15 billion in 2025. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to net earnings. The company has effectively managed capital expenditures, contributing to positive free cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.87B	13.67B	14.43B	16.27B	17.73B
Gross Profit	3.10B	3.09B	3.18B	3.58B	3.64B
EBITDA	2.21B	1.81B	942.00M	3.17B	3.07B
Net Income	389.00M	91.00M	-566.00M	718.00M	-146.00M
Balance Sheet
Total Assets	13.21B	13.87B	15.85B	20.14B	22.04B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.22B	1.86B	2.67B	2.97B
Total Debt	1.55B	4.87B	5.37B	6.17B	6.97B
Total Liabilities	9.71B	10.80B	12.03B	14.76B	16.73B
Stockholders Equity	3.23B	2.81B	3.50B	5.05B	5.31B
Cash Flow
Free Cash Flow	822.00M	954.00M	960.00M	952.00M	-391.00M
Operating Cash Flow	1.40B	1.36B	1.42B	1.50B	124.00M
Investing Cash Flow	-512.00M	-491.00M	-635.00M	-60.00M	4.67B
Financing Cash Flow	-317.00M	-1.49B	-1.51B	-1.82B	-5.48B

DXC Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXC, the sentiment is Negative. The current price of 14.3 is below the 20-day moving average (MA) of 14.99, below the 50-day MA of 15.19, and below the 200-day MA of 18.28, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXC.

DXC Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	78 Outperform	$3.21B	19.92	21.24%	―	1.94%	26.19%
G	77 Outperform	$7.88B	15.34	22.21%	1.42%	7.31%	-15.86%
CNXC	76 Outperform	$3.83B	16.69	5.59%	2.20%	11.31%	-16.02%
ASGN	71 Outperform	$2.44B	17.38	7.71%	―	-6.31%	-23.56%
DXC	67 Neutral	$2.65B	6.79	12.88%	―	-5.82%	469.88%
KD	52 Neutral	$8.87B	37.78	22.47%	―	-8.20%	―
Sector *	50 Neutral	C$3.05B	2.51	-63.57%	2.26%	4.49%	-6.15%

DXC Technology Corporate Events

DXC Technology Holds Annual Stockholders Meeting

On July 22, 2025, DXC Technology held its Annual Meeting of Stockholders, where three key proposals were voted on. All ten director nominees were elected to serve until the 2026 annual meeting, Deloitte & Touche LLP was ratified as the independent accounting firm for the fiscal year ending March 31, 2026, and the compensation of the company’s named executive officers was approved on an advisory basis.

The most recent analyst rating on (DXC) stock is a Sell with a $22.00 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.

DXC Technology Restructures Financial Reporting Segments

Effective April 1, 2025, DXC Technology restructured its financial reporting into three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Services, to better align with its operational structure and resource allocation. This change aims to enhance transparency and efficiency in reporting, potentially impacting the company’s market positioning by showcasing its focused approach in delivering specialized IT services across different sectors.

The most recent analyst rating on (DXC) stock is a Sell with a $22.00 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.

DXC Technology EVP Howard Boville Departs Company

On July 1, 2025, Howard Boville, the Executive Vice President of Consulting & Engineering Services at DXC Technology, departed the company. In connection with his departure, Boville will receive a separation payment and benefits as outlined in the company’s 2025 proxy statement, under the terms for non-change of control executive officer severance.

The most recent analyst rating on (DXC) stock is a Sell with a $22.00 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.

DXC Technology Approves Special Equity Awards for Executives

On May 13, 2025, DXC Technology‘s Board of Directors approved special one-time equity awards for CEO Raul Fernandez and CFO Robert Del Bene, aimed at retaining their leadership for an additional three years. These awards, primarily performance-based, are designed to align executive interests with shareholders and incentivize long-term company performance by tying compensation to key financial metrics and shareholder returns.

The most recent analyst rating on (DXC) stock is a Sell with a $22.00 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.