DXC Technology (DXC) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.96
• Revenue Growth: -4.13%
• EPS Growth: 2143.48%
• Country: US
• Employees: 130,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.96
• Shares Outstanding: 169,759,960
• 10 Day Avg. Volume: 2,510,174
• 30 Day Avg. Volume: 2,426,741
• PEG Ratio: 0.02
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 3.75
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $15.00
• Price Target Upside: 24.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.19
• Revenue Forecast (FY): $12.67B

• Rating: 59 Neutral
• Price Target: $12.50 ▲(3.73% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is held back most by continued revenue contraction and leverage constraints despite improved profitability and solid free cash flow. Valuation is a notable positive (low P/E), while technical signals and earnings-call guidance point to a near-term wait-and-see setup with execution risk on the turnaround initiatives.

Positive Factors

Recurring managed‑services model

DXC’s core business of multi-year outsourcing and managed services embeds delivery teams and SLAs with large enterprise clients, creating recurring fee streams and higher revenue visibility. This durable model supports stable cash flows and cross-sell opportunities over several years, reducing cyclicality.

Solid free cash flow and active deleveraging

Consistent positive free cash flow and meaningful year-to-date debt paydown strengthen liquidity and reduce refinancing risk. Sustained FCF supports ongoing debt reduction, selective buybacks and investments, improving financial flexibility to fund strategic initiatives over the medium term.

AI productization (Fast Track) and platform assets

Productizing AI via Fast Track and leveraging proprietary platform assets like Hogan creates potential for higher‑margin, repeatable IP revenues. Internal scale and partner integrations provide durable differentiation and expand addressable market for cloud, payments and banking modernization solutions over several years.

Negative Factors

Persistent revenue contraction

Continued top-line decline across core segments limits operating leverage and compresses gross profit dollars. Multi-quarter revenue contraction reduces optionality for reinvestment, makes margin gains harder to sustain, and heightens reliance on winning sizable modernization deals to restore growth.

Elevated leverage constraining flexibility

Despite recent debt paydowns, leverage remains high relative to equity which restricts strategic flexibility. Elevated debt increases sensitivity to earnings volatility and limits capacity for large-scale M&A or aggressive investment if revenue or cash generation weakens over the next several quarters.

Execution and talent scaling risk

DXC’s strategy depends on rapidly scaling product teams and a centralized go-to-market to convert bookings into repeatable product revenue. Execution gaps or talent shortages would delay commercialization, prolong revenue recovery, and increase the risk that investments fail to produce sustained margin improvements.

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 through a combination of service contracts, project-based engagements, and managed services agreements. Its primary revenue streams include consulting services, system integration, application development and management, and infrastructure services. The company benefits from long-term relationships with large enterprise clients, which often lead to recurring revenue through multi-year service agreements. Additionally, DXC has formed strategic partnerships with major technology providers, such as Microsoft, Amazon Web Services, and ServiceNow, enhancing its service offerings and broadening its market reach. The company's ability to adapt to changing technology trends and client needs also plays a significant role in maintaining and growing its revenue base.

DXC Technology Financial Statement Overview

Summary

Profitability has improved to positive operating profit/net income and cash generation remains solid, but revenue continues to contract and leverage remains elevated, limiting flexibility and making the recovery less durable.

Income Statement

TTM (Trailing-Twelve-Months) profitability has improved versus the prior loss-making period, with positive operating profit and net income and a healthier EBITDA margin. However, the core top-line trajectory remains weak: revenue continues to decline (TTM down sharply), and gross profit dollars compress materially versus prior annual periods, which limits operating leverage and makes the turnaround more fragile.

Balance Sheet

Leverage remains a key constraint, with debt running above equity and debt-to-equity elevated across the period. While equity has been relatively stable and returns on equity improved back to positive in the most recent periods, the balance sheet still reflects meaningful financial risk and reduced flexibility if earnings soften or restructuring costs rise.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are solid and remain positive, supporting liquidity and potential debt reduction. The key watchouts are the step-down in free cash flow growth (declining in the latest period) and that cash conversion versus accounting earnings is not consistently strong, signaling potential volatility in working capital or one-time items.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.68B	12.87B	13.67B	14.43B	16.27B	16.27B
Gross Profit	2.50B	3.10B	3.09B	3.18B	3.58B	3.58B
EBITDA	2.13B	2.21B	1.84B	866.00M	3.09B	3.09B
Net Income	423.00M	389.00M	91.00M	-568.00M	718.00M	718.00M
Balance Sheet
Total Assets	13.18B	13.21B	13.87B	15.85B	20.14B	20.14B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.80B	1.22B	1.86B	2.67B	2.67B
Total Debt	4.79B	4.55B	4.87B	5.37B	6.17B	6.17B
Total Liabilities	9.76B	9.71B	10.80B	12.03B	14.76B	14.76B
Stockholders Equity	3.15B	3.23B	2.81B	3.50B	5.05B	5.05B
Cash Flow
Free Cash Flow	1.10B	822.00M	954.00M	1.15B	1.25B	-137.00M
Operating Cash Flow	1.32B	1.40B	1.36B	1.42B	1.50B	124.00M
Investing Cash Flow	-534.00M	-512.00M	-491.00M	-635.00M	-60.00M	4.67B
Financing Cash Flow	-734.00M	-317.00M	-1.49B	-1.51B	-1.82B	-5.48B

DXC Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.05 is below the 20-day moving average (MA) of 13.71, below the 50-day MA of 14.46, and below the 200-day MA of 14.28, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 34.73 is Neutral, neither overbought nor oversold. The STOCH value of 7.52 is Positive, 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
INFY	80 Outperform	$56.96B	17.83	32.85%	2.58%	4.62%	1.06%
G	73 Outperform	$6.54B	12.12	22.37%	1.41%	7.40%	-14.45%
CTSH	71 Outperform	$29.20B	13.39	15.16%	1.46%	7.44%	-4.57%
EPAM	68 Neutral	$7.12B	19.47	10.34%	―	14.26%	-15.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DXC	59 Neutral	$2.02B	5.18	13.79%	―	-4.13%	2143.48%
KD	53 Neutral	$2.63B	11.53	21.77%	―	-1.90%	―

DXC Technology Corporate Events

DXC Technology Announces Senior Notes Redemptions

On December 9, 2025, DXC Technology announced its plan to fully redeem its €650 million 1.750% Senior Notes due January 2026 and partially redeem $300 million of its 1.800% Senior Notes due September 2026. The redemptions are scheduled for December 24 and December 19, 2025, respectively, with the Euro Notes set to be delisted from the New York Stock Exchange post-redemption. Concurrently, DXC’s subsidiary completed a €650 million offering of 4.250% Senior Notes due 2030, with proceeds aimed at repaying existing debt and supporting corporate purposes, indicating a strategic move to manage its financial obligations and strengthen its market position.

The most recent analyst rating on (DXC) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.

DXC Technology Announces €650M Senior Notes Offering

On December 2, 2025, DXC Technology‘s subsidiary, DXC Capital Funding DAC, announced the pricing of a €650 million offering of 4.250% Senior Notes due 2030. The proceeds from this offering are intended to repay existing indebtedness and support general corporate purposes, with the Notes expected to be listed on the Luxembourg Stock Exchange. This financial maneuver is part of DXC’s strategy to manage its debt and enhance its operational flexibility.

The most recent analyst rating on (DXC) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on DXC Technology stock, see the DXC Stock Forecast page.