DXC Technology (DXC)
NYSE:DXC
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DXC Technology
(NYSE:DXC)
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Rating:59Neutral
Price Target:
$12.00
▼(-7.48% Downside)
Action:ReiteratedDate: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 model of multi-year managed services and embedded delivery teams creates recurring revenue, sticky client relationships and long-duration SLAs. This supports predictable cash flows, higher client retention, and scope expansion potential, strengthening long-term revenue visibility.
Negative Factors
Persistent revenue contraction
Ongoing top-line declines across core segments reduce operating leverage and constrain margin expansion. Continued revenue contraction weakens pricing power, heightens dependence on cost cuts and productization to offset volume loss, and makes sustainable growth contingent on successful strategic execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring managed-services model
DXC’s core model of multi-year managed services and embedded delivery teams creates recurring revenue, sticky client relationships and long-duration SLAs. This supports predictable cash flows, higher client retention, and scope expansion potential, strengthening long-term revenue visibility.
Read all positive factors
DXC Technology (DXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)2.56M
Price to Earnings (P/E)6.1
Beta (1Y)1.00
Revenue Growth-3.09%
EPS GrowthN/A
CountryUS
Employees130,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.96
Shares Outstanding169,759,960
10 Day Avg. Volume3,035,671
30 Day Avg. Volume2,564,157
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.95
Price to Sales (P/S)0.24
P/FCF Ratio3.75
Enterprise Value/Market Cap2.55
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda2.35
Forecast
1Y Price Target
$14.60Price Target Upside12.57% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.29
Revenue Forecast (FY)$12.35B
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 Infrastr...
How the Company Makes Money
DXC makes money primarily by selling IT services under multi-year contracts and shorter project engagements, with revenue largely recognized as services are delivered. Its core revenue model is service fees billed on a recurring basis for managed ...
DXC Technology Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyDXC Technology Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong strategic progress on AI, productization (Fast Track), meaningful operational proofs (customer-zero AI deployment, SOC metrics), improved bookings momentum and solid cash generation and balance-sheet actions. However, these positives are offset in the near term by continuing revenue declines across segments (total revenue -4.3% YoY; GIS -6.2%; CES -3.6%), guidance for further organic decline in Q4, and margin pressure driven by investments and short-term booking delays. Execution risk — including the need to scale product teams and global sales enablement — is a key determinant of whether the strategic initiatives will translate into sustained top-line recovery.Positive Updates
AI-First Strategic Shift and Fast Track Initiative
Launched Fast Track AI-infused offerings focused on repeatable IP and productized solutions with a target to reach 10% of run-rate revenue by end of Q2 FY2029; architecture enables moving from idea to production in weeks and preserves legacy systems by layering AI rather than ripping and replacing.
Negative Updates
Revenue Decline — Total Company
Total revenue for Q3 was $3.2 billion, declining 4.3% year-over-year; updated full-year FY2026 organic revenue decline expected at approximately 4.3% with Q4 organic revenue guide of -4% to -5%.
Read all updates
Q3-2026 Updates
Positive
Negative
AI-First Strategic Shift and Fast Track Initiative
Launched Fast Track AI-infused offerings focused on repeatable IP and productized solutions with a target to reach 10% of run-rate revenue by end of Q2 FY2029; architecture enables moving from idea to production in weeks and preserves legacy systems by layering AI rather than ripping and replacing.
Read all positive updates
Company Guidance
DXC's guidance for Q4 FY2026 calls for organic revenue down 4–5% (updated FY26 organic decline ~4.3%), with CES down low-single-digits, GIS down mid-single-digits and Insurance up low-single-digits; adjusted EBIT margin of 6.5–7.5% for Q4 (FY26 ~7.5%), non‑GAAP diluted EPS $0.65–$0.75 (FY26 ~ $3.15), and full‑year free cash flow roughly $650 million. The company noted Q3 metrics of $3.2B revenue (‑4.3% YoY), adjusted EBIT margin 8.2% (‑70 bps YoY), non‑GAAP EPS $0.96, Q3 book‑to‑bill 1.12 (TTM 1.02), CES book‑to‑bill 1.2 (TTM 1.13), GIS book‑to‑bill 1.09, CES = 40% of revenue (‑3.6% YoY), GIS = 50% (‑6.2% YoY), Insurance = 10% (+3.2% YoY). Cash/capital actions include Q3 FCF $266M and YTD $603M (on pace for ~$650M), cash ~$1.7B, total debt ~ $3.6B (down $465M), net debt reduced ~ $970M, YTD buybacks $190M (including $65M in Q3) with $60M planned in Q4 (FY repurchases ~ $250M), and H1 FY27 plans to retire $400M of bonds and repurchase $250M of stock; management also targets Fast Track offerings to reach ~10% of run‑rate revenue by end of Q2 FY2029.DXC Technology Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
63
Positive
| 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
Positive
12.97
Price Trends
12.61
Positive
13.59
Negative
13.71
Negative
Market Momentum
0.03
Negative
56.82
Neutral
77.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXC, the sentiment is Positive. The current price of 12.97 is above the 20-day moving average (MA) of 12.31, above the 50-day MA of 12.61, and below the 200-day MA of 13.71, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 77.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXC.
DXC Technology Risk Analysis
DXC Technology disclosed 38 risk factors in its most recent earnings report. DXC Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DXC Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.74B | 14.72 | 21.81% | 1.41% | 6.60% | 10.28% | |
73 Outperform | $50.09B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
68 Neutral | $26.13B | 17.90 | 14.84% | 1.46% | 6.95% | 1.11% | |
68 Neutral | $6.14B | 30.32 | 10.27% | ― | 15.42% | -14.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.97B | 6.07 | 13.41% | ― | -3.09% | ― | |
54 Neutral | $3.06B | 26.53 | 20.43% | ― | 0.11% | 82.67% |
* Technology Sector Average
DXC
DXC Technology
11.53
-4.20
-26.70%
CTSH
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55.12
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EPAM
Epam Systems
114.15
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G
Genpact
33.95
-14.14
-29.40%
INFY
Infosys
12.25
-4.89
-28.53%
KD
Kyndryl Holdings Incorporation
13.46
-19.18
-58.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.