DXC Technology (DXC) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.90
• Revenue Growth: -4.13%
• EPS Growth: 2143.48%
• Country: US
• Employees: 130,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.84
• Shares Outstanding: 174,133,940
• 10 Day Avg. Volume: 2,291,635
• 30 Day Avg. Volume: 2,261,956
• 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: 2.08
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $14.83
• Price Target Upside: -2.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.13
• Revenue Forecast (FY): $12.69B

• Rating: 62 Neutral
• Price Target: $14.50 ▼(-4.42% Downside)

DXC Technology's overall stock score reflects a company in transition. Strong cash flow and undervaluation are significant positives, but persistent revenue declines and operational challenges weigh on the outlook. The company's strategic focus on AI and industry recognition offer potential for future growth, but execution risks remain.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates effective financial management and provides the company with flexibility to invest in growth opportunities.

AI Strategy

The focus on AI solutions positions DXC to capitalize on growing demand for digital transformation, potentially driving future revenue growth.

Strategic Partnerships

Partnerships with leading tech firms enhance service offerings and market reach, strengthening competitive positioning in the IT services sector.

Negative Factors

Revenue Decline

Persistent revenue decline suggests challenges in maintaining market share and could impact long-term growth prospects if not addressed.

Disappointing Bookings

Lower-than-expected bookings indicate potential difficulties in securing new contracts, which may hinder future revenue growth.

Segment Challenges

Challenges in key segments like CES can affect overall performance, highlighting the need for strategic adjustments to stabilize revenue.

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

DXC Technology shows signs of recovery with improved profitability and cash flow generation. Despite declining revenue, the company maintains a positive net profit margin and has improved its debt-to-equity ratio. Strong cash flow management is a positive indicator, but ongoing revenue declines remain a concern.

Income Statement

DXC Technology's income statement shows a mixed performance. The company has experienced a decline in revenue over the past few years, with a TTM revenue growth rate of -8.31%. Gross profit margins have decreased, indicating pressure on cost management. However, the company has managed to maintain a positive net profit margin of 2.93% in the TTM, recovering from previous losses. The EBIT and EBITDA margins have also shown improvement, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.76 in the TTM, indicating a reduction in leverage. Return on equity remains stable at around 12%, which is a positive sign of profitability. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. Overall, the balance sheet shows signs of stabilization but still carries some risk due to debt levels.

Cash Flow

Cash flow analysis reveals a strong recovery in free cash flow, with a growth rate of 38% in the TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also strong at 69.42%, reflecting efficient cash management. These metrics suggest that the company is effectively converting its earnings into cash, which is a positive indicator for financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.71B	12.87B	13.67B	14.43B	16.27B	16.27B
Gross Profit	2.83B	3.10B	3.09B	3.18B	3.58B	3.58B
EBITDA	2.15B	2.21B	1.84B	866.00M	3.09B	3.09B
Net Income	373.00M	389.00M	91.00M	-568.00M	718.00M	718.00M
Balance Sheet
Total Assets	13.58B	13.21B	13.87B	15.85B	20.14B	20.14B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.80B	1.22B	1.86B	2.67B	2.67B
Total Debt	4.69B	4.55B	4.87B	5.37B	6.17B	6.17B
Total Liabilities	10.25B	9.71B	10.80B	12.03B	14.76B	14.76B
Stockholders Equity	3.07B	3.23B	2.81B	3.50B	5.05B	5.05B
Cash Flow
Free Cash Flow	1.22B	822.00M	954.00M	1.15B	1.25B	-137.00M
Operating Cash Flow	1.56B	1.40B	1.36B	1.42B	1.50B	124.00M
Investing Cash Flow	-476.00M	-512.00M	-491.00M	-635.00M	-60.00M	4.67B
Financing Cash Flow	-374.00M	-317.00M	-1.49B	-1.51B	-1.82B	-5.48B

DXC Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 15.17 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 13.42, and above the 200-day MA of 14.73, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 71.81 is Negative, neither overbought nor oversold. The STOCH value of 94.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXC.

DXC Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	79 Outperform	$40.46B	19.43	14.50%	1.48%	7.44%	-4.57%
G	78 Outperform	$7.99B	14.94	22.32%	1.42%	7.40%	-14.45%
INFY	76 Outperform	$73.31B	22.55	29.15%	2.69%	4.62%	1.06%
EPAM	70 Neutral	$11.66B	31.99	10.21%	―	14.26%	-15.49%
KD	64 Neutral	$6.21B	15.86	35.51%	―	-1.90%	―
DXC	62 Neutral	$2.65B	7.49	12.33%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

DXC Technology Corporate Events

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.