DXC Technology (DXC) AI Stock Analysis

• Market Cap: $2.28B
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 6.5
• 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: 2,208,313
• 30 Day Avg. Volume: 2,140,352
• 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: 2.41
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $14.83
• Price Target Upside: 13.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.13
• Revenue Forecast (FY): $12.69B

• Rating: 58 Neutral
• Price Target: $13.00 ▼(-0.84% Downside)

DXC Technology's overall score reflects a company in transition. Strong cash flow and a low P/E ratio suggest potential value, but ongoing revenue declines and bearish technical indicators highlight risks. Positive developments in AI strategy and industry recognition provide some optimism for future stabilization.

Positive Factors

Improved Profitability

The company's improved profitability and cash flow generation indicate better operational efficiency and financial health, which are crucial for long-term stability and growth.

AI Strategy

The focus on AI solutions positions DXC to capitalize on growing demand for AI technologies, potentially driving future revenue growth and enhancing competitive advantage.

Industry Recognition

Recognition as an industry leader enhances DXC's reputation and credibility, potentially attracting more clients and partnerships, supporting long-term business growth.

Negative Factors

Revenue Decline

Consistent revenue decline reflects challenges in maintaining market share and demand, which could impact long-term financial performance and growth prospects.

Disappointing Bookings

Lower-than-expected bookings indicate potential future revenue challenges, impacting the company's ability to sustain growth and meet financial targets.

Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

DXC Technology Business Overview & Revenue Model

Company Description

DXC Technology (DXC) is a leading global IT services company that specializes in providing end-to-end technology solutions and services to clients across various industries. Formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services segment of Hewlett Packard Enterprise, DXC operates in sectors such as healthcare, financial services, government, and manufacturing. The company offers a wide range of core services, including cloud computing, analytics, application services, cybersecurity, and IT infrastructure management, helping organizations drive digital transformation and improve operational efficiency.

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: Neutral
• Last Price: 13.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXC, the sentiment is Neutral. The current price of 13.11 is above the 20-day moving average (MA) of 13.10, below the 50-day MA of 13.32, and below the 200-day MA of 15.03, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DXC.

DXC Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTSH	80 Outperform	$37.19B	17.86	14.50%	1.61%	7.44%	-4.57%
G	78 Outperform	$7.62B	14.25	22.32%	1.50%	7.40%	-14.45%
INFY	76 Outperform	$72.55B	22.07	29.15%	2.75%	4.62%	1.06%
EPAM	74 Outperform	$10.20B	28.19	10.21%	―	14.26%	-15.49%
KD	64 Neutral	$5.81B	14.99	35.51%	―	-1.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DXC	58 Neutral	$2.28B	6.48	12.33%	―	-4.13%	2143.48%

DXC Technology Corporate Events

DXC Technology’s Mixed Earnings Call: AI Gains Amid Revenue Challenges

In a recent earnings call, DXC Technology Company presented a mixed performance, reflecting both promising advancements and significant challenges. The company showcased strong free cash flow and notable progress in its AI strategy and fast track initiatives. However, it also faced hurdles with declining revenue, disappointing bookings, and pressure in key segments. While the positive momentum in AI and industry recognition is encouraging, the financial performance and operational challenges remain areas of concern.

DXC Technology Reports Q2 Fiscal 2026 Results

DXC Technology is a global IT services company that assists businesses in managing their critical systems and modernizing IT infrastructure, with a focus on optimizing data architectures and ensuring security across various cloud environments. In its latest earnings report for the second quarter of fiscal year 2026, DXC Technology reported a total revenue of $3.16 billion, marking a 2.5% decrease compared to the previous year, with a notable increase in free cash flow to $240 million, up by $192 million year-over-year.