DXC Technology (NYSE:DXC) Announces Quarterly Earnings Results

DXC Technology (NYSE:DXC) announced its quarterly earnings results on Thursday. The company reported $0.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.01), FiscalAI reports. The company had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.99 billion. DXC Technology had a net margin of 0.99% and a return on equity of 15.61%. The company’s revenue was down 5.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.68 earnings per share. DXC Technology updated its Q2 2027 guidance to 0.550-0.550 EPS.

Here are the key takeaways from DXC Technology’s conference call:

• Revenue declined 6.7% year over year to $3.0 billion in Q1, while adjusted EBIT margin fell 180 basis points to 5%. Management expects Q2 revenue to decline 5.5%-6.5% and fiscal 2027 organic revenue to decline 3%-5%.
• Bookings increased 5% overall, with GIS bookings up 35% and a 1.11 book-to-bill ratio, supported by several large new-logo and renewal wins. DXC said DXC OASIS was deployed across 57 customer environments and expects 125 customer deployments by fiscal year-end.
• The company’s expected second-half improvement depends heavily on GIS, with roughly 90% of the projected recovery coming from that segment. Management has substantial visibility from opening backlog but still requires modest in-year sales improvement and assumes no macroeconomic improvement.
• DXC reported early evidence that its agentic AI offerings are shortening customer sales cycles and improving operational results, including reducing intrusion-detection time in its own security operations from about 21 minutes to six seconds. It also cited a multi-year, multi-million-dollar Agentic SOC contract and 86 newly trained forward-deployed engineers.
• Free cash flow was $314 million, including a $214 million benefit from the TCS litigation settlement; excluding that benefit, free cash flow was $100 million, modestly above the prior year. Net debt declined by approximately $270 million quarter over quarter, and DXC plans to retire $400 million of bonds and repurchase about $250 million of shares during the fiscal year.

DXC Technology Stock Performance

DXC Technology stock traded up $0.06 during trading hours on Friday, hitting $11.30. 10,793,372 shares of the stock traded hands, compared to its average volume of 3,771,086. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.36 and a quick ratio of 1.36. The firm’s 50 day moving average price is $9.44 and its 200-day moving average price is $11.44. The stock has a market capitalization of $1.85 billion, a price-to-earnings ratio of 16.14 and a beta of 0.82. DXC Technology has a 1 year low of $7.90 and a 1 year high of $15.68.

Insider Activity

In other news, CEO Raul J. Fernandez acquired 28,051 shares of DXC Technology stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $8.90 per share, for a total transaction of $249,653.90. Following the completion of the purchase, the chief executive officer directly owned 844,052 shares in the company, valued at $7,512,062.80. This trade represents a 3.44% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.13% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DXC Technology

Hedge funds and other institutional investors have recently bought and sold shares of the business. Lido Advisors LLC boosted its stake in DXC Technology by 6.1% during the fourth quarter. Lido Advisors LLC now owns 17,383 shares of the company’s stock worth $241,000 after buying an additional 1,003 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of DXC Technology by 240.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company’s stock worth $27,000 after acquiring an additional 1,227 shares during the period. Focus Partners Wealth raised its holdings in shares of DXC Technology by 9.9% during the 3rd quarter. Focus Partners Wealth now owns 15,094 shares of the company’s stock worth $202,000 after acquiring an additional 1,357 shares during the period. Amundi boosted its position in shares of DXC Technology by 5.6% during the 3rd quarter. Amundi now owns 31,566 shares of the company’s stock valued at $429,000 after acquiring an additional 1,684 shares during the last quarter. Finally, Captrust Financial Advisors grew its holdings in shares of DXC Technology by 14.4% in the second quarter. Captrust Financial Advisors now owns 13,798 shares of the company’s stock valued at $211,000 after purchasing an additional 1,742 shares during the period. Institutional investors and hedge funds own 96.20% of the company’s stock.

Key Headlines Impacting DXC Technology

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC reported first-quarter fiscal 2027 free cash flow of $314 million, up from $97 million a year earlier. Bookings increased 5% year over year to $3.0 billion, suggesting improved demand despite the revenue decline. The company also repurchased $70 million of stock. DXC Technology Reports First Quarter Fiscal Year 2027 Results
• Positive Sentiment: Management highlighted momentum in its AI platform and announced a strategic partnership with ElevenLabs, while new leadership appointments are intended to accelerate DXC’s AI-focused strategy. These moves could improve the company’s longer-term growth prospects. DXC and ElevenLabs Announce Strategic Partnership
• Positive Sentiment: An article reports that hedge funds remain bullish on DXC, potentially providing support from institutional investors despite the stock’s year-to-date weakness. Hedge Funds Are Bullish on DXC Technology
• Neutral Sentiment: Royal Bank of Canada lowered its price target from $16 to $14 but maintained a “sector perform” rating. The revised target still implies meaningful upside, although the reduction signals more cautious expectations. Benzinga
• Negative Sentiment: Fiscal Q1 adjusted EPS was $0.40, below the $0.42 consensus and down sharply from $0.68 a year earlier. Revenue fell 5.1% year over year to $3.0 billion, while organic revenue declined 6.7%. DXC Technology Q1 Earnings Miss Estimates, Revenues Decline Year Over Year
• Negative Sentiment: DXC’s second-quarter fiscal 2027 EPS outlook of $0.55 is well below the approximately $0.71 analyst consensus. Management also expects fiscal 2027 organic revenue to contract 3%–5%, reinforcing concerns about near-term growth. The company partly offset this with a higher full-year free-cash-flow outlook of about $685 million. DXC Expects Fiscal 2027 Organic Revenue to Decline

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Morgan Stanley dropped their price objective on DXC Technology from $15.00 to $9.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 14th. TD Cowen decreased their price target on shares of DXC Technology from $11.00 to $10.00 and set a “hold” rating for the company in a research report on Thursday, July 9th. Zacks Research raised shares of DXC Technology from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Weiss Ratings cut shares of DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Finally, Stifel Nicolaus cut their price objective on shares of DXC Technology from $12.00 to $10.50 and set a “hold” rating on the stock in a research report on Friday. Seven investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, DXC Technology presently has an average rating of “Reduce” and a consensus target price of $11.81.

About DXC Technology

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology’s core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.