DXC Technology (NYSE:DXC) Posts Quarterly Earnings Results, Beats Expectations By $0.13 EPS

DXC Technology (NYSE:DXC) issued its earnings results on Thursday. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.13, FiscalAI reports. The company had revenue of $3.19 billion during the quarter, compared to analysts’ expectations of $3.18 billion. DXC Technology had a return on equity of 17.83% and a net margin of 2.93%.The firm’s quarterly revenue was down 1.0% on a year-over-year basis. During the same period in the prior year, the business earned $0.92 EPS.

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

• DXC announced a unified AI-first strategy and centralized sales enablement, launching Fast-Track products (e.g., Core Ignite, Agentic SOC, OASIS) built on an orchestration layer that connects legacy systems to AI; management targets 10% of run-rate revenue by Q2 FY2029.
• Third-quarter revenue was $3.2 billion (down 4.3% YoY) and the company guides Q4 organic revenue down 4–5% and FY26 organic decline of ~4.3%, signaling continued near-term top-line pressure.
• Bookings and pipeline show improvement — Q3 book-to-bill was 1.12 and trailing 12-month book-to-bill 1.02 (fourth consecutive quarter >1) with several large new wins, including the London Metropolitan Police master vendor deal.
• Adjusted EBIT margin was 8.2% in Q3 (slightly above guidance) but fell 70 bps YoY; Q4 margin guidance of 6.5–7.5% reflects near-term margin pressure from increased investment in Fast-Track product development and go-to-market activities.
• Cash generation and capital allocation remain strong — Q3 FCF $266M (YTD $603M) with a ~$650M full-year FCF guide, ~\$970M net debt reduction, increased share repurchases (~$250M) and planned ~$400M bond retirements, providing balance-sheet flexibility.

DXC Technology Price Performance

NYSE DXC traded down $0.41 during mid-day trading on Friday, hitting $14.00. The stock had a trading volume of 1,159,047 shares, compared to its average volume of 1,638,462. The company has a 50 day simple moving average of $14.57 and a 200 day simple moving average of $14.01. The company has a market cap of $2.44 billion, a price-to-earnings ratio of 6.96 and a beta of 1.04. DXC Technology has a 52-week low of $11.82 and a 52-week high of $23.75. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.71.

Insider Buying and Selling at DXC Technology

In other news, SVP Christopher Anthony Voci sold 2,500 shares of the stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $15.15, for a total value of $37,875.00. Following the sale, the senior vice president directly owned 88,605 shares in the company, valued at $1,342,365.75. This represents a 2.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.61% of the stock is currently owned by corporate insiders.

Institutional Trading of DXC Technology

Hedge funds have recently bought and sold shares of the company. State Street Corp increased its holdings in DXC Technology by 2.1% during the 2nd quarter. State Street Corp now owns 6,381,982 shares of the company’s stock worth $97,581,000 after purchasing an additional 128,916 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of DXC Technology by 13.5% in the 3rd quarter. AQR Capital Management LLC now owns 4,463,367 shares of the company’s stock valued at $60,836,000 after purchasing an additional 529,394 shares in the last quarter. UBS Group AG lifted its position in shares of DXC Technology by 131.2% during the third quarter. UBS Group AG now owns 2,047,395 shares of the company’s stock worth $27,906,000 after purchasing an additional 1,161,879 shares during the last quarter. First Trust Advisors LP raised its stake in DXC Technology by 26.8% during the third quarter. First Trust Advisors LP now owns 1,935,371 shares of the company’s stock worth $26,379,000 after acquiring an additional 408,694 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in DXC Technology by 4.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,239,558 shares of the company’s stock valued at $21,134,000 after acquiring an additional 49,228 shares in the last quarter. Institutional investors and hedge funds own 96.20% of the company’s stock.

More DXC Technology News

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

• Positive Sentiment: Q3 beat on earnings and cash generation — DXC reported non‑GAAP EPS of $0.96 versus ~$0.85 consensus, generated $266M in free cash flow for the quarter (YTD $603M), and repurchased $65M of stock while redeeming $300M of notes; these items support shareholder returns and near‑term earnings stability. PR Newswire
• Positive Sentiment: Longer‑term AI revenue target — DXC announced a goal for AI Fast Track initiatives to contribute a 10% revenue run‑rate by Q2 2029 as part of a dual‑track strategy, which investors may view as a constructive growth roadmap if execution follows. MSN
• Neutral Sentiment: FY2026 guidance roughly in line — DXC set FY EPS at $3.15 (vs. consensus ~$3.14) and revenue guidance around $12.7B, largely matching expectations and offering limited surprise upside or downside to full‑year estimates.
• Neutral Sentiment: Index positioning — Coverage noted DXC’s position in the Russell 1000 IT Services group, which is neutral for immediate price action but relevant for ETF/index flows. Kalkine Media
• Negative Sentiment: Q4 EPS guide below street — DXC set Q4 EPS guidance at $0.65–$0.75 versus a ~ $0.79 consensus, creating downward pressure on near‑term earnings expectations and the stock.
• Negative Sentiment: Revenue weakness and market reaction — Total Q3 revenue was $3.19B (slightly above consensus) but down 1.0% YoY and down 4.3% organically; the revenue decline contributed to a negative market reaction and share weakness despite the EPS beat. Investing.com

Analysts Set New Price Targets

A number of research analysts have recently commented on DXC shares. Susquehanna set a $14.00 price objective on DXC Technology and gave the company a “neutral” rating in a report on Friday, October 31st. Stifel Nicolaus reduced their price target on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating for the company in a research report on Friday, October 31st. Weiss Ratings reissued a “sell (d)” rating on shares of DXC Technology in a report on Wednesday, October 8th. Wolfe Research set a $13.00 target price on shares of DXC Technology and gave the stock an “underperform” rating in a research note on Friday. Finally, Wall Street Zen upgraded DXC Technology from a “hold” rating to a “buy” rating in a research note on Sunday, November 9th. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $14.71.

DXC Technology Company Profile

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.