DXC Technology (NYSE:DXC) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

DXC Technology (NYSE:DXC) issued its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.70 by $0.07, FiscalAI reports. The company had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a net margin of 0.14% and a return on equity of 17.01%. The firm’s revenue was down 1.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.84 EPS. DXC Technology updated its Q1 2027 guidance to 0.400-0.400 EPS and its FY 2027 guidance to 2.400-2.900 EPS.

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

• DXC missed Q4 organic revenue guidance by roughly $75M (Q4 revenue $3.1B) and guided FY2027 organic revenue down 3%–5% (Q1 down 6.5%–7.5%), signaling continued top‑line pressure into the year.
• Management is driving an AI-led transformation and launched Fast Track offerings — notably CoreIgnite and DXC OASIS — with OASIS live with 10 customers and already influencing a recent large insurer win, creating potential for recurring, higher‑margin revenue.
• In Q4 DXC advanced to finals on ~$2B of large opportunities but only won 32%, lost 40% and has 28% outstanding; management attributes losses to capability/industry‑specific execution gaps (not pricing) and is applying lessons to improve close rates.
• Financial discipline continues — FY2026 free cash flow was $713M (Q4 $110M), net debt down ~ $1.1B over two years, and DXC plans ~$400M to retire bonds plus $250M of buybacks in FY2027, supporting capital allocation and balance‑sheet strength.

DXC Technology Stock Down 21.4%

Shares of DXC traded down $2.57 during mid-day trading on Friday, hitting $9.45. The company’s stock had a trading volume of 16,627,765 shares, compared to its average volume of 3,666,390. DXC Technology has a 52-week low of $8.40 and a 52-week high of $17.26. The company’s 50-day moving average is $12.24 and its 200-day moving average is $13.41. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $1.60 billion, a price-to-earnings ratio of 157.42 and a beta of 0.85.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Weiss Ratings reiterated a “sell (d+)” rating on shares of DXC Technology in a report on Wednesday, April 8th. TD Cowen dropped their target price on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating on the stock in a research note on Monday, April 6th. Stifel Nicolaus set a $12.00 target price on shares of DXC Technology in a research note on Friday. BMO Capital Markets upped their target price on shares of DXC Technology from $15.00 to $17.00 and gave the stock a “market perform” rating in a research note on Tuesday, February 3rd. Finally, 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, January 30th. Eight research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $14.38.

DXC Technology News Summary

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

• Positive Sentiment: DXC beat fourth-quarter adjusted earnings estimates, reporting non-GAAP EPS of $0.77 versus $0.74 expected, while free cash flow rose to $713 million for the full year and the company repurchased $250 million of stock. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Neutral Sentiment: The company also posted strong bookings of $3.3 billion, with a book-to-bill ratio of 1.07x, suggesting demand was still adequate even as revenue softened. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Negative Sentiment: Revenue fell 1.2% year over year in the quarter, and management signaled ongoing weakness in demand, which tempered the benefit of the earnings beat. DXC Technology Q4 Earnings Beat Estimates, Revenues Decline Y/Y
• Negative Sentiment: FY2027 guidance came in below Wall Street expectations, with management forecasting organic revenue decline of 3% to 5% and EPS of $2.40 to $2.90 versus a higher consensus estimate, raising concerns about next year’s growth trajectory. DXC forecasts FY 2027 organic revenue decline of 3%-5% with EPS of $2.40-$2.90
• Negative Sentiment: Reports that DXC employees have begun strike action add an operational risk that could further weigh on sentiment if service disruption continues. DXC employees commence strike action

Institutional Investors Weigh In On DXC Technology

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

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.