DXC Technology AI Stock Analysis
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DXC Technology (DXC) AI Stock Analysis
DXC Technology
(NYSE:DXC)
DXC scores around average overall: the biggest swing factors are challenged financial performance (declining revenue and thin profitability despite better leverage and solid cash flow) and a cautious earnings outlook with lowered full-year guidance and weaker bookings/pipeline conversion. These are partially offset by strong technical momentum (price above key moving averages with positive MACD) and a valuation that is only middling given the current growth and margin profile.
DXC Technology Key Performance Indicators (KPIs)
Revenue by GeographyShows how DXC’s sales are distributed across regions, highlighting dependence on key markets, exposure to local economic or currency swings, and where international growth or contraction will most affect overall performance.
Other Europe has been the most resilient geography and is likely buffering overall revenue declines, while the UK and Australia exhibit persistent erosion consistent with weak discretionary IT spend; Other International sits between in volatility. Management says H2 improvement will be driven by GIS backlog conversion, so investors should watch European/GIS booking‑to‑bill and Q2 guidance as the clearest signal that bookings are turning into sustainable regional revenue and margin recovery—remember free‑cash‑flow gains were partly litigation‑driven, not purely organic.
The FlyDXC Technology (DXC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.37B
- Dividend Yield
- ―
- Average Volume (3M)
- 3.68M
- Price to Earnings (P/E)
- 20.9
- Beta (1Y)
- 0.91
- Revenue Growth
- -2.81%
- EPS Growth
- -67.00%
- Country
- US
- Employees
- 115,000
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
DXC Technology Business Overview & Revenue Model
Company Description
DXC Technology Company, along with its affiliated entities, delivers a comprehensive suite of IT solutions and services across various global regions, with a significant presence in North America, Europe, Asia, and Australia. The company structures i...
How the Company Makes Money
DXC primarily makes money by selling IT services and technology consulting to enterprise and government customers under a mix of recurring managed-service contracts and project-based professional services engagements. Key revenue streams typically in...
DXC Technology Earnings Call Summary
The call had a mixed tone. DXC reported quarterly results above guidance and highlighted substantial progress in AI certifications, agentic deployments, cybersecurity offerings, SaaS adoption and new customer wins. However, these developments were accompanied by declining revenue, profitability and bookings, weaker pipeline conversion, increased competition and reduced full-year revenue, margin, EPS and free cash flow guidance. Management expressed confidence in the long-term AI opportunity but emphasized that improving core-business execution remains necessary.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For full fiscal year 2027, DXC expects organic revenue to decline 5% to 5.5% year-to-year, CES revenue to decline at a mid-single-digit range, GIS revenue to show a high single-digit revenue decline, and Insurance revenue growth to increase from low single-digit to mid-single-digit revenue growth; adjusted EBIT margin is expected to be between 5.75% and 6.25%, non-GAAP diluted EPS between $2.25 to $2.50, and free cash flow approximately $600 million. For the third quarter of fiscal 2027, total organic revenue is expected to decline approximately 6% year-to-year, CES to decline mid-single digits, GIS to decline at a high single-digit rate, insurance to grow at a similar rate as the first quarter, adjusted EBIT margin to be approximately 6%, and non-GAAP diluted EPS to be approximately $0.55.
DXC Technology Financial Statement Overview
Summary
Fundamentals are mixed: multi-year revenue declines and very thin TTM profitability weigh on the income statement, but balance sheet leverage has improved sharply and cash generation remains relatively strong (solid operating cash flow and free cash flow, albeit with negative TTM FCF momentum).
Income Statement
43NeutralBalance Sheet
62PositiveCash Flow
70Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.36B | 12.64B | 12.87B | 13.67B | 14.43B | 16.27B |
| Gross Profit | 1.89B | 1.87B | 3.10B | 3.09B | 3.18B | 3.58B |
| EBITDA | 1.49B | 1.69B | 2.21B | 1.84B | 866.00M | 3.09B |
| Net Income | 112.00M | 18.00M | 389.00M | 91.00M | -568.00M | 718.00M |
Balance Sheet | ||||||
| Total Assets | 12.21B | 12.89B | 13.21B | 13.87B | 15.85B | 20.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.74B | 1.80B | 1.22B | 1.86B | 2.67B |
| Total Debt | 3.69B | 4.25B | 4.55B | 4.87B | 5.37B | 6.17B |
| Total Liabilities | 8.89B | 9.68B | 9.71B | 10.80B | 12.03B | 14.76B |
| Stockholders Equity | 3.06B | 2.94B | 3.23B | 2.81B | 3.50B | 5.05B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 1.04B | 822.00M | 954.00M | 1.15B | 1.25B |
| Operating Cash Flow | 1.29B | 1.25B | 1.40B | 1.36B | 1.42B | 1.50B |
| Investing Cash Flow | -449.00M | -484.00M | -512.00M | -491.00M | -635.00M | -60.00M |
| Financing Cash Flow | -1.15B | -776.00M | -317.00M | -1.49B | -1.51B | -1.82B |
DXC Technology Technical Analysis
Price Trends
Market Momentum
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 14.85 is below the 20-day moving average (MA) of 15.13, above the 50-day MA of 12.98, and above the 200-day MA of 11.56, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXC.
DXC Technology Risk Analysis
DXC Technology disclosed 29 risk factors in its most recent earnings report. DXC Technology reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksDXC Technology Peers Comparison
Overall Rating
ACN84Outperform
INFY80Outperform
CTSH77Outperform
WIT74Outperform
KD62Neutral- DXC60Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ACN | 84Outperform | $149.92B | 18.45 | 26.77% | 2.64% | 6.47% | 11.19% |
| INFY | 80Outperform | $49.76B | 15.26 | 33.75% | 4.39% | -1.35% | 3.37% |
| CTSH | 77Outperform | $28.80B | 11.69 | 17.36% | 2.05% | 4.96% | 27.16% |
| WIT | 74Outperform | $20.82B | 15.39 | 15.94% | 4.07% | 0.38% | -8.33% |
| KD | 62Neutral | $3.73B | 49.38 | 6.91% | ― | -0.74% | -80.24% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| DXC | 60Neutral | $2.37B | 20.88 | 3.67% | ― | -2.81% | -67.00% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DXC | Dxc Technology Company | 14.85 | 1.94 | 15.03% | |
| ACN | Accenture Plc | 249.95 | 12.99 | 5.48% | |
| CTSH | Cognizant Technology Solutions | 63.75 | -7.27 | -10.23% | |
| INFY | Infosys | 12.29 | -3.75 | -23.36% | |
| WIT | Wipro Limited | 2.13 | -0.43 | -16.93% | |
| KD | Kyndryl Holdings Incorporation | 17.06 | -8.66 | -33.67% |
DXC Technology Corporate Events
DXC Technology Realigns Leadership to Drive AI Strategy
PositiveOn July 25, 2026, DXC Technology received the resignation of Chris Drumgoole as President of Global Infrastructure Services, effective July 30, 2026, with no related separation arrangements and no disagreement cited over company operations or policie...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026