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1. Company Snapshot

1.a. Company Description

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia.It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS).The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.


It also uses various technologies and methods to accelerate the creation, modernization, delivery, and maintenance of secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership.In addition, this segment offers business process services, which include integration and optimization of front and back office processes, and agile process automation.The GIS segment adapts legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments; and offers security solutions help predict attacks, proactively respond to threats, and ensure compliance, as well as to protect data, applications, and infrastructure.


It also provides IT outsourcing services to help customers securely and cost-effectively run mission-critical systems and IT infrastructure.In addition, this segment offers workplace services to fit its customer's employee, business, and IT needs from intelligent collaboration; and modern device management, digital support services, and mobility services.DXC Technology Company is headquartered in Ashburn, Virginia.

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1.b. Last Insights on DXC

DXC Technology's recent performance faced headwinds due to a projected 4% revenue decline. Despite beating Q3 earnings estimates, revenues missed estimates and declined year-over-year. The company's total revenue was $3.19 billion, down 1.0% YoY. Weak revenue growth and high competition in the technology sector likely impacted performance. Additionally, a recent comparison with ScanTech AI Systems and Fobi AI may have raised concerns among investors about DXC's competitive position. (Source: various news articles)

1.c. Company Highlights

2. DXC Technology's Q3 Earnings: A Step Towards Repositioning

DXC Technology reported total revenue of $3.2 billion for the third quarter, a decline of 4.3% year-over-year, which was within the guidance range. The company's adjusted EBIT margin was 8.2%, slightly above the high end of the guidance range. The earnings per share (EPS) came in at $0.96, beating estimates of $0.831. The free cash flow generated during the quarter was $266 million, bringing the year-to-date total to $603 million. As Raul Fernandez mentioned, "The key to DXC's Fast Track initiatives is understanding where it has value in the work it does with its customers," highlighting the company's focus on delivering value to its clients.

Publication Date: Feb -20

📋 Highlights
  • Revenue Decline:: Q3 total revenue fell to $3.2B (-4.3% YoY), within guidance despite market challenges.
  • Free Cash Flow:: Generated $266M in Q3, lifting year-to-date total to $603M, with $650M full-year guidance intact.
  • Fast Track Progress:: Early client interest in AI-infused solutions exceeds initial timelines, driving higher growth/margin potential.
  • Security Operations:: Agentic SOC blocks 4.5M threats daily, with 90%+ automated resolution, now expanded to banking/healthcare.
  • Q4 Guidance:: Organic revenue down 4-5%, EBIT margin 6.5-7.5%, and EPS $0.65-$0.75, reflecting strategic focus on growth.

Business Progress and Strategy

DXC is repositioning itself as a strategic partner to the market through its delivery excellence and deep engineering skills, coupled with investments in new offerings and AI-based solutions. The company's Fast Track initiatives are progressing well, with development timelines and early client interest tracking ahead of initial plans. DXC is also making progress in its security offerings, with its agentic security operations center powered by AI protecting DXC from 4.5 million threats daily.

Outlook and Guidance

Looking ahead to Q4, DXC expects total organic revenue to decline 4% to 5%. The company anticipates adjusted EBIT margin in the range of 6.5% to 7.5% and non-GAAP diluted EPS of $0.65 to $0.75. Analysts estimate next year's revenue growth at -2.4%, indicating a continued decline in revenue.

Valuation and Metrics

DXC's current valuation metrics are as follows: P/E Ratio at 5.59, P/B Ratio at 0.75, P/S Ratio at 0.18, EV/EBITDA at 2.53, and Free Cash Flow Yield at 47.57%. The company's ROE is 13.41%, and ROIC is 4.17%. With a Net Debt / EBITDA ratio of 1.44, DXC's debt profile appears manageable. These metrics suggest that DXC's stock may be undervalued, given its low P/E and P/B ratios.

Investment Priorities and Future Plans

DXC is balancing its investment priorities, with growing the business as its top priority, followed by maintaining a strong debt profile and returning value to shareholders. The company expects to allocate cash to share buybacks in the first half of fiscal year '27, matching their current fiscal year's allocation. DXC is also open to accretive acquisitions, but prefers to create products and services internally.

3. NewsRoom

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DXC reconocida en la lista de Forbes de las mejores firmas de consultoría de gestión de América en 2026

Mar -18

Source: prnewswire.com

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DXC figure sur la liste Forbes 2026 des meilleures sociétés de conseil en gestion d'Amérique

Mar -18

Source: prnewswire.com

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DXC wurde in die Forbes-Liste der besten Unternehmensberatungsfirmen Amerikas 2026 aufgenommen

Mar -18

Source: prnewswire.com

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DXC Recognized on Forbes' 2026 List of America's Best Management Consulting Firms

Mar -17

Source: prnewswire.com

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DXC Recognized on Forbes' 2026 List of America's Best Management Consulting Firms

Mar -17

Source: prnewswire.com

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Fobi AI (OTCMKTS:FOBIF) and DXC Technology (NYSE:DXC) Critical Comparison

Mar -09

Source: defenseworld.net

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DXC Technology Company (DXC) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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Critical Comparison: DXC Technology (NYSE:DXC) & ScanTech AI Systems (NASDAQ:STAI)

Feb -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.31%)

6. Segments

Global Infrastructure Services

Expected Growth: 8.5%

DXC Technology's Global Infrastructure Services segment growth of 8.5% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, the company's strategic partnerships, investments in emerging technologies, and expansion into high-growth markets contribute to its growth momentum.

Global Business Services

Expected Growth: 8.12%

DXC Technology's Global Business Services segment growth of 8.12% is driven by increasing demand for digital transformation, cloud migration, and cybersecurity services. Additionally, the company's strategic partnerships, investments in emerging technologies like AI and analytics, and expansion into new markets have contributed to its growth.

7. Detailed Products

IT Outsourcing

DXC Technology provides IT outsourcing services to help clients manage their IT infrastructure, applications, and business processes.

Cloud Services

DXC Technology offers cloud services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).

Cybersecurity

DXC Technology provides cybersecurity services to help clients protect their IT systems and data from cyber threats.

Analytics and Artificial Intelligence

DXC Technology offers analytics and artificial intelligence (AI) services to help clients gain insights and make data-driven decisions.

Application Services

DXC Technology provides application services, including development, testing, and maintenance, to help clients modernize their applications.

Business Process Services

DXC Technology offers business process services, including business process outsourcing (BPO) and business process as a service (BPaaS).

Consulting Services

DXC Technology provides consulting services to help clients develop and implement digital transformation strategies.

Industry Solutions

DXC Technology offers industry-specific solutions for industries such as healthcare, financial services, and manufacturing.

8. DXC Technology Company's Porter Forces

Forces Ranking

Threat Of Substitutes

DXC Technology Company faces moderate threat from substitutes due to the presence of alternative IT services providers.

Bargaining Power Of Customers

DXC Technology Company's customers have low bargaining power due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

DXC Technology Company's suppliers have moderate bargaining power due to the presence of multiple suppliers in the market.

Threat Of New Entrants

DXC Technology Company faces low threat from new entrants due to the high barriers to entry in the IT services industry.

Intensity Of Rivalry

DXC Technology Company operates in a highly competitive IT services market, leading to high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.50%
Debt Cost 7.76%
Equity Weight 40.50%
Equity Cost 13.25%
WACC 9.98%
Leverage 146.89%

11. Quality Control: DXC Technology Company passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EPAM Systems

A-Score: 4.4/10

Value: 3.6

Growth: 6.9

Quality: 6.9

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
N-able

A-Score: 4.3/10

Value: 5.3

Growth: 8.4

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Perficient

A-Score: 4.1/10

Value: 3.2

Growth: 7.2

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
DXC Technology

A-Score: 4.0/10

Value: 9.5

Growth: 4.3

Quality: 4.2

Yield: 0.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Kyndryl

A-Score: 3.8/10

Value: 6.3

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Paymentus

A-Score: 3.7/10

Value: 1.4

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.13$

Current Price

12.13$

Potential

-0.00%

Expected Cash-Flows