DXC Technology (NYSE:DXC) Hits New 1-Year Low - What's Next?

Key Points

• DXC Technology hit a new 52-week low, with shares falling as low as $8.40 after the stock had previously closed at $12.01, underscoring recent investor pressure.
• The company beat Q4 adjusted EPS estimates at $0.77 versus $0.74 expected and generated $713 million in free cash flow for the year, while also repurchasing $250 million of stock.
• Despite the earnings beat, revenue declined 1.2% and FY2027 guidance came in below expectations, with management forecasting an organic revenue drop of 3% to 5% and EPS of $2.40 to $2.90.

Shares of DXC Technology Company. (NYSE:DXC - Get Free Report) hit a new 52-week low during trading on Saturday . The stock traded as low as $8.40 and last traded at $9.4450, with a volume of 16627765 shares changing hands. The stock had previously closed at $12.01.

Key DXC Technology News

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

Wall Street Analyst Weigh In

Several equities analysts have commented on DXC shares. Stifel Nicolaus set a $12.00 price target on shares of DXC Technology in a research report on Friday. Zacks Research cut shares of DXC Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 3rd. Wall Street Zen cut shares of DXC Technology from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. Weiss Ratings reiterated a "sell (d+)" rating on shares of DXC Technology in a research note on Wednesday, April 8th. Finally, BMO Capital Markets lifted their price objective on DXC Technology from $15.00 to $17.00 and gave the company a "market perform" rating in a research note on Tuesday, February 3rd. Eight investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $14.38.

DXC Technology Trading Down 21.4%

The firm has a market capitalization of $1.60 billion, a PE ratio of 157.42 and a beta of 0.85. The company's 50-day moving average price is $12.24 and its 200-day moving average price is $13.41. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.35 and a current ratio of 1.35.

DXC Technology (NYSE:DXC - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.07. The business had revenue of $3.13 billion during the quarter, compared to analysts' expectations of $3.17 billion. DXC Technology had a net margin of 0.14% and a return on equity of 17.01%. The company's revenue for the quarter was down 1.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.84 EPS. DXC Technology has set its Q1 2027 guidance at 0.400-0.400 EPS and its FY 2027 guidance at 2.400-2.900 EPS. On average, sell-side analysts expect that DXC Technology Company. will post 3.31 earnings per share for the current year.

Institutional Investors Weigh In On DXC Technology

Institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its stake in DXC Technology by 240.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company's stock worth $27,000 after purchasing an additional 1,227 shares during the last quarter. Danske Bank A S lifted its stake in DXC Technology by 280.0% during the fourth quarter. Danske Bank A S now owns 1,900 shares of the company's stock worth $28,000 after purchasing an additional 1,400 shares during the last quarter. Fifth Third Bancorp lifted its stake in DXC Technology by 116.0% during the fourth quarter. Fifth Third Bancorp now owns 2,102 shares of the company's stock worth $31,000 after purchasing an additional 1,129 shares during the last quarter. Hantz Financial Services Inc. lifted its stake in DXC Technology by 110.5% during the fourth quarter. Hantz Financial Services Inc. now owns 2,185 shares of the company's stock worth $32,000 after purchasing an additional 1,147 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its position in DXC Technology by 13,258.8% in the fourth quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company's stock valued at $33,000 after acquiring an additional 2,254 shares during the last quarter. 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.

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