DXC Technology (NYSE:DXC) Releases Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• DXC Technology beat earnings expectations, reporting adjusted EPS of $0.77 versus the $0.74 consensus. Revenue came in at $3.13 billion, slightly below estimates and down 1.2% from a year ago.
• The company highlighted strong cash generation and capital returns, with full-year free cash flow of $713 million and $250 million in share repurchases. It also posted $3.3 billion in bookings and a 1.07x book-to-bill ratio.
• Despite the earnings beat, outlook concerns pressured the stock: DXC’s shares fell sharply and management’s FY2027 guidance signaled a 3% to 5% organic revenue decline, below Wall Street expectations.

DXC Technology (NYSE:DXC - Get Free Report) released its earnings results on Friday. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.03, FiscalAI reports. DXC Technology had a return on equity of 17.01% and a net margin of 0.14%.The firm had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.17 billion. During the same quarter in the previous year, the company posted $0.84 EPS. The company's revenue for the quarter was down 1.2% compared to the same quarter last year.

DXC Technology Trading Down 21.4%

DXC stock traded down $2.57 during midday trading on Friday, reaching $9.45. The company's stock had a trading volume of 16,627,765 shares, compared to its average volume of 3,666,390. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.35 and a current ratio of 1.35. The stock has a fifty day simple moving average of $12.24 and a two-hundred day simple moving average of $13.41. DXC Technology has a 1 year low of $8.40 and a 1 year high of $17.26. The firm has a market capitalization of $1.60 billion, a price-to-earnings ratio of 157.42 and a beta of 0.85.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its stake in DXC Technology by 97.0% in the 2nd quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company's stock worth $60,150,000 after buying an additional 1,936,726 shares during the period. UBS Group AG boosted its position in DXC Technology by 131.2% in the 3rd quarter. UBS Group AG now owns 2,047,395 shares of the company's stock valued at $27,906,000 after buying an additional 1,161,879 shares during the period. Qube Research & Technologies Ltd grew its stake in DXC Technology by 1,156.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 1,132,578 shares of the company's stock worth $17,317,000 after acquiring an additional 1,042,409 shares in the last quarter. Balyasny Asset Management L.P. increased its position in shares of DXC Technology by 7,434.7% during the fourth quarter. Balyasny Asset Management L.P. now owns 823,161 shares of the company's stock worth $12,059,000 after acquiring an additional 812,236 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of DXC Technology by 126.7% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,130,560 shares of the company's stock worth $15,410,000 after acquiring an additional 631,905 shares during the period. 96.20% of the stock is currently owned by institutional investors.

Key Headlines Impacting DXC Technology

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

Analyst Ratings Changes

Several research firms have commented on DXC. Wall Street Zen lowered shares of DXC Technology from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. BMO Capital Markets raised their target price on shares of DXC Technology from $15.00 to $17.00 and gave the stock a "market perform" rating in a report on Tuesday, February 3rd. Zacks Research cut shares of DXC Technology from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 3rd. Weiss Ratings reiterated a "sell (d+)" rating on shares of DXC Technology in a report on Wednesday, April 8th. Finally, TD Cowen reduced their price objective on shares of DXC Technology from $15.00 to $14.00 and set a "hold" rating on the stock in a research report on Monday, April 6th. Eight analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, DXC Technology presently has an average rating of "Reduce" and a consensus target price of $14.38.

About DXC Technology

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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