DXC Technology (NYSE:DXC) Releases Q2 2027 Earnings Guidance

Key Points

• DXC Technology guided for Q2 fiscal 2027 EPS of $0.55, below the analyst consensus estimate of $0.71. Revenue guidance of $3.0 billion matched expectations.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and three rate it Sell, resulting in a consensus rating of “Reduce” and an average price target of $12.25.
• Shares fell 4.2% to $11.28 after the guidance update. CEO Raul Fernandez purchased 28,051 shares in May, while institutional investors own 96.2% of the company.

DXC Technology (NYSE:DXC - Get Free Report) updated its second quarter 2027 earnings guidance on Thursday. The company provided EPS guidance of 0.550-0.550 for the period, compared to the consensus EPS estimate of 0.710. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.0 billion.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Zacks Research upgraded shares of DXC Technology from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $16.00 target price on shares of DXC Technology in a research note on Friday, June 12th. TD Cowen decreased their price target on shares of DXC Technology from $11.00 to $10.00 and set a "hold" rating for the company in a report on Thursday, July 9th. Morgan Stanley dropped their price objective on shares of DXC Technology from $15.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 14th. Finally, Stifel Nicolaus set a $12.00 target price on shares of DXC Technology in a research note on Friday, May 8th. Seven investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $12.25.

DXC Technology Stock Down 4.2%

DXC Technology stock traded down $0.49 during mid-day trading on Thursday, hitting $11.28. 5,443,248 shares of the company's stock were exchanged, compared to its average volume of 3,916,183. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.94. The stock has a market cap of $1.84 billion, a P/E ratio of 187.92 and a beta of 0.82. DXC Technology has a 1-year low of $7.90 and a 1-year high of $15.68. The stock has a 50 day moving average of $9.36 and a two-hundred day moving average of $11.47.

DXC Technology (NYSE:DXC - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.02). The company had revenue of $3 billion for the quarter, compared to the consensus estimate of $2.99 billion. DXC Technology had a return on equity of 17.24% and a net margin of 0.14%.DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. As a group, analysts anticipate that DXC Technology will post 2.61 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Raul J. Fernandez purchased 28,051 shares of the company's stock in a transaction dated Monday, May 11th. The shares were bought at an average price of $8.90 per share, with a total value of $249,653.90. Following the completion of the transaction, the chief executive officer directly owned 844,052 shares in the company, valued at $7,512,062.80. This trade represents a 3.44% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.13% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in DXC. Caitlin John LLC lifted its stake in shares of DXC Technology by 358.0% in the fourth quarter. Caitlin John LLC now owns 3,224 shares of the company's stock valued at $49,000 after buying an additional 2,520 shares during the period. Vident Advisory LLC raised its holdings in DXC Technology by 5.4% in the 4th quarter. Vident Advisory LLC now owns 91,284 shares of the company's stock valued at $1,337,000 after acquiring an additional 4,697 shares in the last quarter. State of Tennessee Department of Treasury lifted its position in shares of DXC Technology by 51.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 143,140 shares of the company's stock worth $2,066,000 after acquiring an additional 48,852 shares during the period. Mackenzie Financial Corp grew its holdings in shares of DXC Technology by 39.1% during the 4th quarter. Mackenzie Financial Corp now owns 706,347 shares of the company's stock worth $10,497,000 after purchasing an additional 198,654 shares in the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of DXC Technology during the 4th quarter worth approximately $1,436,000. Institutional investors and hedge funds 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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