DXC Technology (NYSE:DXC) Updates Q1 2027 Earnings Guidance

Key Points

• DXC updated Q1 2027 guidance to $0.40 EPS and $3.0 billion revenue, well below consensus estimates of $0.68 EPS and $3.1 billion, and set FY 2027 guidance at 2.40–2.90 EPS.
• The company actually reported Q1 results of $0.77 EPS (vs. $0.74 expected) and $3.13 billion revenue, and the stock traded up ~4.6% to $12.00 amid heavy volume; market cap is about $2.04 billion and the trailing PE is ~5.2.
• Investor sentiment is muted: the consensus analyst rating is "Reduce" with an average target price of $14.63, and most analysts rate the stock as Hold or Sell.

DXC Technology (NYSE:DXC - Get Free Report) updated its first quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.400-0.400 for the period, compared to the consensus earnings per share estimate of 0.680. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.1 billion. DXC Technology also updated its FY 2027 guidance to 2.400-2.900 EPS.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on DXC shares. BMO Capital Markets increased their price objective on DXC Technology from $15.00 to $17.00 and gave the company a "market perform" rating in a research report on Tuesday, February 3rd. Zacks Research cut DXC Technology from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d+)" rating on shares of DXC Technology in a research report on Wednesday, April 8th. TD Cowen reduced their price objective on DXC Technology from $15.00 to $14.00 and set a "hold" rating for the company in a research report on Monday, April 6th. Finally, Wall Street Zen cut DXC Technology from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. Eight research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $14.63.

DXC Technology Trading Up 4.6%

DXC Technology stock traded up $0.53 during mid-day trading on Thursday, hitting $12.00. The stock had a trading volume of 6,114,999 shares, compared to its average volume of 2,758,593. The stock has a 50-day simple moving average of $12.24 and a two-hundred day simple moving average of $13.41. The stock has a market capitalization of $2.04 billion, a PE ratio of 5.15 and a beta of 0.85. DXC Technology has a 12 month low of $11.07 and a 12 month high of $17.26. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.91.

DXC Technology (NYSE:DXC - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.74 by $0.03. DXC Technology had a return on equity of 17.56% and a net margin of 3.34%.The firm had revenue of $3.13 billion for the quarter, compared to analysts' expectations of $3.17 billion. 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. As a group, sell-side analysts forecast that DXC Technology will post 3.21 EPS for the current year.

Institutional Investors Weigh In On DXC Technology

A number of hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC raised its position in DXC Technology by 240.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company's stock valued at $27,000 after buying an additional 1,227 shares during the last quarter. CIBC Private Wealth Group LLC raised its position in DXC Technology by 13,258.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company's stock valued at $33,000 after buying an additional 2,254 shares during the last quarter. Headlands Technologies LLC acquired a new stake in DXC Technology in the 2nd quarter valued at $39,000. Caitlin John LLC increased its stake in DXC Technology by 358.0% in the 4th 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 last quarter. Finally, Parallel Advisors LLC increased its stake in DXC Technology by 36.9% in the 3rd quarter. Parallel Advisors LLC now owns 8,513 shares of the company's stock valued at $116,000 after buying an additional 2,295 shares during the last quarter. Institutional investors and hedge funds own 96.20% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.