olivLaw · US equity research
DXC Technology Company DXC
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
DXC Technology is an enterprise technology and innovation partner delivering software, services and solutions to large enterprises and public sector bodies, focused on modernising and operating complex IT estates with AI. Against a backdrop of declining revenue, the company maintained its fiscal 2027 guidance, with revenue of up to 12.35 billion USD, which keeps its trajectory under close watch.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, DXC Technology Company (DXC) stock was 14.88 USD (+7.98% on the day), with market capitalisation 2.3 bn USD, P/E 21.9 on diluted EPS of 0.68 USD over the last 12 months, dividend yield 5.65%, beta 1.09, 52-week range 8.22–16.30 USD. Latest reported quarter (Q2 2027): revenue of 3.0 bn USD (−4.0% YoY), net income of 24.0 m USD (−33.3% YoY), diluted EPS 0.15 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 58.0
- strong (55–70)
- Bollinger (20, 2)
- 11.79 – 17.07
- in the upper half of the band · %B 0.59 · band width 36.6%
- SMA 50 / 200
- 12.51 / 11.55
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.79 / 0.97
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +27.6% | −1.1% | +28.7 pp | — |
| 3 months | +33.8% | −0.5% | +34.3 pp | — |
| 6 months | +29.7% | +4.4% | +25.3 pp | — |
| Year to date | +1.6% | +12.3% | −10.7 pp | — |
| 1 year | +9.9% | +13.5% | −3.6 pp | −24.8% |
| 3 years | −33.3% | +76.4% | −109.7 pp | −26.9% |
| 5 years | −56.7% | +63.7% | −120.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.2 bn | 3.2 bn | 3.2 bn | 3.2 bn | 3.2 bn | 3.1 bn | 3.0 bn | 3.0 bn |
| Cost of revenue | 2.4 bn | 2.4 bn | 2.4 bn | 2.4 bn | 2.4 bn | 2.4 bn | 2.4 bn | 2.4 bn |
| SG&A | 335.0 m | 359.0 m | 394.0 m | 366.0 m | 309.0 m | 333.0 m | 328.0 m | 319.0 m |
| Operating income | 286.0 m | 230.0 m | 216.0 m | 254.0 m | 263.0 m | 237.0 m | 150.0 m | 187.0 m |
| Depreciation & amortisation | 320.0 m | 318.0 m | 309.0 m | 295.0 m | 283.0 m | 283.0 m | 271.0 m | 286.0 m |
| Interest expense | 66.0 m | 58.0 m | 54.0 m | 53.0 m | 54.0 m | 55.0 m | 55.0 m | 57.0 m |
| Pre-tax income | 131.0 m | 338.0 m | 67.0 m | 131.0 m | 171.0 m | -51.0 m | 241.0 m | 54.0 m |
| Income tax | 68.0 m | 75.0 m | 49.0 m | 91.0 m | 61.0 m | 89.0 m | 115.0 m | 41.0 m |
| Net income | 57.0 m | 264.0 m | 16.0 m | 36.0 m | 107.0 m | -141.0 m | 122.0 m | 24.0 m |
| Diluted EPS | 0.31 | 1.42 ≈ | 0.09 | 0.20 | 0.61 | -0.81 ≈ | 0.73 | 0.15 |
| Operating cash flow | 650.0 m ≈ | 315.0 m | 186.0 m | 409.0 m ≈ | 414.0 m ≈ | 239.0 m | 418.0 m | 217.0 m ≈ |
| Capex | 82.0 m ≈ | 77.0 m | 43.0 m | 44.0 m ≈ | 55.0 m ≈ | 70.0 m | 59.0 m | 74.0 m ≈ |
| Share repurchases | 12.0 m ≈ | 0 | 48.0 m | 76.0 m ≈ | 64.0 m ≈ | 61.0 m | 71.0 m | 61.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 24-quarter history (min 6.3, median 14.0, max 218.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 20.8 bn | 19.6 bn | 17.7 bn | 16.3 bn | 14.4 bn | 13.7 bn | 12.9 bn | 12.6 bn |
| Revenue YoY | −4.5% | −5.7% | −9.4% | −8.3% | −11.3% | −5.3% | −5.8% | −1.8% |
| Net income | 1.3 bn | -5.4 bn | -149.0 m | 718.0 m | -568.0 m | 91.0 m | 389.0 m | 18.0 m |
| Net income YoY | −28.2% | −527.1% | unavailable | unavailable | −179.1% | unavailable | +327.5% | −95.4% |
| Diluted EPS | 4.47 | -20.76 | -0.59 | 2.81 | -2.48 | 0.46 | 2.10 | 0.10 |
| Diluted EPS YoY | −26.0% | −564.4% | unavailable | unavailable | −188.3% | unavailable | +356.5% | −95.2% |
| net % | 6.1% | -27.4% | -0.8% | 4.4% | -3.9% | 0.7% | 3.0% | 0.1% |
| Free cash flow | 1.5 bn | 2.0 bn | -137.0 m | 1.2 bn | 1.1 bn | 1.2 bn | 1.2 bn | 1.0 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 1.7 bn USD
- Financial debt
- 520.0 m USD
- Net debt
- -1.2 bn USD
- Equity
- 3.2 bn USD
- Total assets
- 12.9 bn USD
- Debt / equity
- 0.16x
- Current ratio
- 1.36x
- ROE
- 0.5%
- ROA
- 0.1%
- FCF margin
- 8.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 17.7 bn | 16.3 bn | 14.4 bn | 13.7 bn | 12.9 bn | 12.6 bn | SEC (XBRL)· 08 May 2026verified |
| Cost of revenue | 14.1 bn | 12.7 bn | 11.2 bn | 10.6 bn | 9.8 bn | 9.6 bn | SEC (XBRL)· 08 May 2026verified |
| Gross profit | 3.6 bn ≈ | 3.6 bn ≈ | 3.2 bn ≈ | 3.1 bn ≈ | 3.1 bn ≈ | 3.0 bn ≈ | SEC (XBRL)· 08 May 2026derived |
| SG&A | 2.1 bn | 1.4 bn | 1.4 bn | 1.2 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 08 May 2026verified |
| Operating income | 1.1 bn | 1.4 bn | 1.1 bn | 1.0 bn | 1.0 bn | 970.0 m | SEC (XBRL)· 08 May 2026verified |
| Depreciation & amortisation | 2.0 bn | 1.7 bn | 1.6 bn | 1.4 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 08 May 2026verified |
| EBITDA | 3.1 bn ≈ | 3.1 bn ≈ | 2.7 bn ≈ | 2.4 bn ≈ | 2.3 bn ≈ | 2.2 bn ≈ | SEC (XBRL)· 08 May 2026derived |
| Interest expense | 361.0 m | 204.0 m | 200.0 m | 298.0 m | 265.0 m | 216.0 m | SEC (XBRL)· 08 May 2026verified |
| Pre-tax income | 654.0 m | 1.1 bn | -885.0 m | 109.0 m | 630.0 m | 318.0 m | SEC (XBRL)· 08 May 2026verified |
| Income tax | 800.0 m | 405.0 m | -319.0 m | 23.0 m | 234.0 m | 290.0 m | SEC (XBRL)· 08 May 2026verified |
| Net income | -149.0 m | 718.0 m | -568.0 m | 91.0 m | 389.0 m | 18.0 m | SEC (XBRL)· 08 May 2026verified |
| Diluted EPS | -0.59 | 2.81 | -2.48 | 0.46 | 2.10 | 0.10 | SEC (XBRL)· 08 May 2026verified |
| Weighted average diluted shares | 254.1 m | 255.2 m | 229.0 m | 198.8 m | 184.9 m | 178.7 m | SEC (XBRL)· 08 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.0 bn | 2.7 bn | 1.9 bn | 1.2 bn | 1.8 bn | 1.7 bn | SEC (XBRL)· 08 May 2026verified |
| Current assets | 8.2 bn | 7.4 bn | 6.1 bn | 5.1 bn | 5.4 bn | 5.4 bn | SEC (XBRL)· 08 May 2026verified |
| Goodwill | 641.0 m | 617.0 m | 539.0 m | 532.0 m | 526.0 m | 527.0 m | SEC (XBRL)· 08 May 2026verified |
| Intangibles (excl. goodwill) | 4.0 bn | 3.4 bn | 2.6 bn | 2.1 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 08 May 2026verified |
| Total assets | 22.0 bn | 20.1 bn | 15.8 bn | 13.9 bn | 13.2 bn | 12.9 bn | SEC (XBRL)· 08 May 2026verified |
| Accounts payable | 914.0 m | 840.0 m | 782.0 m | 846.0 m | 549.0 m | 561.0 m | SEC (XBRL)· 08 May 2026verified |
| Short-term debt | 1.2 bn | 900.0 m | 500.0 m | 271.0 m | 880.0 m | 520.0 m | SEC (XBRL)· 08 May 2026verified |
| Long-term debt | 4.3 bn | 4.1 bn | 3.9 bn | 3.8 bn | 3.0 bn | — | SEC (XBRL)· 15 May 2025verified |
| Current liabilities | 8.2 bn | 6.9 bn | 5.2 bn | 4.4 bn | 4.4 bn | 3.9 bn | SEC (XBRL)· 08 May 2026verified |
| Total liabilities | 16.7 bn | 14.8 bn | 12.0 bn | 10.8 bn | 9.7 bn | 9.7 bn | SEC (XBRL)· 08 May 2026verified |
| Equity | 5.3 bn | 5.4 bn | 3.8 bn | 3.1 bn | 3.5 bn | 3.2 bn | SEC (XBRL)· 08 May 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 124.0 m | 1.5 bn | 1.4 bn | 1.4 bn | 1.4 bn | 1.2 bn | SEC (XBRL)· 08 May 2026verified |
| Capex | 261.0 m | 254.0 m | 267.0 m | 182.0 m | 248.0 m | 212.0 m | SEC (XBRL)· 08 May 2026verified |
| Free cash flow | -137.0 m ≈ | 1.2 bn ≈ | 1.1 bn ≈ | 1.2 bn ≈ | 1.2 bn ≈ | 1.0 bn ≈ | SEC (XBRL)· 08 May 2026derived |
| Investing cash flow | 4.7 bn | -60.0 m | -635.0 m | -491.0 m | -512.0 m | -484.0 m | SEC (XBRL)· 08 May 2026verified |
| Financing cash flow | -5.5 bn | -1.8 bn | -1.5 bn | -1.5 bn | -317.0 m | -776.0 m | SEC (XBRL)· 08 May 2026verified |
| Dividends paid | 53.0 m | 0 | 0 | — | — | — | SEC (XBRL)· 19 May 2023verified |
| Share repurchases | — | 628.0 m | 669.0 m | 898.0 m | 14.0 m | 249.0 m | SEC (XBRL)· 08 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 45 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation93
- Returns100
- Quality27
- Balance sheet37
- Growth5
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 67.93 – 211.16 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)102.48 – 168.37 (Mid 126.61)WACC 8.1% · starting FCFF 1.2 bn USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales67.93 – 211.16 (Mid 114.69)11 companies used · median multiple 1.4x · quartiles 0.8x – 2.6xADP, CARS, CLVT, EGHT, FA, GMHS, IBEX, OOMA, PLTK, UPWK, WDAY
- Peers: EV/EBITDA91.38 – 179.67 (Mid 121.06)8 companies used · median multiple 9.3x · quartiles 6.9x – 13.9xCARS, CLVT, EGHT, FA, GMHS, IBEX, UPWK, VRSK
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 45/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 22.3% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 6.8% | 54 (vs peers) | 9% |
| FCF margin · Quality | 8.3% | 33 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -4.3% | 0 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | -1.8% | 14 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.3x | 54 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.1x | 20 (on a fixed band) | 6% |
| EV/Sales · Valuation | 0.1x | 88 (vs peers) | 17% |
| FCF yield · Valuation | 44.5% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 11.1% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet37/100 · 2/2 factors with a value
- Growth5/100 · 2/2 factors with a value
- Quality27/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation93/100 · 2/2 factors with a value
Memo
DXC TECHNOLOGY COMPANY (DXC). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 12.6 bn USD in 2026; YoY growth -1.8%; net margin 0.9%; ROE 3.7%; net debt/EBITDA -0.3x.
The estimated value range is 91.38–179.67 USD per share (median of 3 methods, agreement: high); assumptions are illustrative. Against the central value of 121.06 USD, the price of 14.88 USD leaves a potential of 713.6% (value / price − 1) and a margin of safety of 87.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 45/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EV/Sales: 0.1x
- FCF yield: 44.5%
- Shareholder yield (distributions): 11.1%
- The price is below the estimated value range
What contradicts it
- Gross margin: 22.3%
- Revenue CAGR 3Y: -4.3%
- Revenue growth (YoY): -1.8%
- Current ratio: 1.1x
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| FIRYFiry Inc. | 4.3 bn | — | -63.0% | -60.2% | +12.5% | +107% / +94% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| FIVNFive9, Inc. | 2.7 bn | 52.7 | 7.9% | 4.9% | +10.3% | +86% / −52% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| DXCDxc Technology Company | 2.3 bn | 21.9 | 3.7% | 0.9% | −1.8% | +10% / −33% |
| INFQInfleqtion, Inc. | 1.9 bn | — | -70.8% | — | unavailable | unavailable / unavailable |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| CLVTClarivate PLC | 1.4 bn | — | -8.2% | -15.1% | −4.0% | −44% / −73% |
| UPWKUpwork Inc. | 1.3 bn | 12.9 | 16.3% | 13.5% | +2.4% | −48% / −27% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| PLTKPlaytika Holding Corp. | 808.6 m | — | — | -9.9% | +8.1% | −48% / −76% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| OOMAOoma, Inc. | 524.7 m | 49.8 | 11.7% | 3.6% | +6.5% | +69% / +64% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| EGHT8x8, Inc. | 326.4 m | 55.5 | 3.5% | 0.6% | +2.9% | +16% / −27% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
1- and 3-year price returns: for DXC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 8.50 Total return -43% · Per year -43% | 15.09 Total return 1% · Per year 1% | 22.82 Total return 53% · Per year 53% |
| 3 years | 6.85 Total return -54% · Per year -23% | 13.82 Total return -7% · Per year -2% | 23.14 Total return 56% · Per year 16% |
| 5 years | 5.52 Total return -63% · Per year -18% | 12.65 Total return -15% · Per year -3% | 23.46 Total return 58% · Per year 10% |
- Exit P/E± 3.45
- Net margin± 2.42
- Annual revenue growth± 2.17
- Annual dilution± 0.20
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).
In brief
DXC Technology is an enterprise technology and innovation partner delivering software, services and solutions to large enterprises and public sector bodies, focused on modernising and operating complex IT estates with AI. Against a backdrop of declining revenue, the company maintained its fiscal 2027 guidance, with revenue of up to 12.35 billion USD 3, which keeps its trajectory under close watch.
SWOT
Strengths
- The company has a broad services portfolio and global presence, allowing it to serve large enterprises and public sector clients 1.
- Operating cash generation remains solid, and the company can fund investment and share repurchases from cash flow 2.
- The Insurance segment shows steady growth, giving the portfolio a more stable revenue base 12.
Weaknesses
Opportunities
Threats
- Competitive pressure from offshore providers and AI platforms could reduce prices and market share 1.
- Trade tensions, tariffs and geopolitical conflicts can disrupt supply chains and raise costs 12.
- Tax disputes with US authorities could generate significant payments if court decisions go against the company 1.
Risks
- Revenue declinehigh
Revenue fell in fiscal 2026 and in the first quarter of fiscal 2027, and guidance points to a further organic decline 123.
- Margin pressurehigh
Costs have not fallen enough to offset lost revenue, reducing gross margin in the first quarter 2.
- AI execution riskmedium
If AI offerings do not gain the expected adoption or integrate effectively, the competitive position could be affected 1.
- Tax litigationmedium
Proceedings before the US Tax Court involve large sums, and an adverse decision could affect liquidity 1.
- Cybersecurity riskmedium
Cyber-attacks or disclosure of confidential data could cause financial and reputational harm 1.
Investment thesis
What would need to be true (bull case)
- If declining segments stabilise and AI offerings gain traction, the company could return to healthier growth 13.
- Cash generation and share repurchases show financial discipline, which can support long-term shareholder value 2.
- The Insurance segment is growing and could become a steadier source of revenue 12.
What would break the thesis
What to watch
- Delivery against fiscal 2027 revenue guidancenext 10-K
- Trend in bookings and book-to-bill ratio in the GIS segmentQ2 2027
- Adjusted EBIT margin relative to the guided rangeQ2 2027
- US Tax Court decisions on the capital loss and restructuring deduction cases2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).
The business
DXC Technology provides IT services and solutions, including managed infrastructure, application modernisation and industry-specific software, to global and public sector clients 1. The company operates through three reportable segments and in fiscal 2026 generated revenue of 12.6 billion USD, down 1.8% year over year 1. Its portfolio splits into Core Track offerings that enhance existing products with AI and automation, and Fast Track offerings built natively around AI 1.
Clients are mainly commercial businesses of various sizes and public sector enterprises, sold through a global direct sales force 1. No single customer exceeded 10% of consolidated revenue in fiscal 2024 to 2026 1. Results can vary from period to period because of client budget cycles and year-end project activity 1.
The company was formed in 2017 through the merger of CSC and HPES, and its current structure reflects a segment reorganisation that started in fiscal 2026 12. Recent restructuring aims to align workforce, facilities and data centre requirements 1.
Segments
Market context
The company describes the IT and professional services market as highly competitive, with many onshore and offshore providers 1. Revenue is spread across the United States, which fell 9.9% in fiscal 2026, the United Kingdom and continental Europe, where growth was modest 1.
Demand for AI and automation is changing how clients budget for technology and can delay new contracts, which may affect near-term revenue 1.
Trends
- Demand for AI and modernisationtailwind
Clients adopting AI and modern platforms could open opportunities for Fast Track offerings if solutions reach production scale 1.
- Clients delaying spendingheadwind
New technologies can replace traditional services and lead clients to postpone contracts, which could slow growth 1.
- Cost reduction and restructuringmixed
Cost optimisation cut payroll and contractor expenses but did not keep pace with the revenue decline, compressing gross margin 2.
- Inflation and currency swingsmixed
Prolonged inflation and exchange rate movements could affect profitability, although currencies were a partial benefit to revenue 12.
Competitive position
The company faces competition from large multinational firms, smaller specialist firms, low-cost offshore providers and clients' own in-house IT teams 1. The criteria that matter include strategic advisory capability, integrated solutions and financial stability 1.
Competition operates in infrastructure, where price is important, and in consulting and software, where industry expertise matters more 1. Competitive pressure could limit the company's ability to keep long-term client relationships 1.
- Large multinational IT service providers
Large firms offering some or all of DXC's services, competing directly on digital transformation projects 1.
- Smaller specialist firms
Smaller companies offering focused services similar to DXC's, often in industry or technology niches 1.
- Offshore providers in lower-cost locations
Providers in low-cost locations, particularly India, that sell directly to end users 1.
- Clients' in-house IT functions
Internal corporate functions that use their own resources instead of outsourcing services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report30 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report30 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report22 Jul 2026Shareholder vote
- Current report11 Jun 2026Regulation FD disclosure
- Proxy statement04 Jun 2026
- Annual report08 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / DXC Technology Company · 08 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DXC Technology Company · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / DXC Technology Company · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.