DXC Technology (NYSE:DXC) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

DXC Technology (NYSE:DXC) posted its quarterly earnings data on Thursday. The company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.12, FiscalAI reports. The business had revenue of $3.03 billion during the quarter, compared to analyst estimates of $2.98 billion. DXC Technology had a return on equity of 15.60% and a net margin of 0.99%. The company’s revenue for the quarter was down 4.1% on a year-over-year basis. During the same period last year, the company earned $0.84 EPS.

Here are the key takeaways from DXC Technology’s conference call:

• Full-year guidance was reduced: DXC now expects organic revenue to decline 5%–5.5%, adjusted EBIT margin of 5.75%–6.25%, non-GAAP EPS of $2.25–$2.50, and free cash flow of approximately $600 million. The revision reflects weaker second-quarter bookings and lower pipeline conversion assumptions for the remainder of the year.
• Second-quarter revenue fell 4% year over year to $3.0 billion, while adjusted EBIT margin declined 180 basis points to 6.2% and non-GAAP EPS dropped to $0.67 from $0.84. Bookings declined 10% year over year, with weakness most pronounced in the Americas and UKI.
• AI and agentic offerings are gaining traction: DXC has certified more than 5,700 employees in AI, reported a sixfold increase in OASIS utilization, and secured its first large GrowthX modernization win with a global bank. Management also cited growing pipelines for AI-powered Smart Apps and new cybersecurity offering Frontier Code Assurance.
• Management said traditional project decisions are taking longer as customers reassess investments amid the shift toward AI, with some large deals delayed and some smaller opportunities lost. DXC expects GIS revenue to improve sequentially in the third quarter and more significantly in the fourth quarter, but its guidance does not assume a recovery in conversion rates.
• DXC confirmed it is in ongoing discussions regarding a possible sale of its insurance business while emphasizing that it is evaluating strategic actions to create shareholder value. The company also retired $400 million of debt, repurchased $60 million of shares, and ended the quarter with $213 million of free cash flow excluding a tax-related cash deposit.

DXC Technology Stock Down 6.3%

NYSE:DXC traded down $0.96 during trading hours on Friday, reaching $14.27. The company’s stock had a trading volume of 3,735,901 shares, compared to its average volume of 3,829,255. The stock has a 50 day moving average price of $12.20 and a two-hundred day moving average price of $11.59. DXC Technology has a 12 month low of $7.90 and a 12 month high of $16.38. The company has a debt-to-equity ratio of 0.90, a quick ratio of 1.41 and a current ratio of 1.41. The company has a market capitalization of $2.28 billion, a P/E ratio of 20.41 and a beta of 0.79.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. Zacks Research upgraded DXC Technology from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Stifel Nicolaus reduced their target price on shares of DXC Technology from $12.00 to $10.50 and set a “hold” rating on the stock in a research note on Friday, July 31st. Royal Bank Of Canada lowered their target price on shares of DXC Technology from $16.00 to $14.00 and set a “sector perform” rating for the company in a report on Friday, July 31st. Susquehanna increased their price objective on shares of DXC Technology from $10.00 to $12.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, Weiss Ratings raised shares of DXC Technology from a “sell (d)” rating to a “sell (d+)” rating in a research report on Tuesday, October 6th. Seven research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $11.93.

More DXC Technology News

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC reported fiscal second-quarter adjusted earnings of $0.67 per share, above the $0.55 analyst consensus, while revenue of $3.03 billion also exceeded the $2.98 billion estimate. DXC Technology Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: First-half fiscal 2027 free cash flow increased to $405 million from $337 million a year earlier, and DXC repurchased $60 million of stock, providing some support for shareholder returns. DXC Technology Reports Second Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Bookings totaled $2.4 billion, with a trailing-12-month book-to-bill ratio of 1.0x, indicating that new business roughly matched recognized revenue but did not signal meaningful backlog growth. DXC Technology Reports Second Quarter Fiscal Year 2027 Results
• Negative Sentiment: Revenue fell approximately 4% year over year to $3.03 billion, while adjusted EPS declined 20.2% from the prior-year period. Reported EBIT margin was only 2.2%, compared with a 6.2% adjusted EBIT margin, highlighting profitability pressure. DXC Technology Reports Second-Quarter Results
• Negative Sentiment: Management projected a 5% to 5.5% organic revenue decline for fiscal 2027 while evaluating strategic actions, including potential insurance-related options. The outlook reinforced concerns that DXC’s turnaround will take time. DXC Projects Fiscal 2027 Organic Revenue Decline
• Negative Sentiment: Susquehanna raised its price target from $10 to $12 but maintained a neutral rating; the revised target remains below the recent trading level, signaling limited analyst confidence in near-term upside. Susquehanna Raises DXC Technology Price Target

DXC Technology Company Profile

DXC Technology (NYSE: DXC) is a global information technology services and solutions company that helps organizations modernize and manage their technology environments. Its services include consulting, application development and management, cloud migration and operations, cybersecurity, data and analytics, enterprise technology management, and workplace and end-user services.

The company serves businesses and government organizations across a range of industries, including financial services, healthcare, insurance, manufacturing, aerospace and defense, automotive, retail, and the public sector.