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

DXC Technology (NYSE:DXC) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 2.400-2.900 for the period, compared to the consensus EPS estimate of 3.290. The company issued revenue guidance of $12.1 billion-$12.4 billion, compared to the consensus revenue estimate of $12.3 billion. DXC Technology also updated its Q1 2027 guidance to 0.400-0.400 EPS.

DXC Technology Stock Performance

DXC opened at $9.45 on Friday. The stock has a market capitalization of $1.60 billion, a price-to-earnings ratio of 157.42 and a beta of 0.85. The company has a fifty day moving average of $12.24 and a 200 day moving average of $13.41. DXC Technology has a fifty-two week low of $8.40 and a fifty-two week high of $17.26. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.35 and a current ratio of 1.35.

DXC Technology (NYSE:DXC) last posted its earnings results on Thursday, May 7th. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.07. DXC Technology had a net margin of 0.14% and a return on equity of 17.01%. The company had revenue of $3.13 billion during the quarter, compared to analysts’ expectations of $3.17 billion. During the same period last year, the company posted $0.84 earnings per share. DXC Technology’s quarterly revenue was down 1.2% on a year-over-year basis. 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 3.31 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have commented on DXC shares. Zacks Research cut shares of DXC Technology from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 3rd. TD Cowen dropped their price objective on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating for the company in a research note on Monday, April 6th. Wall Street Zen cut shares of DXC Technology from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. Weiss Ratings restated a “sell (d+)” rating on shares of DXC Technology in a report on Wednesday, April 8th. Finally, Stifel Nicolaus set a $12.00 target price on shares of DXC Technology in a report on Friday. Eight research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, DXC Technology currently has a consensus rating of “Reduce” and a consensus target price of $14.38.

Key DXC Technology News

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

Institutional Investors Weigh In On DXC Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC lifted its holdings in DXC Technology by 240.6% during 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 in the last quarter. CIBC Private Wealth Group LLC raised its holdings in shares of 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 purchasing an additional 2,254 shares in the last quarter. Headlands Technologies LLC bought a new stake in shares of DXC Technology in the 2nd quarter valued at about $39,000. Caitlin John LLC raised its holdings in shares of 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 purchasing an additional 2,520 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in shares of 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 purchasing an additional 2,295 shares in the last quarter. Institutional investors 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.