DXC Technology (NYSE:DXC) Announces Quarterly Earnings Results, Beats Estimates By $0.13 EPS

DXC Technology (NYSE:DXC) released its earnings results on Thursday. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.13, FiscalAI reports. The company had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.18 billion. DXC Technology had a net margin of 2.93% and a return on equity of 17.83%. The company’s revenue was down 1.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.92 EPS.

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

• DXC announced a unified AI-first strategy and centralized sales enablement, launching Fast-Track products (e.g., Core Ignite, Agentic SOC, OASIS) built on an orchestration layer that connects legacy systems to AI; management targets 10% of run-rate revenue by Q2 FY2029.
• Third-quarter revenue was $3.2 billion (down 4.3% YoY) and the company guides Q4 organic revenue down 4–5% and FY26 organic decline of ~4.3%, signaling continued near-term top-line pressure.
• Bookings and pipeline show improvement — Q3 book-to-bill was 1.12 and trailing 12-month book-to-bill 1.02 (fourth consecutive quarter >1) with several large new wins, including the London Metropolitan Police master vendor deal.
• Adjusted EBIT margin was 8.2% in Q3 (slightly above guidance) but fell 70 bps YoY; Q4 margin guidance of 6.5–7.5% reflects near-term margin pressure from increased investment in Fast-Track product development and go-to-market activities.
• Cash generation and capital allocation remain strong — Q3 FCF $266M (YTD $603M) with a ~$650M full-year FCF guide, ~\$970M net debt reduction, increased share repurchases (~$250M) and planned ~$400M bond retirements, providing balance-sheet flexibility.

DXC Technology Price Performance

NYSE:DXC traded down $0.38 on Friday, hitting $14.04. The company had a trading volume of 1,252,892 shares, compared to its average volume of 1,646,280. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.71. DXC Technology has a 52 week low of $11.82 and a 52 week high of $23.75. The stock has a market capitalization of $2.44 billion, a price-to-earnings ratio of 6.89 and a beta of 1.04. The firm has a 50 day moving average of $14.57 and a two-hundred day moving average of $14.01.

Insiders Place Their Bets

In other DXC Technology news, SVP Christopher Anthony Voci sold 2,500 shares of the stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $15.15, for a total transaction of $37,875.00. Following the completion of the sale, the senior vice president owned 88,605 shares of the company’s stock, valued at $1,342,365.75. This represents a 2.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.61% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DXC Technology

A number of institutional investors have recently added to or reduced their stakes in the business. CANADA LIFE ASSURANCE Co boosted its holdings in DXC Technology by 23.6% during the third quarter. CANADA LIFE ASSURANCE Co now owns 251,248 shares of the company’s stock worth $3,424,000 after buying an additional 48,040 shares in the last quarter. Parvin Asset Management LLC bought a new position in DXC Technology during the third quarter valued at about $245,000. Mariner LLC raised its stake in shares of DXC Technology by 149.9% in the 3rd quarter. Mariner LLC now owns 25,754 shares of the company’s stock valued at $351,000 after buying an additional 15,448 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of DXC Technology by 31.6% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 22,227 shares of the company’s stock valued at $303,000 after acquiring an additional 5,338 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in DXC Technology by 126.7% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,130,560 shares of the company’s stock valued at $15,410,000 after acquiring an additional 631,905 shares during the period. Hedge funds and other institutional investors own 96.20% of the company’s stock.

Key Headlines Impacting DXC Technology

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

• Positive Sentiment: Q3 beat on earnings and cash generation — DXC reported non?GAAP EPS of $0.96 versus ~$0.85 consensus, generated $266M in free cash flow for the quarter (YTD $603M), and repurchased $65M of stock while redeeming $300M of notes; these items support shareholder returns and near?term earnings stability. PR Newswire
• Positive Sentiment: Longer?term AI revenue target — DXC announced a goal for AI Fast Track initiatives to contribute a 10% revenue run?rate by Q2 2029 as part of a dual?track strategy, which investors may view as a constructive growth roadmap if execution follows. MSN
• Neutral Sentiment: FY2026 guidance roughly in line — DXC set FY EPS at $3.15 (vs. consensus ~$3.14) and revenue guidance around $12.7B, largely matching expectations and offering limited surprise upside or downside to full?year estimates.
• Neutral Sentiment: Index positioning — Coverage noted DXC’s position in the Russell 1000 IT Services group, which is neutral for immediate price action but relevant for ETF/index flows. Kalkine Media
• Negative Sentiment: Q4 EPS guide below street — DXC set Q4 EPS guidance at $0.65–$0.75 versus a ~ $0.79 consensus, creating downward pressure on near?term earnings expectations and the stock.
• Negative Sentiment: Revenue weakness and market reaction — Total Q3 revenue was $3.19B (slightly above consensus) but down 1.0% YoY and down 4.3% organically; the revenue decline contributed to a negative market reaction and share weakness despite the EPS beat. Investing.com

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Wolfe Research set a $13.00 price target on DXC Technology and gave the company an “underperform” rating in a report on Friday. Susquehanna set a $14.00 price target on DXC Technology and gave the stock a “neutral” rating in a research report on Friday, October 31st. Weiss Ratings reissued a “sell (d)” rating on shares of DXC Technology in a research note on Wednesday, October 8th. Wall Street Zen raised DXC Technology from a “hold” rating to a “buy” rating in a research report on Sunday, November 9th. Finally, Stifel Nicolaus cut their price objective on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating on the stock in a research report on Friday, October 31st. Six analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, DXC Technology presently has a consensus rating of “Reduce” and a consensus price target of $14.71.

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.