DXC Stock Analysis: DXC Technology | NYSE
Information Technology Services | NYSE, USA | Market Cap: 1.730m USD | 12M Return: -18.3% | US23355L1061 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 27.1M
EPS Trend: -24.0%
Qual. Beats: 0
Rev. Trend: -93.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
DXC Technology is a global IT services company operating across three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Software & Services. The company delivers software engineering, consulting, and custom/enterprise application solutions with a focus on AI and data analytics for digital transformation across industries including finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. Its Global Infrastructure Services segment manages data center, mainframe, cloud, and network environments, while also providing cross-industry business process services for functions such as finance, HR, procurement, and customer service. The Insurance Software & Services segment provides software and business process services tailored to life and wealth, property and casualty, and reinsurance providers.
The company sells through a direct sales force to commercial businesses and public sector enterprises and maintains strategic AI partnerships, including a multi-year global alliance with Anthropic to embed AI into mission-critical enterprise systems and a partnership with ElevenLabs to integrate voice AI capabilities. Founded in 1959 and headquartered in Ashburn, Virginia, DXC operates within the IT Consulting & Other Services sub-industry, a sector characterized by long-term outsourcing contracts and labor-intensive delivery models. The company is listed on the NYSE under the ticker DXC, with a small-cap market capitalization.
- Anthropic AI alliance drives Consulting & Engineering Services revenue growth
- Insurance Software & BPO segment margins expand on digital transformation demand
- Legacy Infrastructure Services revenue declines amid cloud migration headwinds
| Net Income: 124.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.48 > 1.0 |
| NWC/Revenue: 12.79% < 20% (prev 7.65%; Δ 5.14% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.48b > Net Income 124.0m |
| Net Debt (3.09b) to EBITDA (1.55b): 1.99 < 3 |
| Current Ratio: 1.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (166.3m) vs 12m ago -10.10% < -2% |
| Gross Margin: 13.71% > 18% (prev 24.71%; Δ -11.01% > 0.5%) |
| Asset Turnover: 94.70% > 50% (prev 95.21%; Δ -0.50% > 0%) |
| Interest Coverage Ratio: 2.00 > 6 (EBIT TTM 433.0m / Interest Expense TTM 217.0m) |
| A: 0.12 (Total Current Assets 5.51b - Total Current Liabilities 3.92b) / Total Assets 12.9b |
| B: -0.20 (Retained Earnings -2.60b / Total Assets 12.9b) |
| C: 0.03 (EBIT TTM 433.0m / Avg Total Assets 13.2b) |
| D: 0.32 (Book Value of Equity 3.06b / Total Liabilities 9.60b) |
| Altman-Z'' = 0.71 = B |
| DSRI: 0.97 (Receivables 2.89b/3.06b, Revenue 12.5b/12.8b) |
| GMI: 1.80 (GM 24.71% / 13.71%) |
| AQI: 0.98 (AQ_t 0.44 / AQ_t-1 0.45) |
| SGI: 0.98 (Revenue 12.5b / 12.8b) |
| TATA: -0.10 (NI 124.0m - CFO 1.48b) / TA 12.9b) |
| Beneish M = -2.36 (Cap -4..+1) = BBB |
As of October 04, 2026, the stock is trading at USD 11.10 with a total of 2,058,417 shares traded. Over the past week, the price has changed by +4.23%, over one month by -4.56%, over three months by +12.01% and over the past year by -18.32%.
Current recommended Stop Loss: 10.00 (which is 9.9% or 2.2 ATR below the current price).
DXC Technology has received a consensus analysts rating of 2.70. Therefore, it is recommended to hold DXC.
- StrongBuy: 0
- Buy: 0
- Hold: 8
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 11.2 | 1% |
P/E Trailing = 15.0417
P/E Forward = 4.1841
P/S = 0.1386
P/B = 0.5687
P/EG = 0.4907
Revenue TTM = 12.5b USD
EBIT TTM = 433.0m USD
EBITDA TTM = 1.55b USD
Long Term Debt = 2.95b USD (from longTermDebt, last fiscal year)
Short Term Debt = 735.0m USD (from shortTermDebt, last quarter)
Debt = 5.04b USD (from shortLongTermDebtTotal, last quarter) + Leases 869.0m
Net Debt = 3.09b USD (calculated: Debt 5.04b - CCE 1.96b)
Enterprise Value = 4.82b USD (1.73b + Debt 5.04b - CCE 1.96b)
Interest Coverage Ratio = 2.00 (Ebit TTM 433.0m / Interest Expense TTM 217.0m)
EV/FCF = 3.85x (Enterprise Value 4.82b / FCF TTM 1.25b)
FCF Yield = 25.99% (FCF TTM 1.25b / Enterprise Value 4.82b)
FCF Margin = 10.03% (FCF TTM 1.25b / Revenue TTM 12.5b)
Net Margin = 0.99% (Net Income TTM 124.0m / Revenue TTM 12.5b)
Gross Margin = 13.71% ((Revenue TTM 12.5b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = 20.37% (prev -4.54%)
Tobins Q-Ratio = 0.37 (Enterprise Value 4.82b / Total Assets 12.9b)
Interest Expense / Debt = 4.30% (Interest Expense 217.0m / Debt 5.04b)
Taxrate = 47.72% (115.0m / 241.0m)
NOPAT = 226.4m (EBIT 433.0m * (1 - 47.72%))
Current Ratio = 1.41 (Total Current Assets 5.51b / Total Current Liabilities 3.92b)
Debt / Equity = 1.65 (Debt 5.04b / totalStockholderEquity, last quarter 3.06b)
Debt / EBITDA = 1.99 (Net Debt 3.09b / EBITDA 1.55b)
Debt / FCF = 2.46 (Net Debt 3.09b / FCF TTM 1.25b)
Total Stockholder Equity = 3.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.94% (Net Income 124.0m / Total Assets 12.9b)
RoE = 4.06% (Net Income TTM 124.0m / Total Stockholder Equity 3.05b)
RoCE = 7.21% (EBIT 433.0m / Capital Employed (Equity 3.05b + L.T.Debt 2.95b))
RoIC = 2.48% (NOPAT 226.4m / Invested Capital 9.12b)
WACC = 3.85% (E(1.73b)/V(6.77b) * Re(8.52%) + D(5.04b)/V(6.77b) * Rd(4.30%) * (1-Tc(0.48)))
Discount Rate = 8.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -65.02 | Cagr: -3.72%
[DCF] Terminal Value 77.74% ; FCFF base≈1.19b ; Y1≈1.35b ; Y5≈1.92b
[DCF] Fair Price = 162.3 (EV 29.0b - Net Debt 3.09b = Equity 25.9b / Shares 159.8m; r=8.35% [WACC [floored]]; 5y FCF grow 13.51% → 2.50% )
EPS Correlation: -24.02 | EPS CAGR: -1.27% | SUE: -0.38 | # QB: 0
Revenue Correlation: -93.03 | Revenue CAGR: -3.55% | SUE: 0.39 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.55 | Chg30d=-22.58% | Revisions=-73% | Analysts=8
EPS next Quarter (2026-12-31): EPS=0.81 | Chg30d=+9.25% | Revisions=+73% | Analysts=8
EPS current Year (2027-03-31): EPS=2.59 | Chg30d=+1.12% | Revisions=+18% | GrowthEPS=-19.8% | GrowthRev=-3.8%
EPS next Year (2028-03-31): EPS=2.96 | Chg30d=-3.97% | Revisions=-22% | GrowthEPS=+14.1% | GrowthRev=-1.4%
[Analyst] Revisions Ratio: +0% (up=15, down=15)