DXC Technology (NYSE:DXC) Issues Earnings Results

Posted by Brenda Bartman on Oct 29th, 2026

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

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 Performance

NYSE DXC opened at $14.77 on Tuesday. The stock has a fifty day simple moving average of $12.36 and a 200-day simple moving average of $11.59. The stock has a market cap of $2.36 billion, a PE ratio of 22.73 and a beta of 0.79. DXC Technology has a twelve month low of $7.90 and a twelve month high of $16.38. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.90.

Wall Street Analysts Forecast Growth

DXC has been the topic of several research analyst reports. Zacks Research upgraded DXC Technology from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Royal Bank Of Canada decreased their target price on DXC Technology from $16.00 to $14.00 and set a “sector perform” rating on the stock in a research note on Friday, July 31st. Weiss Ratings raised DXC Technology from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, October 6th. Susquehanna upped their price target on DXC Technology from $10.00 to $12.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, Morgan Stanley increased their price objective on shares of DXC Technology from $9.00 to $12.00 and gave the company an “equal weight” rating in a report on Monday. Seven investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, DXC Technology presently has an average rating of “Reduce” and a consensus target price of $12.06.

Read Our Latest Stock Report on DXC Technology

Key Headlines Impacting DXC Technology

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

Positive Sentiment: JPMorgan reportedly said DXC Technology’s stock could rise, providing a supportive analyst view. DXC Technology Stock Price Expected to Rise
Positive Sentiment: The company’s quarterly earnings call addressed key analyst questions, which may give investors additional detail on operating trends, strategy and the outlook. DXC’s Q3 earnings call: our top 5 analyst questions
Neutral Sentiment: The consensus price target increased 10.87% to $12.70. The increase signals some improvement in analyst expectations, but the target remains below the recent trading level, limiting its immediate bullish impact. DXC Technology consensus price target increased
Neutral Sentiment: Morgan Stanley raised its target from $9 to $12 but maintained an “equal weight” rating. The higher target is encouraging, although it still implies meaningful downside from the recent price. Morgan Stanley DXC Technology rating
Negative Sentiment: Coverage questioned whether an earnings miss changes the bullish case for DXC, suggesting investors are reassessing the company’s growth and profitability outlook. Earnings Miss Change The Bull Case For DXC Technology Stock
Negative Sentiment: A report said DXC could be approximately 20% overvalued following a reduction to full-year guidance, a direct negative for valuation and investor confidence. DXC Technology Could Be 20% Overvalued
Negative Sentiment: DXC is reportedly considering an exit from its insurance software division. While a sale could streamline the business, the uncertainty and potential loss of revenue may pressure the stock. DXC Technology Weighs Insurance Software Division Exit

DXC Technology Company Profile

(Get Free Report)

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.