DXC Technology (NYSE:DXC) Reaches New 12-Month Low – Should You Sell?

DXC Technology Company. (NYSE:DXC) shares hit a new 52-week low on Saturday . The company traded as low as $8.40 and last traded at $9.4450, with a volume of 16627765 shares trading hands. The stock had previously closed at $12.01.

Key Stories Impacting DXC Technology

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

Analysts Set New Price Targets

A number of brokerages recently weighed in on DXC. BMO Capital Markets boosted their price target on shares of DXC Technology from $15.00 to $17.00 and gave the company a “market perform” rating in a research report on Tuesday, February 3rd. TD Cowen reduced their price target on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating for the company in a research report on Monday, April 6th. Weiss Ratings reiterated a “sell (d+)” rating on shares of DXC Technology in a research note on Wednesday, April 8th. Wolfe Research set a $13.00 price objective on DXC Technology and gave the company an “underperform” rating in a research note on Friday, January 30th. Finally, Stifel Nicolaus set a $12.00 price objective on DXC Technology in a research note on Friday. Eight investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $14.38.

DXC Technology Stock Down 21.4%

The business’s fifty day moving average price is $12.24 and its 200 day moving average price is $13.41. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $1.60 billion, a PE ratio of 157.42 and a beta of 0.85.

DXC Technology (NYSE:DXC) last announced its earnings results on Thursday, May 7th. The company reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.70 by $0.07. DXC Technology had a net margin of 0.14% and a return on equity of 17.01%. The business had revenue of $3.13 billion during the quarter, compared to analysts’ expectations of $3.17 billion. During the same period in the prior year, the company earned $0.84 earnings per share. The business’s revenue was down 1.2% compared to the same quarter last year. 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. On average, equities research analysts forecast that DXC Technology Company. will post 3.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On DXC Technology

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of DXC Technology by 3.5% during the third quarter. Vanguard Group Inc. now owns 23,452,271 shares of the company’s stock worth $319,654,000 after purchasing an additional 800,973 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of DXC Technology by 2.6% during the first quarter. Dimensional Fund Advisors LP now owns 10,029,966 shares of the company’s stock worth $126,068,000 after purchasing an additional 258,819 shares during the last quarter. American Century Companies Inc. raised its stake in shares of DXC Technology by 8.5% during the third quarter. American Century Companies Inc. now owns 7,591,818 shares of the company’s stock worth $103,476,000 after purchasing an additional 596,475 shares during the last quarter. FIL Ltd raised its stake in shares of DXC Technology by 0.7% during the fourth quarter. FIL Ltd now owns 6,383,750 shares of the company’s stock worth $93,522,000 after purchasing an additional 45,015 shares during the last quarter. Finally, State Street Corp raised its stake in shares of DXC Technology by 2.1% during the second quarter. State Street Corp now owns 6,381,982 shares of the company’s stock worth $97,581,000 after purchasing an additional 128,916 shares during the last quarter. Hedge funds and other institutional investors own 96.20% of the company’s stock.

About DXC Technology

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.