DXC Technology (NYSE:DXC – Get Free Report) issued an update on its first quarter 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 0.400-0.400 for the period, compared to the consensus EPS estimate of 0.680. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.1 billion. DXC Technology also updated its FY 2027 guidance to 2.400-2.900 EPS.
Analyst Ratings Changes
Several analysts have recently commented on DXC shares. Stifel Nicolaus set a $12.00 target price on DXC Technology in a research report on Friday. TD Cowen reduced their price objective on DXC Technology from $15.00 to $14.00 and set a “hold” rating for the company in a research note on Monday, April 6th. Zacks Research lowered DXC Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 3rd. Wolfe Research set a $13.00 target price on DXC Technology and gave the company an “underperform” rating in a research note on Friday, January 30th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of DXC Technology in a report on Wednesday, April 8th. 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, the company presently has a consensus rating of “Reduce” and an average target price of $14.38.
Read Our Latest Stock Report on DXC Technology
DXC Technology Price Performance
DXC Technology (NYSE:DXC – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.07. The company had revenue of $3.13 billion during the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a return on equity of 17.01% and a net margin of 0.14%.The business’s quarterly revenue was down 1.2% on a year-over-year basis. During the same period last year, the business earned $0.84 EPS. 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. Analysts forecast that DXC Technology will post 3.31 EPS for the current fiscal year.
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 Trading of DXC Technology
Several large investors have recently added to or reduced their stakes in the business. Caitlin John LLC increased its stake in shares of DXC Technology by 358.0% during the 4th quarter. Caitlin John LLC now owns 3,224 shares of the company’s stock worth $49,000 after purchasing an additional 2,520 shares during the last quarter. Vident Advisory LLC lifted its stake in shares of DXC Technology by 5.4% in the 4th quarter. Vident Advisory LLC now owns 91,284 shares of the company’s stock valued at $1,337,000 after purchasing an additional 4,697 shares during the last quarter. State of Tennessee Department of Treasury boosted its holdings in DXC Technology by 51.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 143,140 shares of the company’s stock worth $2,066,000 after purchasing an additional 48,852 shares in the last quarter. Mackenzie Financial Corp boosted its holdings in DXC Technology by 39.1% in the fourth quarter. Mackenzie Financial Corp now owns 706,347 shares of the company’s stock worth $10,497,000 after purchasing an additional 198,654 shares in the last quarter. Finally, XTX Topco Ltd acquired a new position in DXC Technology during the fourth quarter worth $1,436,000. 96.20% of the stock is owned by institutional investors.
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.
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