DXC Technology (NYSE:DXC) Issues Q2 2027 Earnings Guidance

DXC Technology (NYSE:DXC) updated its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.550-0.550 for the period, compared to the consensus EPS estimate of 0.710. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.0 billion.

DXC Technology Stock Performance

Shares of DXC Technology stock traded up $0.06 during midday trading on Friday, hitting $11.30. The company had a trading volume of 10,793,341 shares, compared to its average volume of 3,933,662. The company has a fifty day simple moving average of $9.40 and a 200 day simple moving average of $11.44. The stock has a market cap of $1.85 billion, a price-to-earnings ratio of 188.33 and a beta of 0.82. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.94. DXC Technology has a 12-month low of $7.90 and a 12-month high of $15.68.

DXC Technology (NYSE:DXC) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02). DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The company had revenue of $3 billion for the quarter, compared to analyst estimates of $2.99 billion. During the same quarter in the previous year, the company posted $0.68 EPS. The company’s revenue for the quarter was down 5.0% compared to the same quarter last year. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. As a group, analysts predict that DXC Technology will post 2.61 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently commented on DXC. BMO Capital Markets dropped their price objective on shares of DXC Technology from $17.00 to $10.00 and set a “market perform” rating on the stock in a report on Monday, May 11th. Zacks Research raised DXC Technology from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. TD Cowen dropped their price target on shares of DXC Technology from $11.00 to $10.00 and set a “hold” rating on the stock in a research note on Thursday, July 9th. Weiss Ratings downgraded shares of DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Finally, Stifel Nicolaus decreased their price target on shares of DXC Technology from $12.00 to $10.50 and set a “hold” rating on the stock in a research note on Friday. Seven equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $11.81.

Insider Buying and Selling at DXC Technology

In related news, CEO Raul J. Fernandez purchased 28,051 shares of the company’s stock in a transaction on Monday, May 11th. The stock was acquired at an average cost of $8.90 per share, for a total transaction of $249,653.90. Following the completion of the transaction, the chief executive officer directly owned 844,052 shares in the company, valued at approximately $7,512,062.80. The trade was a 3.44% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 1.13% of the company’s stock.

Key Headlines Impacting DXC Technology

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

• Positive Sentiment: DXC reported first-quarter fiscal 2027 free cash flow of $314 million, up from $97 million a year earlier. Bookings increased 5% year over year to $3.0 billion, suggesting improved demand despite the revenue decline. The company also repurchased $70 million of stock. DXC Technology Reports First Quarter Fiscal Year 2027 Results
• Positive Sentiment: Management highlighted momentum in its AI platform and announced a strategic partnership with ElevenLabs, while new leadership appointments are intended to accelerate DXC’s AI-focused strategy. These moves could improve the company’s longer-term growth prospects. DXC and ElevenLabs Announce Strategic Partnership
• Positive Sentiment: An article reports that hedge funds remain bullish on DXC, potentially providing support from institutional investors despite the stock’s year-to-date weakness. Hedge Funds Are Bullish on DXC Technology
• Neutral Sentiment: Royal Bank of Canada lowered its price target from $16 to $14 but maintained a “sector perform” rating. The revised target still implies meaningful upside, although the reduction signals more cautious expectations. Benzinga
• Negative Sentiment: Fiscal Q1 adjusted EPS was $0.40, below the $0.42 consensus and down sharply from $0.68 a year earlier. Revenue fell 5.1% year over year to $3.0 billion, while organic revenue declined 6.7%. DXC Technology Q1 Earnings Miss Estimates, Revenues Decline Year Over Year
• Negative Sentiment: DXC’s second-quarter fiscal 2027 EPS outlook of $0.55 is well below the approximately $0.71 analyst consensus. Management also expects fiscal 2027 organic revenue to contract 3%–5%, reinforcing concerns about near-term growth. The company partly offset this with a higher full-year free-cash-flow outlook of about $685 million. DXC Expects Fiscal 2027 Organic Revenue to Decline

Institutional Trading of DXC Technology

A number of large investors have recently made changes to their positions in DXC. Caitlin John LLC increased its stake in DXC Technology by 358.0% in the fourth quarter. Caitlin John LLC now owns 3,224 shares of the company’s stock valued at $49,000 after purchasing an additional 2,520 shares during the last quarter. Vident Advisory LLC grew its holdings in shares of DXC Technology by 5.4% during the fourth quarter. Vident Advisory LLC now owns 91,284 shares of the company’s stock worth $1,337,000 after buying an additional 4,697 shares during the last quarter. State of Tennessee Department of Treasury increased its position in DXC Technology by 51.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 143,140 shares of the company’s stock valued at $2,066,000 after acquiring an additional 48,852 shares during the period. Mackenzie Financial Corp increased its position in DXC Technology by 39.1% in the 4th quarter. Mackenzie Financial Corp now owns 706,347 shares of the company’s stock valued at $10,497,000 after acquiring an additional 198,654 shares during the period. Finally, XTX Topco Ltd purchased a new stake in DXC Technology during the 4th quarter valued at approximately $1,436,000. 96.20% of the stock is currently owned by hedge funds and other institutional investors.

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.