A month has gone by since the last earnings report for DXC Technology Company. (DXC) . Shares have lost about 17.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is DXC Technology due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. DXC Surpasses Q3 Earnings and Reven ...

 ServiceNow and DXC expand their strategic partnership to combine DXC's industry-leading software and expertise with ServiceNow's AI-enabled platformASHBURN, Va. and SANTA CLARA, Calif., March 4, 2025 /PRNewswire/ -- DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced new offerings with ServiceNow (NYSE: NOW), the AI platform for business transformation, to modernize the insurance industry. As an Elite partner, DXC is combining its industry-leading solution ...

ASHBURN, Va., Feb. 27, 2025 /PRNewswire/ -- DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced the appointment of Pat McClanahan as Global Leader of Business and Sales Operations for Consulting & Engineering Services - Powered by AI (CES), effective immediately. McClanahan will report directly to DXC President of CES, Howard Boville. DXC Technology logo "Pat's track record of leadership in the Navy was the beginning of a career of accomplishments drivi ...

ASHBURN, Va., Feb. 27, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced the appointment of Pat McClanahan as Global Leader of Business and Sales Operations for Consulting & Engineering Services - Powered by AI (CES), effective immediately. McClanahan will report directly to DXC President of CES, Howard Boville."Pat's track record of leadership in the Navy was the beginning of a career of accomplishments driving excellence at the Depar ...

ASHBURN, Va., Feb. 27, 2025 /PRNewswire/ - DXC Technology (NYSE: DXC), a leading Fortune 500 global technology services provider, today announced the appointment of Jennifer Ragone as Chief People Officer. Ragone will report directly to DXC President and CEO Raul Fernandez.In this role, Ragone will lead DXC's global people strategy, focusing on driving profitable growth through innovative talent solutions. She will spearhead initiatives to strengthen the workforce, prepare employees for the future of work, ...

Core Insights - DXC Technology has signed an agreement with Skanska AB to modernize Skanska's IT infrastructure, aiming to enhance operational efficiency in Europe and the United States [1][3] - The partnership involves transferring services and employees managing Skanska's global IT infrastructure operations to DXC Technology [2] - Skanska is undergoing a digital transformation, focusing on sustainability, process optimization, and cost efficiency, with DXC's support being crucial for this transition [3] Company Insights - DXC Technology is recognized as a leading global technology services provider, helping companies modernize IT while managing mission-critical systems [5][7] - The company will manage Skanska's Azure cloud and on-premises environments, enhance cybersecurity, and deliver modern workplace solutions [4] - DXC's expertise in managing hybrid IT environments positions it well to support Skanska's operational efficiency and security needs [4] Industry Insights - The construction and project development industry is experiencing significant digital transformation, with a strong emphasis on modern and flexible IT infrastructure services [3] - Companies in this sector are prioritizing sustainability and cost efficiency as part of their digital transformation strategies [3]

Core Insights - The European Space Agency (ESA) has contracted DXC Technology to develop an enterprise AI platform named "Ask ESA" to enhance efficiency and knowledge sharing within the organization [1][2] - The platform will utilize generative AI technology from Mistral AI and is designed to quickly and securely deploy AI solutions across various departments of ESA [2][4] - The collaboration between ESA and DXC builds on a 15-year partnership, emphasizing the importance of AI in accelerating growth and increasing agility for both businesses and government organizations [5] Company Overview - DXC Technology is a leading global technology services provider that helps organizations modernize IT, optimize data architectures, and ensure security across various cloud environments [7] - The company focuses on delivering high-performance solutions that enhance competitiveness and customer experience for its clients [7] Project Details - The "Ask ESA" platform is modular, allowing ESA to efficiently access and manage large volumes of documents and data while adhering to AI and data policies [4] - The project was initiated by Francois Margottin, Head of Application Services at ESA, and highlights the agile methodology used to transition from prototype to a robust production solution [3]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [3][4] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock to Watch: DXC Technology Company - DXC Technology Company, formed from the merger of CSC and HPE, currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [12] - The company has a Momentum Style Score of A, with shares increasing by 8.9% over the past four weeks [13] - Analysts have revised DXC's earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate rising by $0.07 to $3.25 per share, and an average earnings surprise of 23.8% [13]

Core Insights - DXC Technology, Inc. reported better-than-expected non-GAAP earnings of 92 cents per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate by 19.5% and showing a 7% year-over-year increase [1] - The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 23.8% [2] - Following strong Q3 results, DXC raised its fiscal 2025 earnings guidance, leading to a 0.7% increase in share price in after-hours trading [3] Financial Performance - DXC's Q3 revenues were $3.23 billion, surpassing the Zacks Consensus Estimate by 0.7% but down 5.1% year-over-year; organic revenues declined 4.2% [4] - Global Business Services segment revenues decreased by 1.8% year-over-year to $1.67 billion, with organic growth driven by insurance software and BPS business [5] - GIS revenues fell 8.5% year-over-year to $1.56 billion, with organic revenues down 7.8%, impacted by declines in Cloud Infrastructure, ITO & Security, and Modern Workplace divisions [6] Profitability Metrics - Non-GAAP gross profit increased by 6% to $809 million, with a gross margin improvement of 150 basis points to 25.1%, attributed to disciplined resource management and restructuring benefits [7] - Non-GAAP operating income rose to $286 million, with an operating margin expansion of 140 basis points to 8.9%, primarily due to higher gross margins [8] Balance Sheet and Cash Flow - As of the end of Q3, DXC had $1.72 billion in cash and cash equivalents, up from $1.25 billion in the previous quarter; long-term debt decreased to $3.64 billion from $3.83 billion [9] - The company generated operating cash flow of $650 million and free cash flow of $483 million in Q3, totaling $1.08 billion and $576 million respectively for the first three quarters of fiscal 2025 [10] Updated Guidance - DXC updated its fiscal 2025 guidance, now expecting revenues between $12.8 billion and $12.83 billion, down from previous guidance of $12.9-$13.1 billion; the consensus estimate is $12.95 billion [11] - The adjusted EBIT margin is projected to be approximately 7.9%, up from the previous guidance of 7-7.5%, with adjusted EPS now expected at $3.35 compared to the previous $3-$3.25 [12] - For Q4 fiscal 2025, DXC anticipates revenues between $3.10 billion and $3.13 billion, with an adjusted EBIT margin of approximately 7% and adjusted EPS of 75 cents [13]

Core Insights - DXC Technology has improved its ranking in Whitelane Research's 2024/2025 European IT Sourcing Study, achieving a top-three position for overall customer satisfaction, up from fourth place last year [1][2] - The company was ranked first in the Public Sector, demonstrating its strong performance in this area [1][4] Company Performance - DXC was recognized as a Strong Performer across all service categories, including Digital Transformation, Application Services, Cloud & Infrastructure Services, Workplace Services, Network & Connectivity Services, and Security Services [2][3] - The company received an 84% customer satisfaction score in the Public Sector, where it was named an Exceptional Performer [4] Industry Position - DXC is regarded as a top vendor across most surveyed European countries, establishing itself as a trusted partner for its customers [3] - The company has decades of experience in the public sector, partnering with leading government organizations in Europe and the UK [4] Commitment to Innovation - DXC's Managing Director for Europe emphasized the company's dedication to customer success and its commitment to bringing cutting-edge innovations, including advancements in AI [5] - The company plays a crucial role in its customers' modernization journeys, leveraging deep engineering and industry expertise [6]