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, ...

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 ...

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]

Financial Performance - Revenues for the three months ended December 31, 2024, were $3,225 million, a decrease of 5.1% compared to $3,399 million for the same period in 2023[10]. - Net income for the nine months ended December 31, 2024, was $133 million, down 52.7% from $281 million in the same period of 2023[10]. - Basic income per common share for the three months ended December 31, 2024, was $0.31, down from $0.82 in the same period of 2023[10]. - The company reported a comprehensive income attributable to DXC common stockholders of $2 million for the three months ended December 31, 2024, compared to $188 million for the same period in 2023[11]. - The company reported a net income of $125 million for the nine months ended December 31, 2024, compared to $291 million for the same period in the previous year[19]. - Net income attributable to DXC common stockholders for the three months ended December 31, 2024, was $57 million, a decrease of 63.5% compared to $156 million for the same period in 2023[28]. - Basic earnings per share (EPS) for the three months ended December 31, 2024, was $0.31, down 62.8% from $0.82 in the prior year[28]. - Total revenues for the nine months ended December 31, 2024, were $9,702 million, down from $10,281 million for the same period in 2023[86]. - Total revenue for the third quarter of fiscal 2025 was $3.2 billion, a decrease of 5.1% compared to the same period a year ago[112]. - Diluted earnings per share for the third quarter of fiscal 2025 were $0.31, down from $0.81 in the third quarter of fiscal 2024[112]. - Total revenue growth for the three months ended December 31, 2024, was reported at (5.1)%, while organic revenue growth was (4.2)%[158]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $1,083 million for the nine months ended December 31, 2024, compared to $1,081 million for the same period in 2023[16]. - Cash and cash equivalents increased to $1,723 million as of December 31, 2024, compared to $1,224 million as of March 31, 2024[15]. - The company reported a net increase in cash and cash equivalents of $499 million for the nine months ended December 31, 2024[162]. - Operating cash flow for fiscal 2025 was $1,083 million, resulting in free cash flow of $576 million, compared to $601 million in the same period a year ago[112]. - As of December 31, 2024, total liquidity was $4.9 billion, including $1.7 billion in cash and cash equivalents and $3.2 billion in available borrowings[170]. - The company expects existing cash and cash equivalents, along with cash generated from operations, to be sufficient for normal operating requirements for the next 12 months[168]. Assets and Liabilities - Total current assets decreased to $5,075 million as of December 31, 2024, from $5,135 million as of March 31, 2024[15]. - Total liabilities decreased to $9,781 million as of December 31, 2024, from $10,805 million as of March 31, 2024[15]. - The company’s total equity increased to $3,252 million as of December 31, 2024, from $3,066 million as of March 31, 2024[15]. - The balance of accumulated deficit decreased to $(3,715) million as of December 31, 2024, from $(3,771) million at September 30, 2024[18]. - The estimated fair value of the Company's long-term debt was $3.3 billion as of December 31, 2024, compared to a carrying value of $3.5 billion[58]. - Total debt decreased by $259 million during the first nine months of fiscal 2025, from $4,089 million to $3,830 million[165]. Restructuring and Costs - The company incurred restructuring costs of $124 million for the nine months ended December 31, 2024, compared to $91 million for the same period in 2023[10]. - Restructuring liabilities totaled $45 million as of December 31, 2024, down from $51 million as of March 31, 2024[63]. - Restructuring costs for Q3 FY2025 were $43 million, an increase of $7 million year-over-year, and for the first nine months, they were $124 million, up $33 million[131]. Tax and Compliance - The effective tax rate for the three months ended December 31, 2024, was 51.9%, significantly higher than 34.0% for the same period in 2023[67]. - The effective tax rate for Q3 FY2025 was 51.9%, compared to 34.0% for the same period last year, and for the first nine months, it was 54.5% versus 32.8%[139]. - Approximately $463 million of foreign earnings are considered indefinitely reinvested, which could be subject to U.S. federal tax upon repatriation[68]. - The company recorded a $15 million tax indemnification receivable related to uncertain tax positions and a $99 million tax indemnification payable related to other tax receivables[69]. Share Repurchase and Equity - The company repurchased 11,341 thousand shares during the three months ended December 31, 2023, resulting in a reduction of equity by $255 million[18]. - A total of 32,274,927 shares were repurchased during fiscal 2024 at an average price of $23.11 per share, totaling $746 million[77]. - Approximately $592 million worth of shares remained available for repurchase under the share repurchase plan as of December 31, 2024[184]. - The company suspended payment of quarterly dividends for fiscal 2025 to maintain financial flexibility[171]. Segment Performance - Revenues for the Global Business Services (GBS) segment for the three months ended December 31, 2024, were $1,666 million, a decrease from $1,696 million in the same period of 2023[86]. - Segment profit for GBS for the three months ended December 31, 2024, was $224 million, compared to $202 million for the same period in 2023[86]. - The Global Infrastructure Services (GIS) segment saw revenues of $1,559 million, down 8.5% year-over-year[114]. - For Q3 FY2025, Global Business Services (GBS) revenue was $1.67 billion, a decrease of $30 million or 1.8% year-over-year, with a 0.5% decline in organic revenue[118]. - For the first nine months of FY2025, GIS revenue was $4.7 billion, down $487 million or 9.4% year-over-year, including an 8.9% decline in organic revenue[121]. Other Financial Metrics - The company reported adjusted EBIT of $286 million for the three months ended December 31, 2024, an increase of 11.7% from $256 million in the same period of 2023[152]. - The company has initiated a global cost savings initiative for fiscal 2025 to align workforce and facility requirements[64]. - The cash conversion cycle improved to 18 days for the three months ended December 31, 2024, compared to 2 days in the previous year[163]. - The company is in compliance with all financial covenants associated with its borrowings as of December 31, 2024[166]. - Credit ratings from Fitch and Moody's are BBB and Baa2, respectively, both with a negative outlook[167].

Core Insights - DXC Technology Company reported $3.23 billion in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 5.1% [1] - The company's EPS for the same period was $0.92, an increase from $0.87 a year ago, resulting in an EPS surprise of +19.48% compared to the consensus estimate of $0.77 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.25 billion, resulting in a surprise of -0.69% [1] Financial Performance Metrics - Global Business Service (GBS) revenue decreased by 1.9% year-over-year, compared to an estimated decline of 0.8% by analysts [4] - Total revenues experienced a year-over-year decline of 5.7%, against the three-analyst average estimate of -4.8% [4] - Global Infrastructure Services (GIS) revenue declined by 9.4% year-over-year, compared to an estimated decline of 8.7% [4] - GIS revenues were reported at $1.56 billion, slightly above the average estimate of $1.55 billion, representing a year-over-year change of -8.4% [4] - GBS revenues were reported at $1.67 billion, slightly below the average estimate of $1.68 billion, indicating a year-over-year change of -1.5% [4] Stock Performance - Shares of DXC Technology have returned +9% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]