DXC Technology Company (NYSE:DXC) 2025 Conference Transcript

Summary of DXC Technology Company Conference Call Company Overview - Company: DXC Technology Company (NYSE:DXC) - Date of Conference: November 18, 2025 - Key Speakers: Raul Fernandez (President and CEO), Rob Del Bene (CFO) Core Industry Insights - AI Development: The company views the current period as still being in "training camp" for AI, with 2026 expected to mark the beginning of significant advancements in AI tools and applications [5][6] - Cost of Innovation: The total cost of ownership for businesses to innovate has decreased, allowing for faster idea-to-market processes [6] - Legacy Systems: DXC is leveraging its legacy systems, such as Hogan, to build new services without requiring extensive infrastructure changes [13][14] Strategic Initiatives - Two-Track Business Model: DXC is managing its business through a "core track" focused on existing services and a "fast track" aimed at innovative AI-driven solutions [7][9] - Core Ignite: This initiative is an extension of the Hogan system, allowing banks to add new services without overhauling their existing infrastructure [12][13] - Revenue Goals: The company aims for the fast track initiatives to contribute approximately 10% of total revenue over the next 36 months [9][23] Financial Performance and Projections - Revenue Stabilization: The company is focused on turning around revenue declines and aims for flat revenue as an initial goal, followed by positive growth [19][24] - SAP Practice: DXC plans to double its SAP practice, emphasizing the need for better pricing and deal flow [26][24] - Investment in AI: The company is investing in AI capabilities across all business segments, with expectations for these investments to be accretive to margins over time [50][51] Market Position and Competitive Advantage - Customer Relationships: DXC is focusing on maintaining existing customer relationships and enhancing service offerings to secure recompetes [44] - New Client Acquisition: The company has successfully acquired new clients, such as Carnival Cruise Line, and is looking to replicate this success with other major players [46] - Understanding Workflows: DXC's deep understanding of existing workflows provides a competitive advantage over newer entrants in the market [18] Challenges and Considerations - Macro Environment: The company acknowledges potential softness in certain segments due to external economic factors but believes it can generate opportunities to offset these challenges [48] - Employee Impact: The rapid advancement of AI is expected to impact all job categories within the company, necessitating a focus on employee adaptability and skill development [11][58] Key Metrics to Watch - Net New Logos: The growth in acquiring new clients is a critical metric for the company moving forward [64] - Pipeline Growth: Monitoring the size and conversion rate of the sales pipeline will be essential for assessing future performance [41] Conclusion DXC Technology is positioning itself for growth through strategic investments in AI and modernization of its legacy systems. The focus on both maintaining existing client relationships and acquiring new ones, alongside a clear revenue stabilization strategy, sets a positive outlook for the company's future performance.