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

DXC Technology (NYSE:DXC) updated its second quarter 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 0.550-0.550 for the period, compared to the consensus 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 NYSE DXC traded up $0.06 during trading hours on Friday, reaching $11.30. The stock had a trading volume of 10,793,372 shares, compared to its average volume of 3,771,086. The firm has a 50-day moving average of $9.44 and a 200-day moving average of $11.44. The firm has a market cap of $1.85 billion, a price-to-earnings ratio of 16.14 and a beta of 0.82. DXC Technology has a fifty-two week low of $7.90 and a fifty-two week high of $15.68. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.94.

DXC Technology (NYSE:DXC) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.01). DXC Technology had a return on equity of 15.61% and a net margin of 0.99%.The company had revenue of $3 billion for the quarter, compared to analyst estimates of $2.99 billion. During the same period in the previous year, the business posted $0.68 earnings per share. The firm’s revenue 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. Equities research analysts predict that DXC Technology will post 2.61 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on DXC shares. Royal Bank Of Canada reduced their target price on shares of DXC Technology from $16.00 to $14.00 and set a “sector perform” rating on the stock in a report on Friday. Zacks Research raised shares of DXC Technology from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. BMO Capital Markets lowered their target price on DXC Technology from $17.00 to $10.00 and set a “market perform” rating for the company in a report on Monday, May 11th. TD Cowen cut their price objective 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. Finally, Weiss Ratings cut DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Seven investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and an average price target of $11.81.

Insider Transactions at DXC Technology

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

DXC Technology News Summary

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

Hedge funds and other institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its position in shares of DXC Technology by 240.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company’s stock valued at $27,000 after acquiring an additional 1,227 shares during the last quarter. CIBC Private Wealth Group LLC boosted its stake in shares of DXC Technology by 13,258.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company’s stock valued at $33,000 after purchasing an additional 2,254 shares in the last quarter. Headlands Technologies LLC bought a new position in DXC Technology in the 2nd quarter valued at approximately $39,000. Caitlin John LLC boosted its stake in shares of DXC Technology by 358.0% in the 4th 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. Finally, Parallel Advisors LLC grew its holdings in DXC Technology by 36.9% in the third quarter. Parallel Advisors LLC now owns 8,513 shares of the company’s stock worth $116,000 after purchasing an additional 2,295 shares during the period. Institutional investors and hedge funds own 96.20% of the company’s stock.

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.