DXC

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider DXC Technology Company. (DXC). This company, which is in the Zacks Computers - IT Services industry, shows potential for another earnings beat. This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.50%. For the most recent quarter, DXC Technology was expected to post earnings of $0.74 per share, but it reported $0.77 per share instead, representing a surprise of 4.05%. For the previous quarter, the consensus estimate was $0.85 per share, while it actually produced $0.96 per share, a surprise of 12.94%. With this earnings history in mind, recent estimates have been moving higher for DXC Technology. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. DXC Technology currently has an Earnings ESP of +9.52%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 30, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is...

International Business Machines (NYSE:IBM), an enterprise software, consulting, and mainframe infrastructure provider, closed at $217.05, down 25.21%. The stock plunged after IBM issued a preliminary second-quarter warning, and investors are watching July 22 results for more details.Trading volume reached 64.0 million shares, coming in about 551% above its three-month average of 9.8 million shares. The S&P 500 (SNPINDEX:^GSPC) rose 0.38% to 7,544, while the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.90% to 26,107. Among technology hardware, software, consulting, and IT services peers, Accenture (NYSE:ACN) fell 2.86% to $134.56 and DXC Technology (NYSE:DXC) dropped 5.66% to $9.16 as budget pressure and weaker consulting demand stayed in focus. IBM’s stock had its worst day in the company's 115-year history after its surprise Q2 warning. The company said customers have shifted IT budgets away from its software and infrastructure offerings, focusing on artificial intelligence (AI) hardware to ensure adequate supply. IBM CEO Arvind Krishna noted that server and memory purchases are now priorities. He also stated that “rapidly-evolving, industry-wide cybersecurity concerns” are attracting more attention. Investors took that cue to unload IBM stock and load up on cybersecurity and AI hardware names. IBM had been a beneficiary of the AI trade, with shares more than doubling over the last three years. But now it seems to be the wrong place for new money. Investors can also take this news as affirmation that AI infrastructure names likely have more upside ahead. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!* Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and j...

ASHBURN, Va., June 25, 2026 /CNW/ - DXC Technology (NYSE: DXC), a leading enterprise technology and innovation partner, today announced that it will release its first quarter fiscal year 2027 financial results on Thursday, July 30, 2026, after the market close. Following the release, DXC Technology's senior management will host a conference call and webcast at 5:00 p.m. ET. The dial-in number for domestic callers is 888-596-4144. Callers who reside outside of the United States should dial +1-646-968-2525. The passcode for all participants is 9664077#. A live webcast will be available on DXC Technology's Investor Relations website. A replay of the conference call will be available until 11:59 PM ET on August 6, 2026, at 800-770-2030. The replay passcode is 9664077#. A transcript of the conference call will be posted on DXC Technology's Investor Relations website. About DXC Technology DXC Technology (NYSE: DXC) is a leading enterprise technology and innovation partner delivering software, services, and solutions to global enterprises and public sector organizations — helping them harness AI to drive outcomes at a time of exponential change with speed. With deep expertise in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, DXC modernizes, secures, and operates some of the world's most complex technology estates. Learn more on DXC.com. Forward-Looking Statements All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements." These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. For a written description of these factors, see the section titled "Risk Factors" in DXC's Annual Report on Form 10-K for the fiscal year ended March 31, 2026, and any updated information in subsequent SEC filings. No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they...

DXC Technology (DXC) is well positioned to achieve organic revenue growth of 0% to 4% and adjusted E

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the it services & consulting stocks, including DXC (NYSE:DXC) and its peers. IT Services & Consulting companies stand to benefit from increasing enterprise demand for digital transformation, AI-driven automation, and cybersecurity resilience. Many enterprises can't attack these topics alone and need IT services and consulting on everything from technical advice to implementation. Challenges in meeting these needs will include finding talent in specialized and evolving IT fields. While AI and automation can enhance productivity, they also threaten to commoditize certain consulting functions. Another ongoing challenge will be pricing pressures from offshore IT service providers, which have lower labor costs and increasingly equal access to advanced technology like AI. The 8 it services & consulting stocks we track reported a slower Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% since the latest earnings results. Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE:DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations. DXC reported revenues of $3.13 billion, down 1.2% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter missing analysts’ expectations. "We delivered another quarter of strong free cash flow with adjusted EBIT margin ahead of our expectations, while our top line performance fell short," said DXC Technology President and CEO Raul Fernandez. DXC delivered the weakest full-year guidance update of the whole group. The stock is down 24.1% since reporting and currently trades at $9.12. Read our full report on DXC here, it’s free. With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE:IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities. Gartner reported rev...

Investors were disappointed with the weak earnings posted by DXC Technology Company (NYSE:DXC ). While the headline numbers were soft, we believe that investors might be missing some encouraging factors. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Over the twelve months to March 2026, DXC Technology recorded an accrual ratio of -0.16. That indicates that its free cash flow quite significantly exceeded its statutory profit. To wit, it produced free cash flow of US$819m during the period, dwarfing its reported profit of US$18.0m. Over the last year, DXC Technology's free cash flow remained steady. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. See our latest analysis for DXC Technology That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. DXC Technology's profit was reduced by unusual items worth US$83m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not re...

DXC’s first quarter saw a sharp negative market reaction, as the company posted a year-on-year revenue decline and missed expectations for organic growth. Management attributed performance softness to continued pressure on discretionary project-based services, particularly within its core GIS segment, and admitted execution challenges in closing large deals. CEO Raul Fernandez acknowledged, “We didn’t get [the win rate]...I personally expected higher,” signaling a self-critical view of DXC’s competitive positioning and sales process effectiveness. Early internal AI adoption and investments in new platform offerings were highlighted as partial offsets. Is now the time to buy DXC? Find out in our full research report (it’s free). Revenue: $3.13 billion vs analyst estimates of $3.14 billion (1.2% year-on-year decline, in line) Adjusted EPS: $0.77 vs analyst estimates of $0.70 (9.5% beat) Adjusted EBITDA: $428 million vs analyst estimates of $425 million (13.7% margin, 0.7% beat) Revenue Guidance for Q2 CY2026 is $2.99 billion at the midpoint, below analyst estimates of $3.09 billion Adjusted EPS guidance for the upcoming financial year 2027 is $2.65 at the midpoint, missing analyst estimates by 19.2% Operating Margin: -2.2%, down from 11.7% in the same quarter last year Organic Revenue fell 6.6% year on year (miss) Market Capitalization: $1.34 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Gates Schwarzmann (TD Cowen) asked about the macroeconomic assumptions underlying guidance and what would drive results to the high or low end. CFO Rob Del Bene clarified that guidance assumes no change in macro, with improvement or deterioration directly affecting the range. Yu Lee (Guggenheim) questioned whether pricing pressure was contributing to weak bookings. CEO Raul Fernandez responded that pricing remains stable, and the main challenge has been demonstrating industry-specific capabilities, not cost. Yu Lee (Guggenheim) followed up on large deal losses, probing whether execution or perception issues were at play. Fernandez admitted disappointment in final-stage losses and explained the importance of closing gaps in s...

Interested in DXC Technology Company.? Here are five stocks we like better. Q4 revenue missed expectations as weaker discretionary technology spending and execution issues hurt results. Revenue came in at just over $3.1 billion, below guidance, while bookings fell about 14% year over year. Profitability and cash flow held up better than sales, with adjusted EBIT margin at 7.6% and free cash flow above guidance. Full-year free cash flow rose to $713 million, and DXC continued returning capital through share repurchases and debt reduction. DXC is leaning into AI to drive a turnaround, with management positioning the company as “AI-led” and highlighting new offerings like CoreIgnite and OASIS. Still, fiscal 2027 guidance calls for organic revenue to decline 3% to 5%, reflecting ongoing macro and project-spending pressure. DXC Technology (NYSE:DXC) reported fourth-quarter revenue below its expectations while profitability and free cash flow exceeded guidance, as management said weaker discretionary technology spending and execution issues weighed on results. On the company’s fourth-quarter and fiscal 2026 earnings call, President and CEO Raul Fernandez said DXC delivered “a strong quarter on profitability,” with adjusted EBIT margin and free cash flow ahead of guidance. However, revenue came in at just over $3.1 billion, missing the company’s organic revenue guide by about $75 million, or roughly two percentage points. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “That’s not just a pipeline and demand issue, it’s execution, and we continue to work on both,” Fernandez said. He said the company is focusing on tighter in-quarter conversion and “smaller, faster start opportunities” that can be sold and delivered within the same period. CFO Rob Del Bene said total fourth-quarter revenue was $3.1 billion, down 6.6% year over year on an organic basis. The shortfall reflected “increased weakening of discretionary spending on short-term services projects,” particularly in Global Infrastructure Services, or GIS, where revenue was affected in both the U.S. and Europe. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Adjusted EBIT margin was 7.6%, slightly above the company’s guidance range and up 30 basis points from the prior year. Del Bene attributed the margin performance to spending management and non-recurring items in the quarter, partly offset by lower...

DXC Technology, Inc. DXC posted fourth-quarter fiscal 2026 non-GAAP earnings of 77 cents per share, which declined 8.3% year over year but beat the Zacks Consensus Estimates by 4.76%. DXC’s revenues of $3.13 billion slipped 1.2% from the year-ago quarter and missed the consensus mark by 1.34%. Despite the top-line shortfall, profitability held up, with adjusted EBIT margin at 7.6% for the quarter. Management pointed to disciplined spending and execution on margin and cash flow, even as demand softened in parts of the portfolio. DXC Technology’s total revenues declined 6.6% on an organic basis in the quarter, underscoring that foreign exchange and portfolio effects were not the main issue. On the earnings call, DXC described the revenue gap as tied to both pipeline and execution. Pressure was most visible in short-term services work. The company said discretionary spending weakened further during the period, particularly within Global Infrastructure Services, with impacts in both the United States and Europe. By segment, Consulting & Engineering Services (CES) generated $1,256 million of revenues, down 3.9% on an organic basis. DXC Technology Company. price-consensus-eps-surprise-chart | DXC Technology Company. Quote Global Infrastructure Services (GIS) produced $1,549 million, down 10.6% organically and below management’s expectations for the quarter. Insurance Software & Services delivered $325 million, up 4.0% organically, supported by software strength. Bookings trends also diverged. DXC’s bookings were $3.3 billion, and the quarterly book-to-bill ratio was 1.07x, with bookings down 13.5% year over year. CES and GIS bookings declined 11.1% and 18.9%, respectively, while Insurance bookings increased 20.3%, though with a book-to-bill ratio of 0.88x. DXC Technology exited the fiscal fourth quarter with $1.74 billion in cash and cash equivalents compared with $1.73 billion in the previous quarter. The long-term debt balance (net of current maturities) was $3.03 billion as of March 31, 2026. DXC generated $239 million in cash from operations during the quarter. Free cash flow was $110 million, essentially flat year over year, as cash flow strength was supported by lower cash taxes and lower capital expenditures across fiscal 2026. Capital allocation remained active. DXC repurchased $60 million of shares in the quarter and $250 million in fiscal 2026. The compa...

This article first appeared on GuruFocus. Revenue: $3.1 billion in Q4, declining 6.6% year-over-year. Adjusted EBIT Margin: 7.6%, slightly above guidance, up 30 basis points year-over-year. Non-GAAP EPS: $0.77, at the high end of guidance range. Book-to-Bill Ratio: 1.07 for the quarter. Free Cash Flow: $110 million in Q4; $713 million for the full year, up from $687 million last year. Full-Year Revenue: $12.6 billion, down 4.8% year-over-year. Full-Year Adjusted EBIT Margin: 7.7%, down 20 basis points year-over-year. Full-Year Non-GAAP EPS: $3.23, down 6% year-over-year. Share Repurchases: $250 million worth of shares repurchased in the full year. Debt Reduction: Net debt reduced by $1.1 billion over two years. Warning! GuruFocus has detected 3 Warning Signs with DXC. Is DXC fairly valued? Test your thesis with our free DCF calculator. Release Date: May 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DXC Technology Co (NYSE:DXC) delivered a strong quarter on profitability with adjusted EBIT margin and free cash flow ahead of guidance. The company is transforming into an AI-led organization, with every employee having access to enterprise-grade AI tools. DXC's AI initiatives, such as the FastTrack offerings, are designed to build AI-native products and services at a faster pace. The company has a high percentage of outcome-based revenue, allowing for AI-driven productivity to expand margins. DXC has made significant progress in reducing debt, with a net debt reduction of $1.1 billion over two years. DXC Technology Co (NYSE:DXC) missed its revenue guidance by approximately $75 million, or two points. The company experienced a 6.6% year-to-year decline in total revenue, impacted by weakening discretionary spending on short-term services projects. Bookings were down approximately 14% year-to-year, driven by a tough comparison to last year's fourth quarter and a decline in short-term project-based services. The adjusted EBIT margin declined 20 basis points year-to-year, largely due to investments to support future revenue growth. DXC's guidance for fiscal 2027 indicates a continued decline in organic revenue, with expectations of a 3% to 5% year-over-year decline. Q: Can you elaborate on the assumptions behind the 2027 guidance, especially regarding macroeconomic conditions and the expected second-half...

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET President and Chief Executive Officer — Raul Fernandez Chief Financial Officer — Robert Del Bene Head of Investor Relations — Roger Sachs Raul Fernandez, our President and CEO; and Rob Del Bene, our Chief Financial Officer. Here's today's agenda. First, Raul will update you on our strategic initiatives. Rob will then cover our quarterly financial performance as well as provide thoughts on our first quarter and fiscal full year 2027 guidance. Raul and Rob will then take your questions. Please note Certain comments on today's call are forward-looking and subject to the risks and uncertainties that could cause actual results to differ materially from those expressed on this call. Details of these risks and uncertainties are in our annual report on Form 10-K and other SEC filings. We do not commit to updating any forward-looking statements during today's call. In addition, when we refer to year-over-year or quarter-over-quarter revenue growth rates, we will be discussing organic revenue changes on a non-GAAP basis, which excludes the impact of foreign exchange and any inorganic activity. We will also be discussing certain other non-GAAP financial measures that we believe provide useful information to our investors. Reconciliations to the most comparable GAAP measures are included in the tables included in today's earnings release. And with that, let me turn the call over to Raul. Raul Fernandez: Thank you, Roger. In Q4, we delivered a strong quarter on profitability with adjusted EBIT margin and free cash flow ahead of guidance. That balance of expanding margin and free cash flow, while transforming DXC into an AI-led company is central to how we're operating the business. On revenue, we delivered just over $3.1 billion missing our organic guide by approximately $75 million or 2 points. When you break that down, closing the gap required less than $1 million per day. That's not just the pipeline and demand issue, it's execution, and we continue to work on both. And the focus going forward is also tightening in quarter conversion, smaller, faster start opportunities that can land and deliver within the period. As we close FY '26, one of the clear positives is our ability to reach the final stages of large competitive pursuits. As an example, across the globe, we pursued 13 large opportunities in thi...

SoundHound AI, Inc. SOUN delivered a mixed first-quarter 2026 performance, with earnings missing expectations even as revenue came in ahead of estimates. The quarter reflected strong demand across enterprise and automotive use cases, continued customer diversification and steady deal momentum, while profitability was weighed down by higher operating costs tied to acquisitions and certain nonrecurring items, including vendor-related true-ups and other acquisition-linked expenses. Following the results, the company’s shares lost around 12% in the after-hour trading session yesterday. In the first quarter, SoundHound reported record revenues of $44.2 million, up 52% year over year. The figure surpassed the Zacks Consensus Estimate of $43 million by 3.5%. The company posted a loss of 6 cents per share compared with the Zacks Consensus Estimate of a loss of 5 cents, a negative surprise of 20%. SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote Momentum was supported by increased demand across the enterprise and automotive sectors. Excluding the impact of acquisitions, SoundHound said its core automotive and IoT AI business grew 88% year over year, highlighting the strength of underlying adoption. On a year-over-year basis, SOUN’s profitability softened. GAAP gross margin fell to 31.1% from 36.5% a year ago, reflecting higher costs in the quarter, including true-up costs tied to third-party vendor expenses in the company’s digital-first business, which management said are nonrecurring. Non-GAAP gross margin was 49.7%, down modestly from 50.8% in the prior-year quarter, as the same cost pressures partially offset benefits from ongoing efficiency efforts such as infrastructure modernization and cloud optimization. Adjusted EBITDA also weakened year over year, with the loss widening to $26.7 million from $22.2 million. Management tied the expense backdrop largely to acquisition-driven cost increases (notably higher sales and marketing, R&D, and G&A from added headcount and integration-related legal/advisory costs), alongside time-bound investments aimed at advancing its foundation models and broader platform roadmap, which it expects to carry clear ROI but to temporarily offset some cost actions. Management characterized demand as rising across AI and enterprise solutions, pointing to a “massive pipeline” and a widening set of large-cu...