DXC

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...

Total revenue for Q4 FY26 of $3.13 billion, down 1.2% YoY, down 6.6% on an organic basis(1) Q4 FY26 Bookings of $3.3 billion, book to bill ratio of 1.07x Q4 FY26 EBIT margin of (1.2)%, and adjusted EBIT(2) margin of 7.6% Q4 FY26 Diluted earnings per share of $(0.84) down 158.7% YoY; Non-GAAP diluted earnings per share(3) of $0.77, down 8.3% YoY Q4 FY26 Free cash flow(4) was $110 million and full fiscal year 2026 was $713 million, up 3.8% YoY Repurchased $60 million of shares in Q4, and $250 million of shares in full fiscal year 2026 ASHBURN, Va., May 7, 2026 /CNW/ - DXC Technology (NYSE: DXC) today reported results for the fourth quarter and full fiscal year 2026. "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. "Over the past year, we leaned into innovation to reposition DXC for the next phase of enterprise IT and AI driven transformation, including the recent launch of our AI based orchestration platform, OASIS and continued progress across our Core Track and Fast Track initiatives. With our deep client relationships and a clear strategy in place, we remain confident in our direction and are focused on improved revenue performance and long-term value creation." Financial Highlights - Fourth Quarter Fiscal Year 2026 Total revenue was $3.13 billion, down 1.2% year-over-year, down 6.6% on an organic basis.(1) EBIT was $(39) million, down 111.1% year-over-year with a corresponding margin of (1.2)%. Adjusted EBIT(2) was $237 million, up 3.0% year-over-year, with a corresponding margin(2) of 7.6%. Diluted earnings per share was $(0.84), down 158.7% year-over-year. Non-GAAP diluted earnings per share(3) was $0.77, down 8.3% year-over-year. Cash generated from operations was $239 million, down $76 million year-over-year. Free cash flow(4) was $110 million, down $1 million year-over-year. Bookings of $3.3 billion declined 13.5% year-over-year, with a book to bill ratio of 1.07x. Returned $60 million of capital to shareholders by repurchasing approximately 4.6 million shares. Segment Highlights - Fourth Quarter Fiscal Year 2026 Consulting and Engineering Services ("CES") Revenue was $1,256 million, up 1.7% year-over-year, down 3.9% on an organic basis.(1) Segment profit was $124 million, up 5.1% year-over-year,...

DXC Technology Company. (DXC) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this company would post earnings of $0.85 per share when it actually produced earnings of $0.96, delivering a surprise of +12.94%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. DXC Technology, which belongs to the Zacks Computers - IT Services industry, posted revenues of $3.13 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.34%. This compares to year-ago revenues of $3.17 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DXC Technology shares have lost about 21.7% since the beginning of the year versus the S&P 500's gain of 7.6%. While DXC Technology has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DXC Technology was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (...

(Bloomberg) -- CoreWeave Inc. shares are on a scorching run in 2026 as demand for computing capacity to power artificial intelligence keeps growing. But now investors want to see some proof that the neo-cloud provider is executing on its ambitious plans. Most Read from Bloomberg Billionaire Duke of Westminster to Sell £700 Million of US Real Estate Assets US Has Opened a Passage Through Hormuz, Central Command Says DOJ Plans Intervention in Trump Supreme Court Carroll Appeal China Asks Banks to Pause New Loans to US-Sanctioned Refiner Sony to Pay Almost $4 Billion for Bieber, Neil Young Catalog The chance arrives when CoreWeave reports earnings after the bell on Thursday. Recent results from the biggest AI spenders like Alphabet Inc. and Meta Platforms Inc. made it clear that the need for computing power is insatiable as capital expenditures continue to rise. Considering the company rents access to AI infrastructure featuring the latest chips from Nvidia Corp., that plays right into its hands. “There is an insane amount of demand for AI compute,” said Tejas Dessai, director of thematic research at Global X ETFs. “The backdrop is extremely positive for CoreWeave.” Investors will be closely monitoring CoreWeave’s revenue acceleration, its outlook for the rest of the year and its backlog heading into 2027, he said. The stock is up 78% this year and a stunning 218% since the Livingston, New Jersey-based company went public in March 2025. The latest rally got going roughly a month ago as investors regained faith in the AI trade and CoreWeave announced deals with Meta, Anthropic PBC and Jane Street Group in quick succession. CoreWeave shares were down as much as 9.1% in intraday trading Thursday after rallying 7.9% on Wednesday. Of the 36 analysts tracked by Bloomberg who follow CoreWeave, 23 have buy ratings on the stock and only two have sells. But their average 12-month price target of $131 is below where the shares closed Wednesday, even though it’s been rising over the past six months. Wall Street expects the company to report revenue of nearly $2 billion in the first quarter, twice what it posted a year ago, and a loss of $1.20 per share, which would be an improvement from a loss of $1.49 a share in the first quarter of 2025. CoreWeave’s revenue backlog was nearly $67 billion as of Dec. 31, and the recent deals should raise its remaining performance obligati...

For the quarter ended March 2026, DXC Technology Company. (DXC) reported revenue of $3.13 billion, down 1.2% over the same period last year. EPS came in at $0.77, compared to $0.84 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.17 billion, representing a surprise of -1.34%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being $0.74. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how DXC Technology performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Revenues - YoY change: -1.2% versus the three-analyst average estimate of 0.1%. Insurance - YoY change: 7.3% versus the two-analyst average estimate of 7.8%. Consulting & Engineering Services - YoY change: 1.7% versus 1.2% estimated by two analysts on average. Global Infrastructure Services (GIS) - YoY change: -5% versus -1.8% estimated by two analysts on average. Revenues- Global Infrastructure Services (GIS): $1.55 billion versus the three-analyst average estimate of $1.58 billion. The reported number represents a year-over-year change of +0.6%. Revenue- Consulting & Engineering Services (CES): $1.26 billion compared to the $1.25 billion average estimate based on two analysts. Revenue- Insurance: $325 million compared to the $326.6 million average estimate based on two analysts. View all Key Company Metrics for DXC Technology here>>> Shares of DXC Technology have returned -9.6% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DXC Technology Company. (DXC) : Free Stock Analysis Report This article originally...