DXC Technology
DXC Technology's revenue fell 1.8% to $12.6 billion in fiscal 2026. Its operating margin was 7.7%, down from 7.9% a year earlier. Free cash flow was $1.0 billion, down 9.9%. It paid out $249 million in dividends and buybacks, 24% of free cash flow. The diluted share count fell 3.4%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What DXC Technology does
DXC Technology is an IT services company. Large businesses and public sector organizations pay it to run and update their computer systems, to build and modernize software, and to run insurance software. It has about 115,000 employees in 60 countries, and its customers include many very large companies. It sells through its own direct sales force. It was formed in 2017 by the merger of CSC and HP Enterprise Services.
It has three segments. Consulting & Engineering Services does software engineering, consulting and custom applications. Global Infrastructure Services designs, moves and runs data center, mainframe, cloud and network systems, and also handles workplace support and business process work such as finance and HR tasks. Insurance Software & Services sells software and related services to life, property and casualty, and reinsurance companies. DXC says it is adding AI and automation to all three.
No single customer made up even a tenth of its revenue in fiscal 2026. DXC competes with large multinational IT firms, smaller specialist firms, offshore providers in lower-cost places such as India, and the in-house technology teams of its customers. It plans to exit most of its own data centers and move to outside providers.
Its biggest risks, as it describes them
- Failing to keep up with changing technology and customer demand for its services.
- Misjudging the cost and time of contracts, which can reduce their profit.
- Aggressive price competition that could squeeze its margins.
- Losing or failing to attract skilled people.
- Cyberattacks or system failures that interrupt service and bring liability.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2018 to 2026, earnings per share fell 40.1% a year and net income 43.6% a year, while buybacks cut the share count by 38%.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value DXC Technology yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from DXC Technology's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from DXC Technology's fiscal 2026 free cash flow of $1.0B, net cash of −$1.8B at March 31, 2026 and 179 million diluted shares, from its filings. The scenarios are fitted to DXC Technology: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -4.3% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11%: 9% for a business of moderate risk (IT Consulting & Other Services), plus 1 point as a smaller company, worth $2.7B, plus 1 point for unsteady results (a loss in fiscal 2023); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $16.30
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from DXC Technology's earnings per share of $0.76 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 21.4×, the middle of DXC Technology's own P/E today, its peers' median and its sector's median (DXC Technology's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 12%, 11% and 10%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $16.30
- Value at this multiple, against the last close
- —
- DXC Technology's P/E at the last close
- 21.4×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| KyndrylKD | $14.68 | $0.37 | 39.7× |
| DXC TechnologyDXC | $16.30 | $0.76 | 21.4× |
| GartnerIT | $231.03 | $11.09 | 20.8× |
| NCR VoyixVYX | $8.16 | $0.41 | 19.9× |
| CognizantCTSH | $69.34 | $4.60 | 15.1× |
Balance sheet
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | 2.7 | 1.9 | 1.2 | 1.8 | 1.7 |
| Debt incl. finance leases | 5.0 | 4.4 | 4.1 | 3.9 | 3.6 |
| Net debt (negative means net cash) | 2.3 | 2.5 | 2.9 | 2.1 | 1.8 |
| Net debt to EBITDA | 0.7x | 0.9x | 1.2x | 0.9x | 0.8x |
| Debt to equity | 1.0x | 1.3x | 1.4x | 1.2x | 1.2x |
| Interest coverage | 6.7x | 5.7x | 3.4x | 3.9x | 4.5x |
| Current ratio | 1.1x | 1.2x | 1.2x | 1.2x | 1.4x |
| Quick ratio | 1.1x | 1.2x | 1.2x | 1.2x | 1.4x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $500,290 of DXC Technology shares on the open market, and 1 insider sold $37,881.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| May 11, 2026 | Raul J FernandezPresident and CEO, Director | Bought | 28,051 | $8.90 | $249,653 | Form 4 |
| Feb 2, 2026 | Raul J FernandezPresident and CEO, Director | Bought | 16,446 | $15.24 | $250,637 | Form 4 |
| Dec 11, 2025 | Christopher Anthony VociSVP, Controller and PAO | Sold | 2,500 | $15.15 | $37,881 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Pass | Fail |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Fail | Pass |
| Current ratio rose | Fail | Pass | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 6 of 8 | 7 of 8 | 7 of 8 |
| Accruals ratio | −8.6% | −7.5% | −9.4% |
Compare
Put DXC Technology side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| DXC Technology | FY26 | −1.8% | 7.7% | 8.2% | 9.2% | 0.8x | 7 | |
| Kyndryl | FY26 | 0.2% | — | 2.2% | 7.8% | 1.8x | 6 | Compare |
| Cognizant | FY25 | 7.0% | 16.1% | 12.3% | 16.1% | −0.3x | 6 | Compare |
| Gartner | FY25 | 3.7% | 15.8% | 18.1% | 44.6% | 1.0x | 5 | Compare |
| NCR Voyix | FY25 | −4.7% | 1.0% | −14.0% | 1.3% | 3.5x | 3 | Compare |
10 years of figures
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 7.6 | 21.7 | 20.8 | 19.6 | 17.7 | 16.3 | 14.4 | 13.7 | 12.9 | 12.6 |
| Revenue growth | 7.0% | 185.7% | −4.5% | −5.7% | −9.4% | −8.3% | −11.3% | −5.3% | −5.8% | −1.8% |
| Gross profit | 2.1 | 3.8 | — | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | 0.6 | 3.0 | 3.3 | 2.1 | 1.1 | 1.4 | 1.1 | 1.0 | 1.0 | 1.0 |
| Net income | −0.1 | 1.8 | 1.3 | −5.4 | −0.1 | 0.7 | −0.6 | 0.1 | 0.4 | 0.0 |
| Diluted EPS (US$) | −0.88 | 6.04 | 4.47 | −20.76 | −0.59 | 2.81 | −2.48 | 0.46 | 2.10 | 0.10 |
| Diluted shares (millions) | 140 | 290 | 281 | 259 | 254 | 255 | 229 | 199 | 185 | 179 |
| Cash flow | ||||||||||
| Cash from operations | 0.6 | 2.6 | 1.8 | 2.4 | 0.1 | 1.5 | 1.4 | 1.4 | 1.4 | 1.2 |
| Capital expenditure | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 |
| Free cash flow | 0.4 | 2.3 | 1.5 | 2.0 | −0.1 | 1.2 | 1.1 | 1.2 | 1.1 | 1.0 |
| Dividends paid | 0.1 | 0.2 | 0.2 | 0.2 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Share buybacks | 0.0 | 0.1 | 1.3 | 0.7 | 0.0 | 0.6 | 0.7 | 0.9 | 0.0 | 0.2 |
| Acquisitions | 0.4 | 0.2 | 0.4 | 2.0 | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Stock-based compensation | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 1.3 | 2.6 | 2.9 | 3.7 | 3.0 | 2.7 | 1.9 | 1.2 | 1.8 | 1.7 |
| Debt incl. finance leases | 2.3 | 8.4 | 7.4 | 9.9 | 5.5 | 5.0 | 4.4 | 4.1 | 3.9 | 3.6 |
| Total assets | 8.7 | 33.9 | 29.6 | 26.0 | 22.0 | 20.1 | 15.8 | 13.9 | 13.2 | 12.9 |
| Total liabilities | 6.5 | 20.1 | 17.8 | 20.9 | 16.7 | 14.8 | 12.0 | 10.8 | 9.7 | 9.7 |
| Shareholders' equity | 1.9 | 13.5 | 11.4 | 4.8 | 5.0 | 5.1 | 3.5 | 2.8 | 3.2 | 2.9 |
| Margins and ratios | ||||||||||
| Gross margin | 27.1% | 17.4% | — | — | — | — | — | — | — | — |
| Operating margin | 8.1% | 13.8% | 15.8% | 10.5% | 6.2% | 8.4% | 7.9% | 7.4% | 7.9% | 7.7% |
| Net margin | −1.6% | 8.1% | 6.1% | −27.4% | −0.8% | 4.4% | −3.9% | 0.7% | 3.0% | 0.1% |
| Free cash flow margin | 4.9% | 10.8% | 7.2% | 10.2% | −0.8% | 7.7% | 8.0% | 8.6% | 8.9% | 8.2% |
| Return on capital | — | 26.2% | 14.8% | 11.8% | 5.7% | 11.4% | 12.8% | 12.9% | 11.1% | 9.2% |
| Return on equity | −6.3% | 22.8% | 10.1% | −66.3% | −3.0% | 14.3% | −13.3% | 2.9% | 12.9% | 0.6% |
| Return on assets | −1.5% | 8.2% | 4.0% | −19.3% | −0.6% | 3.4% | −3.2% | 0.6% | 2.9% | 0.1% |
| Net debt to EBITDA | 0.8x | 1.2x | 0.8x | 1.6x | 0.8x | 0.7x | 0.9x | 1.2x | 0.9x | 0.8x |