| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 96 | 15.4x | 17.8x | Top tier | |
Growth | 13 | -2.4% | 7.1% | Bottom tier | |
Quality | 53 | 7.2% | 4.5% | Around median | |
Safety | 62 | 1.1x | 2.6x | Around median | |
Capital Return | 95 | — | 2.12% | Top tier | |
Momentum | 33 | -25.1% | 2.9% | Bottom tier | |
Sentiment | 75 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
DXC Technology provides enterprise services and technologies across three main segments: CES, which includes applications, DXC Engineering services, and GrowthX; GIS, which covers intelligent infrastructure, workplace environments, and security; and insurance software and services. The company aims to build recurring and consumption-based revenue streams through Agentic AI solutions such as OASIS and AgenTxSOC, integrating AI with customers’ existing systems rather than replacing them entirely, while leveraging its relationships, expertise, platforms, intellectual property, and workforce of 113 thousand employees.
In Q1 of fiscal 2027, revenue reached $3.0 billion, representing an organic decline of 6.7% year over year, while net income according to EDGAR data was approximately $122 million and earnings per share were $0.73. The adjusted earnings before interest and taxes margin was 5.0%, down 180 basis points year over year, while non-GAAP earnings per share reached $0.40. In terms of the operating mix, CES revenue declined 3% and GIS revenue declined 11%, while insurance revenue grew 1.4%, insurance software revenue increased 13%, and software-as-a-service revenue more than doubled.
The quality of contracted demand improved despite the revenue contraction; total bookings rose 5% year over year, and the book-to-bill ratio reached 0.99 times, the highest for any first quarter in three years, while the ratio for the last 12 months slightly exceeded 1.0 times. GIS recorded bookings growth of 35% and a book-to-bill ratio of 1.11 times, but weakness in short-term discretionary infrastructure projects kept the conversion into revenue and profitability below the momentum in bookings.
The average analyst price target is $12.83 within a wide range of between $10.50 and $16, with a consensus rating of neutral, reflecting a balance between the opportunities presented by OASIS and AgenTxSOC and the risks of continued contraction in revenue and margins. The average target is approximately 18% below the 52-week range high of $15.68, while the highest target of $16 is close to that high; no displayed price-to-earnings multiple is available to rely on, while the 52-week range was between $7.90 and $15.68.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
DXC relies on a “customer zero” approach, meaning it builds the solution within its own environment, operates it, and measures its results before offering it to customers. In Q1 of fiscal 2027, the company presented OASIS, deployed across 57 customer environments, and AgenTxSOC, which reduced breach detection time from approximately 21 minutes to six seconds. In mid-July 2026, it also began certifying field engineers with Anthropic, with the first cohort comprising 86 engineers ready for deployment. The company aims to build recurring and consumption-based products and revenue without relying on acquiring growth through acquisitions.
This has not yet appeared at the total revenue level, which declined organically by 6.7% in Q1 of fiscal 2027 to $3.0 billion. In contrast, total bookings rose 5%, and the book-to-bill ratio reached 0.99 times, while the ratio for the last 12 months slightly exceeded 1.0 times. The divergence was clearest in GIS, where bookings rose 35% and the ratio reached 1.11 times despite an 11% revenue decline. Management expects the contraction rate to improve from approximately 6.5% in the first half to around 2% in the second half of fiscal 2027.
Automated analysis for informational purposes only — not investment advice.
OASIS had been deployed across 57 customer environments according to the July 30, 2026 call, and DXC aims to reach 85 customers by the end of the first half of fiscal 2027 and then 125 customers by the end of the year. Management says prospective customers complete the assessment and reach the contracting stage in less than six weeks, compared with traditional cycles that took between six and 12 months. All new intelligent infrastructure engagements are also designed using OASIS. However, the early momentum did not prevent GIS revenue from declining 11% in Q1 due to weakness in short-term discretionary projects.
DXC expects organic revenue to decline between 3% and 5% in fiscal 2027, with the rate of decline improving during the second half. It targets an adjusted earnings before interest and taxes margin of between 6% and 7% and non-GAAP earnings per share of between $2.40 and $2.90. For Q2 of fiscal 2027, it expects a revenue decline of between 5.5% and 6.5%, a margin of approximately 6.0%, and adjusted earnings per share of approximately $0.55. This guidance assumes no change in the macroeconomic environment from the level prevailing at the July 30, 2026 call.
DXC ended Q1 of fiscal 2027 with liquidity of approximately $1.9 billion, an increase of $200 million from the end of fiscal 2026. Net debt declined by approximately $270 million from the previous quarter to around $1.5 billion, after repurchasing $70 million of shares and reducing capital lease obligations by $38 million. Free cash flow reached $314 million, but it included $214 million from the settlement of the TCS dispute, resulting in free cash flow of $100 million excluding this effect. The company expects free cash flow of approximately $685 million in fiscal 2027 and the repayment of $400 million of dollar-denominated notes due in September 2026.
Insurance revenue grew 1.4% year over year in Q1 of fiscal 2027, while insurance software revenue increased 13% and software-as-a-service revenue more than doubled. The Azure platform, Horizon solutions, and AI-based intelligent applications support this shift, while services declined by approximately 1%. The termination of a business process outsourcing contract pressures Q2 and Q3 of fiscal 2027, and the comparison effect ends in Q4. Management maintains its forecast for insurance revenue growth at a low-single-digit rate during fiscal 2027, supported by expected new customer contracts and continued growth in cloud and AI offerings.
