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MEXICO CITY - DXC Technology (NYSE: DXC), a prominent player in the IT Services industry with annual revenue of $12.9 billion, has announced the relaunch of its DXC Fast RISE with SAP service in Mexico, leveraging Microsoft Azure’s infrastructure. According to InvestingPro data, the company maintains a healthy current ratio of 1.22, indicating strong operational capability as it aims to facilitate cloud-based transitions for Mexican enterprises, particularly in sectors with stringent data residency regulations such as banking, insurance, energy, and government.
The collaboration with Microsoft Azure will allow local companies to migrate their core enterprise systems to the cloud more efficiently, with DXC Technology providing comprehensive support for SAP environments. This includes migration services, business process optimization, and ongoing application management to enhance operational performance.
Eduardo Sarmiento, Managing Director of DXC Technology Mexico, highlighted the service’s ability to expedite the migration process to SAP’s S/4HANA Cloud within a year, while also offering post-launch support to optimize the SAP environment, reduce costs, and integrate AI and automation capabilities.
Paola Becerra, Managing Director of SAP Mexico, emphasized the competitive edge that cloud services provide in the AI era. The partnership between SAP and Microsoft is tailored to meet the Mexican market’s needs, ensuring local data hosting for critical workloads.
Rafael Sánchez, President and General Manager of Microsoft Mexico, stated that the Central Mexico datacenter region is the first to offer RISE with SAP on Azure. This facility not only keeps data within national borders but also promotes more agile and efficient business operations.
The initiative builds on the longstanding global partnership between DXC and SAP, which has served over 1,000 clients across various industries. With over 15,000 SAP professionals, DXC aims to simplify, scale, and innovate through end-to-end SAP transformation strategies. InvestingPro analysis reveals the company’s strong financial health, with a notable EBITDA of $2 billion and a favorable P/E ratio of 7.07, suggesting efficient operational management.
The DXC Fast RISE with SAP service has previously been implemented by companies like Energy Harbor in the U.S. and Whitehaven Coal in Australia, demonstrating reduced implementation times and optimized processes, preparing them for future AI integration.
DXC Technology (NYSE: DXC) is recognized for assisting global companies in modernizing IT, optimizing data architectures, and ensuring security and scalability across cloud environments. This relaunch in Mexico is a testament to the company’s commitment to driving digital transformation in the region. Based on InvestingPro analysis, DXC appears undervalued in the current market, with 8 additional ProTips and comprehensive financial metrics available to subscribers. For detailed insights and expert analysis on DXC and 1,400+ other stocks, access the full Pro Research Report on InvestingPro.
In other recent news, DXC Technology reported a strong fourth quarter performance for fiscal 2025, with earnings per share (EPS) reaching $0.84, surpassing the forecasted $0.76. The company’s revenue also exceeded expectations, coming in at $3.17 billion against a projected $3.14 billion. Despite these positive results, DXC Technology’s stock experienced a significant drop of 13.52% in aftermarket trading. RBC Capital Markets, Stifel, and Morgan Stanley have all adjusted their price targets for the company, with RBC reducing it to $18, Stifel to $15, and Morgan Stanley to $16. These revisions reflect concerns about DXC Technology’s revenue and earnings guidance for fiscal year 2026, which fell short of analyst expectations.
RBC Capital maintained a Sector Perform rating, while Stifel and Morgan Stanley kept their Hold and Equalweight ratings, respectively. Analysts have pointed out challenges in DXC Technology’s Global Infrastructure Services and Global Business Services segments, citing both secular and cyclical growth obstacles. Morgan Stanley noted that increased investments in talent and technology are expected to impact the company’s adjusted EBIT margin. Despite these challenges, DXC Technology’s book-to-bill ratios indicate a healthy pipeline, with Global Infrastructure Services achieving a 1.28x ratio and Global Business Services reaching a 1.16x ratio.
The company is focusing on reversing its revenue decline and enhancing its capabilities in artificial intelligence, as highlighted by CEO Raul Fernandez. DXC Technology also plans to restart its share repurchase program, underscoring its commitment to delivering long-term value to shareholders. As the company navigates macroeconomic pressures and market softness in certain sectors, investors and analysts are closely monitoring its strategic initiatives and financial outlook.
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