DXC Technology shares tumble 12% as guidance disappoints

Published 14/05/2025, 21:42
DXC Technology shares tumble 12% as guidance disappoints

ASHBURN, Va. - DXC Technology (NYSE:DXC) reported fourth quarter earnings that beat analyst estimates, but shares fell 12.5% in after-hours trading as the company’s guidance came in below expectations.

The IT services provider posted adjusted earnings per share of $0.84, surpassing the consensus estimate of $0.76. Revenue for the quarter was $3.17 billion, slightly above the $3.14 billion analysts had projected. However, revenue declined 6.4% year-over-year, or 4.2% on an organic basis.

For the first quarter of fiscal 2026, DXC forecasts EPS of $0.55-$0.65, well below the $0.79 analysts were expecting. The company sees Q1 revenue of $3.04-$3.09 billion, also short of the $3.11 billion consensus.

Full year fiscal 2026 guidance also disappointed, with DXC projecting EPS of $2.75-$3.25 versus estimates of $3.40. The company expects revenue of $12.18-$12.44 billion, below the $12.52 billion analysts had modeled.

"Our fourth quarter results represent continued progress toward our goal of achieving sustained, profitable revenue growth," said DXC Technology President and CEO Raul Fernandez. "For the second consecutive quarter, we reported bookings growth of more than 20% and book to bill ratios of greater than 1."

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