DXC technology beats Q2 profit estimates

DXC Technology

30/10/2025 20:22

Overview

DXC fiscal Q2 revenue declines 2.5% YoY

Adjusted EPS for fiscal Q2 beats consensus, despite a 9.7% YoY decline

Company repurchased $75 mln of shares, indicating strategic capital return

Outlook

DXC Technology expects Q3 revenue between $3.18 bln and $3.22 bln

Company sees FY26 revenue between $12.67 bln and $12.81 bln

DXC Technology anticipates FY26 free cash flow of ~$650 mln

Result Drivers

STRONG CASH FLOW - Free cash flow increased significantly, up $192 mln YoY, supporting strategic initiatives

STRATEGIC FOCUS - CEO Raul Fernandez emphasizes better execution and pipeline conversion to drive future growth

AI STRATEGY - Introduction of Xponential AI framework as part of strategic plan to leverage AI economy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$3.16 bln
$3.16 bln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.84
$0.69 (9 Analysts)
Q2 Net Income
$40 mln
Q2 Adjusted EBIT Margin
8%
Q2 EBIT
$138 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for DXC Technology Co is $15.34, about 14.1% above its October 29 closing price of $13.17

Press Release: ID:nPngqCKSa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)