DXC Technology Company Common Stock (DXC)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $12.77 at the 2026-10-13 close, DXC is priced as a damaged IT services company. Revenue has slipped from $13.7B in FY2024 ended 2024-03-31 to $12.9B in FY2025 ended 2025-03-31 and to $12.6B in FY2026 ended 2026-03-31. Net income fell from $389M in FY2025 to $18M in FY2026, so reported earnings are thin. But the quarterly filings show a possible turn: in fiscal Q1 2027 ended 2026-06-30, net income was $122M and diluted EPS $0.73, versus $16M and $0.09 in fiscal Q1 2026 ended 2025-06-30. Free cash flow is $819M, a 40.1% yield on the $2.0B market cap, and EV/EBITDA is 2.65. The balance sheet deserves respect but also caution: debt-to-equity is 1.25 and Altman Z-Score is 0.17, a red flag. ROE of 4.03% and ROCE of 1.82% show the core business is not earning much on capital. P/B is 0.67 and the Graham Number is $17.20, so the price is 25.76% below that asset-based estimate. FairStock's P/E of 17.26 on EPS of $0.74 is not statistically cheap. This is a Lynch TURNAROUND because it returned to profit after a loss within the last three years. The numbers do not show a wide moat: revenue is shrinking and returns on capital are low. I want evidence that revenue stabilizes and cash flow is durable, not just liquidation. FairStock Score is 75/100. Risk is high; reward depends on execution.

In plain English: DXC Technology provides technology services and solutions to companies and governments. The business has been shrinking and profits have been uneven, but it still generates a lot of cash. At the recent price, the stock looks cheap compared with its cash flow and accounting value, though the weak profit record and debt make it risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer