Reading DXC? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track DXC free→
DXC Technology (DXC)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-06-16
Intact
$8.82-3.76%
Close 2026-06-15 · 1-day change
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
The bottom line
Recent financial performance is strong, and earnings quality is robust, cash backs up reported profits. Risk is elevated, but the sector backdrop is a tailwind, helping DXC compared to sector peers, where it trades above typical levels. Peer multiples imply a price about 74% above where it trades (it looks cheap on this basis); the read is cheap, quality intact. The outlook hinges on guidance changes from DXC and sector bellwethers like IBM and ACN. This read is provisional.
as of 2026-06-16
Quick facts
- Exchange
- NYSE
- Sector
- Information Technology
- Industry
- Information Technology Services
- Market cap
- $1.49B
- Employees
- 115,000
- IPO date
- 2017-03-31
- Next earnings
- 2026-07-30
Price
Daily closes. Earnings/event dots are placed inline.
Adjusted daily closes (split & dividend). Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event
What's priced in
(what the market already expects)What it's worth (estimated)
A consensus fair price across 6 valuation methods, at three horizons. Current price $8.82. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
12-month· primaryinexpensive
$33.34consensus
Range $27.71 – $51.84
vs price: -74% below
Method agreement — · 6 methods
No-growth: today's peer multiple on trailing earnings. The headline read.
3-yearinexpensive
$29.34consensus
Range $23.92 – $54.86
vs price: -70% below
Method agreement — · 5 methods
Embeds projected growth. Leans optimistic by design. Upside context.
5-yearinexpensive
How much to trust our fair value
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
Cheap vs peersmedium confidence
At $8.82 DXC trades at 3× p/e, below its 10× p/e peer median. Our $35 fair value sits above the price; medium confidence. Not investment advice.
Multiple (P/E)
2.7x
peer 9.9x · own history 5.0x
Premium
0.3x peer
0.5x its own history
Growth the price needs
-74%
our forecast -2%
Our fair value
$34.53
range $29.19 – $67.79
WhyPeer anchor overstates the discount
How this stock is priced
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
Long-term · 1–3 yr
inexpensive12-month view
What's priced inJustified
The price implies about 74% below a flat-multiple fair value, below our forecast of about -2%. This describes what's priced in, not a forecast of the move.
Low fragilityrisk posture, not a price call
Only a turbulent sector regime (Heating) — not the full expensive x weak x turbulent stack.
Historical context
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
Compared to peers
How strong is the business
(quality & execution)Factor signals
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Recent financial performance
strongOperating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 73% of the time over the next year (vs 58% for the rest of the cohort, n=2777).
74th pctl · Information Technology
Earnings quality
robustOver the trailing year it converted 69.33x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 69% of the time over the next year (vs 55% for the rest of the cohort, n=2129).
99th pctl · Information Technology
Macro sensitivity
Most sensitive to the broad stock market.
- the broad stock market: This stock moves with the broad market (high beta).
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity.
Management & capital allocation
Earnings setup & market context
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
Earnings setup · pre-print positioning
forward-looking
BullishEPS revised +7.9% / 30d, n=8for period ending 2026-06-30
Why this setup
Consensus revisions
EPS estimate $0.42 → $0.45 (+7.9% / 30d). 0 raised, 6 cut, 8 covering analysts.
Rating actions
0 upgrades, 0 downgrades / 30d. 0% of analysts rate Buy.
Price target activity
1 PT revisions / 30d. Avg target 73.8% above current price.
Sector context
Intermediate · WeeklySector phase: information technology is in maturing, with decelerating (~0.2 years in phase).
Sector regime (90d momentum): tailwind.Management scorecard
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Long-term · 1–3 yr
Overall: strong
- Capital allocation
- neutral
- Earnings discipline
- strong
- Margin discipline
- strong
- Balance sheet
- strong
- Post-call reaction
- weak
How bumpy is the path
(risk while you hold it)Risk: how this stock moves
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
Intermediate · WeeklyLong-term · 1–3 yr
On a typical day, $10k can swing ±$231.
How much price usually moves either way.
On a bad day, this stock has moved -$547.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $4,938.
Deepest peak-to-trough drop in the last year.
elevatedas of 2026-06-16
Past results, not a forecast. Not investment advice.
What would change the read
(catalysts & re-read triggers)What changed
The most important moves since the prior daily snapshot.
Short-term · Daily
- No material changes since the prior snapshot.
As of June 15, 2026, valuation rose. The sector backdrop remains a tailwind. Risk is elevated. The recent financial performance is strong, and earnings quality is robust.
as of 2026-06-16
What to watch next
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Intermediate · Weekly
- DownsideHigh confidenceWeeksactive 11d
Watch for Q1 FY27 adjusted EBIT margin guidance of ~5.0%
Why it matters: This margin guidance indicates how well DXC is managing costs. A lower margin suggests ongoing efficiency issues.
What confirms / what disproves
Confirms:Adjusted EBIT margin for Q1 FY27 is confirmed at ~5.0%.
Disproves:Adjusted EBIT margin is over 5.0%. This shows better cost management.
Earnings call
News catalysts
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for DXC yet.
This sector is also watching
- Watch for revenue growth in IT sector dropping below median
- Watch for FOMC decisions impacting tech investment
What could change this view
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Intermediate · Weekly
Upside triggers
No upside scenarios in the latest snapshot.
Downside triggers
No downside scenarios in the latest snapshot.
Recent events
(material 8-K / filing activity)Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-05-071mo agoItem 2.02
Results of Operations and Financial Condition. On May 7, 2026, DXC Technology Company (the “Company”) issued a press release reporting its financial results for the fourth quarter and full year of fiscal 2026 ended March 31, 2026. The press release is attached hereto as Exhibit 99.1. The Company will also hold a conference call at 5:00 PM ET, on May 7, 2026, to discuss this matter. The information contained in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section…
Earnings preannouncementpositive
Score history
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
+8.9 vs last weeklatest as of 2026-06-16
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.