Sell into strength. The FY27 guidance reset confirms structural revenue erosion and margin compression. Monitor Q1 FY27 results for signs of stabilization, but initial outlook points to further downside.
Price Chart
Executive Summary
DXC Technology reported Q4 FY2026 revenue of $3.13B (-1.2% YoY) and non-GAAP EPS of $0.77 (-8.3% YoY). FY27 guidance calls for further organic revenue decline of 3-5% and non-GAAP EPS of $2.40-$2.90, well below FY26's $3.23, signaling continued fundamental weakness.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue $3.13B, down 1.2% YoY (organic -6.6%)
- GAAP diluted EPS $(0.84), non-GAAP diluted EPS $0.77 (down 8.3% YoY)
- Q4 adjusted EBIT margin 7.6%; FY26 full-year adjusted EBIT margin 7.7%
- FY27 guidance: revenue $12.11B-$12.35B (organic -5% to -3%), non-GAAP EPS $2.40-$2.90, FCF $600M
- Guidance implies non-GAAP EPS decline of ~20-30% from FY26 $3.23
- Full-year FY26 free cash flow $713M vs FY27 guide of $600M
- Q4 pension/OPEB actuarial losses of $158M drove GAAP loss
Financial Impact
FY27 non-GAAP EPS guidance of $2.40-$2.90 is 20-30% below FY26 actual of $3.23; revenue guidance implies continued organic decline of 3-5%
Risk Factors
- Structural revenue decline in core segments (GIS organic -10.6% in Q4)
- Elevated pension/OPEB costs may continue to pressure GAAP earnings
- Competitive pressure and client budget scrutiny could worsen top-line trends
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001688568-26-000020 |
| Document: dxc-20260507.htm | 0001688568-26-000020 |
| Document: 0001688568-26-000020-index-headers.html | 0001688568-26-000020 |
| Document: 0001688568-26-000020-index.html | 0001688568-26-000020 |
| Document: 0001688568-26-000020.txt | 0001688568-26-000020 |
| 8-K Data (Synthetic) | 0001688568-26-000020 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | Press Release | $13.62 | awaiting T+60 | — | $15.85 (+16.41%) |
Sep 18, 2026 5w ago | Press Release | $10.78 | awaiting T+60 | — | $15.85 (+47.08%) |
Aug 12, 2026 10w ago | Institutional Cluster | $10.68 | awaiting T+60 | — | $15.85 (+48.46%) |
Jul 30, 2026 12w ago | Press Release | $11.24 $16.09 | ▲ +43.15% | ▲ +40.68% | $15.85 (+41.06%) |
Jun 11, 2026 19w ago | 8-K | $8.82 $11.66 | ▲ +32.20% | ▲ +27.80% | $15.85 (+79.76%) |
Jun 4, 2026 20w ago | DEFA14A | $9.01 $11.29 | ▲ +25.25% | ▲ +21.25% | $15.85 (+75.97%) |
May 7, 2026 24w ago | 8-K | $9.44 $10.97 | ▼ −16.27% | ▼ −13.55% | $15.85 (−68.04%) |
US Market Status
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