Dxc Technology Announces Fourth Quarter And Full Year Fiscal 2025 Earnings Results

DXC Technology Company (DXC) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $1.43, significantly beating the estimated EPS of $0.765 by $0.664. Additionally, DXC achieved quarterly revenue of $3.169 billion, surpassing the revenue estimate of $3.130 billion by approximately $39.2 million.

Key Highlights:

• Total revenue for Q4 FY25 was $3.17 billion, a decrease of 6.4% (4.2% on an organic basis).
• Q4 FY25 EBIT margin was 11.0%, with an adjusted EBIT margin of 7.3%.
• Diluted earnings per share for Q4 FY25 was $1.43, compared to ($1.10) in the prior year quarter; non-GAAP diluted earnings per share was $0.84, down 13.4% year-over-year.
• Book to bill ratio for Q4 FY25 was 1.22x.

Summary: DXC Technology reported its financial results for the fourth quarter and full year of fiscal 2025, revealing a total revenue of $3.17 billion for Q4, which reflects a decline of 6.4% compared to the previous year. The company achieved an EBIT margin of 11.0% for the quarter, with an adjusted EBIT margin of 7.3%. Notably, diluted earnings per share improved to $1.43 from a loss of $1.10 in the same quarter last year, although the non-GAAP diluted earnings per share decreased by 13.4% year-over-year to $0.84.

Management highlighted the significance of these results, particularly the book to bill ratio of 1.22x, which indicates a positive trend in new business. This performance is viewed as a reflection of the company’s ongoing efforts to stabilize and grow its operations in a challenging market environment. The results underscore DXC’s commitment to enhancing its service offerings and operational performance, despite the revenue decline.

DXC Technology Company (DXC) has experienced a rollercoaster of price changes recently, with a notable 9.22% increase over the past week, suggesting a potential rebound in investor sentiment. However, this short-term gain is overshadowed by a troubling trend, as the stock has declined 24.41% over the past six months and 13.26% over the last year. The company’s financial fundamentals paint a concerning picture, highlighted by a negative price-to-earnings ratio of -39.62, indicating that the market has little confidence in its profitability. Additionally, DXC’s revenue has seen a two-year compound annual growth rate (CAGR) of -6.11%, while free cash flow has plummeted by 23.15%, raising red flags about its operational efficiency. The return on invested capital stands at a meager 2.88%, and the net profit margin is also negative, further complicating the outlook for the company. While the recent uptick in stock price may provide a glimmer of hope, investors should remain cautious given the underlying financial challenges that DXC faces.

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also uses various technologies and methods to accelerate the creation, modernization, delivery, and maintenance of secure applications allowing customers to innovate faster while reducing risk, time to market, and total cost of ownership. In addition, this segment offers business process services, which include integration and optimization of front and back office processes, and agile process automation. The GIS segment adapts legacy apps to cloud, migrate the right workloads, and securely manage their multi-cloud environments; and offers security solutions help predict attacks, proactively respond to threats, and ensure compliance, as well as to protect data, applications, and infrastructure. It also provides IT outsourcing services to help customers securely and cost-effectively run mission-critical systems and IT infrastructure. In addition, this segment offers workplace services to fit its customer’s employee, business, and IT needs from intelligent collaboration; and modern device management, digital support services, and mobility services. DXC Technology Company is headquartered in Ashburn, Virginia.