Powerpack

Unlock full stockrow access for only $9.90/month and boost yourself as an investor.

  • Full quarterly history

    Every quarter and TTM period we hold, not just the last 12.

  • Analyst estimates

    Three years of forward estimates and dividend forecasts.

  • Unlimited screener

    All results, unlimited saved screens, email when a screen changes.

  • Unlimited Excel

    Full workbooks and screener exports.

  • Unlimited follows

See Powerpack
Screener Weekly Summary Pricing

DXC Technology Company. DXC

Technology  —  Information Technology Services
10.65 (0.16) (1.48%) as of 25 Sep
Market cap
$1.7B
P/E
14.6×
Insider Buys (last 12m)
Insider Buys alert about insiders buying in the last 12 month
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

DXC Technology Company. (DXC) Business Profile

Updated before January 2025

Company Overview

DXC Technology Company (DXC) is a global leader in providing technology services and solutions. The company was formed in April 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE). Headquartered in Ashburn, Virginia, DXC operates in over 70 countries and serves a diverse range of industries, including healthcare, banking, insurance, manufacturing, and public sector organizations.

DXC’s leadership team is spearheaded by Mike Salvino, who serves as the President and Chief Executive Officer (CEO). Salvino, appointed in 2019, has been instrumental in driving the company’s transformation strategy, focusing on delivering customer-centric solutions and operational excellence. The company’s leadership team also includes experienced executives overseeing various functions such as technology, operations, and finance.

Core Business Segments

DXC Technology operates through several core business segments, offering a wide range of products and services tailored to meet the needs of its global clientele. These segments include:

1. IT Outsourcing Services

DXC provides comprehensive IT outsourcing services, including infrastructure management, application management, and cloud services. Key offerings include:

  • Cloud Migration and Management: Helping businesses transition to cloud platforms like AWS, Microsoft Azure, and Google Cloud.
  • Data Center Services: Managing on-premises and hybrid IT environments.
  • Workplace and Mobility Solutions: Enabling remote work and enhancing employee productivity through digital workplace solutions.

2. Application Services

DXC specializes in modernizing and managing enterprise applications to improve business agility and efficiency. Key services include:

  • Application Development and Modernization: Transforming legacy systems into modern, scalable applications.
  • Enterprise Application Services: Supporting platforms like SAP, Oracle, and Microsoft Dynamics.
  • Analytics and AI: Leveraging data analytics and artificial intelligence to drive business insights.

3. Business Process Services (BPS)

DXC offers end-to-end business process outsourcing solutions to streamline operations and reduce costs. Key areas include:

  • Finance and Accounting: Automating financial processes for improved accuracy and efficiency.
  • Customer Care: Enhancing customer experiences through omnichannel support.
  • Insurance and Banking Services: Providing specialized solutions for claims processing, underwriting, and loan servicing.

4. Security Services

DXC delivers robust cybersecurity solutions to protect organizations from evolving threats. Key offerings include:

  • Threat Detection and Response: Monitoring and mitigating cyber threats in real-time.
  • Identity and Access Management: Ensuring secure access to critical systems and data.
  • Compliance and Risk Management: Helping businesses meet regulatory requirements and manage risks effectively.

5. Industry-Specific Solutions

DXC develops tailored solutions for industries such as healthcare, manufacturing, and public sector. Examples include:

  • Healthcare IT: Enhancing patient care through electronic health records (EHR) and telemedicine solutions.
  • Manufacturing Solutions: Optimizing supply chain and production processes with IoT and analytics.
  • Government Services: Supporting public sector organizations with digital transformation initiatives.

Business Model

DXC Technology operates on a client-centric business model, integrating its products and services to deliver end-to-end solutions. The company generates revenue through long-term contracts, subscription-based services, and project-based engagements. By leveraging its global delivery network and strategic partnerships with leading technology providers, DXC ensures cost-effective and scalable solutions for its clients.

DXC’s business model emphasizes:

  • Customer Focus: Building strong relationships with clients to understand their unique needs and deliver tailored solutions.
  • Innovation: Investing in emerging technologies such as AI, blockchain, and IoT to stay ahead of market trends.
  • Operational Efficiency: Streamlining processes and optimizing resources to enhance profitability.

Strategic Direction

DXC Technology is focused on driving growth and innovation through several strategic initiatives:

1. Expanding Digital Services

The company aims to increase its share of digital services, including cloud, analytics, and cybersecurity, to meet the growing demand for digital transformation.

2. Sustainability Goals

DXC is committed to reducing its environmental impact by adopting sustainable practices and helping clients achieve their sustainability objectives through green IT solutions.

3. Industry-Specific Innovations

DXC plans to develop new solutions tailored to the unique needs of industries such as healthcare, automotive, and retail.

4. Strengthening Partnerships

The company continues to collaborate with leading technology providers like Microsoft, AWS, and SAP to enhance its offerings and deliver value to clients.

Competitive Landscape

DXC Technology operates in a highly competitive market, facing competition from both global IT service providers and niche players. Key competitors include:

  • Accenture: A leader in consulting and digital transformation services.
  • IBM: Known for its cloud and AI solutions.
  • Tata Consultancy Services (TCS): A major player in IT services and outsourcing.
  • Infosys: Specializing in digital services and consulting.
  • Cognizant: Offering a wide range of IT and business process services.

Despite the competition, DXC differentiates itself through its comprehensive service portfolio, industry expertise, and focus on customer satisfaction.

Risk Factors

DXC faces several risks that could impact its business operations and financial performance:

1. Market Dependence

The company’s revenue is heavily reliant on IT outsourcing and digital services, making it vulnerable to market fluctuations and changing client preferences.

2. Supply Chain Disruptions

Global supply chain challenges, such as component shortages and logistical issues, could affect DXC’s ability to deliver services.

3. Cybersecurity Threats

As a provider of IT services, DXC is a potential target for cyberattacks, which could compromise client data and damage its reputation.

4. Talent Retention

The company’s success depends on its ability to attract and retain skilled professionals in a competitive job market.

Recent Developments

DXC has made significant strides in recent years to enhance its offerings and strengthen its market position. Recent developments include:

  • Partnerships: Collaborating with Microsoft to expand cloud services and with ServiceNow to enhance IT operations management.
  • Acquisitions: Acquiring smaller firms to bolster its capabilities in areas like cybersecurity and analytics.
  • Sustainability Initiatives: Launching programs to reduce carbon emissions and promote green IT practices.
  • Global Expansion: Expanding its presence in emerging markets to tap into new growth opportunities.

Investment Considerations

Investors considering DXC Technology should weigh the following factors:

Strengths

  • Diverse Service Portfolio: Offering a wide range of IT and business process services.
  • Global Presence: Operating in over 70 countries with a strong client base.
  • Strategic Partnerships: Collaborating with leading technology providers to enhance offerings.

Risks

  • Market Volatility: Dependence on IT outsourcing and digital services makes the company vulnerable to market changes.
  • Operational Challenges: Managing a global workforce and complex projects can be challenging.
  • Competitive Pressure: Facing intense competition from established players and new entrants.

Conclusion

DXC Technology is a prominent player in the IT services industry, offering a comprehensive range of solutions to clients worldwide. With a focus on innovation, customer satisfaction, and sustainability, the company is well-positioned for future growth. However, it must navigate challenges such as market volatility and competitive pressures to maintain its leadership position. For investors, DXC represents a compelling opportunity with a balanced mix of strengths and risks.