Update shared on 17 Nov 2025
Analysts have maintained their price target for DXC Technology at $14.50, noting that only minor adjustments to model assumptions were made, which did not warrant a change in valuation.
What's in the News
- DXC Technology secured a major multi-year contract with the Metropolitan Police Service to modernize ERP and Resource Management systems. The initiative aims to enhance efficiency and frontline operations. (Client Announcements)
- Completed a buyback tranche, repurchasing over 5.3 million shares from July to September 2025. This brings the total shares repurchased since May 2023 to 14.11%, amounting to $533.07 million. (Buyback Tranche Update)
- Issued updated revenue guidance for the third quarter and full year of 2026, expecting a year-over-year decline in revenue of up to 5.0%. (Corporate Guidance: New/Confirmed)
- Launched DXC Assure Smart Apps, a suite of AI-powered applications designed to help insurers modernize operations and enhance customer engagement. (Product-Related Announcements)
- Formed a strategic collaboration with Digital Realty and Dell Technologies to deliver enterprise AI solutions and accelerate private AI deployments for customers. (Client Announcements)
Valuation Changes
- Consensus Analyst Price Target: Remained unchanged at $14.50, indicating stability in valuation outlook.
- Discount Rate: Increased slightly from 12.32% to 12.5%, which reflects a modest shift in the assessed risk premium.
- Revenue Growth: Improved marginally from -1.62% to -1.61%, which signals a slightly less negative outlook on top-line performance.
- Net Profit Margin: Decreased fractionally from 1.54% to 1.54%, showing minimal change in profitability expectations.
- Future P/E: Rose slightly from 17.01x to 17.10x, which reflects a modestly higher earnings multiple anticipated for the company.
Disclaimer
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