Stock Analysis

AI Partnerships and Leadership Recognition Might Change the Case For Investing In DXC Technology (DXC)

  • Earlier in August 2025, DXC Technology announced executive appointments in Canada and entered a strategic partnership with Boomi to enhance AI-driven enterprise modernization.
  • DXC’s recognition as a Leader in Everest Group’s PEAK Matrix® Assessment 2025 highlights the company’s accelerated application development and commitment to AI-powered, secure software solutions across its global client base.
  • We'll explore how DXC's focus on intelligent automation and AI partnerships impacts its broader investment narrative and future prospects.

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DXC Technology Investment Narrative Recap

To believe in DXC Technology as a shareholder right now, you need confidence that its investments in intelligent automation, AI capabilities, and partnerships will successfully transform the business and stabilize organic revenue declines. The recent Canadian executive appointments and the Boomi partnership underline DXC's commitment to client innovation and market positioning, but do not materially shift the main short-term catalyst, conversion of strong bookings into realized revenue, nor do they resolve the core risk of persistent GIS segment declines and overall revenue contraction. Of the latest announcements, DXC’s partnership with Boomi stands out as most relevant, reflecting ongoing efforts to modernize client technology stacks and accelerate adoption of AI-driven solutions. This approach may support future enterprise wins and gradual improvement in deal conversion but does not eliminate execution risks tied to legacy business declines and competition from hyperscalers. By contrast, investors should also be aware that the GIS segment’s mid-single-digit declines remain unresolved...

Read the full narrative on DXC Technology (it's free!)

DXC Technology's narrative projects $12.1 billion revenue and $208.6 million earnings by 2028. This requires a 1.7% annual revenue decline and a $170.4 million decrease in earnings from the current $379.0 million.

Uncover how DXC Technology's forecasts yield a $15.62 fair value, a 10% upside to its current price.

Exploring Other Perspectives

DXC Community Fair Values as at Aug 2025
DXC Community Fair Values as at Aug 2025

Fair value estimates from the Simply Wall St Community span US$8.06 to US$261.89 across six independent analyses. These wide-ranging valuations coincide with ongoing challenges in revenue stabilization, reminding you to consider multiple viewpoints before making decisions.

Explore 6 other fair value estimates on DXC Technology - why the stock might be worth 43% less than the current price!

Build Your Own DXC Technology Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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