Can DXC (DXC) Turn AI Ambitions Into a Competitive Edge in Insurance and Enterprise Tech?

• Earlier in October 2025, DXC Technology announced the launch of DXC Assure Smart Apps, an AI-powered suite aimed at modernizing insurance operations, while Digital Realty revealed a collaboration with Dell and DXC to deliver integrated private AI solutions for enterprise clients.
• These initiatives demonstrate DXC's commitment to broadening its enterprise AI footprint and leveraging partnerships to address evolving client needs in both the insurance and broader enterprise technology markets.
• We'll explore how DXC's expansion into AI-driven insurance solutions through Assure Smart Apps impacts its investment case.

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DXC Technology Investment Narrative Recap

To be a DXC Technology shareholder, you must believe that the company's push into AI-powered enterprise solutions, such as Assure Smart Apps, can counteract ongoing revenue headwinds and help stabilize earnings. While this recent launch underscores a pivot to digital modernization, which remains the most important short-term catalyst, its impact on stemming the core GIS segment's revenue decline may not be material in the near term, so top-line pressures persist as the biggest risk.

Among the latest developments, the new partnership between DXC, Digital Realty, and Dell Technologies to provide integrated private AI solutions further emphasizes DXC’s effort to expand its footprint in enterprise services. This supports the company’s potential catalysts by broadening access to scalable AI tools for large clients and increasing relevance in competitive digital transformation markets.

By contrast, investors should be aware that persistent declines in DXC’s GIS segment and the challenge of converting new bookings into realized revenue remain major concerns, particularly if...

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% yearly revenue decline and a $170.4 million decrease in earnings from $379.0 million today.

Uncover how DXC Technology's forecasts yield a $15.12 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community gave fair value estimates for DXC ranging from US$8.06 to US$261.89. With this diversity of opinion, remember that ongoing revenue declines and execution risk are front of mind for many participants weighing the company's ability to deliver.

Explore 6 other fair value estimates on DXC Technology - why the stock might be worth 37% less than the current price!

Build Your Own DXC Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DXC Technology research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free DXC Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DXC Technology's overall financial health at a glance.

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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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