How Investors Are Reacting To DXC Technology (DXC) Taking a Key Role in Enterprise AI Deployments

• In early October 2025, Digital Realty announced a collaboration with Dell Technologies and DXC Technology to address enterprise AI challenges by enabling secure, scalable private AI deployments through the Dell AI Factory, Digital Realty’s global PlatformDIGITAL® network, and DXC’s end-to-end operational management.
• This partnership highlights DXC’s integral role in accelerating enterprise AI adoption by delivering expert implementation, validated use cases, and comprehensive transformation services tailored for complex organizational needs.
• To assess the impact on DXC’s investment case, we’ll explore how its operational role in private AI deployments could influence long-term growth prospects.

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DXC Technology Investment Narrative Recap

To justify owning DXC Technology, shareholders must have confidence in its ongoing pivot from legacy IT outsourcing to a services portfolio built around AI, cloud, and digital transformation. While the recent Dell and Digital Realty partnership demonstrates DXC’s position in next-generation AI implementation, it is unlikely to significantly shift near-term sentiment since persistent organic revenue declines and ongoing GIS erosion remain the most pressing challenges for earnings stabilization, outweighing the immediate impact of this news.

Among recent announcements, the Iberdrola cloud transformation project stands out as especially relevant, given its parallels to the new AI collaboration, it underscores DXC's capability to modernize complex enterprise infrastructure and deliver value-driven digital migrations at scale, a core theme for all near-term revenue catalysts. However, much rides on converting these wins into broad-based revenue growth as the GIS segment continues to contract.

However, while partnerships drive optimism, the stickier risk for shareholders is ongoing organic revenue declines and the potential...

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

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

Uncover how DXC Technology's forecasts yield a $15.12 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community have modeled DXC fair value from US$8.06 up to US$261.89. As you compare these wide-ranging views, keep in mind that persistent revenue decline remains a key issue for future performance.

Explore 6 other fair value estimates on DXC Technology - why the stock might be worth 42% 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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