DXC Technology DXC shares have gained 17% in the past six months, outperforming the broader Zacks Computer and Technology sector’s return of 7.7%.

Over the same time frame, DXC Technology also outpaced its industry peers, including Amdocs DOX and Science Applications International SAIC. Shares of DOX have gained 14.2%, while SAIC has lost 0.5%.

This exceptional surge is the outcome of DXC Technology’s extensive local presence combined with its worldwide sales and delivery footprint providing a competitive edge when it comes to client service. The company’s global presence enables it to comprehend and react to regional dynamics by providing customized solutions that satisfy particular market demands while utilizing worldwide resources and experience. 

DXC Technology Company. Price and Consensus

DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote

However, to enhance its already robust footprint, DXC Technology teamed up with the U.K.-based Blackout Technologies, a leader in data security and compliance solutions to improve security for enterprises globally. 

This new partnership will help organizations secure employees' mobile devices and protect sensitive data by combining DXC's extensive consulting experience in digital transformation with Blackout's innovative and patented solution for smart device functionality.

By limiting the unauthorized use of smart devices during business hours, this solution assists employers in protecting sensitive data across all industries. Additionally, it guarantees adherence to legal mandates like GDPR, MiFID II and PCI DSS and helps protect sensitive data. Furthermore, Blackout's solution reduces distractions and increases productivity by controlling device functionality during working hours.

Strategic Collaborations to Aid DXC’s Prospects

DXC Technology’s continued efforts in delivering innovative solutions to combat the complexities of modern workforces through long-term partnerships are likely to continue aiding its prospects.

Recently, in November 2024, to accelerate the value of generative artificial intelligence  (GenAI) for companies worldwide, DXC Technology announced an extended strategic partnership with ServiceNow NOW. To expedite customers' adoption of AI, the companies have established a Center of Excellence that combines ServiceNow's GenAI solutions with DXC's industry and implementation expertise.

By combining the core capabilities of DXC's AI Impact, which combines consulting, engineering and secure enterprise services, with ServiceNow's GenAI solution, Now Assist, the DXC and ServiceNow GenAI Center of Excellence seeks to assist clients in expediting their AI journey.

In October 2024, Accelya and DXC Technology announced their partnership to speed up system integrations for airlines worldwide and provide a smooth and contemporary airport retail experience. This will make it possible for airlines to update their operations and provide their clients with fresh and creative services, which will ultimately improve the journey.

DXC's industry-leading Departure Control Systems will be used by Accelya to guarantee improved passenger experiences and operational effectiveness at the airport.

In September 2024, DXC partnered with PKO Bank Polski, Poland's biggest bank, to introduce a new feature in its IKO mobile banking app that allows Polish users to conveniently pay for parking from the comfort of their car.

After connecting the system to the app, the solution — one of the first of its kind in Poland — enables drivers to pay for parking via the infotainment dashboard in their car.

DXC Updates FY24 Guidance

Although DXC anticipates its revenues to decline in the range of 5.5-4.5%, the company has increased its full-year adjusted EBIT margin outlook from the previous guidance of 6.5-7% to a range of 7-7.5%.

Full-year non-GAAP diluted EPS is now expected to be between $3 and $3.25 compared with the prior outlook of $2.75-$3. The Zacks Consensus Estimate for full-year revenues and earnings are pegged at $12.98 billion and $3.18 per share, respectively.

Zacks Rank & Valuation

DXC Technology stock is cheap at the moment, as suggested by the Zacks Value Style Score of A. DXC stock is trading with a forward 12-month Price/Sales of 0.30X compared with the industry’s 10.81X.

The innovative technology solutions and long-term growth potential of DXC complemented by a discounted valuation make the stock lucrative for investors.

DXC currently carries a Zacks Rank #2 (Buy), implying that existing investors should keep holding the stock while new buyers should accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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