DXC Should I Buy
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DXC Technology Co is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive developments, such as improved net income and EPS growth, the overall financial performance, technical indicators, and analyst sentiment suggest caution. The stock's recent price performance and lack of strong trading signals further support a hold recommendation.
The MACD is negatively expanding, indicating bearish momentum. The RSI is at 31.397, close to oversold territory but not providing a clear signal. Moving averages are converging, suggesting indecision in the market. The stock is trading near its key support level of 13.012, with resistance at 14.118. Overall, the technical indicators suggest a weak trend with no strong buy signal.
DXC Technology has expanded its partnership with PoloWorks, enhancing operational efficiency and market adaptability. The opening of a new Customer Experience Center in London and plans to hire 150 AI specialists highlight the company's focus on digital transformation and AI capabilities.
The company's Q4 revenue guidance was disappointing, and the mid-point of the FY revenue guide was lowered. Analysts have mixed to negative ratings, with one firm lowering the price target to $13 and maintaining an Underperform rating. The stock has also seen a significant regular market decline of -5.86%.
In 2026/Q3, revenue dropped by -0.96% YoY to $3.19 billion, while net income increased by 87.72% YoY to $107 million. EPS grew by 96.77% YoY to 0.61, showing profitability improvements. However, gross margin declined by -1.72% YoY to 14.9%, indicating some operational inefficiencies.
Analysts have mixed to negative views on DXC. BMO Capital raised the price target to $17 but highlighted concerns about revenue stability and a disappointing Q4 revenue guide. Wolfe Research lowered the price target to $13 and maintained an Underperform rating, citing softer-than-expected Q4 guidance.
