DXC Technology: Still Standing, But With Work To Do

Summary

• DXC shows some stabilization with improved bookings and a cleaner balance sheet, but revenue and margins continue to decline, making growth still theoretical.
• The company's legacy-heavy business model lags behind competitors focused on digital-first and AI services.
• Despite a low valuation, I see no clear catalyst for a turnaround; the stock is fairly priced given ongoing risks and lack of visible growth.
• I'm staying on the sidelines until DXC demonstrates revenue stabilization, margin improvement, and better conversion of bookings into earnings.

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I only know of DXC Technology Company (NYSE:DXC) because of my favorite football team, Manchester United. They’re a shirt-sleeve sponsor for the team, and the idea is that they’ll aid the latter’s digital transformation. Given how badly United

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.