The company now projects fiscal 2027 revenue between $11.91 billion and $11.98 billion, a downward revision from its previous guidance of $12.1 billion to $12.35 billion. Analysts surveyed by FactSet had anticipated revenue reaching $12.14 billion. Similarly, adjusted earnings are now expected to land between $2.25 and $2.50 per share, falling short of Wall Street’s $2.58 estimate.
In section Market Quotes
DXC Technology Shares Plunge Following Diminished Fiscal Forecasts
A 13% drop in share price greeted DXC Technology investors Wednesday after the company slashed its fiscal-year revenue and earnings outlook. The sharp decline marks a reversal for the IT service provider, which hit a 52-week high just two days prior, as management struggles to stabilize its core consulting and outsourcing operations.
Second-quarter results offered a mixed picture. Net income slid to $24 million, or 15 cents a share, down from the $36 million reported during the same period last year. Revenue of $3.03 billion also trailed the previous year’s $3.16 billion, though it managed to edge past analyst expectations of $2.98 billion. Despite the broader earnings miss, the company’s adjusted earnings of 67 cents a share outperformed the 55-cent consensus. Meanwhile, leadership confirmed that deliberations are ongoing regarding a potential sale of the firm’s insurance business unit.
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