DXC Technology’s results for the first quarter reflected ongoing challenges in top-line growth, despite outperforming Wall Street’s expectations for both revenue and non-GAAP earnings per share. The market responded negatively to these results, with management pointing to continued pressure in discretionary project-based services as a key factor. CEO Raul Fernandez acknowledged that reversing years of revenue decline remains a top priority, noting that the operational turnaround is proving deeper and more extensive than initially anticipated. He highlighted that recent organizational changes, including substantial leadership turnover and new executive hires, are aimed at improving execution and stabilizing the company’s trajectory.

Is now the time to buy DXC? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions DXC’s Q1 Earnings Call

• Bryan Bergin (TD Cowen) asked about demand trends across industries and the impact of tariff-sensitive sectors. CFO Rob Del Bene explained that pipelines dropped in consumer and media, but remained strong in banking, manufacturing, and insurance.
• Jonathan Lee (Guggenheim Partners) pressed on how macroeconomic scenarios shaped revenue guidance. Del Bene clarified that the widened guidance range was to account for potential deterioration, though no immediate exposure was seen.
• James Faucette (Morgan Stanley) questioned the scale and maturity of GenAI projects. CEO Raul Fernandez described current projects as mostly pilots but expressed optimism about scaling as clients’ readiness improves.
• Keith Bachman (BMO) challenged management on the path to revenue growth and the timing for a positive inflection. Fernandez responded that while demand exists, execution at scale is the key variable for a turnaround.
• Rod Bourgeois (DeepDive Equity Research) inquired about investment priorities. Fernandez outlined a focus on building repeatable solution frameworks and leveraging industry knowledge, especially in financial services, to drive future profitability.

Catalysts in Upcoming Quarters

In future quarters, our analyst team will be monitoring (1) the rate at which large, strategic bookings convert into revenue, (2) evidence that the new leadership team and sales force improvements are resulting in higher win rates and better pipeline discipline, and (3) progress in scaling AI-enabled solutions from pilot projects to broader enterprise adoption. The impact of the upcoming segment reporting change and any further macroeconomic developments will also be important signposts.

DXC currently trades at $16.00, down from $16.57 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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