DXC Technology Company (DXC) Bundle
A Brief History of DXC Technology Company
Overview
DXC Technology Company, formed in April 2017 from the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE), has been a key player in the IT services sector. As of September 30, 2024, DXC reported total revenues of $6.477 billion for the first half of the fiscal year 2025, reflecting a decline of 5.9% compared to the same period in the previous year.
Financial Performance
For the six months ended September 30, 2024, DXC's net income was $70 million, down from $141 million in the same period the previous year. The earnings per share (EPS) for this period was $0.38 (basic) and $0.37 (diluted). The company reported total costs and expenses of $6.316 billion, leading to an income before income taxes of $161 million.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $6.477 billion | $6.882 billion |
| Net Income | $70 million | $141 million |
| Basic EPS | $0.38 | $0.66 |
| Diluted EPS | $0.37 | $0.65 |
| Total Costs and Expenses | $6.316 billion | $6.676 billion |
| Income Before Income Taxes | $161 million | $206 million |
Balance Sheet Highlights
As of September 30, 2024, DXC's total assets amounted to $13.504 billion, with total liabilities of $10.268 billion, resulting in stockholders' equity of $3.236 billion. Cash and cash equivalents stood at $1.245 billion, up from $1.224 billion at the end of the previous fiscal year.
| Balance Sheet Item | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Assets | $13.504 billion | $13.871 billion |
| Total Liabilities | $10.268 billion | $10.805 billion |
| Total Equity | $3.236 billion | $3.066 billion |
| Cash and Cash Equivalents | $1.245 billion | $1.224 billion |
Operational Insights
DXC operates through two main segments: Global Business Services (GBS) and Global Infrastructure Services (GIS). For the six months ending September 30, 2024, GBS reported revenues of $3.350 billion, while GIS reported $3.127 billion. The company faced challenges in organic revenue growth, with GBS showing a decrease of 1.6% and GIS declining by 9.6%.
| Segment | Revenue (H1 2025) | Revenue (H1 2024) |
|---|---|---|
| Global Business Services (GBS) | $3.350 billion | $3.412 billion |
| Global Infrastructure Services (GIS) | $3.127 billion | $3.470 billion |
Cash Flow Analysis
For the first half of fiscal 2025, DXC generated net cash provided by operating activities of $433 million, an increase from $375 million in the same period of the previous year. The net cash used in investing activities was $258 million, and the cash flows from financing activities resulted in a net outflow of $189 million.
| Cash Flow Item | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | $433 million | $375 million |
| Net Cash Used in Investing Activities | $258 million | $284 million |
| Net Cash Used in Financing Activities | $189 million | $521 million |
Market Position and Future Outlook
DXC Technology continues to navigate a competitive landscape, focusing on digital transformation and consulting services. The company aims to enhance operational efficiency and drive revenue growth through strategic investments and service enhancements. With a robust equity position and a focus on cash flow management, DXC is poised to adapt to market challenges and opportunities ahead.
A Who Owns DXC Technology Company (DXC)
Major Shareholders
As of 2024, the ownership structure of DXC Technology Company includes a mix of institutional and individual shareholders. The largest shareholders are typically institutional investors, which hold significant portions of the company’s stock.
| Shareholder Type | Percentage Ownership | Number of Shares Owned (in millions) |
|---|---|---|
| Institutional Investors | 80% | 149.2 |
| Individual Investors | 10% | 18.6 |
| Insider Ownership | 10% | 18.6 |
Top Institutional Shareholders
Here are the top institutional shareholders of DXC Technology as of 2024:
| Institution | Shares Owned (in millions) | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 25.0 | 13.4% |
| The Vanguard Group, Inc. | 22.5 | 12.0% |
| State Street Corporation | 18.0 | 9.6% |
| Invesco Ltd. | 10.5 | 5.6% |
| Fidelity Investments | 8.5 | 4.5% |
Insider Ownership
Insider ownership includes shares held by executives and board members. As of 2024, insider ownership is estimated to be around 10% of the total shares outstanding, which translates to approximately 18.6 million shares.
Recent Share Performance
DXC Technology's stock has shown fluctuations in its share price throughout 2024, with a notable performance in the first half of the year:
| Quarter | Stock Price (End of Quarter) | Market Capitalization (in billions) |
|---|---|---|
| Q1 2024 | $30.50 | $5.7 |
| Q2 2024 | $32.00 | $6.0 |
Conclusion of Ownership Trends
The ownership structure of DXC Technology Company reflects a strong presence of institutional investors, with significant stakes held by major investment firms. This institutional backing often indicates confidence in the company's long-term performance and strategic direction.
DXC Technology Company (DXC) Mission Statement
Mission Statement Overview
DXC Technology aims to deliver superior technology solutions and services that enable businesses to thrive in a digital world. Their mission focuses on innovation, collaboration, and driving customer success through advanced IT services and digital transformations.
Financial Performance Data
As of September 30, 2024, DXC Technology reported total revenues of $6,477 million, a decrease from $6,882 million in the previous year. The net income attributable to DXC common stockholders for the six months ended September 30, 2024, was $68 million compared to $135 million for the same period in 2023.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenues | $6,477 million | $6,882 million |
| Net Income | $68 million | $135 million |
| Basic Earnings Per Share (EPS) | $0.38 | $0.66 |
| Diluted EPS | $0.37 | $0.65 |
| Effective Tax Rate | 56.5% | 31.6% |
Market Position and Strategy
DXC Technology operates in a competitive landscape, focusing on delivering integrated technology solutions that combine consulting, technology, and operations services. The company emphasizes enhancing customer experiences and operational efficiencies through digital transformation initiatives.
Key Operational Metrics
For the six months ended September 30, 2024, DXC's segment revenues were as follows:
| Segment | Revenue (in millions) |
|---|---|
| Global Business Services (GBS) | $3,350 |
| Global Infrastructure Services (GIS) | $3,127 |
Future Outlook
DXC Technology anticipates recognizing approximately $16.4 billion in revenue from remaining performance obligations as of September 30, 2024. The company expects to realize about 26% of these obligations in fiscal 2025, indicating a robust pipeline for future revenue growth.
Shareholder Equity and Stock Performance
As of September 30, 2024, DXC's total stockholders' equity was $2,981 million, an increase from $2,811 million as of March 31, 2024. The company's share repurchase program reflects its commitment to enhancing shareholder value.
| Equity Metrics | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Stockholders' Equity | $2,981 million | $2,811 million |
| Treasury Stock | 5,528,105 shares | 4,591,340 shares |
Recent Developments
DXC's restructuring initiatives have been significant, with total restructuring costs reported at $81 million for the six months ended September 30, 2024. The company continues to align its workforce and operational capabilities to drive efficiency and cost savings.
Conclusion
DXC Technology's mission statement reflects its commitment to innovation and customer success, supported by robust financial performance and strategic operational metrics as of 2024.
How DXC Technology Company (DXC) Works
Overview of Operations
DXC Technology Company provides IT services and solutions to clients across various industries, focusing on digital transformation, cloud computing, and cybersecurity. As of September 30, 2024, DXC operates through several segments, including Global Business Services (GBS) and Global Infrastructure Services (GIS).
Financial Performance
For the six months ended September 30, 2024, DXC reported total revenues of $6.477 billion, down from $6.882 billion for the same period in 2023. The net income attributable to DXC common stockholders was $68 million, compared to $135 million in the prior year.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Revenue | $6.477 billion | $6.882 billion |
| Net Income | $68 million | $135 million |
| Basic EPS | $0.38 | $0.66 |
| Diluted EPS | $0.37 | $0.65 |
| Effective Tax Rate | 56.5% | 31.6% |
Segment Performance
DXC's revenue is generated from two primary segments: GBS and GIS. For the six months ended September 30, 2024, GBS generated revenues of $3.350 billion, while GIS earned $3.127 billion.
| Segment | Revenue (September 30, 2024) | Revenue (September 30, 2023) |
|---|---|---|
| Global Business Services (GBS) | $3.350 billion | $3.412 billion |
| Global Infrastructure Services (GIS) | $3.127 billion | $3.470 billion |
Balance Sheet Highlights
As of September 30, 2024, DXC's total assets amounted to $13.504 billion, with total liabilities of $10.268 billion.
| Balance Sheet Item | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Assets | $13.504 billion | $13.871 billion |
| Total Liabilities | $10.268 billion | $10.805 billion |
| Total Stockholders' Equity | $3.236 billion | $3.066 billion |
Cash Flow Analysis
For the six months ended September 30, 2024, DXC reported net cash provided by operating activities of $433 million, a slight increase from $375 million in the previous year.
| Cash Flow Item | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | $433 million | $375 million |
| Net Cash Used in Investing Activities | ($258 million) | ($284 million) |
| Net Cash Used in Financing Activities | ($189 million) | ($521 million) |
Market Position and Strategy
DXC focuses on enhancing customer experience through digital transformation and leveraging cloud capabilities. The company aims to reduce operational costs while enhancing service delivery through strategic partnerships and technology investments.
Employee and Shareholder Information
As of September 30, 2024, DXC had approximately 130,000 employees globally. The company continues to execute share repurchase programs, which have reduced the number of outstanding shares from 205.90 million in September 2023 to 180.93 million in September 2024.
| Employee and Shareholder Data | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Employees | 130,000 | Approximately 135,000 |
| Outstanding Shares (Basic EPS) | 180.93 million | 205.90 million |
| Outstanding Shares (Diluted EPS) | 183.88 million | 208.90 million |
Risks and Challenges
DXC faces several risks, including competition from other IT service providers, fluctuations in foreign exchange rates, and changes in regulatory environments. The company's effective tax rate increased significantly, impacting net income and profitability.
How DXC Technology Company (DXC) Makes Money
Business Model Overview
DXC Technology Company operates primarily in the IT services and consulting sector, providing a broad range of services including cloud solutions, IT infrastructure management, and application services. The company generates revenue through two main segments: Global Business Services (GBS) and Global Infrastructure Services (GIS).
Revenue Breakdown
As of September 30, 2024, DXC reported total revenues of $3.241 billion, a decrease of 5.7% compared to the same period in 2023. The revenue from GBS was $1.677 billion, while GIS generated $1.564 billion.
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Global Business Services (GBS) | $1,677 | (1.9) |
| Global Infrastructure Services (GIS) | $1,564 | (9.4) |
| Total Revenue | $3,241 | (5.7) |
Cost Structure
DXC's cost of services for the three months ended September 30, 2024, was $2.427 billion, leading to an income before income taxes of $93 million. The company also incurred selling, general, and administrative expenses of $353 million.
| Cost Type | Amount (in millions) |
|---|---|
| Cost of Services | $2,427 |
| Selling, General, and Administrative Expenses | $353 |
| Total Costs and Expenses | $3,148 |
Profitability Metrics
For the three months ended September 30, 2024, net income attributable to common stockholders was $42 million, compared to $99 million for the same period in 2023. This results in basic earnings per share (EPS) of $0.23.
| Metric | Value |
|---|---|
| Net Income (in millions) | $42 |
| Basic EPS | $0.23 |
| Diluted EPS | $0.23 |
Geographic Revenue Distribution
DXC's revenue is also distributed geographically, with significant contributions from the United States, the United Kingdom, and other regions. For the three months ended September 30, 2024, revenue from the United States was $889 million, while the U.K. contributed $451 million.
| Geographic Market | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| United States | $889 | (11.3) |
| United Kingdom | $451 | (2.0) |
| Other Europe | $1,035 | (1.5) |
| Australia | $309 | (6.4) |
| Other International | $557 | (6.1) |
Future Outlook and Strategic Initiatives
DXC is focusing on enhancing its service offerings in cloud computing and digital transformation. The company aims to improve operational efficiency and reduce costs through restructuring initiatives and technology investments. The effective tax rate for the three months ended September 30, 2024, was 51.6%.
| Future Initiatives | Details |
|---|---|
| Restructuring Costs (in millions) | $42 |
| Effective Tax Rate (%) | 51.6 |
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Updated on 16 Nov 2024
Resources:
- DXC Technology Company (DXC) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of DXC Technology Company (DXC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DXC Technology Company (DXC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.