Thursday 03 August 2023

*UKHotViewsExtra* Has DXC reached a fork in the road?

DXCDXC Technology has reported its latest Q1 earnings, revealing that it has revised its outlook downwards for the year ahead, having missed its targets by a significant margin. DXC’s global revenue for the three months ended 30 June 2023 was down 7% at $3.45bn. Meanwhile, on an organic basis (taking account of DXC’s divestments) revenue was down by 3.6%. This reflects a deterioration on the same time last fiscal when the decline was 2.6%. Net income was just $42m compared to $103m in Q1 FY23.

Revenue from Global Business Services (GBS) fell by 3.1% to $1.7bn in Q1 but grew by 3.3% on an organic basis. Meanwhile, Global Infrastructure Services (GIS) revenue fell sharply and was down by 10.6% at $1.74bn. On an organic basis GIS was down by 9.9% with the decline accelerating in Q1 FY24 compared to the same period last year when revenue was down by 7.2%. These latest results emphasise what has been apparent for some time, that many of DXC’s major revenue challenges relate to its GIS business. Meanwhile, GBS is performing fairly well, despite the tough climate, and this segment continues to show encouraging signs.

HVPTechMarketView clients, including subscribers to UKHotViews Premium can learn more by downloading Has DXC Technology Reached a Fork in the Road? This UKHotViewsExtra examines DXC's latest results in more detail and discusses the company's performance in the context of the wider market, as well as its longer term prospects. If you do not currently have access to this UKHotViewsExtra but would like learn more, please contact Deb Seth for more information.

Posted by Jon C Davies at '10:38' - Tagged: DXC  

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