DXC CEO Fernandez: AI Strategy Moves From Experimentation To Commercial Adoption

‘We have moved from strategy to products, from products to deployments, and increasingly from deployments to commercial adoption. We have a stronger leadership team, a growing portfolio of agentic offerings, thousands of AI-certified engineers, and customer relationships that give us a unique opportunity to scale,’ says DXC CEO Raul Fernandez.

DXC Technology is pushing its AI strategy toward production deployments and revenue generation as customers demand stronger safeguards around the technology, CEO Raul Fernandez said Thursday.

The push comes as DXC adjusts its full-year guidance to reflect weaker-than-expected sales in its core business, even after quarterly revenue, adjusted EBIT and non-GAAP diluted earnings per share exceeded guidance. Fernandez said improving sales execution remains a priority while DXC builds its agentic AI business.

“We have moved from strategy to products, from products to deployments, and increasingly from deployments to commercial adoption,” he told financial analysts during the company’s second fiscal quarter 2027 presentation. “We have a stronger leadership team, a growing portfolio of agentic offerings, thousands of AI-certified engineers, and customer relationships that give us a unique opportunity to scale.”

Before discussing AI, Fernandez addressed market speculation regarding a possible sale of DXC’s insurance business.

“While I don’t want to get into specifics, I can confirm that we are currently in ongoing discussions,” he said. “As we have said previously, management and the board are committed to exploring all avenues to create shareholder value. We believe we have multiple paths to do so, including improving the core, scaling our fast-track agentic and AI-based solutions, and evaluating strategic actions across our portfolio.”

DXC Trains 5,700-Plus Employees For Agentic AI

DXC’s approach combines industry expertise, its customer base, and access to multiple AI platforms. More than 5,700 employees globally have earned AI certifications since June, with the next step putting those skills to work on customer opportunities, Fernandez said.

“We are building a global bench of engineers capable of moving from AI experimentation to production in complex enterprise environments,” he said. “That is a capability few organizations can replicate at our scale. The next step is commercialization, deploying these engineers against customer opportunities, and converting that capability into revenue.”

DXC is continuing to accelerate the development of its AI engineering talent through strategic partnerships and hands-on training programs, a move that Fernandez said includes himself.

“In August, I attended Anthropic’s partner base camp in San Francisco, alongside DXC engineers and forward-deployed engineers from across the industry,” he said. “Working and learning alongside dozens of DXC teammates and FDEs (forward deployed engineers) in training from other companies gave me a close and upfront appreciation of the operating complexities of being an AI builder. It also gave me insight into what human capital skills are needed to be an ‘A’ player in an AI world. It demands a combination of engineering excellence, deep industry knowledge, and the ability to translate AI capabilities into measurable business outcomes.”

Fernandez also said that more than 500 DXC engineers participated in a multi-platform FDE bootcamp in India, working with Anthropic, ElevenLabs, and Amazon Web Services.

“Our approach is multi-platform, building expertise across Amazon, Microsoft Copilot, 7AI, Anthropic, and ElevenLabs to deliver solutions aligned with our clients’ needs,” he said. “Additional base camps are planned for Sydney and Tokyo.”

DXC CEO: AI Trust And Safety Growing More Important

Customers, meanwhile, are putting greater emphasis on the foundations supporting AI, particularly as DXC embeds it in critical systems and regulated environments, Fernandez said.

“Last quarter, I talked about customers wanting the potential and promise of AI, but also needing to trust the architecture underneath it,” he said. “Since last quarter, trust and safety considerations have become even more important for customers.”

DXC is developing controls around agent assurance, agent engineering, and harness engineering. Fernandez said the company’s partnership with San Francisco-based LLM integration technology developer LangChain supports development, evaluation, and observability of agents in DXC Oasis, its intelligent orchestration and agentic AI platform.

DXC Oasis Agentic AI Usage Jumps Sixfold

Oasis utilization rose sixfold from the previous quarter as DXC expanded agent capabilities and production workflows, including Workplace Services, an AI-native offering aimed at resolving employees’ IT issues before they disrupt work, Fernandez said.

“Demand for Oasis continues to be strong, with increased adoption from existing clients and interest from new customers, with patch management emerging as a leading use case,” he said. “We are currently running two pilots with new customers with incremental opportunities in the pipeline.”

For cybersecurity, DXC is preparing Frontier Code Assurance, a managed service combining Claude Mythos with its security expertise to identify and help remediate software vulnerabilities, Fernandez said.

“DXC goes beyond identifying vulnerabilities by validating each finding, ranking it by risk to the client, and fixing what matters first,” he said. “That is a tangible example of DXC’s differentiated commercial offerings for our customers in cyberspace.”

DXC CEO: Agentic AI Deals Start Smaller, Move Faster

During the question-and-answer session following Fernandez’s prepared remarks, when asked about the company’s AI business pipeline, he said agentic AI deals are smaller than traditional small deals when it comes to rolling them out, but lead to a clear line of sight on unlocking a tremendous amount of value.

“So while they’re upfront smaller, they move more quickly and deliver the proof points needed to then engage into much larger transactions that can be replicated,” he said. “And I think one thing that we’ll be able to talk about over the period of the next few quarters is a modernization-as-a-service win, where we are executing ahead of time and the client’s super happy.”

However, Fernandez said, modernizing legacy workloads have their own dynamics in terms of the new AI project size, cycle time, and different set of issues.

“There’s a tremendous amount of IP issues, a tremendous amount of questions, obviously, around safety and security, around the right evals and harnesses and agents to make sure that everything that is being built is built in a safe way, where information that our customers own are maintained and contained in a safe environment,” he said. “So the complexity is increasing. The time to value in terms of delivering an AI project is decreasing, but the unlock behind that is substantial.”

When asked about how AI is impacting IT services and upcoming budgets, Fernandez said the complexities of delivering something that’s enterprise-level is tremendous, and so the business transformation will take time.

“It is super complex, so people are still going to need outside providers,” he said. “All of us will have plenty of work, but we’re going through a rough patch. We’re going through unpaved roads right now with not a lot of traffic, but that will smooth out. And then finally, I think there is a bifurcation of reimagining workflows versus executing on your current business, and as I’ve talked to customers, I think there’s a realization that people that are operating existing workflows, existing systems are doing a fine job at it, but they may not be the best people to reimagine an agentic approach. That’s the opportunity we have, and that’s the opportunity that, frankly, is nascent today, and I bet will emerge over time.”

DXC Q2 Revenue Falls 4 Percent To $3.03 Billion

For its second fiscal quarter 2027, which ended September 30, DXC reported total revenue of $3.03 billion, down 4.0 percent over the $3.16 billion the company reported for its fiscal second quarter 2026.

That beat analyst expectations by $30 million, according to Seeking Alpha.

The total included Consulting and Engineering Services (CES) revenue of $1.21 billion, down 3.3 percent; Global Infrastructure Services (GIS) revenue of $1.43 billion, down 10.0 percent; and Insurance Software and Services revenue of $394 million, up 23.1 percent.

DXC also reported GAAP net income of $13 million or 15 cents per share, down significantly from last year’s $40 million or 20 cents per share. On a non-GAAP basis, the company reported net income of $97 million, or 67 cents per share, down from last year’s $154 million or 84 cents per share.

Non-GAAP earnings beat analyst expectations by 12 cents per share, according to Seeking Alpha.

Looking ahead, DXC expects third fiscal quarter revenue to be about 6 percent lower than that of the same period last year, while full fiscal year 2027 revenue is expected to fall year-over-year by 5.0 percent to 5.5 percent.