Managed services News
DXC Earnings Preview: 4 Big Things To Focus On
Joseph F. Kovar
DXC Technology is a major player in the global IT services market and as it is set to report its financial earnings Wednesday, all eyes will be on the lookout for signs of growth.
The past six years have not been kind to DXC Technology. The Ashburn, Va.-based global IT solution provider and consulting company, which was founded in April 2017 when Hewlett Packard Enterprise’s enterprise services business merged with Computer Science Corp., or CSC, has gradually been slipping down the financial hill.
DXC, No. 9 on the CRN 2022 Solution Provider 500, is a true powerhouse in the IT global technology services business. The company in 2022 reported revenue of about $16.27 billion with an employee base of 130,000.
[Related: DXC CEO Salvino: Cost Optimization Push Will Include Sale Of Noncore Assets]
Revenue has fallen every fiscal year since DXC was founded, and while net income is showing signs of recovery, the company has seen a cumulative net loss during that time of about $4.2 billion. DXC watchers will be watching for signs of growth during the company’s financial earnings report Wednesday.
The other big question about DXC is whether the company is in talks to be acquired. Discussions around that question have been swirling since 2020 when France-based global solution provider Atos pursued an acquisition of DXC for a reported $10 billion. Atos in early 2021 pulled out of its bid for DXC.
CRN breaks down four key things to watch for during DXC’s financial earnings report.