Can DXC Continue Its Net Income Climb?

DXC on the net income front has seen cumulative GAAP net losses over the past five years of about $4.2 billion. However, three of the last five years have seen positive net income, with fiscal 2020 showing a massive net loss:

DXC Technology, Fiscal Year Net Income (Loss) 

FY 2018 $1.78B

FY 2019 $1.23B

FY 2020 ($5.36B)

FY 2021 ($146M)

FY 2022 $736M

Source: DXC Technology financials 

Fiscal third quarter GAAP net income has moved in a different pattern from fiscal year net income. Unlike all of fiscal 2022, third fiscal quarter 2022 revenue fell significantly compared with the previous year:

DXC Technology, Fiscal 3Q Net Income (Loss) 

FY 2018 $799M

FY 2019 $466M

FY 2020 $90M

FY 2021 $1.10B

FY 2022 $102M

Source: DXC Technology financials