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DXC Earnings Preview: 4 Biggest Things To Focus On

C.J. Fairfield

DXC Technology earnings preview, from partnerships with VMware and AWS to increasing cash flow, DXC is positioning itself for growth in 2022.

Can DXC Improve Its Organic Revenue Growth In 2022?

In a 2021 investor day call in June, DXC CEO Mike Salvino, said the company continues to retain and attract talent and customers while taking costs out without disruption.

“These efforts are leading to stable revenues and expanded margins,” he said during the investor day call. “As a result of the execution of our transformation journey, we are on the right trajectory and expect our momentum to continue in FY22, to ultimately deliver organic revenue growth.”

An example of that, he said during the company’s fourth-quarter earnings call, is an existing customer that renewed its work with DXC as well as given the solution provider the ability to provide more services.

Zaandam, Netherlands-based retail company, Ahold Delhaize, has turned to DXC to provide infrastructure services, application outsourcing, cloud migration and workplace services in a hybrid cloud environment that will reduce costs and support its business-critical systems, Salvino explained during the call.

“Our ability to deliver a consistent book-to-bill of over 1.0 in each of the four quarters of FY ‘21 is clear evidence that we can win in the IT services industry,” he added. “This is translating into improving quarterly organic revenue growth, which we expect will flatten during FY ’22.”

What to watch for is if this model for organic revenue growth holds true in its new fiscal year.

 

 
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CJ Fairfield

CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and distributors. Prior to joining CRN, she worked at daily newspapers, including The Press of Atlantic City in New Jersey and The Frederick News-Post in Maryland. She can be reached at cfairfield@thechannelcompany.com.

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