Key Highlights

  • DXC Technology shares fell about 8.1% by late morning on October 30, 2026.
  • Fiscal second-quarter Revenue was $3.03 billion, down from a year earlier.
  • Bookings of $2.4 billion produced a book-to-bill ratio of 0.80x.
  • DXC guided fiscal 2027 revenue to $11.91 billion to $11.98 billion.

DXC Technology (NYSE:DXC) fell about 8.1% by late morning on Friday, following the release of its fiscal second-quarter 2027 results on Thursday, October 29. The report showed revenue and bookings still moving in the wrong direction, with new Business falling short of the revenue the company recognized during the quarter. The sources reviewed did not spell out the market's reasoning, but the results, combined with a broad technology sell-off, provide the clearest context.

A Legacy Outsourcer in Transition

DXC was formed from the Merger of Computer Sciences Corporation and the enterprise services business of Hewlett Packard Enterprise (NYSE:HPE). It provides IT outsourcing, application management, cloud and infrastructure services and consulting to large enterprises and government agencies, and has spent years working to stabilize revenue as legacy contracts are renegotiated or roll off.

The Numbers

Second-quarter revenue was $3.03 billion, down from a year earlier on both a reported and an organic basis. Diluted Earnings per Share were $0.15, while non-GAAP diluted earnings per share were $0.67, down from the prior year. Bookings came in at $2.4 billion, producing a book-to-bill ratio of 0.80x, meaning DXC signed less new business than it recognized as revenue, which investors often treat as an indicator of further revenue pressure. Free Cash Flow was $91 million versus $240 million a year earlier, though first-half free cash flow of $405 million was ahead of $337 million.

Full-Year Guidance

For fiscal 2027 DXC guided to revenue of $11.91 billion to $11.98 billion, an organic decline of 5.0% to 5.5%, non-GAAP diluted earnings of $2.25 to $2.50 per share and free cash flow of about $600 million. The release did not show whether those figures differed from earlier guidance.

A Tough Tape for Tech Services

The S&P 500 fell 140.32 points, or 1.8%, to 7,580.07 and the Nasdaq Composite dropped 747.73 points, or 2.9%, to 25,437.00, as Intel (NASDAQ:INTC)'s weak outlook triggered a chip rout and Amazon (NASDAQ:AMZN)'s results revived worries about AI spending. IT services firms have also faced a debate about whether AI tools will reduce Demand for traditional outsourcing. Not every services name fell, however: Grid Dynamics (NASDAQ:GDYN) rallied sharply after its own results. Investors will watch whether DXC can lift its book-to-bill ratio toward one and how quickly revenue declines moderate.