Revenue growth remains in a state of secular decline, evidenced by a 1.2% year-over-year contraction in 2026Q4 alongside a collapse in operating margins to -2.8%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 12.64B | 12.87B | 13.67B | 14.43B | 16.27B | 16.27B | 19.58B | 20.75B | 21.73B | 7.61B | 7.11B | 12.17B | 13B | 14.2B | 15.88B | 16.04B | 16.13B | 16.74B | 16.5B | 14.86B | 14.62B | 14.06B | 14.77B | 11.35B | 11.43B | 10.69B | 9.37B | 7.66B | 6.6B | 5.62B |
| Revenue Growth % | -1.76% | -5.82% | -5.29% | -11.28% | 0% | -16.92% | -5.67% | -4.51% | 185.7% | 7.05% | -41.62% | -6.35% | -8.43% | -10.59% | -1.03% | -0.53% | -3.66% | 1.46% | 11.06% | 1.65% | 3.96% | -4.8% | 30.15% | -0.7% | 6.91% | 14.05% | 22.33% | 16.05% | 17.54% | 32.38% |
| Cost of Goods Sold | 10.77B | 9.77B | 10.58B | 11.25B | 12.68B | 12.68B | 16.91B | 14.95B | 16.32B | 5.54B | 5.18B | 9.53B | 9.57B | 11.1B | 14.91B | 12.93B | 12.8B | 13.26B | 13.15B | 11.82B | 11.72B | 11.32B | 12.01B | 9.07B | 9.22B | 8.43B | 7.35B | 5.97B | 5.15B | 4.41B |
| COGS % of Revenue | 85.2% | 75.91% | 77.38% | 77.93% | 77.98% | 77.98% | 86.4% | 72.02% | 75.08% | 72.89% | 72.97% | 78.32% | 73.6% | 78.2% | 93.93% | 80.57% | 79.35% | 79.22% | 79.71% | 79.55% | 80.19% | 80.49% | 81.31% | 79.92% | 80.72% | 78.83% | 78.46% | 77.99% | 78.01% | 78.58% |
| Gross Profit | 1.87B | 3.1B | 3.09B | 3.18B | 3.58B | 3.58B | 2.66B | 5.81B | 5.42B | 2.06B | 1.92B | 2.64B | 3.43B | 3.1B | 963M | 3.12B | 3.33B | 3.48B | 3.35B | 3.04B | 2.9B | 2.74B | 2.76B | 2.28B | 2.2B | 2.26B | 2.02B | 1.69B | 1.45B | 1.2B |
| Gross Margin % | 14.8% | 24.09% | 22.62% | 22.07% | 22.02% | 22.02% | 13.6% | 27.98% | 24.92% | 27.11% | 27.03% | 21.68% | 26.4% | 21.8% | 6.07% | 19.43% | 20.65% | 20.78% | 20.29% | 20.45% | 19.81% | 19.51% | 18.7% | 20.08% | 19.28% | 21.16% | 21.54% | 22.01% | 21.99% | 21.42% |
| Gross Profit Growth % | -39.66% | 0.32% | -2.92% | -11.11% | 0% | 34.56% | -54.16% | 7.22% | 162.66% | 7.34% | -27.21% | -23.08% | 10.86% | 221.39% | -69.1% | -6.42% | -4.26% | 3.93% | 10.16% | 4.94% | 5.55% | -0.63% | 21.18% | 3.41% | -2.6% | 12.08% | 19.69% | 16.16% | 20.69% | 34.74% |
| Operating Expenses | 1.61B | 2.4B | 3.09B | 4.33B | 2.44B | 2.44B | 1.66B | 3.93B | 3.69B | 1.93B | 1.7B | 2.51B | 2.3B | 2.25B | 2.29B | 2.02B | 2.07B | 2.29B | 2.13B | 1.99B | 1.93B | 1.86B | 1.83B | 1.53B | 1.56B | 1.45B | 1.33B | 1.14B | 989.6M | 818.3M |
| OpEx % of Revenue | 12.76% | 18.67% | 22.63% | 29.97% | 15.01% | 15.01% | 8.48% | 18.92% | 16.96% | 25.32% | 23.9% | 20.65% | 17.66% | 15.82% | 14.4% | 12.58% | 12.82% | 13.69% | 12.88% | 13.39% | 13.23% | 13.22% | 12.4% | 13.46% | 13.69% | 13.53% | 14.14% | 14.89% | 14.99% | 14.57% |
| Selling, General & Admin | 1.4B | 1.12B | 1.69B | 2.81B | 724M | 724M | 1.66B | 1.96B | 1.89B | 1.28B | 1.04B | 1.54B | 1.28B | 1.18B | 1.14B | 965M | 991M | 1.08B | 975.4M | 916.4M | 842.2M | 807.8M | 850.3M | 716.9M | 706.3M | 796.6M | 779.37M | 695.8M | 602.7M | 485.1M |
| SG&A % of Revenue | 11.09% | 8.67% | 12.36% | 19.45% | 4.45% | 4.45% | 8.48% | 9.44% | 8.7% | 16.81% | 14.64% | 12.63% | 9.83% | 8.28% | 7.19% | 6.02% | 6.14% | 6.47% | 5.91% | 6.17% | 5.76% | 5.75% | 5.76% | 6.32% | 6.18% | 7.45% | 8.32% | 9.08% | 9.13% | 8.64% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67M | 56M | 55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | 0.55% | 0.43% | 0.39% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 211M | 1.29B | 1.4B | 1.52B | 1.72B | 1.72B | 0 | 306M | 522M | 2M | 9M | -12M | -18M | 42M | 1.15B | 1.05B | 1.08B | 1.21B | 1.15B | 1.07B | 1.09B | 1.05B | 980.3M | 810.3M | 857.6M | 649.3M | 545.72M | 445M | 386.9M | 333.2M |
| Operating Income | 258M | 698M | -2M | -1.14B | 1.14B | 1.14B | 1B | 1.88B | 2.64B | 136M | 223M | 125M | 1.14B | 871M | -1.32B | 1.1B | 1.26B | 1.19B | 1.22B | 1.05B | 961.8M | 884.7M | 930.2M | 751.1M | 639.3M | 816M | 693.06M | 545.4M | 462M | 384.5M |
| Operating Margin % | 2.04% | 5.42% | -0.01% | -7.91% | 7.02% | 7.02% | 5.12% | 9.06% | 12.14% | 1.79% | 3.14% | 1.03% | 8.73% | 6.14% | -8.34% | 6.85% | 7.83% | 7.09% | 7.41% | 7.06% | 6.58% | 6.29% | 6.3% | 6.62% | 5.6% | 7.64% | 7.4% | 7.12% | 7% | 6.85% |
| Operating Income Growth % | -63.04% | 35000% | 99.82% | -200% | 0% | 13.87% | -46.7% | -28.73% | 1839.71% | -39.01% | 78.4% | -88.99% | 30.31% | 165.79% | -220.47% | -12.98% | 6.36% | -2.82% | 16.51% | 9.05% | 8.71% | -4.89% | 23.84% | 17.49% | -21.65% | 17.74% | 27.07% | 18.05% | 20.16% | 46.92% |
| EBITDA | 1.42B | 2.01B | 1.43B | 410M | 2.88B | 2.88B | 3.03B | 3.9B | 4.65B | 794M | 892M | 1.1B | 2.15B | 2B | -112M | 2.24B | 2.42B | 2.46B | 2.51B | 2.21B | 2.15B | 2.03B | 1.97B | 1.61B | 1.5B | 1.47B | 1.24B | 990.4M | 848.9M | 717.7M |
| EBITDA Margin % | 11.21% | 15.62% | 10.47% | 2.84% | 17.73% | 17.73% | 15.5% | 18.81% | 21.41% | 10.44% | 12.55% | 9.05% | 16.56% | 14.12% | -0.71% | 13.96% | 15% | 14.68% | 15.2% | 14.88% | 14.71% | 14.44% | 13.33% | 14.18% | 13.1% | 13.71% | 13.22% | 12.93% | 12.86% | 12.78% |
| EBITDA Growth % | -29.49% | 40.53% | 249.02% | -85.78% | 0% | -4.98% | -22.26% | -16.1% | 485.89% | -10.99% | -19.06% | -48.82% | 7.38% | 1890.18% | -105% | -7.44% | -1.57% | -2.03% | 13.46% | 2.86% | 5.87% | 3.14% | 22.36% | 7.46% | 2.16% | 18.29% | 25.08% | 16.67% | 18.28% | 39.68% |
| D&A (Non-Cash Add-back) | 1.16B | 1.31B | 1.43B | 1.55B | 1.74B | 1.74B | 2.03B | 2.02B | 2.01B | 658M | 669M | 977M | 1.02B | 1.13B | 1.21B | 1.14B | 1.16B | 1.27B | 1.29B | 1.16B | 1.19B | 1.15B | 1.04B | 857.5M | 857.6M | 649.3M | 545.72M | 445M | 386.9M | 333.2M |
| EBIT | 258M | 895M | 407M | -685M | 1.34B | 1.34B | -4.84B | 1.85B | 1.62B | -57M | 133M | -545M | 822M | 663M | -821M | 1.14B | 1.29B | 1.22B | 1.1B | 824.2M | 924.2M | 872.2M | 846.5M | 754.4M | 651.6M | 436.4M | 693.06M | 569.2M | 489M | 384.5M |
| Net Interest Income | -35M | -66M | -84M | -65M | -139M | -263M | -218M | -206M | -231M | -82M | -85M | -106M | -112M | -161M | -133M | -130M | -225M | -219M | -148.3M | -168.4M | -80.1M | -140.7M | -160.6M | -134.3M | -142.5M | -89.8M | 0 | 0 | 0 | 0 |
| Interest Income | 181M | 199M | 214M | 135M | 65M | 98M | 165M | 128M | 89M | 35M | 38M | 20M | 16M | 22M | 38M | 37M | 27M | 41M | 37.1M | 49.5M | 40.8M | 16.1M | 9.2M | 8.5M | 12.3M | 16.3M | 0 | 0 | 0 | 0 |
| Interest Expense | 216M | 265M | 298M | 200M | 204M | 361M | 383M | 334M | 320M | 117M | 123M | 126M | 128M | 183M | 176M | 168M | 252M | 260.5M | 185.4M | 175.2M | 104.2M | 156.8M | 169.8M | 142.8M | 154.8M | 106.1M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 60M | -68M | 111M | 256M | 0 | 0 | -6.23B | -766M | -478M | -310M | -194M | -372M | 12M | -186M | -511M | -131M | -241M | -238M | -304.1M | -484.5M | -157.4M | -169.3M | -113.1M | -139.5M | -142.5M | -322.7M | -81.59M | -10.5M | -247.6M | -81.2M |
| Pretax Income | 318M | 630M | 109M | -885M | 1.14B | 1.14B | -5.23B | 1.51B | 1.3B | -174M | 10M | -276M | 910M | 449M | -4.35B | 968M | 1.04B | 949.1M | 917.9M | 607M | 821.1M | 715.4M | 746.9M | 611.6M | 496.8M | 330.3M | 611.47M | 511.4M | 190.9M | 303.3M |
| Pretax Margin % | 2.51% | 4.89% | 0.8% | -6.13% | 7.02% | 7.02% | -26.7% | 7.3% | 6% | -2.29% | 0.14% | -2.27% | 7% | 3.16% | -27.38% | 6.03% | 6.44% | 5.67% | 5.56% | 4.09% | 5.62% | 5.09% | 5.06% | 5.39% | 4.35% | 3.09% | 6.53% | 6.68% | 2.89% | 5.4% |
| Income Tax | 290M | 234M | 23M | -319M | 405M | 405M | 130M | 288M | -242M | -74M | -55M | -312M | 289M | -49M | -121M | 243M | 204M | -166.1M | 373.3M | 218.2M | 244.1M | 219M | 227.5M | 171.4M | 152.7M | 97.1M | 208.6M | 170.2M | -69.5M | 110.9M |
| Effective Tax Rate % | 91.19% | 37.14% | 21.1% | 36.05% | 35.5% | 35.5% | -2.49% | 19.01% | -18.56% | 42.53% | -550% | 113.04% | 31.76% | -10.91% | 2.78% | 25.1% | 19.65% | -17.5% | 40.67% | 35.95% | 29.73% | 30.61% | 30.46% | 28.02% | 30.74% | 29.4% | 34.11% | 33.28% | -36.41% | 36.56% |
| Net Income | 18M | 389M | 91M | -568M | 718M | 718M | -5.37B | 1.26B | 1.75B | -123M | 244M | -8M | 674M | 961M | -4.24B | 740M | 817M | 1.12B | 544.6M | 388.8M | 634M | 810.2M | 519.4M | 440.2M | 344.1M | 233.2M | 402.87M | 341.2M | 260.4M | 192.4M |
| Net Margin % | 0.14% | 3.02% | 0.67% | -3.94% | 4.41% | 4.41% | -27.43% | 6.06% | 8.06% | -1.62% | 3.43% | -0.07% | 5.19% | 6.77% | -26.72% | 4.61% | 5.07% | 6.66% | 3.3% | 2.62% | 4.34% | 5.76% | 3.52% | 3.88% | 3.01% | 2.18% | 4.3% | 4.45% | 3.94% | 3.43% |
| Net Income Growth % | -95.37% | 327.47% | 116.02% | -179.11% | 0% | 113.37% | -527.13% | -28.21% | 1523.58% | -150.41% | 3150% | -101.19% | -29.86% | 122.65% | -673.24% | -9.42% | -26.74% | 104.77% | 40.07% | -38.68% | -21.75% | 55.99% | 17.99% | 27.93% | 47.56% | -42.12% | 18.07% | 31.03% | 35.34% | 35.78% |
| Net Income (Continuing) | 28M | 396M | 86M | -566M | 736M | 736M | -5.36B | 1.23B | 1.55B | -100M | 72M | -207M | 621M | 297M | -4.23B | 725M | 834M | 1.12B | 544.6M | 397.3M | 471.1M | 496.4M | 476.2M | 440.2M | 344.1M | 233.2M | 402.87M | 355.5M | 274.6M | 192.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35M | 236M | 0 | 191M | 224M | 448M | 0 | 0 | -49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 268M | 261M | 255M | 323M | 323M | 323M | 344M | 323M | 350M | 278M | 7M | 28M | 31M | 25M | 55M | 56M | 62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.10 | 2.10 | 0.46 | -2.47 | 2.81 | -0.59 | -20.72 | 4.47 | 6.04 | -0.88 | 1.73 | -0.06 | 4.47 | 6.18 | -27.37 | 4.73 | 5.28 | 7.31 | 3.20 | 2.16 | 3.37 | 4.31 | 2.75 | 2.54 | 2.01 | 1.37 | 2.37 | 2.03 | 1.56 | 1.23 |
| EPS Growth % | -95.24% | 356.52% | 118.62% | -187.9% | 576.27% | 97.15% | -563.53% | -25.99% | 786.36% | -150.87% | 3183.78% | -101.26% | -27.67% | 122.58% | -678.65% | -10.42% | -27.77% | 128.44% | 48.15% | -35.91% | -21.81% | 56.73% | 8.27% | 26.37% | 46.72% | -42.19% | 16.75% | 30.13% | 26.83% | -1.6% |
| EPS (Basic) | 0.10 | 2.15 | 0.46 | -2.47 | 2.87 | -0.59 | -20.72 | 4.53 | 6.15 | -0.88 | 1.76 | -0.06 | 4.56 | 6.22 | -27.37 | 4.79 | 5.36 | 7.37 | 3.26 | 2.21 | 3.41 | 4.36 | 2.77 | 2.55 | 2.02 | 1.39 | 2.42 | 2.07 | 1.59 | 1.27 |
| Diluted Shares Outstanding | 178.65M | 184.92M | 198.78M | 228.99M | 255.21M | 254.14M | 258.57M | 281.43M | 289.77M | 140.39M | 141.33M | 142.56M | 150.76M | 155.56M | 155.01M | 156.6M | 154.75M | 152.61M | 170.17M | 179.73M | 187.98M | 187.98M | 188.7M | 173.12M | 171.28M | 170.77M | 169.99M | 168.48M | 167.44M | 156.42M |
| Basic Shares Outstanding | 175.02M | 180.68M | 195.8M | 228.99M | 250.02M | 254.14M | 258.57M | 277.54M | 284.93M | 139.77M | 138.28M | 142.19M | 147.65M | 154.59M | 155.01M | 154.49M | 152.46M | 151.39M | 167.23M | 176.26M | 185.69M | 185.69M | 187.27M | 172.32M | 170.05M | 168.26M | 166.48M | 164.58M | 163.45M | 151.5M |
| Dividend Payout Ratio | - | - | - | - | - | 7.38% | - | 16.71% | 9.94% | - | 176.23% | - | 17.66% | 12.9% | - | 10.41% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Structural revenue runoff
According to the most recent quarterly data, DXC's revenue growth has remained consistently negative, with a 1.2% year-over-year decline in 2026Q4, signaling that the firm's transition toward modern services is failing to offset the secular erosion of its legacy infrastructure outsourcing business.
The inability to achieve positive top-line growth suggests that the company's core GIS segment is experiencing faster contract runoffs than the GBS segment can replace. Investors should monitor whether this trend reflects a fundamental loss of competitive relevance in the digital transformation market.
As reported in the 2026Q4 financial statements, DXC's gross margin plummeted to -4.5%, a stark reversal from the 23.8% levels observed just one quarter prior, indicating significant volatility and potential cost-overrun issues within its service delivery model.
This dramatic margin collapse suggests that the company's high-fixed-cost structure is becoming increasingly difficult to manage during periods of revenue weakness. The lack of pricing power in legacy infrastructure services appears to leave the firm highly vulnerable to even minor fluctuations in labor costs.
Based on the provided income statement data, DXC's operating margin fell to -2.8% in 2026Q4, demonstrating that the company lacks the necessary operating leverage to maintain profitability when gross profits fail to cover fixed SG&A expenses.
The company's inability to scale operating income suggests that its overhead remains bloated relative to its shrinking revenue base. This lack of efficiency warrants further investigation into whether current restructuring efforts are sufficient to align the cost structure with the firm's current operational reality.
Financial filings indicate that DXC's net income has swung from a positive $107 million in 2026Q3 to a loss of $141 million in 2026Q4, highlighting the extreme sensitivity of the bottom line to non-operating items and restructuring-related charges.
The erratic nature of EPS, which dropped to -0.78 in the most recent quarter, suggests that reported earnings may be heavily influenced by accounting adjustments rather than core operational performance. Analysts should be cautious of relying on GAAP net income as a proxy for sustainable cash generation.
Data from the last ten quarters suggests that DXC's business model is facing a terminal decline, as evidenced by the 2026Q4 net loss, which may lead short-sellers to focus on the company's inability to stabilize its core infrastructure revenue streams.
The market's skepticism regarding the company's long-term viability appears supported by the persistent negative growth and recent margin collapse. It remains unclear whether the firm can pivot its service offerings fast enough to prevent further erosion of its enterprise client base.
Quick answers to the most common questions about buying DXC stock.
For fiscal year 2026, DXC Technology Company (DXC) reported total revenue of $12.64B. This represents a 125.1% increase compared to $5.62B in 1997.
DXC Technology Company (DXC) is profitable, generating $18.0M in net income for the fiscal year ending 2026 with a net profit margin of 0.1%.
DXC Technology Company (DXC) reported an operating income of $258.0M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
DXC Technology Company (DXC) generated $1.87B in gross profit for the year, representing a gross profit margin of 14.8%. This demonstrates the company's core pricing power and production efficiency.