Should I Buy DXC? DXC 2026 Analysis

Should You Buy DXC Technology Co (DXC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

15.200

1 Day change

7.12%

52 Week Range

22.400

Analysis Updated At

2026/02/04

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Not a good buy right now: the tape is still technically weak (bearish MACD expansion) and the company’s top-line trend remains negative.
Today’s +4.3% move looks more like a bounce than a confirmed trend reversal while price is still below the key pivot (~14.22).
If you’re impatient and must act today, the higher-probability decision is to HOLD/avoid new longs rather than chase strength into nearby resistance (15.33).

Technical Analysis

Trend/Momentum: MACD histogram is negative (-0.119) and expanding to the downside → bearish momentum still building.
RSI(6) ~42: neutral-to-weak, not oversold enough to signal a high-conviction snapback.
Moving averages: converging (no clear bullish alignment), consistent with a choppy/fragile base rather than an uptrend.
Levels to watch: Price 14.07 is below Pivot 14.224 (near-term bearish). Support: 13.118 then 12.435. Resistance: 15.33 then 16.013.
Intellectia Proprietary Trading Signals:
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: OI put-call ratio 0.86 suggests slightly more call-heavy (mildly bullish) positioning overall.
Flow: Put volume is 0 and total option volume is very light (30 contracts) despite volume vs 30-day avg showing 2.36x—so the “sentiment read” from volume is not very reliable today.
Volatility: 30D IV ~53.8 vs HV ~49.3; IV percentile ~6 (low) → options are relatively cheap vs its own recent history, but the stock itself remains volatile.

Technical Summary

Sell

Buy

Positive Catalysts

- Insider confidence: CEO Raul J. Fernandez bought 16,446 shares at ~$15.24 (notable positive signal).
- Recognition/customer satisfaction: multiple top-3 / #1 rankings in Whitelane Research European IT Sourcing study could support enterprise deal momentum and narrative on execution.
- Profitability improvement: big YoY EPS and net income growth indicates cost control/efficiency gains are taking hold.

Neutral/Negative Catalysts

- Guidance/turnaround skepticism: analysts highlighted disappointing Q4 revenue guide and reduced FY revenue midpoint (hangs over the stock).
- Fundamental trend: revenue still shrinking YoY and gross margin down YoY—signals the turnaround is not yet delivering durable top-line stability.
- Technical overhang: bearish MACD expansion suggests rallies may fade until momentum stabilizes.

Financial Performance

Latest quarter: 2026/Q3.
Revenue: $3.194B, -0.96% YoY (continued top-line contraction).
Profitability: Net income $107M, +87.72% YoY; EPS $0.61, +96.77% YoY (strong bottom-line improvement).
Margins: Gross margin 14.9%, down ~1.72% YoY (pressure persists despite earnings improvement).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent changes are mixed:
- BMO (2026-02-03): PT raised to $17 from $15, maintained Market Perform; noted slight organic growth beat but called Q4 revenue guide disappointing and said turnaround still has “a long way to go.”
- Wolfe (2026-01-30): PT cut to $13 from $14, maintained Underperform; cited softer-than-expected Q4 guide.
Wall Street pro view (pros): improving execution narrative (AI/go-to-market), earnings/EPS progress.
Wall Street con view (cons): weak/uncertain revenue trajectory and cautious forward guide keep conviction low.

7 Analyst Rating

Wall Street analysts forecast DXC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DXC is 14.71 USD with a low forecast of 14 USD and a high forecast of 16 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

6 Hold

1 Sell

Hold

Current: 14.190

Low

Averages

14.71

High

Current: 14.190

Low

Averages

14.71

High

BMO Capital

Market Perform

maintain

$15 -> $17

AI Analysis

2026-02-03

Reason

BMO Capital

Price Target

$15 -> $17

AI Analysis

2026-02-03

maintain

Market Perform

Reason

BMO Capital raised the firm's price target on DXC Technology to $17 from $15 and keeps a Market Perform rating on the shares. The company delivered a slight beat to Q3 organic growth, though the Q4 revenue guide was disappointing, and management lowered the mid-point of the FY revenue guide, the analyst tells investors in a research note. The management continues to highlight progress from recent AI and go-to-market efforts, but DXC still has a long way to go in its turnaround and reaching revenue stability, the firm added.

Wolfe Research

Darrin Peller

Underperform

downgrade

$14 -> $13

2026-01-30

Reason

Wolfe Research

Darrin Peller

Price Target

$14 -> $13

2026-01-30

downgrade

Underperform

Reason

Wolfe Research analyst Darrin Peller lowered the firm's price target on DXC Technology to $13 from $14 and keeps an Underperform rating on the shares. The company reported a fiscal Q3 beat but its Q4 was guided softer than expected, the analyst tells investors in a research note.

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DXC Should I Buy

DXC Should I Buy

Should You Buy DXC Technology Co (DXC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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