DXC Technology Reports Better Than Expected Q3, Shares Up 2%

DXC Technology (NYSE:DXC) shares rose more than 2% yesterday after the company reported its Q3 results, with EPS of $0.95 coming in better than the Street estimate of $0.83. Revenue was $3.57 billion, in line with expectations.

The company is starting to make some progress in its transformation journey generating an impressive $463 million in free cash flow in the quarter, while bookings increased sequentially to $4.8 billion (vs $3.0 billion in Q2/22).

As expected, the company lowered its preliminary 2024 outlook that was not realistic (originally given nearly 2 years ago) and now expects organic revenue growth to be flat to up 1% (up 1-3% prior) with free cash flow generation of up to $900 million (vs. $1.5 billion prior), a notable turnaround from historical growth rates.