New AI Partnerships Could Be a Game Changer for DXC Technology (DXC)

• DXC Technology recently announced partnerships with startups Acumino, CAMB.AI, and GreenMatterAI to advance AI solutions in the automotive and manufacturing industries, focusing on smart factory robotics, real-time speech translation, and synthetic data projects.
• This collaboration, made as part of the STARTUP AUTOBAHN initiative, highlights DXC’s commitment to transforming emerging technology into practical industry impact by accelerating AI adoption.
• We’ll examine how these new AI partnerships could reshape DXC Technology’s investment narrative and long-term prospects in digital transformation.

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DXC Technology Investment Narrative Recap

To be a shareholder in DXC Technology today, you need to believe that the company’s efforts in digital transformation and AI can counter persistent revenue declines and revive organic growth. While the new partnerships with Acumino, CAMB.AI, and GreenMatterAI showcase momentum in AI, the immediate effect on stabilizing short-term revenues or addressing the ongoing decline in the GIS segment is likely to be modest, given the inherent scale and timing of these projects.

Of recent announcements, DXC’s deal to create the DXC Agentic Security Operations Center with 7AI stands out as especially relevant alongside the new automotive and manufacturing AI partnerships. This reflects a deepening focus on expanding digital offerings through AI-driven solutions, which underpins the most important catalyst for the stock: improved client demand and bookings growth from digital modernization, even as near-term performance remains pressured.

However, investors should not overlook that, despite these innovation efforts, persistent challenges in revenue and margin stabilization continue to weigh on the company’s outlook, especially if…

Read the full narrative on DXC Technology (it’s free!)

DXC Technology’s outlook projects $12.1 billion in revenue and $208.6 million in earnings by 2028. This implies a 1.7% annual revenue decline and a $170.4 million decrease in earnings from the current $379.0 million.

Uncover how DXC Technology’s forecasts yield a $15.12 fair value, in line with its current price.

Exploring Other Perspectives

Six Simply Wall St Community members estimate DXC’s fair value between US$8.06 and US$261.89, indicating significant differences in growth assumptions. Balance these viewpoints with persistent risks to revenue and backlog conversion that could impact near-term earnings and investor sentiment.

Explore 6 other fair value estimates on DXC Technology – why the stock might be worth 46% less than the current price!

Build Your Own DXC Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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