DXC Technology Company's stock experienced a significant pre-market plunge of 17.07% following the release of its fourth-quarter fiscal year 2026 results. The sharp decline came as investors reacted to disappointing financial performance and guidance that fell short of expectations.
The company reported quarterly revenue of $3.13 billion, which slightly missed analyst estimates of $3.145 billion and represented a 1.2% decrease compared to the same period last year. More concerning to investors was the company's net loss of $140 million for the quarter, along with an EBIT loss of $39 million. While adjusted earnings per share of $0.77 beat expectations of $0.70, the overall financial picture showed significant weakness in profitability.
Further pressure on the stock came from a 13.5% year-over-year decline in bookings, signaling softer demand for the company's services. The company's outlook for the first quarter of fiscal year 2027 also contributed to investor concerns, with revenue guidance of $2.97 billion to $3.00 billion and full-year adjusted EPS guidance of $2.40 to $2.90, both below consensus estimates. The full-year revenue guidance of $12.11 billion to $12.35 billion also missed the consensus expectation of $12.66 billion.