Quarterly Update
published on May 29, 2018
Report Overview:
NelsonHall’s Quarterly Update on DXC provides a snapshot of developments at DXC in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on DXC Technology (DXC) provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on DXC Technology, looking at financial performance and key developments during the period.
Key Findings & Highlights:
Q4 and FY18 performance: revenue runoff less than expected; above target cost savings and automation drive significant margin expansion. But lack of momentum in bookings
- Q4 revenues above expectations;improving growth in digital, though analytics, cyber remain weak
- FY18 revenues: revenue decline from traditional services was less than expected, but so was the rate of growth in some of the new offerings
- Exceeds Year 1 initial cost savings target by $100m; drives major margin improvement across all segments
- B2B excluding USPS reaches 1x
- Anticipates flat growth in FY19
Two more acquisitions add scale to DXC’s Eclipse practice
USPS spins off late May; Perspecta starts trading June 1