Hedge Funds Remain Bullish on DXC Technology Despite Revenue Declines
Despite a challenging year for DXC Technology (DXC), with shares down nearly 16% in 2026, hedge funds remain optimistic. The company's recent earnings showed declining revenue and GAAP losses, particularly driven by its largest segment—Global Infrastructure Services—which saw significant drops in bookings and organic growth. CEO Raul Fernandez acknowledged the struggles but highlighted strong free cash flow performance. DXC has announced several strategic moves to pivot toward AI and digital transformation, including a partnership with Anthropic and an expanded LabX unit. The Insurance Software & Services segment is showing promise, with revenue and booking increases in recent quarters. Additionally, DXC's new OASIS platform leverages AI for faster software delivery. Despite these efforts, the company still expects organic revenue declines through fiscal 2027. However, hedge funds appear to be betting on a long-term turnaround driven by innovation and strong cash flow generation.
Tickers: $DXC
Topics: AI pivot DXC Technology (DXC) hedge funds revenue decline