Aug. 21 at 5:16 AM
$DXC
At a recent private investors meeting
DXC's management hinted at a coming turnaround. They cited a revenue inflection point, strong new deal wins, and significant AI adoption for efficiency. New leadership and operational fixes are expected to boost margins. These positive trends and conservative guidance suggest that DXC’s improving fundamentals are not yet reflected in the stock price.
Imminent Revenue Turnaround:
Management believes the long revenue decline is nearing its end. A key indicator is the company's book-to-bill ratio, which has been consistently above 1.0, suggesting that new business wins are on track to eventually offset existing contract run-off.
• Strong Deal Pipeline: The company is winning significant, new-logo contracts, such as a major competitive bid with Carnival Cruise Line. This indicates that DXC is gaining market share in new, strategic projects (e.g., cloud and data) rather than just renewing old work.
