DXC Technology Reports Revenue and Net Income Decline in Q3 Fiscal 2024

DXC Technology Company reported its financial results for the third quarter of fiscal year 2024, revealing a decline in both revenue and net income compared to the same period in the previous fiscal year. For the three months ended December 31, 2024, the company generated revenues of $3.225 billion, a decrease of 5.1% from $3.399 billion in the same quarter of fiscal 2023. Net income attributable to DXC common stockholders was $57 million, down from $156 million in the prior year, resulting in a basic earnings per share of $0.31 compared to $0.82 a year earlier.

In the nine-month period ending December 31, 2024, DXC's revenues totaled $9.702 billion, a decline of 5.6% from $10.281 billion in the same period of fiscal 2023. The company reported a net income of $125 million for the nine months, significantly lower than the $291 million reported in the previous year. The decrease in profitability was attributed to higher costs of services and selling, general, and administrative expenses, which totaled $9.410 billion for the nine months, compared to $9.863 billion in the prior year.

Operationally, DXC Technology has made strategic adjustments, including a focus on cost management and restructuring efforts. The company reported a reduction in its employee headcount, which is part of its ongoing efforts to streamline operations. As of December 31, 2024, total current assets were $5.075 billion, slightly down from $5.135 billion at the end of March 2024. The company also reported a decrease in total liabilities, which fell to $9.781 billion from $10.805 billion during the same period.

The company’s cash and cash equivalents increased to $1.723 billion as of December 31, 2024, up from $1.224 billion at the end of March 2024, indicating improved liquidity. DXC's strategic focus on enhancing operational efficiency and managing costs is expected to continue, as the company navigates a challenging market environment. Looking ahead, DXC Technology anticipates that its ongoing restructuring initiatives and cost management strategies will position the company for improved performance in the upcoming quarters, although it acknowledges the potential for continued market volatility.