Shares of DXC Technology cratered 16.6% to $12.69 on October 30, erasing roughly $800 million in market value overnight after the company's fiscal second-quarter earnings revealed a revenue outlook far worse than investors had stomached. DXC Technology Beat This Quarter's Numbers — So Why Did Investors Run for the Exits?

Shares of DXC Technology plunged 16.6% to $12.69 the day after its October 29 earnings release, wiping out roughly $500 million in market capitalization despite a quarter that topped Wall Street forecasts on both revenue and earnings. The selloff came even though adjusted earnings per share of $0.67 significantly beat the $0.55 consensus estimate, and revenue of $3.03 billion topped forecasts of $2.98 billion. The culprit: a sharply lowered full-year outlook that told investors the shrinkage is accelerating, not stabilizing.

  • The Guidance Cut That Spooked the Market. DXC lowered its full-year fiscal 2027 revenue guidance to a decline of 5% to 5.5%, citing weaker-than-expected bookings and lower pipeline conversion. That's a significant deterioration from the 3%–5% decline range management had maintained as recently as last quarter. The company also slashed non-GAAP EPS guidance to $2.25–$2.50 (from $2.40–$2.90) and narrowed its adjusted profit-margin target to 5.75%–6.25%. For shareholders, this means the revenue floor is falling and profitability is compressing simultaneously.

  • The Biggest Business Is Shrinking Fastest. Global Infrastructure Services (GIS) — DXC's traditional IT outsourcing arm — posted $1.43 billion in revenue with a 10.0% organic decline, the steepest drop among segments, while bookings fell 13%.

GIS represents roughly 47% of total revenue, and its profit margin collapsed to 4.6% from 7.7% a year ago. This is the heart of DXC's legacy business, and clients are clearly moving spend elsewhere.

  • Insurance Is a Bright Spot — But Too Small to Save the Story. Insurance delivered $394 million in revenue with 23.1% organic growth. However, that surge was driven by a one-time contract modification; excluding it, underlying insurance revenue was roughly flat sequentially.

At just 13% of total revenue, even outsized Insurance performance cannot offset the structural decline of the much larger GIS segment.

DXC also confirmed it is in discussions about a possible sale of the insurance business — which would remove its only growth engine.

  • New Business Isn't Coming In Fast Enough. Total bookings fell 10% year-over-year to $2.4 billion, producing a book-to-bill ratio of just 0.80x for the quarter — meaning DXC signed less than a dollar of new work for every dollar it delivered. Management pointed to AI commercialization progress but acknowledged "core sales execution and revenue stabilization remain unresolved." Until bookings consistently exceed revenue, the decline trajectory won't reverse, and at under $13 a share, the market is pricing in a company still searching for a floor.