The current numbers don't convince me.
Shareprice is up 4% after close of market. So at least some one is happy with only 4% revenue decline yoy.
Bookings are going up. But this was told in some of the previous quarters as well.
Even with a book to bill ratio bigger than one DXC management is able to drive the revenue down. How come?
When M2 showed up he was very focused on book to bill metric. Accenture uses this metric as a sign of its health and growth. But it can be misleading if not measured consistently, and if the business management is not very good. Book to bill is a ratio of new bookings to billings. It’s easier to trust from a widget product company than from a service company. Selling a widget if you sell as you produce, then b-to-b is 1. If “bookings” are higher than billing then it looks like there is demand for your services. But we know in DXC that a sales booking does not guarantee they actually get that future revenue. DXC gets a big sale but tends to mismanage it to an actual lower revenue due to lags in delivery or other factors. In IT services billing is often tied to future delivery milestones. You don’t get the money until you have delivered something. This can be months and years in IT services delivery. Consulting based on hours is better model to convert sales to revenue quickly. Too bad most of DXC don’t really understand how it all works and manages better. This is failure from the top of the company for not actually training its leaders/managers. They actually keep them in the dark and assume they will do the right things. No strategy for change. No effective communication of expectations. No incentives to drive change. Just throw stuff against the wall and hope something sticks. Revenue goes down because they don’t effectively manage the business end to end. They never get full value from deals and they are slow to bill. They have improved days outstanding since M1 but still mismanaging overall.
"They make it so hard for the customer to request the simplest of things."
Thats what useless Broc is a master off. He will orevent anything useful happening, he would rather you fill out 4 different timesheet approvals.
@hz They make it so hard for the customer to request the simplest of things. And DXC has no way of recording what gets done, or measuring it's value. We're not all up our as--s jobsworths at DXC. If we can help out clients we will. Which is pretty much the only reason we've kept some contracts as long as we have. If you make it impossible for us to charge our time. We won't. The customer doesn't need a 8 week project and a team of 10 just to change a few config file settings.
@hz bookings equals revenue. Yet revenue is falling.
That's the point.
Something wrong there, it's probably something gamed to get the book to bill numbers.
On the different matter of margin I seem to remember them saying that the ebit margin was something like 2.4%. That's appalling.
However that's really a distraction as revenue is the key thing that dxc is lacking.
Booking might be up but profit margin is going down as DXC doesn’t know how to manage an account
When I was in the UTC account we did way more than was in the contract because the customers came directly to the technician. We weeebt managed in such a way to tell them to spark tve manager
@dg+1k1h6f4v0 "commander in chief" ha ha the world has moved on from the tariff king. He will change his mind in the next 5 mins.
Its just another way to raise taxes on US consumers for his own needs.
Isn't it strange all the people at the top know how to take money from the workers.
It's down ten percent along with much else as the commander in chief has spooked the global market...
10% down today, wow Rawul how long have we got left?
Share price has tanked down again.
Looks like the Analyst have read this site today and worked out the real answers of whats going on.
If only they asked the proper questions in the first place.
I've tried to track the book to bill numbers they've announced over the various quarters to try and figure out if something is fishy... Because as the op says it's always at least 1:1 or better yet the revenue keeps falling.
Not easy to gather that information.
The only people buying the shares is the company itself to give to it's execs. The fact they went right down helps them buy them cheap. Although they'd probably like to be able to sell them for more $'s when it comes to it. They are being given so many it probably makes little odds to their retirement plans - it's still loads of money for doing not a lot!
I think we're all probably in the same boat as far as our attitude to DXC now.
If dxc really used AI like he claimed there would be little or no use for managers on big pay doing approvals. Yet there's armies of managers just ticking boxes and more being added.
Remove bureaucracy, layers, win business and deliver that's all you need. Pay staff properly to achieve all that instead of robbing them and expecting big things.
so another quarter with declining revenue (33rd in a row). Bookings still below 1.0 so no sign to end of revenue decline. Profitability lower in all areas compared to last year. Results were in line with the (gloomy) forecast so there will be no major movement in share price. Share buyback continues.
As predicted in other posts there was the usual stupid comments about AI (50,000 staff AI ready and waiting to assist etc) and the GenAI generated headline comment seems to have had the end of the statement cut off by mistake. The full sentence actually read
"We're embedding AI across our solutions and combining it with our full-stack expertise to help clients unlock insights and drive outcomes. With a strong foundation in place, we're confident in our direction heading straight off the nearest cliff".
Rawl was clear that Americas is the problem. ‘Europe and APAC are growing’. We don't want Fa-t at clients with us and all he wants to push is commodity work. At least they fired Bovwille. Based on this quarter Bovwille drove negative 3%+ growth over q2fy25-q1fy26 with his ibmers (including our cfo who bovwille told us all was his main backer to get rid of everyone). Gbs used to be the positive growth engine of dxc before bovwille. Bovwilles team is just as to blame as he is…they know who they are. Hopefully we make a change with fa-t to get a leader vs dictator who doesn't know what clients mean in a services business.
All they did was to say were managing the decline. Bit off a fob off another quarter conference call quarter got through.
Rwool played on AI implying new offerings marketing which will generate new revenue. Analyst always like potential more revenue stories and thats why the Share price has steadied. He has bought himself 6 more months.
He slipped up though and the truth came out if the analyst were really listening carefully, reality is he said they are experimenting with Ai, which is way behind Meta, MS, google, and others.
The new Indian guy is to convert pipeline into revenue, and streamline. He has no chance as large part of delivery managers are old blockers and there job is introduce process and stop things.