Thoughts?
18 replies (most recent on top)
Thanks for the translation. Should be given to every employee.
Remember Michael Dell took Dell private back in 2013 after it had been a public company. It can happen and M2 openly talked about it with executives when he was CEO.
@dz it can absolutely go private by buying its own shares. Its not the usual way, but it is possible.
@dw Take it private in 4 years? That’s not how the process works. Buying your own shares doesn’t take a company private. Someone else needs to buy out your public shares.
And PE is easily 100x more intense than Wall Street when it comes to asking those relentlessly demanding uncomfortable questions. They have no tolerance for Raul's awkward silences, either. Every pause gets filled because they’re managing their own capital not someone else’s...
No sane private equity would put capital into a business dragging around a 100,000 person aging workforce. Why bother when there are plenty of businesses that generate excellent returns without the human deadweight?
$500m of buyback is more than just over 25% of the outstanding shares... In the next twelve months.
Take it private in 4 years? Avoid having to answer wall streets awkward questions entirely?
@cd+1kg5yp58n you are spot on, DelBean was very nervous and both were minimal on answers just waffling on.
One analyst got fed up of Rarwuls waffle he kept asking him for more detail then sighed and gave up. Rarwul said we can go through it at the Demo day. what a admition of defeat.
How embarrassing, Rarwul doesn't even see what the external world thinks of him. And if he can't express himself on a call, the Demo day is just buying some more time till July.
Company seems to have alot of money, they are buying back $250 shares in 6 months, with what they bought this year as well there wont be many shares left.
Shares plummet 13% 🙃
@bz. You are correct. Our GBS business has been destroyed by Raw and Buville. Until they took over we were growing every year and got bonuses. Now our c suite views us as performing worse than GIS. Gis got bigger bonuses than gbs last year. Its also clear Chris is Raw’s guy, not previous leadership’s guy. Raw gave him his pay increases. I have been told that Raw pushed dxc previous leadership to promote him when Raw was on the board and they became friends.
I thought the earning call was terrible. There was no substance in the answers to the analysts' questions. The was no passion for the business. The executive leadership put very little thought into it. The tone was defeated. I'm glad I sold my shares long ago, I would be appalled as a shareholder today. I heard things like revenue decline was consistent in all areas, meaning consistently bad. I heard the performance was "as expected", meaning expected to continue to have low profit compared to others in the industry, and continued to have 4-5% revenue decline. They blamed the same old things such as slow deals, and money spent on marketing and offerings. They kept highlighting the same things as big wins - insurance, blah, blah, blah. It was not what I expected, but sadly, what should be expected. They have very low expectations internally and externally. No confidence. Just sad.
Yet again our glorious leader can't be bothered to do his job in person and instead thinks using an AI Voice bot makes him look good. Sums up his whole approach to DXC, he'd rather be doing something else
I'm confused at Town halls every leader is at pains to tell us AI isn't replacing staff but in the earnings call they said at least twice that AI is driving headcount reductions.
Apart from that and the usual BS the other thing that stood out was the fact they the highly dubious executive reward boosting share buy backs are increasing, this year $250 million instead of expected $150 million and first half of next year another $250 million.
Earnings were $14.4 billion in 2023 and under Rarwuls rule have gone down to $12.8billion in 2025. Roughly decline by $0.75billion a year. But profits and earnings haven't declined. In fact profit margin has gone from 2% to 8% by employee cuts.
Means Wul is a decline CEO and employees are paying for DXC and rarwuls poor performance.
Its a cash rich generative business as it stands.
Too many words and ugly slides with color choices that subconsciously scream danger. The message is uncertainty dressed up in Wall Street language and bad slides. Strip away the coded buzzwords and their message becomes obvious: we don’t know the fix so we’re dragging the business forward until it gives out.
“Fast track” means they burned two full years chasing maybe 10% of core revenue.
The outcome? A half-baked answer that’s "still in the works"
“Book-to-bill” means revenue keeps rolling over. They see it coming. So do we. Every line of business is headed down.
“Free cash flow” is the real plan. Stay afloat. Preserve cash. No growth required.
“Buybacks” means shrink the company without saying shrink. Keep investors happy. Prop up the stock.
“Capital reallocation” and “investing in the business” are just polite ways of saying they’ll pay the creditors and lay off employees.
You guys were talking bad about me while I was the ceo
5.4% operating margin, same as Q3 last year.
Good that it's flat but quite clear they aren't about to want to see that down by giving us a raise.
No, they'll sp--k their cash on debt and buy backs.
The last five years they've repurchased 31.3% of the shares...
all as expected. World record run of declining revenue quarters extended to 35, with high confidence it will be 36 in 3 months time with a bigger decline forecast
Book to bill declining rapidly indicating a likely increase in declining revenue in further out quarters
No mention of the significant "currency tailwinds" that assisted in these results. CEOs and CFOs are always quick to identify currency headwinds as a challenge but never acknowledge the reverse. The US$ has fallen a lot so the large outside-US revenue numbers will be much larger than expected
But not going out of business (yet) as cash flow positive and it will continue to be allocated in the usual way - $650M in total = $150M to exec bonuses/pay rises, $500M spread between share buyback and retiring debt, $0 allocated to staff pay rises
Nothing to see here, please move along, see you in April/May's update.
And they also announced a staggering $250 billion buyback for the next half year, could be $500 million for a full year.
The profits are overflowing it seems.
Definitive pay rises to be given.
This company is making been been big money. Pay rise needs to be very decent this year.
650million cash profit for the year reconfirmed.
Net debt reduced, Paid off 500 million of debt, so that's like making 1.1 billion in the year in total.
Earnings of nearly 1USD for the QTR, above expectations.
Don't take any billshit, everyone deserves a big rise the money is there.