DXC Technology CoFRA:2XT -3.46%52 Gross Margin % is 23.10% as of Mar. 2026, which is 3% below its 10-year median of 23.93. GuruFocus rates FRA:2XT with a GF Score™ of 52/100 and a GF Value™ of €17.88 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,685 Software companies, DXC Technology Co ranks worse than 73.07% on this metric.
The historical rank and industry rank for DXC Technology Co's Gross Margin % or its related term are showing as below:
FRA:2XT'
s Gross Margin % Range Over the Past 10 Years
Min: 20.55 Med: 23.93 Max: 27.98
Current: 23.97
During the past 13 years, the highestGross Margin % of DXC Technology Co was 27.98%. The lowest was 20.55%. And the median was 23.93%.
FRA:2XT's Gross Margin % is ranked worse than 73.07% of 2685
companies
in the Software industry
Industry Median: 40.45
vs FRA:2XT: 23.97
DXC Technology Co had a gross margin of 23.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for DXC Technology Co was 3.10% per year.
DXC Technology Co (FRA:2XT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DXC Technology Co had a gross margin of 23.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DXC Technology Co Gross Margin % Related Terms
DXC Technology Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for DXC Technology Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2XT vs CLVT, CNXC, GLOB: Gross Margin % Comparison
For the Information Technology Services subindustry, DXC Technology Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DXC Technology Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, DXC Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DXC Technology Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DXC Technology Co (FRA:2XT) has a Gross Margin % of 23.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DXC Technology Co and its competitors. This is near median its historical median of 23.93. Over the past decade, DXC Technology Co's Gross Margin % has ranged from 20.55 to 27.98. According to the industry distribution chart, DXC Technology Co ranks #1962 out of 2685 companies in the Software industry, placing it in the top 73.1%.
Is DXC Technology Co's Gross Margin % too high?
DXC Technology Co's current Gross Margin % of 23.10% is near median its 10-year median of 23.93. Over the past 10 years, this metric has ranged from a low of 20.55 to a high of 27.98. The Software industry median Gross Margin % is 40.45. DXC Technology Co's value of 23.10% is 42.9% below this industry median. Based on the distribution chart, DXC Technology Co ranks #1962 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, DXC Technology Co has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DXC Technology Co's Gross Margin % compare to CLVT and CNXC?
According to the Software industry distribution chart, DXC Technology Co ranks #1962 out of 2685 companies for Gross Margin %. This places DXC Technology Co in the lower half of its industry. The industry median Gross Margin % is 40.45. DXC Technology Co's value of 23.10% is 42.9% below this benchmark. Historically, DXC Technology Co's own Gross Margin % has ranged from 20.55 to 27.98 over the past decade. While the company's 10-year median is 23.93 vs. the industry median of 40.45, DXC Technology Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXC Technology Co's current Gross Margin % of 23.10% is 42.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DXC Technology Co and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXC Technology Co's current Gross Margin % is 23.10%, which is near median its own 10-year median of 23.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DXC Technology Co stock overvalued right now?
Based on GuruFocus' analysis, DXC Technology Co (FRA:2XT) is currently considered Possible Value Trap. The stock's GF Value™ is €17.88, compared to a current price of €7.11 — trading 60.3% below its estimated fair value. The current Gross Margin % is 23.10%, which is near median its 10-year median of 23.93 and 42.9% below the Software industry median of 40.45. DXC Technology Co's overall GF Score™ is 52/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DXC Technology Co (FRA:2XT), the current Gross Margin % is 23.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DXC Technology Co (FRA:2XT) Overvalued in 2026?
Based on GuruFocus' analysis, DXC Technology Co stock appears to be undervalued.
The current stock price of €7.11 is trading 60.3% below its estimated GF Value™ of €17.88.
GuruFocus considers DXC Technology Co to be Possible Value Trap.
Key valuation signals for FRA:2XT:
Gross Margin %: 23.10% (near median its 10-year median of 23.93)
GF Value™: €17.88 vs. price of €7.11 (60.3% below fair value)
Industry Position: 42.9% below the Software median (#1962 of 2685)
No single metric tells the full story. See the FRA:2XT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.
52GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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