DXC Technology Co (STU:2XT) ROE %: -18.66% (As of Mar. 2026)


STU:2XT DXC Technology Co STU:2XT
45 GF Score
Price €7.20
GF Value €17.49
Valuation Possible Value Trap
! 2 Warning Signs
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What is DXC Technology Co ROE %?

DXC Technology Co STU:2XT -2.64% 45 ROE % is -18.66% as of Mar. 2026. GuruFocus rates STU:2XT with a GF Score™ of 45/100 and a GF Value™ of €17.49 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,682 Software companies, DXC Technology Co ranks worse than 60.59% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. DXC Technology Co's annualized net income for the quarter that ended in Mar. 2026 was €-488 Mil. DXC Technology Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €2,615 Mil. Therefore, DXC Technology Co's annualized ROE % for the quarter that ended in Mar. 2026 was -18.66%.

The historical rank and industry rank for DXC Technology Co's ROE % or its related term are showing as below:

STU:2XT' s ROE % Range Over the Past 10 Years
Min: -66.34   Med: 1.74   Max: 22.78
Current: 0.58

During the past 13 years, DXC Technology Co's highest ROE % was 22.78%. The lowest was -66.34%. And the median was 1.74%.

STU:2XT's ROE % is ranked worse than
60.59% of 2682 companies
in the Software industry
Industry Median: 4.72 vs STU:2XT: 0.58

DXC Technology Co  (STU:2XT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-487.86/2614.8975
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-487.86 / 10829.8)*(10829.8 / 11201.504)*(11201.504 / 2614.8975)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.5 %*0.9668*4.2837
=ROA %*Equity Multiplier
=-4.35 %*4.2837
=-18.66 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-487.86/2614.8975
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-487.86 / -176.46) * (-176.46 / -159.16) * (-159.16 / 10829.8) * (10829.8 / 11201.504) * (11201.504 / 2614.8975)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 2.7647 * 1.1087 * -1.47 % * 0.9668 * 4.2837
=-18.66 %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


DXC Technology Co ROE % Related Terms


DXC Technology Co ROE % Historical Data

* Premium members only.

The historical data trend for DXC Technology Co's ROE % 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.

DXC Technology Co ROE % Chart

DXC Technology Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.88 -13.51 2.86 12.91 0.56

DXC Technology Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.44 1.94 4.58 13.79 -18.66

STU:2XT vs CLVT, CNXC, GLOB: ROE % Comparison

For the Information Technology Services subindustry, DXC Technology Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry

For the Software industry and Technology sector, DXC Technology Co's ROE % distribution charts can be found below:

* The bar in red indicates where DXC Technology Co's ROE % falls into.


STU:2XT
45GF Score
DXC Technology Co STU:2XT
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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DXC Technology Co ROE % Calculation

DXC Technology Co's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=15.57/( (2986.825+2543.965)/ 2 )
=15.57/2765.395
=0.56 %

DXC Technology Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=-487.86/( (2685.83+2543.965)/ 2 )
=-487.86/2614.8975
=-18.66 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -18.66% mean?
DXC Technology Co (STU:2XT) has a ROE % of -18.66% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on DXC Technology Co and its competitors. According to the industry distribution chart, DXC Technology Co ranks #1625 out of 2682 companies in the Software industry, placing it in the top 60.6%.
Is DXC Technology Co's ROE % too high?
DXC Technology Co's current ROE % is -18.66%. Based on the distribution chart, DXC Technology Co ranks #1625 out of 2682 companies in the Software industry, which is below the industry midpoint. Overall, DXC Technology Co has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DXC Technology Co's ROE % compare to CLVT and CNXC?
According to the Software industry distribution chart, DXC Technology Co ranks #1625 out of 2682 companies for ROE %. This places DXC Technology Co in the lower half of its industry. The industry median ROE % is 4.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on DXC Technology Co and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXC Technology Co's current ROE % is -18.66%. 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 (STU:2XT) is currently considered Possible Value Trap. The stock's GF Value™ is €17.49, compared to a current price of €7.20 — trading 58.8% below its estimated fair value. The current ROE % is -18.66%. DXC Technology Co's overall GF Score™ is 45/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For DXC Technology Co (STU:2XT), the current ROE % is -18.66% 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 (STU:2XT) Overvalued in 2026?

Based on GuruFocus' analysis, DXC Technology Co stock appears to be undervalued. The current stock price of €7.20 is trading 58.8% below its estimated GF Value™ of €17.49. GuruFocus considers DXC Technology Co to be Possible Value Trap.

Key valuation signals for STU:2XT:

  • ROE %: -18.66%
  • GF Value™: €17.49 vs. price of €7.20 (58.8% below fair value)
  • GF Score™: 45/100 with 2 warning signs

No single metric tells the full story. See the STU:2XT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DXC Technology Co Business Description

Address 20408 Bashan Drive, Suite 231, Ashburn, VA, USA, 20147
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.
45GF Score

Get the complete analysis for STU:2XT

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.20
Price
€17.49
GF Value