DXC Technology vs IBM
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The short version
- IBM is the larger business, with $67.5B of revenue in fiscal 2025 against $12.6B for DXC Technology, about 5.3 times as much.
- IBM grew revenue faster (7.6%, against −1.8%).
- IBM turned more of its sales into free cash flow (17.9% FCF margin, against 8.2%).
- IBM earned a higher return on the capital invested in it (15.4%, against 9.2%).
- Investors pay more for each dollar of IBM’s earnings: a P/E of 21.6x against 21.2x for DXC Technology.
| Latest fiscal year | DXC · FY26 | IBM · FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.7B | $241.8B |
| Revenue | $12.6B | $67.5B |
| Free cash flow | $1.0B | $12.1B |
| Net income | $18.0M | $10.6B |
| Growth | ||
| Revenue growth | −1.8% | 7.6% |
| 5-year growth | −6.5% | 4.1% |
| Share count change | −3.4% | 1.2% |
| Profitability | ||
| Gross margin | — | 58.2% |
| Operating margin | 7.7% | — |
| Net margin | 0.1% | 15.7% |
| FCF margin | 8.2% | 17.9% |
| Return on capital | 9.2% | 15.4% |
| Return on equity | 0.6% | 35.3% |
| Balance sheet | ||
| Net debt | $1.8B | $53.3B |
| Net debt / EBITDA | 0.8x | 3.1x |
| Dividends and buybacks | $249M | $6.3B |
| Valuation & quality | ||
| P/E | 21.2x | 21.6x |
| Piotroski F-score | 7 | 6 |
FY17
DXC $7.6B
IBM $79.1B
FY18
DXC $21.7B
IBM $79.6B
FY19
DXC $20.8B
IBM $57.7B
FY20
DXC $19.6B
IBM $55.2B
FY21
DXC $17.7B
IBM $57.4B
FY22
DXC $16.3B
IBM $60.5B
FY23
DXC $14.4B
IBM $61.9B
FY24
DXC $13.7B
IBM $62.8B
FY25
DXC $12.9B
IBM $67.5B
FY26
DXC $12.6B
IBM —
DXC
IBM
FY17
DXC 8.1%
IBM —
FY18
DXC 13.8%
IBM —
FY19
DXC 15.8%
IBM —
FY20
DXC 10.5%
IBM —
FY21
DXC 6.2%
IBM —
FY22
DXC 8.5%
IBM —
FY23
DXC 7.9%
IBM —
FY24
DXC 7.4%
IBM —
FY25
DXC 7.9%
IBM —
FY26
DXC 7.7%
IBM —
DXC
IBM
FY17
DXC $373M
IBM $13.5B
FY18
DXC $2.3B
IBM $11.9B
FY19
DXC $1.5B
IBM $12.5B
FY20
DXC $2.0B
IBM $15.6B
FY21
DXC −$137M
IBM $10.7B
FY22
DXC $1.2B
IBM $9.1B
FY23
DXC $1.1B
IBM $12.7B
FY24
DXC $1.2B
IBM $12.4B
FY25
DXC $1.2B
IBM $12.1B
FY26
DXC $1.0B
IBM —
DXC
IBM
FY17
DXC —
IBM 12.0%
FY18
DXC 26.2%
IBM 17.2%
FY19
DXC 14.8%
IBM 12.1%
FY20
DXC 11.8%
IBM 4.9%
FY21
DXC 5.7%
IBM 8.0%
FY22
DXC 11.4%
IBM 3.4%
FY23
DXC 12.8%
IBM 12.6%
FY24
DXC 13.0%
IBM 10.4%
FY25
DXC 11.1%
IBM 15.4%
FY26
DXC 9.2%
IBM —
DXC
IBM
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.