DXC Technology vs IBM
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KIRA’s take AI analyst
I put DXC Technology and IBM side by side, using each one’s latest annual report. Here is what stands out:
- 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 21.4x for DXC Technology.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
DXC Technology
DXC
3/9
Piotroski F-scoreNet debt / EBITDAShare count change
IBM
IBM
6/9
Revenue growth5-year growthNet marginFCF marginReturn on capitalReturn on equity
Side by side
Best in the row
| Latest fiscal year | DXC FY26 | IBM FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.7B | $241.7B |
| 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 | 21.4x | 21.6x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.