DXC Chairman and CEO Raul Fernandez says the company is betting big on agentic AI to revive growth, touting internal proof points, faster customer deals, new AI talent pipelines and top executive moves built for speed.
DXC Technology is continuing to expand its AI capabilities in the face of changing customer requirements, starting first by using new technologies to improve its own operations before rolling them out to customers, DXC Chairman and CEO Raul Fernandez told financial analysts Thursday.
Fernandez, during his prepared remarks during DXC’s first fiscal quarter 2027 financial analyst conference call, also introduced three new members of the Ashburn, Va.-based company’s top executive team.
Fernandez told analysts that for DXC, ranked No. 16 on CRN’s 2026 Solution Provider 500, it is becoming increasingly clear that the opportunity in front of the company is not simply to use AI to make its existing business more efficient, but instead to use AI to change how the company builds, sells and delivers technology and ultimately return DXC to growth.
[Related: DXC Launches AdvisoryX, Leverages All DXC Capabilities To Help Clients Adopt AI]
“The most important thing we can demonstrate today is not our vision for AI; it’s proof,” he said. “Over the last year, DXC has adopted a simple philosophy we call ‘Customer Zero:’ build it, run it in our own environment, prove it works, measure the results and then take it to our customers. This approach is producing tangible results.”
For example, Fernandez said, DXC’s agentic Security Operations Center has transformed how the company detects and responds to threats.
“With traditional software and manual processes, mean time to intrusion detection was approximately 21 minutes,” he said. “With our agentic SOC solution, we are seeing that reduced to approximately six seconds. This is not incremental improvement. This is a fundamentally different operating model for our cybersecurity.”
DXC is seeing similar outcomes for DXC Oasis, the company’s new intelligent orchestration model for its managed services business that combines human expertise with agentic AI, which Fernandez said is now deployed across 57 customer environments.
“Oasis is helping organizations improve the speed, consistency and intelligence of mission-critical IT operations,” he said. “In measured use cases, we have seen significant reductions in resolution time and ticket backlogs while maintaining high diagnostic accuracy. What matters is not simply that these technologies work together. What matters is that they are creating customer demand, shortening time to value, and expanding the set of opportunities where DXC can lead.”
The Promise Of AI
Business organizations worldwide are excited about the potential and promise of AI, but they want to adopt it responsibly with innovation but also with trust, Fernandez said.
“We believe enterprises will not deploy agentic AI at scale unless they can trust the architecture underneath it,” he said. “That means protecting customer data, preserving governance, maintaining auditability and ensuring accountability for business outcomes. This is where DXC is uniquely positioned. For decades, our customers have trusted us to operate some of the most critical systems, applications and infrastructure. As AI adoption accelerates, we believe that trust becomes even more valuable.”
Another differentiation principle at DXC is its “connect, don’t convert” strategy, Fernandez said.
“We do not believe enterprises should have to discard decades of business logic, institutional knowledge and technology investment in order to benefit from AI,” he said. “Instead … we help customers preserve the [technologies] that run their businesses while unlocking new levels of automation, insight and productivity. Their legacy investments are not liabilities; they are strategic assets. By combining AI with the technologies customers already depend on, DXC can accelerate modernization while reducing risk, cost and disruption.”
DXC’s return to growth increasingly will be fueled by products and solutions the company builds in a capital-light way, which Fernandez said does not mean mergers and acquisitions or buying growth.
“It is about taking the assets we already have, our customer relationships, our industry expertise, our heritage platforms, our proprietary IP and our 113,000 colleagues and using that to build products around them faster with less capital and less dependency on incremental labor. … We are already seeing evidence of this in how customers move,” he said. “Where traditional enterprise technology sales cycles have historically taken six to 12 months, we are now seeing evaluation, proof of value and contracting in six weeks or less. For Oasis, prospects are completing full evaluations and reaching contract stage in under six weeks.”
That kind of acceleration matters because faster innovation creates faster adoption, which leads to more proof points, which creates more demand, Fernandez said. He cited as an example DXC’s forward-deployed engineer (FDE) model, which brings a new class of hybrid AI builders who work directly inside customer environments to turn AI concepts into deployed outcomes and capturing reusable patterns that allow the company to scale.
“In mid-July, we began certifying DXC engineers with Anthropic through hands-on base camps in San Francisco and London,” he said. “This brings together some of the best technical talent from DXC and Anthropic and creates a new class of forward-deployed engineers who take these capabilities directly into customer environments.”
Together with Anthropic, DXC’s goal is to certify tens of thousands more cloud-certified engineers and builders and is developing a multilingual forward-deployed engineer certification model that combines Amazon Quick Sweep, Anthropic, Microsoft Copilot, 7AI and ElevenLabs, whose FDE partnership we announced earlier this week, with our proprietary Discover Build Scale methodology,” he said.
Fernandez said when he compares DXC today versus a year ago, he sees a company increasingly turning strategy into execution.
“We have clearer priorities,” he said. “We have stronger leadership. We have built and deployed real agentic solutions with measurable results. We have trusted partnerships. And we are creating a new generation of AI-enabled talent and capabilities. Importantly, we are seeing customers respond. The strategy remains unchanged. We will continue to stabilize and improve the core business while building AI-native sources of growth. What has changed is the evidence. We are proving our technology. We are proving our operating model, that AI can create a stronger, more profitable and more sustainable DXC.”
When asked by an analyst how AI is impacting data center demand, Fernandez said that as customers are looking at their requirements, they have questions about whether they are taking the right technical approach, whether there’s enough agentic AI in a solution, and what the useful life of the solution will be.
“Those questions are absolutely smart, needed and should be asked,” he said. “But those questions do introduce delay in decision-making. I think that that is something that will dissipate over time, as those questions and cycle time become shorter, and as more proof points are deployed and people can point to real returns, and they can move more quickly to saying yes to the new kind of agentic products.”
Complexity drives the need for DXC and others more than ever because of the real-time need to understand how to optimize architecture, tokens and harnessing which model, Fernandez said.
“I do believe, medium to long term, it’s a huge upside for us because we’re in the middle of solving these for a small set of customers,” he said. “But that small set of customers and those proof points are going to be very valuable to us as we scale, and frankly, as we have deployable, multilingual, certified FDE talent.”
Executive Reorganization For An Agentic AI World
Fernandez also said during his prepared remarks that people and leadership in a business are increasingly important as companies move to the agentic AI phase.
“An agentic company operates differently,” he said. “It needs to move faster, make decisions closer to the customer, build and deploy solutions more quickly, and continuously learn. That requires leaders with deep customer understanding, commercial discipline, entrepreneurial thinking, and the ability to bring people together to deliver better outcomes for customers.”
To that end, DXC Thursday unveiled the hiring of Paul Taylor as its new president. Taylor previously served as a partner at HIS Market, and most recently founded and led HUB, an AI-driven financial technology business acquired by OSTTRA.
“Paul brings the combination of commercial leadership, entrepreneurial thinking and operational expertise needed to leverage world-class technology, great teams and deep customer relationships to help customers transform their businesses,” Fernandez said.
With the hiring of Taylor, Fernandez will give up his president role and remain as DXC’s chairman.
Also new on the executive team is Dan Gray, who is coming in as president of DXC’s Global Infrastructure Services (GIS) business. He is taking over that role from Chris Drumgoole, who will depart DXC to take on an elevated leadership role outside the company and will join as a founding member of DXC’s newly formed CEO Advisory Council, Fernandez said.
Gray, a 19-year DXC veteran, has co-led the development of Oasis and DXC’s agentic SOC solutions, Fernandez said.
“He brings both the technical understanding and the operating mindset that we need to accelerate the transformation of GIS,” he said.
The addition of Taylor and Gray to the top executive team follow the move earlier this week to promote Holly Grant to president of AI Innovation Strategy and LabX.
When asked by an analyst why DXC felt the need for new leadership, Fernandez said that running a company in an agentic world is very different than anybody’s previous work experience.
“Finding the right attributes that define an ‘A’ player in an AI world has been something that we’re all going through the discernment phase,” he said. “But you realize that there’s certain things that that keep coming up as early indicators of success. One, an ability to move very quickly, an ability to move in a nonlinear way and also in a nonstructured way, so traditional engagement pyramids, etc., those are gone. In a world where you are quickly discovering, building and scaling, traditional methodologies are gone. So, looking for quick, thoughtful, technically deep talent that can manage in a new fashion—and really, the bottom line is speed and agility—those are the key attributes. And I’m just super happy that we had a great bench of great young leaders that are now getting an opportunity to be front and center and display what I think are the key attributes for success in an AI world.”
DXC By The Numbers
For its first fiscal quarter 2027, which ended June 30, DXC reported total revenue of $3.00 billion, down about 5 percent from the $3.16 billion the company reported for its first fiscal quarter 2026.
That included revenue of $1.23 million for DXC’s Consulting and Engineering Services (CES) business, down 1.2 percent year over year; $1.45 billion for its GIS business, down 9.4 percent; and $319 million for its Insurance Software and Services business, up 1.9 percent.
Total revenue beat analyst expectations by $10 million, according to Seeking Alpha.
For the quarter, DXC also reported GAAP net earnings of $126 million, or 73 cents per share, up significantly from last year’s $18 million, or 9 cents per share. On a non-GAAP basis, DXC reported net earnings of $71 million, or 40 cents per share, down from last year’s $128 million, or 68 cents per share.
Non-GAAP earnings missed analyst expectations by 5 cents per share, according to Seeking Alpha.
Looking ahead, DXC expects second fiscal quarter 2027 revenue of $2.97 billion to $3.00 billion, down 5.5 percent to 6.6 percent over last year. The company also expects non-GAAP earnings of about 55 cents per share.
