Why IT Company DXC Technology Shares Are Down Today

DXC Technology Company DXC shares are trading lower after it disclosed management change.

The company announced the appointment of Raul Fernandez as Interim President and Chief Executive Officer, effective immediately. 

Fernandez succeeds Michael Salvino, who no longer served as the company’s President and Chief Executive Officer on December 18, 2023.

Salvino resigned as a director from the Board on December 19, 2023, and will continue to be employed by DXC in an advisory role until March 31, 2024, to help ensure a seamless transition. 

David L. Herzog, the company’s Lead Independent Director, was appointed Chairman.

Fernandez has served as CEO of several companies, including Proxicom, which he founded, Dimension Data North America and ObjectVideo.

The company disclosed in a regulatory filing that there are no changes to the severance that Salvino is entitled to receive for termination without cause under the employment agreement dated September 11, 2019.

Salvino served as DXC President and CEO since 2019 and as Chairman since 2022.

Guidance: Concurrently, DXC affirmed its previously issued financial guidance for Q3 FY24 revenue of $3.320 billion-$3.370 billion.

The company also confirmed its previously issued fiscal 2024 free cash flow guidance of $800 million. 

Price Action: DXC shares are down 8.8% at $22.83 on the last check Wednesday.