A Look At DXC Technology’s Valuation As New Telenor And BAE Systems Partnerships Take Shape

May 29, 2026 - 09:09

DXC Technology has been making moves on the client side, landing a new partnership with Telenor Sverige AB while also extending its long-standing relationship with BAE Systems through a fresh five-year agreement. Both deals center on cloud-based and AI-ready infrastructure for large, complex organizations, giving a clearer picture of where DXC is steering its services.

The Telenor partnership focuses on modernizing the telecom company's IT environment, shifting workloads to the cloud and building a foundation for future AI applications. For BAE Systems, the renewed contract continues a decade-long collaboration, with DXC providing secure digital transformation services. These are not small, one-off projects. They are recurring, long-duration engagements that could stabilize revenue and improve visibility for investors.

From a valuation standpoint, DXC has traded at a discount compared to peers in the IT services space, partly due to concerns about legacy business drag and uneven execution. But these partnerships suggest the company is successfully targeting high-value, complex clients that need both scale and security. If DXC can convert these wins into consistent margins, the current valuation might start to look more attractive. The market will be watching whether these deals translate into higher earnings growth or if the stock remains stuck in a value trap.