DXC Technology Company (NYSE:DXC) stock is trading higher Monday following reports that the company is in advanced talks to sell its insurance software business to private investment firm Eldridge Industries for $2.4 billion.
Reuters reported Monday, citing people familiar with the matter, that Eldridge is considering combining DXC’s insurance software business with Zinnia, its existing insurance technology platform.
The potential sale comes as DXC seeks to streamline its portfolio after several years of declining revenue. The information technology services provider reported a 1.8% revenue decline to $12.64 billion in fiscal 2026.
Insurance Business Highlights
DXC’s Insurance Software & Services segment generated $1.28 billion in revenue during fiscal 2026, up 5.4% year over year, including 3.6% organic growth. The business accounted for roughly 10% of DXC’s total revenue.
However, segment profit declined 20.4% to $129 million, while its profit margin stood at 10.1%.
The segment’s book-to-bill ratio slipped to 0.76 from 0.77 in fiscal 2025.
The reported $2.4 billion valuation represents approximately 1.9 times the segment’s fiscal 2026 revenue.
DXC held $1.96 billion in cash and cash equivalents as of June 30, 2026.
The insurance business serves life and wealth, property and casualty, and reinsurance providers. It offers AI-powered solutions to help insurers modernize technology and improve customer experiences.
In early October, DXC expanded its Assure Platform with new AI-enabled capabilities designed to streamline underwriting, claims processing and insurance operations.
How DXC’s Insurance Business Could Strengthen Zinnia
Zinnia currently serves more than 100 insurance carriers.
A potential combination could significantly expand its reach. DXC’s insurance business serves more than 1,000 insurance companies, including 21 of the world’s top 25 insurers.
DXC’s insurance technology also supports the processing of more than 1 billion policies across 70 countries.
However, the scope of the proposed transaction remains uncertain, and no agreement has been finalized.
DXC Price Action
DXC Price Action: DXC Technology shares were up 8.55% at $14.78 at the time of publication on Monday, according to Benzinga Pro data.
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