(Reuters) -IT services company DXC Technology raised its annual revenue and profit forecast on Thursday, driven by steady enterprise spending on its cloud-based solutions.    

Businesses' heavy investments in artificial intelligence have resulted in increased demand for cloud computing services that power the technology, benefiting companies that offer cloud infrastructure solutions, such as DXC Technology.

DXC has also benefited from a surge in demand from enterprises as they upgrade and outsource their IT infrastructure, further boosted by AI advancements.

"We're embedding AI across our solutions and combining it with our full-stack expertise to help clients unlock insights and drive outcomes," said CEO Raul Fernandez.

The company provides consulting and engineering services as well as insurance software services as part of its legacy IT outsourcing business.

DXC now expects annual revenue in the range of $12.61 billion to $12.87 billion, an increase from its prior projection of $12.18 billion to $12.44 billion.

It sees second-quarter revenue between $3.15 billion and $3.18 billion, compared with analysts' average estimate of $3.11 billion, according to data compiled by LSEG.

The company reported revenue of $3.16 billion for the quarter ended June 30, beating estimates of $3.09 billion.

Its adjusted profit of 68 cents per share was above estimates of 62 cents apiece.