July 31 (Reuters) - IT services company DXC Technology ( DXC )

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 ).

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.