Nov 7 (Reuters) - IT services company DXC Technology ( DXC )
forecast current-quarter revenue and profit above Wall
Street estimates on Thursday, powered by steady enterprise
spending on its cloud-based solutions amid the AI boom.
DXC projected revenue in the range of $3.2 billion and $3.3
billion for the its fiscal third quarter, compared with
analysts' average estimate of $3.21 billion, according to data
compiled by LSEG.
Companies have been increasingly focusing on bringing AI
technologies to their operations, driving demand for cloud
computing services which are key to power AI systems. That has
lifted demand for DXC's cloud infrastructure solutions.
DXC provides consulting and engineering services as well as
insurance software services as part of its legacy IT outsourcing
business, but it has been increasingly focusing on cloud
infrastructure to cater to an AI-driven surge in demand.
It expects an adjusted per-share profit of 75 cents to 80 cents
in the third quarter, while analysts estimate earnings of 69
cents per share.
The company reported revenue of $3.24 billion in the second
fiscal quarter ended September, down about 6% from a year
earlier, but better than estimates of $3.20 billion, per data
compiled by LSEG.
Its adjusted profit of 93 cents per share was ahead of
estimates of 72 cents.