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DXC Technology sees Q3 results above estimates on cloud demand
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DXC Technology sees Q3 results above estimates on cloud demand
Nov 9, 2024 12:45 PM

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.

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