Steady enterprise expenditure on its cloud-based solutions amid the AI boom helped IT services provider DXC Technology expect current-quarter sales and earnings above Wall Street estimates on Thursday.
Based on data provided by LSEG, DXC estimated sales for its fiscal third quarter to be between $3.2 billion and $3.3 billion, while analysts’ average estimate was $3.21 billion.
The need for cloud computing services, which are essential for powering AI systems, has increased as a result of businesses’ growing emphasis on integrating AI technology into their operations. The demand for DXC’s cloud infrastructure solutions has increased as a result.
DXC’s legacy IT outsourcing business includes consulting, engineering, and insurance software services, but in response to an AI-driven spike in demand, the company has been concentrating more on cloud infrastructure.
Analysts predict earnings of 69 cents per share for the third quarter, while it anticipates an adjusted per-share profit of 75 to 80 cents.
According to figures provided by LSEG, the company recorded revenue of $3.24 billion for the second fiscal quarter that ended in September, which was better than projections of $3.20 billion but down roughly 6% from a year earlier.
It exceeded forecasts of 72 cents per share with an adjusted profit of 93 cents.
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