DXC Technology reported higher-than-expected quarterly profits due to strong demand for its cloud solutions from clients transitioning to artificial intelligence.
DXC Technology posted better-than-expected quarterly profits on Thursday, citing high demand for its cloud solutions from clients shifting to artificial intelligence (AI).
The IT industry’s operations have undergone a huge change from traditional to cloud-based services as clients increasingly seek more agile, productive, and cost-effective work procedures.
Furthermore, DXC saw considerable returns from its digital business and collaborations, allowing the company to expand its cloud computing offerings.
Smaller organizations, such as DXC, compete with Accenture, IBM, and Amazon’s AWS for IT and professional services, as well as cloud computing services.
DXC shares increased 1.4% after the bell.
The Tysons, Virginia-based company posted third-quarter revenue of $3.40 billion, exceeding forecasts of $3.36 billion, according to LSEG statistics.
Adjusted earnings were 87 cents per share, exceeding expectations of 77 cents.
DXC had a nice quarter, but the IT services giant reduced its yearly projection for the third time.
DXC predicts annual sales in the range of $13.63 billion to $13.67 billion, up from its previous prediction of $13.58 billion to $13.73 billion.
Adjusted earnings are estimated to be $3-$3.05 per share in 2024, up from the previous range of $3.15-$3.40.
Separately, the corporation nominated Raul Fernandez as president and CEO, effective immediately. Fernandez had been DXC’s interim president and CEO since December 2023.
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