DXC Technology cuts full-year revenue forecast on weak IT spending

DXC Technology

01/11/2023 22:02

Nov 1 (Reuters) - IT management firm DXC Technology
 DXC.N  cut its forecast for the full year on Wednesday, as
uncertain economic conditions  force clients to make steeper IT
budget cuts.
    The company faces tough competition from giant IT services
provider like Accenture Plc  ACN.N  and IBM  IBM.N . DXC is also
vulnerable to foreign exchange fluctuations and a strong U.S.
dollar can impact its business as it has significant revenue
streams outside of the United States. 
    The company, which counts London-listed Lloyds Banking Group
 and Germany's Daimler-Benz as its customers, now expects 2024
revenue in the range of $13.58 billion to $13.73 billion from
earlier expectations of $13.88 billion to $14.03 billion.
    The performance of the company's global IT infrastructure
system segment in the quarter was hurt by revenue declines in
cloud and IT outsourcing offerings.  
    DXC posted a 3.6% fall in second quarter revenue to $3.44
billion

 (Reporting by Akshita Toshniwal; Editing by Anil D'Silva)
 ((Akshita.Toshniwal@thomsonreuters.com;))