DXC Technology posts better-than-expected Q3 profit on rebounding cloud demand

DXC Technology

01/02/2024 23:00

Feb 1 (Reuters) - DXC Technology  DXC.N  reported
better-than-expected quarterly results on Thursday, on the back
of strong demand for its cloud solutions from clients turning
towards artificial intelligence (AI).
    The IT industry's operations have seen a massive shift from
traditional to cloud-based services as clients increasingly turn
towards more agile, productive and cost-considerate work
processes.  
    Additionally, DXC reaped significant returns from its
digital business and partnerships, allowing the company to
expand its cloud computing services.
    Smaller companies such as DXC compete with the likes of
Accenture  ACN.F , IBM  IBM.N  and Amazon's  AMZN.O  AWS for IT
and professional services and cloud-computing services.
    Shares of DXC rose 1.4% in trading after the bell.  
    The Tysons, Virginia-based company reported third-quarter
revenue of $3.40 billion, beating expectations of $3.36 billion,
according to LSEG data.
    Adjusted earnings were 87 cents per share, above estimates
of 77 cents per share.
    Although DXC had a good quarter, the IT services company
tightened its annual forecast for the third time.    
    DXC expects to report revenue in the range of $13.63 billion
to $13.67 billion annually, compared with its prior forecast of
$13.58 billion to $13.73 billion.
    Adjusted earnings are expected to be $3-$3.05 per share for
2024, compared with the prior range of $3.15-$3.40.    
    Separately, the company also appointed Raul Fernandez as its
President and Chief Executive Officer, effective immediately.
Fernandez had been the interim President and CEO of DXC since
December 2023.
    

 (Reporting by Yamini Kalia in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Yamini.Kalia@thomsonreuters.com;))