(Reuters) – IT services company DXC Technology reported a third-profit on Tuesday that beat Wall Street estimates, driven by strong enterprise spending on its cloud-based solutions. As the adoption of artificial intelligence speeds up, businesses are investing heavily in the technology. This surge in demand for cloud computing services that power AI systems benefits companies […]
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DXC Technology beats third-quarter profit estimates on steady IT services spending
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(Reuters) – IT services company DXC Technology reported a third-profit on Tuesday that beat Wall Street estimates, driven by strong enterprise spending on its cloud-based solutions.
As the adoption of artificial intelligence speeds up, businesses are investing heavily in the technology.
This surge in demand for cloud computing services that power AI systems benefits companies that offer cloud infrastructure solutions, such as DXC.
The company provides consulting and engineering services as well as insurance software services as part of its legacy IT outsourcing business.
DXC reported revenue of $3.23 billion in the third quarter ended Dec. 31, missing the average analyst estimate of $3.25 billion, according to data compiled by LSEG.
On an adjusted basis, the company earned 92 cents per share, beating estimates of 77 cents.
DXC forecast fourth-quarter revenue in the range of $3.10 billion to $3.13 billion, compared with estimates of $3.23 billion.
It expects an adjusted profit of about 75 cents in the March quarter, compared with estimates of 73 cents.
(Reporting by Priyanka.G in Bengaluru; Editing by Alan Barona and Shounak Dasgupta)