DXC Reports Strong Q3 Beat, Driven by Cloud Spending
IT services provider DXC Technology (DXC) exceeded Wall Street expectations with its third-quarter earnings report on Tuesday. The company's performance was fueled by robust enterprise spending on its cloud-based solutions.
Accelerating adoption of artificial intelligence (AI) has led to increased investment in cloud computing services, benefiting providers like DXC that offer cloud infrastructure. DXC also provides consulting, engineering, and insurance software services as part of its legacy IT outsourcing business.
DXC reported revenue of $3.23 billion for the quarter ended December 31, slightly below the consensus analyst estimate of $3.25 billion compiled by LSEG. However, the company's adjusted earnings per share of 92 cents topped estimates of 77 cents.
For the fourth quarter, DXC projects revenue between $3.10 billion and $3.13 billion, compared to consensus estimates of $3.23 billion. The company expects adjusted earnings per share of approximately 75 cents, slightly exceeding estimates of 73 cents.