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 US$3.23 billion in the third quarter ended December 31, missing the average analyst estimate of US$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 US$3.10 billion to US$3.13 billion, compared with estimates of US$3.23 billion.
It expects an adjusted profit of about 75 cents in the March quarter, compared with estimates of 73 cents.
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