(Reuters) – DXC Technology forecast the second-quarter revenue above Wall Street estimates on Thursday, August 8 2024 driven by steady demand for its cloud-based services from businesses looking to incorporate AI features.
Shares of the Tysons, Virginia-based company rose 7% in extended trading after DXC also raised its annual forecast for revenue.
DXC now expects 2025 revenue in the range of $12.74 billion to $13.02 billion from its prior projection of $12.67 billion to $12.95 billion. Analysts on average expect revenue of $12.8 billion, as per LSEG data.
DXC projected second-quarter revenue in the range of $3.19 billion and $3.22 billion, compared with analysts’ expectations of $3.19 billion.
For the first quarter, DXC reported revenue of $3.24 billion, beating analysts’ estimate of $3.14 billion.
The company’s adjusted profit came in at 74 cents per share in the quarter, compared with 63 cents a year ago.
Buyout firm Apollo Global and Kyndryl Holdings are in talks about a joint bid for DXC, Reuters had exclusively reported in June. The companies have discussed an offer of between $22 and $25 per DXC share.
(Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi)
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