DXC raises annual forecast on robust cloud demand
Businesses' heavy investments in artificial intelligence have resulted in increased demand for cloud computing services that power the technology, benefiting companies that offer cloud infrastructure solutions, such as DXC Technology.
DXC has also benefited from a surge in demand from enterprises as they upgrade and outsource their IT infrastructure, further boosted by AI advancements.
"We're embedding AI across our solutions and combining it with our full-stack expertise to help clients unlock insights and drive outcomes," said CEO Raul Fernandez.
The company provides consulting and engineering services as well as insurance software services as part of its legacy IT outsourcing business.
DXC now expects annual revenue in the range of $12.61 billion to $12.87 billion, an increase from its prior projection of $12.18 billion to $12.44 billion.
It sees second-quarter revenue between $3.15 billion and $3.18 billion, compared with analysts' average estimate of $3.11 billion, according to data compiled by LSEG.
The company reported revenue of $3.16 billion for the quarter ended June 30, beating estimates of $3.09 billion.
Its adjusted profit of 68 cents per share was above estimates of 62 cents apiece.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
39 minutes ago
- CNA
Intel's credit rating downgraded by Fitch on demand challenges
Fitch downgrading U.S. chipmaker Intel's credit rating by one notch on Monday, according to a note by the ratings agency, which assigned a negative outlook to Intel's rating. Fitch downgraded Intel to BBB from BBB-plus, placing it just two notches shy of junk credit status. The downgrade follows Fitch's assessment that Santa Clara, California-headquartered Intel faces heightened challenges maintaining demand for its products. Fitch cited growing competition from peers such as Dutch rival NXP Semiconductors, Broadcom Inc and Advanced Micro Devices. "Credit metrics remain weak and will require both stronger end markets and successful product ramps, along with net debt reduction over the next 12-14 months" for Intel to recover its recent ratings, Fitch analysts wrote on Monday. Fitch added that while Intel holds a better market position than other similarly rated peers, its financial structure is relatively weaker and it faces "higher execution risk." Intel still enjoys a strong market position in the provision of PCs and traditional enterprise servers, Fitch noted, while warning the company faces heightened PC competition from Qualcomm and AMD. Intel will need to ramp up its PC shipments while also reducing its balance sheet debt to recover its previous credit ratings, Fitch said. The ratings agency called Intel's liquidity profile "solid," which as of June 28 consisted of a $21.2 billion mix of cash, cash equivalents and short-term investments, as well as an untapped $7 billion credit revolver. It also had an undrawn $5 billion, 364-day revolver that will come due in January 2026, Fitch said. Fellow ratings agency S&P Global similarly downgraded Intel's credit rating to BBB from BBB-plus in December, while Moody's Ratings downgraded its senior unsecured debt's rating in August last year.
CNA
an hour ago
- CNA
Palantir lifts annual revenue forecast again as AI demand accelerates
Palantir Technologies on Monday raised its annual revenue forecast for the second time this year, expecting sustained demand for its AI-linked services from businesses and governments. The data analytics and defense software firm is getting a boost from U.S. President Donald Trump's focus on national security and a shift in the Pentagon's software-buying process towards commercial and "non-traditional" providers. Last week, the U.S. Army said it might purchase services of up to $10 billion from the company over a decade. Palantir's shares were up 4 per cent in extended trading. They have more than doubled in value this year, as investors bet on the company's ability to benefit from the proliferation of AI technology and government spending on defense tech. The company projected revenue in the range of $4.14 billion to $4.15 billion this year, up from its earlier forecast of between $3.89 billion and $3.90 billion. The raised forecast is also above analysts' average estimate of $3.90 billion, according to data compiled by LSEG. Sales to the U.S. government jumped 53 per cent to $426 million, representing more than 42 per cent of total second-quarter revenue of about $1 billion, which beat estimates. "They have accelerants on both sides (commercial and government)" said Gil Luria, an analyst at D.A. Davidson who has a "neutral" rating on the stock. "On the government side, their capabilities have gotten to a point where they can be the lead contractor on increasingly large projects." Palantir, co-founded by tech billionaire Peter Thiel, said it expects revenue derived from U.S. businesses to come in above $1.30 billion this year, up from its earlier guidance of more than $1.18 billion. The company beat second-quarter adjusted earnings expectations and forecast current-quarter sales above estimates. HIRING FRENZY Palantir expects expenses to significantly ramp up in the third quarter due to the seasonality of the hiring process, CFO David Glazer said during a post-earnings call. Tech firms have been competing to attract and retain top talent, as they race to champion rapidly evolving AI technology. "We are doing very well on the talent acquisition and retention side," CEO Alex Karp said on the call. As the hiring frenzy for AI roles escalates to professional athlete levels, Karp said that recruiting did not focus on educational background.
CNA
an hour ago
- CNA
CFTC to allow listed spot crypto trading on registered exchanges
The Commodity Futures Trading Commission said on Monday it would allow trading of spot crypto asset contracts that are listed on a futures exchange registered under the regulator. The digital assets industry has seen progress under President Donald Trump's administration, as bills like the GENIUS Act and CLARITY Act have provided more regulatory certainty. The commission will enable immediate trading of digital assets at the Federal level in coordination with the Securities and Exchange Commission's "Project Crypto", CFTC acting chairman Caroline Pham said. The CFTC invited stakeholders on how to list the spot crypto asset contracts in a designated market. SEC Chair Paul Atkins outlined several pro-crypto initiatives last week, including directing staff to develop guidelines to determine when a crypto token qualifies as a security, and proposals for various disclosures and exemptions. The two regulators' approach marks a significant victory for the crypto industry, which has long advocated for tailored regulations. "Together, we will make America the crypto capital of the world," Pham said.
