On February 4, IT services company DXC Technology announced third-quarter profits that surpassed Wall Street expectations, fueled by robust enterprise investment in its cloud-based solutions.

The accelerated adoption of artificial intelligence is driving significant investments from businesses into this technology. This increased demand for cloud computing services, crucial for supporting AI systems, is benefiting companies like DXC that offer cloud infrastructure solutions.

DXC's services include consulting, engineering, and insurance software services within its traditional IT outsourcing business.

In the third quarter ending on December 31, DXC recorded revenue of $3.23 billion, slightly below the average analyst estimate of $3.25 billion according to data from LSEG. However, the company's adjusted earnings of 92 cents per share exceeded the projected 77 cents.

Looking ahead, DXC forecasts fourth-quarter revenue to range between $3.10 billion and $3.13 billion, falling short of the projected $3.23 billion. The company also anticipates an adjusted profit of approximately 75 cents in the March quarter, surpassing estimates of 73 cents.