DXC Technology cuts revenue forecast, shares tumble
VIRGINIA, UNITED STATES — Multinational IT services and consulting firm DXC Technology revised its annual revenue prediction after reporting lower-than-expected earnings in the second quarter of 2023.
Originally aiming for an annual revenue of $14.40 billion to $14.55 billion, the company now projects between $13.88 billion and $14.03 billion.
The firm said that fierce competition and economic uncertainty are the reasons for cautious spending by businesses.
Another concern for DXC is its revenue from international sources, making it vulnerable to currency fluctuations and geopolitical events.
For the quarter ending June 30, DXC reported revenues of $3.45 billion, missing the expected $3.56 billion. Their adjusted profit decreased to 63 cents per share, below the estimated 82 cents.
Following the news, DXC’s stock fell sharply, declining 15% in extended trading.
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