ASHBURN, Va. - DXC Technology (NYSE:DXC) reported better-than-expected first quarter results and raised its full-year guidance, sending shares soaring 11.8% in after-hours trading on Thursday.
The IT services company posted adjusted earnings per share of $0.74 for the quarter ended June 30, beating analyst estimates of $0.58. Revenue came in at $3.24 billion, surpassing the consensus forecast of $3.13 billion despite declining 6% YoY.
"I am pleased with our first quarter results that came in ahead of our expectations on top line, adjusted EBIT margin and adjusted diluted EPS," said DXC Technology President and CEO Raul Fernandez.
While total revenue fell 6% YoY, the company saw organic revenue decline by a more modest 4.4%. DXC's Global Business Services segment posted 0.5% organic growth.
The company raised its full-year adjusted EPS guidance to $2.75-$3.00, up from its previous outlook of $2.50-$3.00 and above analyst expectations of $2.71. DXC also increased its FY2025 revenue forecast to $12.74-$13.02 billion.
For the current quarter, DXC expects revenue between $3.19-$3.22 billion and adjusted EPS of $0.70-$0.75, both ahead of Wall Street estimates.
The strong results and improved outlook reflect "enhanced execution by our teams along many fronts," according to Fernandez. DXC's shares jumped on the earnings beat and guidance raise as investors cheered the company's progress.
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