DXC Technology encountered a setback as it released its quarterly sales figures, falling short of expectations due to escalating competition and reduced corporate expenditure driven by economic uncertainties. Consequently, the IT services provider has revised its annual revenue projection downwards.
In the wake of these developments, the company’s stocks experienced a sharp decline of approximately 15% during the extended trading period.
DXC has now adjusted its anticipated yearly revenue range to be between US$13.88 billion and US$14.03 billion. This revision comes in contrast to its earlier forecast of US$14.40 billion to US$14.55 billion.
The intensifying competition landscape, notably from industry giants such as Accenture, has presented challenges to DXC. These industry leaders’ greater scale and more expansive business models have granted them a competitive edge over DXC.
Furthermore, DXC’s substantial portion of revenue generated beyond the United States has rendered it susceptible to fluctuations in exchange rates and geopolitical instabilities in an already unpredictable market environment.
In the fiscal quarter concluding on June 30, DXC reported a revenue of US$3.45 billion, a figure that fell below the average estimate of US$3.56 billion according to Refinitiv data provided by analysts.
The company’s adjusted profit for the same quarter declined to 63 cents per share, which contrasts with the projected figure of 82 cents. This underperformance signals the challenges DXC has encountered in maintaining profitability in the current competitive and uncertain economic landscape.