DXC Technology Co (NYSE: DXC) shares suffered a significant 15% decline on Friday, despite the company's exciting announcement about its new AI platform. This downturn is largely attributed to the company's underwhelming guidance for the future, which has left investors feeling unenthused.

The Virginia-based multinational company joined forces with Ferrovial and Microsoft to launch Quercus, a cutting-edge generative artificial intelligence platform. This innovative platform aims to streamline processes and enhance profitability and efficiency for organizations. Quercus will operate on Azure, with DXC responsible for its development, maintenance, and commercialization. The three companies have pledged to accelerate the adoption of Gen AI as part of their agreement.

Despite this promising AI announcement, DXC's stock has taken a substantial hit, down over 30% from its year-to-date high. The company's revenue decline in the first quarter and its forecast of continued losses in the current quarter and fiscal 2025 have raised concerns among investors. Additionally, DXC's adjusted per-share earnings guidance fell short of Wall Street estimates, further fueling investor disappointment.

Analysts at Susquehanna have reiterated their neutral stance on DXC stock, but adjusted their price target to $15, indicating a potential 10% further decline. The company's future prospects remain uncertain, and investors are adopting a cautious approach, awaiting signs of improvement in DXC's financial performance.